BRIEFING Number 17 G April 1996

WBhat’s left of Latvalaws - lookineg for aneswers, Pn réval’s inatugurhation, eNational Paplace, 7eth Febrauary 19s96 aPhoton by Leath Gos rdon and the donors

he new President, Rene Préval, has unveiled his strategy to try the private sector at a 25% interest rate. It was, he said, left with Tto repair Haiti’s shattered economy. His government, lead by no other choice but to accept the IFI’s offer of loans at a much Prime Minister Rony Smarth, has vowed to re-launch nation - reduced rate. al production in areas such as agriculture, tourism and other ser - The provision of these loans is dependent on the application of vice industries, to privatise state enterprises, and to restructure the a structural adjustment programme (SAP) which directly conflicts public sector. with a revival of domestic agricultural production. On the con - With the appointment of Smarth, an agronomist, and by fre - trary, the stipulation that import tariffs are abolished threatens to quent public references to his intention to prioritise domestic agri - destroy traditional Haitian agriculture. When asked how the inter - cultural production, Préval has set out his stall as ‘president of the ests of Haiti’s peasant farmers might be protected under agree - peasants’. His fact-finding visits to the main farming areas of the ments with the IMF and World Bank, the new Agriculture Artibonite, the north-east and the south have raised expectations Minister Gerald Mathurin told the Inter Press Service , ‘’This has that his government will provide much needed assistance to the not yet been resolved.’’ agricultural sector. What has been determined is that the programme to privatise How this laudable ambition can be realised in the context of the certain state enterprises, another part of the SAP demanded by the Haitian government’s declaration that it is totally reliant on funds IMF and World Bank, will go ahead. This was announced by provided by the international financial institutions (IFI) remains to President Préval on the eve of his visit to the United States at the be seen. end of March. While this move was warmly received in According to Chavannes Jean-Baptiste, who headed the presi - Washington, in Haiti opposition was voiced by unions and popu - dential transition team and participated in the discussion of the lar organizations as well as some Haitian leaders close to the gov - new government’s economic policies, Haiti faces total bankruptcy ernment. They argue that privatisation will accentuate the poverty within two months. Jean-Baptiste said the government had dis - of the urban and rural masses, and only profit those who already counted the options of printing more money, or borrowing from have the economic advantage in the country. (See centre pages.) Sell off and s Haiti’s popular organisations oppos

ne of the hottest political generate sufficient profits and great - A representative of the cement Union leaders Oissues in Haiti is whether the ly improve the quality of service. workers’ union told Haiti Info , “To mobilise public op government should privatise In February 1996, Bejin Jean privatise the cement plant and the mentary support the country’s state-run industries. Pierre, a leader of the federation of other enterprises means totally vatisation process For the new President Préval and his the EDH workers unions, told Haiti removing from state hands any eco - public enterprises administration these enterprises are Briefing , “It is relatively easy to nomic power and giving it to the pri - must mobilise to b loss-makers that can only be turned develop EDH. We have already around with an injection of private made changes in the structure of the investment. Once the privatisation company. We have cut down on cor - programme begins, they argue, the ruption and embezzlement, and over “This mafioso private sector (in Haiti) h international finance agencies, like the last seven months EDH has dou - the Haitian people through smuggling, d the International Monetary Fund bled its income. Our real problem is and the World Bank will release there is no political will on the part government subsidies, non-payment of promised loans with which the gov - of the government to make it work and all that, so that now they have the ernment can develop the country’s as a public company.” buy up the state industries with the m economy. The case for maintaining state Critics of the public sector point control of Teleco is even stronger have stolen.” Antoine Izmery, popular out the service provided by the elec - considering that a World Bank study leader speaking shortly before he was a tric authority (EDH) and the tele - showed that in 1994 it made a profit by the military regime in Septembe phone company (Teleco) is so poor US$42 million despite “a great deal that an injection of private capital of embezzlement, waste and under- can’t fail to bring about improve - exploitation of services”. The same ments. Vast areas of the country study admits that over ten years vate sector which has shown itself to tion of this policy have no electricity supply at all, and Teleco could finance its own mod - be against the people. In such a situ - worsen the living those that do are subject to repeated ernisation at the rate of 20 million ation we wouldn’t need a president population,’’ said black-outs. According to the former dollars a year. Haiti’s popular or a government any more...We member of the Prime Minister, Smarck Michel, organisations also reject the idea would have given the country to the Mobilise against th who supported privatisation, only that after privatisation the private bourgeoisie and said ‘Do what you of March, the Pla 7% of the population has use of sector would run the enterprises want with it.’” electricity. A study of Teleco made more efficiently, or in the interests of Opponents of privatisation say the in 1995 showed that there are only the country as a whole. In August rich Haitian elite and foreign 65,000 telephone lines serving a 1995 a press release signed by investors will now buy up the shares THE population of approximately seven Konbit Komilfo and five other pop - and run the facilities for a profit. The million. ular organisations argued, “It’s true poorer customers i.e. the vast major - 1991 The govern That the state enterprises are pro - the state businesses are sick...but to ity, who could have been provided President Aristide viding a woefully inadequate service privatise...with a private sector that with state-subsidised service, will through with elec and are a drain on the government did the coup d’etat rather than pay either not be able to afford a service campaign promis coffers are facts that are not denied taxes” is unacceptable. or will not be provided with one. out corruption an by the opponents of privatisation. inefficiency in the What is contested is the idea that state-controlled u only by selling them off to private national flour mil investors can they be revitalised. A factory and port recent editorial in the newspaper, begin to generate Haiti Progrès , pointed out that in Inter-American D four months in 1991, before the Bank subsequentl coup against the Aristide govern - announces that, i ment, “the cement plant was able to for the September turn a 4.5 million gourde net loss coup, the nationa into an estimated 100,000 gourde company would h net profit. The flour mill went from profit of at least U losing 2.76 million gourdes in million in 1991. February to making 2.13 million 1991-94 Followi gourdes in April 1991.” September 1991 Union leaders and popular organi - the military regim sations today claim that if the the looting of equ Haitian government seriously plant, and the em of funds from the attempted to reform the state enter - Meeting of the Women’s Organisation of the Plain of Léogâne. Popular or - prises, as happened under Aristide in ganisations across the country have opposed the neo-liberal American Plan controlled utilitie 1991, then they could in a short time for over a decade. Photo by Leah Gordon Supporters of the sell out se privatisation

say they will Human Rights Organizations issued pinion and parlia - a strong condemnation of the gov - to block the pri - ernment saying that “without even s. ‘’Employees of articulating and presenting before s and the people the nation a real development pro - block the applica - ject” or engaging in the “dialogue” which it promised, it has “launched an all-out campaign in favour of neo-liberal policies and structural has robbed adjustment.” Those policies have drug-dealing, repeatedly failed in other countries, the Platform pointed out, and their their taxes, consequences “threaten the process e capital to of democratization”. money they “That the government has decided to bow down to the dictates of the movement international financial institutions assassinated and the U.S. government is today a er 1993 done deal, but the nation is not stupid. The neo-liberal measures cannot do anything to resolve the grave problems of poverty and y, which will only underdevelopment which effect our conditions of the country. To want to re-launch agri - d Yves Sanon, a cultural production through privati - Anti-structural adjustment puppet - part of a giant puppet parade at this e Collective to zation is to ask people to ‘eat their year’s Port-au-Prince carnival, organised by the Platform to Advocate for he IMF. At the end feet in order to find the strength to an Alternative Development. Photo by Charles Arthur atform of Haitian run,’” the Platform said.

DESCENT INTO PRIVATISATION

nment of added to the payrolls. The includes the privatisation of claims the revenue from the million in aid. e follows national cement factory and the state-controlled utilities sale is essential to fund the January 1996 The Haitian ction the flour mill are closed and the reduction of the government’s reform government signs a contract ses to root down. public payroll by half, Haiti programmes. worth US$800,000 with AID nd remedy August 1994 would receive US$1.2 billion September 1995 and a Canadian public e country’s Representatives of the in aid and loans over 18 Opposition to the relations company to utilities. The Aristide government meet months. privatisation programme and sensitise the public in favour ll, cement with the International February 1995 The other aspects of the SAP of privatisation. authority all Monetary Fund, World Bank International Finance mounts. In Port-au-Prince March 1996 On the eve of profits. The and bilateral donors Corporation, part of the and Cap-Haitien there are his visit to the US, new Development including the US, Canada World Bank, signs an accord large demonstrations against President René Préval ly and France in Paris. A to help the Haitian the IMF and World Bank announces the imminent sale f it were not ‘Strategy of Social and government with the policies in Haiti. of the cement factory and r military Economic Reconstruction’ privatisation of nine of the October 1995 Prime flour mill, to be followed by al electricity plan is signed. The plan 33 state enterprises, Minster Michel resigns after the privatisation of the have made a commits the Haitian including the telephone and the Haitian government telephone and electricity US$1.5 government to a electricity systems, the flour refuses to endorse his pro- companies. In Washington privatisation programme on mill, cement plant, and the privatisation programme. US officials say suspended ing the its return to power . seaport and airport in Port- November 1995 Citing the funds will be released once coup d’état, January 1995 In another au-Prince. delay in the implementation Preval demonstrates a firm me oversees Paris meeting the Haitian August 1995 Prime of the privatisation intent to carry out his uipment and government confirms the Minister Michel announces programme, the IMF and the promises. mbezzlement August agreements. In return the impending sale of the US Agency for Haiti Support Group e state- for the implementation of the now reopened, but International Published by the , es. Structural Adjustment inefficient, national cement Development (AID) Trinity Church, Hodford Road, e regime are Programme (SAP) that plant and the flour mill, and suspend over US$100 LGondon NW11 80N1G 81 201 9878 G Phone h&a fiatxi:s [email protected] Email: I Andy Smith I Designed bEya st End Offset Ltd PhPorninet:e 0d1 b7y1 538 2521 Fax: 0171, L 5o3n8do 0n0 E138 Libete looks to

n a recent interview with Haiti Brief - Iing Jean-Yves Urfié, the director of Libète, Haiti’s only Creole-language newspaper, expressed his thanks to the the future Haiti Support Group (HSG). In August last year the HSG funded Jean-Yves’ visit to London and arranged a series of meet - ings with non-governmental organisa - tions working on Haiti. As a result of a meeting with the World Association for Christian Communication (WACC) Libète received an emergency grant of $US 70,000. Jean-Yves said, “Without the WACC grant I doubt our paper would be still be going now.” The finances of Libète are still far from secure. Jean-Yves revealed that the circu - lation of the newspaper has had to be re - duced because of the four-fold increase in the price of paper over the last 18 months. But the WACC grant has pro - vided Libète with the breathing space during which it can move towards a state of self-sufficiency. New purpose-built premises to house offices, a photographic lab, paper cutter, Building Libète’s new premises in Port-au-Prince. Photo by Leah Gordon stapler and binder, and a printing press donated by the European Union are Catholic Scheut congregation, which He also hopes to create an English-lan - nearing completion. Jean-Yves ex - publishes the Creole-language monthly, guage version of Libète on the Internet plained, “At present we get the newspa - Bon Nouvel. with colour photographs! per printed elsewhere and of course the Libète also plans to make use of the * Libète’s new printing press will start printer takes his profit. But when our Internet which is at last connecting to work in May and the Haiti Support own printing press is working we will be Haiti. Access to it will be very limited in Group is exploring how it can respond to able to double the number of pages Haiti itself because of the dearth of com - a request for a printer/print technician to which means more revenue from adver - puters, telephone lines and electricity but help train Libète staff to use it. tising. And printing costs will still be re - Jean-Yves has ambitious plans. “We duced.” could gain a minimum of 20,000 readers The new building which should be because we estimate there are about Rockwood to ready by the end of April will be run in 700,000 Haitians in North America. conjunction with two other publishers. Many of them will use the Internet. We They are the Haitian non-government or - plan to put Libète on the Internet and it visit the UK ganisation, CRESFED, which publishes will be another way to become self-suffi - aptain Lawrence Rockwood, a the bi-monthly revue, Rencontre, and the cient because we will get advertising.” CUS Army officer who was court-martialled for trying to prevent human rights abuses in Haiti, will be the lead speaker at a conference New books on Haiti…New books on Haiti… organised by the Military Professions Haiti: Dangerous Crossroads (South End Press, 1995) An excellent collection of Group of Amnesty International UK. articles covering events and trends over the last ten years. The book puts the election The conference on May 18th will take of Aristide, the 1991 coup and the US-led intervention into clear perspective. It is an place at the Friends Meeting House, essential introduction to the struggle for social justice and participatory democracy Birmingham. For further details con - that is still being fought. Available from the Haiti Support Group £11.50 including tact Nora Cranston at Amnesty Inter - post and packing. national 0171 417 6370. Haiti: Building Democracy (CIIR, 1996) Describes Haiti’s turbulent past and analy - On September 30th 1994, ten days ses key reforms that will be necessary if the Haitian people are to achieve their mod - after the deployment of US troops in est goal ‘to move from misery to poverty with dignity’. Available from the Catholic Haiti, Rockwood, despairing of his of - Institute for International Relations, Unit 3, Canonbury Yard, 190a New North ficers’ disregard for the fate of Haitian Road, London N1 7BJ £2.50 plus postage. prisoners in the National Penitentiary From Dessalines to Duvalier: Race, Colour and National Independence by David in Port-au-Prince, made his own unau - Nicholls. New (1996) edition of one of the classic English language texts on Haitian thorised visit. He was arrested and history. Contains a 28 page update - “lucid, accurate and very useful”. Available subsequently court-martialled by the from larger bookshops. US Army.