November 2007

Haiti: Real Progress, Real Fragility A Special Report by the Inter-American Dialogue and the Canadian Foundation for the Americas

Haitian President René Préval says that working with the United Nations and other his country no longer deserves its “failed international partners – including a core state” stigma, and he is right. Haiti’s recent group of Latin American countries, the progress is real and profound, but it is United States and Canada – has achieved jeopardized by continued institutional modest but discernible progress in improv- dysfunction, including the government’s ing security and establishing, at least mini- inexperience in working with Parliament. mally, a democratic governing structure. There is an urgent need to create jobs, But institutions, both public and private,

attract investment, overhaul and expand are woefully weak, and there has not been Haiti access to basic social services, and achieve significant economic advancement. Unem- tangible signs of economic recovery. Now ployment remains dangerously high and a that the United Nations has extended its majority of the population lives in extreme peacekeeping mandate until October 2008, poverty. Still, Haiti should be viewed today the international community must seek with guarded optimism. There is a real pos- ways to expand the Haitian state’s capacity sibility for the country to build towards a to absorb development aid and improve the better future. welfare of the population. The alternative could be dangerous backsliding. The Good News President René Préval was inaugurated in Haiti is beginning to emerge from the May 2006 following presidential and parlia- chaos that engulfed it in recent years. This mentary elections that were accepted as free is a moment of relative stability that pres- and fair by the international community, ents a window of opportunity for Haiti to and most importantly, by the great majority move towards a more sustainable path of of Haitians. Local and municipal elections economic growth, political development, were held in December of last year, com- and poverty reduction. But this is also a pleting Haiti’s electoral cycle and filling key period of fragility and continued vulnerabil- positions through the democratic process. ity, and further advancement is by no means During his first year in office, President assured. Préval, in his quiet and self-effacing way, has proven to be an effective leader. He has In February 2006, Haiti held its first elec- appointed competent ministers to criti- tions in five years, which brought to power cal posts, and reached across party lines to former President René Préval and restored bridge Haiti’s historic political polarization. elected rule for the first time since the Préval has forged alliances with moderate ouster of Haitian President Jean-Bertrand elements within Haiti’s civil society, politi- Aristide two years earlier. Over the past cal parties, and business sectors, while hold- eighteen months, the Haitian government, ing onto support from the Haitian poor,

This report reflects the findings of a joint delegation to Haiti by the Inter-American Dialogue and the Canadian Foundation for the Americas that took place from July 29 to August 1, 2007. The authors express their appreciation to Lionel Delatour of CLED for his contribution to the trip and Caroline Lavoie of FOCAL for her assistance with the report. and maintaining the backing of the interna- progress has restored the confidence of the tional community. To date, Préval’s instincts Haitian population in the UN mission and have generally been democratic and inclu- increased support for the Haitian govern- sive, and he has made tough choices, includ- ment as a whole. But the new calm in Haiti ing the decision to confront the criminal will be hard to sustain; any reduction in gangs in Port-au-Prince. The government is UN forces without a substantial increase in still weak, however, and has limited capacity the Haitian police presence would lead to to set internal priorities and implement deci- a return of violence. Moreover, while Latin sions and policies. The government has little American countries continue to contribute evident experience in working with Parlia- the bulk of UN troops, many will eventually ment, and the Parliament itself remains seek to shift their focus from peacekeeping poorly organized and under-resourced. It to development. Haiti would benefit from has not adequately contributed to the gov- a strategy to manage that process over the erning process. long term. Préval has made Haiti’s security situation has markedly Haiti’s economy appears to be stabilizing tough choices, “ improved in recent months. This is largely after years of stagnation and decline. Haiti such as confronting due to more effective performance by the achieved a GDP growth rate of more than 9,100-troop strong United Nations Stabi- 2 percent last year, even though per capita the criminal gangs in lization Mission in Haiti (MINUSTAH), growth remained negative. This year the Port-au-Prince. which entered the country more than three country’s growth rate will be more than 4 years ago. The UN Security Council has percent – barely above the rate of population ” extended the mandate of the peacekeeping increase but a move in the right direction. mission until October 15, 2008, with a total The uptick has been driven by an increase force of 7,060 military troops and 2,091 in foreign aid and remittances, and new U.S. police officers. This one-year renewal marks trade preferences passed last year may help MINUSTAH’s longest extension since the to sustain it. Haiti’s manufacturing sector is mission began, and is a welcome sign of the showing glimmers of revival. Haitian eco- international community’s continued com- nomic officials have established a favourable mitment to Haiti. Most importantly, last macroeconomic climate, cutting the inflation spring Préval supported efforts by UN forces from above 40 percent to below 10 percent to confront the gangs directly, particularly in and stabilizing Haiti’s currency. Despite the troubled Port-au-Prince neighbourhoods these gains, Haiti’s economy remains virtu- of Cité Soleil and Martissant. The Haitian ally stagnant on most fronts and plagued by National Police initiated a vetting process to widespread joblessness. Even with sustained examine officers’ records in detail, and hun- domestic leadership, it will take many years dreds suspected of corruption were purged of foreign assistance before Haiti can make while new recruits were selected and trained. its own economic way.

The Haitian government’s political will Key Challenges to tackle the gangs, combined with better Some of Haiti’s most urgent political and social cooperation between the UN and the Hai- challenges are: tian National Police, has led to the capture or killing of major gang leaders and the nn Strengthening Parliament and its Rela- re-establishment of a state presence in some tions with the Government. All of Haiti’s of the country’s most dangerous slums. This institutions remain weak. Haiti’s Parliament

2 Haiti: Real Progress, Real Fragility has neither the resources nor the experience the Coast Guard is totally inadequate. In to perform its legislative role. The president order to stem corruption, hundreds of police and administration have few mechanisms have been purged, mainly for gang involve- for dealing with Parliament. Political parties ment or human rights abuses. Officials hope are focused on personalities and localities that an increase in police salaries will help to and play no role in integrating the larger reduce graft. There are three bills pertaining population. These are inter-related problems to the modernization of the judicial system that need to be addressed together. The currently before Parliament, but the wider Haitian Parliament today acts as though breakdown in the justice system makes it its main role is to ratify or block execu- nearly impossible to prosecute police offi- tive action rather than to propose or shape cers, and most ordinary criminals go free as policy. Many parliamentarians lack staff, well. Conversely, many potentially innocent equipment, offices, and other infrastruc- people wait behind bars for their cases to ture. Some elected officials use their cars as be adjudicated. The need to train more offices. In August, a parliamentary vote of judges and improve physical infrastructure is Haiti’s political “no confidence” ousted President Préval’s extremely pressing. stability is threatened minister of culture and underscored the “ precarious and confrontational relations nn The Potential for Constitutional Break- by the possibility of between the executive and the legislature. In down. The Haitian constitution mandates indefinitely postponed addition, while many individual parliamen- frequent national elections that place great tarians have impressive credentials and are financial and organizational strain on the elections. well-intentioned, others have sought elected government and the international com- office principally to gain parliamentary munity. The numerous and costly elections ” immunity that protects them from prosecu- required by the constitution are untenable tion for illegal activities. given the scarcity of resources available to the Haitian state. The constitution, for nn The Haitian National Police and Admin- example, demands that 10 Haitian senators istration of Justice. The need to recruit face election in December (in addition to and train a new Haitian police force is a an eleventh senate seat left vacant when its core priority for the government and the occupant died in a car accident last winter). international community. The task is daunt- This would be Haiti’s sixth national election ing and the failure of similar efforts in the in an 18-month period, and the cost is esti- 1990s emphasizes the need for long-term mated to exceed US$15 million. Amend- engagement with this issue. Still, there is ing the constitution in order to streamline movement in the right direction. Today, the Haiti’s elections requires actions by three Haitian National Police (HNP) is com- successive parliaments. In addition, the civil prised of 7,000 policemen, with some 1,400 registry for the 2006 elections has already more completing training by mid-2008. But become dated. Haiti’s political stability is the HNP is still distant from its target force threatened by the possibility of elections that of 15,000 officers. are subject to indefinite postponement. The senatorial elections due in December will Existing training facilities are insufficient to pose the next test. If they are delayed, then meet the needs of the HNP, and the inter- the Haitian senate will enter 2008 with less national community has so far been unwill- than two-thirds of its 30 seats filled – hardly ing to help build new facilities. In addition, a promising sign for the country’s return to the HNP still lacks a helicopter police and electoral democracy.

Dialogue/Focal   Report 3 nn Education. More than half of Haiti’s pop- issues like security. He is not a miracle ulation is functionally illiterate and some worker and continues to face important 500,000 school age children have never had constraints on his ability to act, but he has the chance to attend school. The public proven himself to be a trustworthy devel- school system is poorly run and reaches opment partner. His government merits only a small minority of children, leaving international support. privately-managed schools to fill this huge gap with wide variations in quality and 3. Most international donor agencies are curriculum. Even those children receiving still struggling to figure out how to work education may be learning little. A major effectively in Haiti. While recognizing constraint in the education system is the that significant strides have been made quality and number of teachers; an estimat- in recent years, donor aid remains only ed 1,000 teachers are needed to meet the loosely coordinated and often places a demand for education. New partnerships large administrative burden on the Hai- between public agencies and private sector tian government that taxes sparse insti- Haiti desperately schools may provide a path forward. A bill tutional resources. Better coordination among the development banks, interna- needs new alliances and has been submitted to the Haitian Parlia- “ ment that would create the framework for tional aid agencies, and the Haitian gov- resources to expand and dialogue between public and private enti- ernment remains a high priority. ties and for improving governance in the 4. The United Nations mission in Haiti has improve education. educational sector. Some parliamentarians benefited tremendously from the involve- are concerned that this bill will lead to the ment of a core group of Latin American ” supremacy of the private sector over public countries including Brazil, Argentina, sector education, but new alliances and Chile, and Uruguay. Their continued resources are desperately needed to expand engagement, as well as a larger role for and improve education. Mexico, should be encouraged and sup- Our Conclusions ported by traditional development actors. 1. Faced with these pressing challenges— 5. Haiti suffers from a lack of absorp- in addition to the urgent needs to jump- tive capacity that has several ill effects. start the Haitian economy and sustain Resources are often slow to reach their security improvements – the United intended targets and the government finds States, Canada, the agencies of the itself unable to implement desired projects. United Nations, and the wider inter- Lack of adequate staff remains a critical national community have a critical role problem. International development agen- to play in helping the country advance. cies should set aside financing to enable The sustained involvement of the the government to hire competent, well- international community is crucial to trained staff at prioritized ministries so facilitating Haiti’s emergence as a viable, that the Préval administration can move self-sufficient state—and the renewed quickly to execute its plans. UN mandate is a welcome and neces- sary part of that commitment. 6. Haiti’s substantive problems are com- pounded by the fact that its reputation 2. President René Préval has surpassed lags behind the real progress that has been expectations in terms of his ability to made, and discourages investment, tour- maintain a level of social peace and ism, and support for new initiatives. Inter- focus government priorities on key national rating agencies should thoroughly

4 Haiti: Real Progress, Real Fragility review and revise their data on Haiti to 9. Rampant unemployment is one of the ensure their judgments reflect the current top challenges facing the country today. reality and are not grounded in informa- Having increased security, the govern- tion that is now outdated. ment and international community must now demonstrate tangible evidence that 7. The Haitian Parliament requires urgent lives are improving by focusing on jobs, attention so that it can begin to ful- investment, and infrastructure. While fill its role in the democratic process. some job creation programs have been Poorly organized and based on a weak implemented, clearly more effort is political party system, the Parliament required to generate employment that will thus far has been more of a roadblock help Haitians to take care of their basic than a partner in Haiti’s development. needs and provide the basis for greater Efforts to train parliamentarians have social stability. Many of Haiti’s important been insufficient thus far, but are ongo- challenges, including sanitation, waste ing. New efforts to strengthen Parlia- removal, and the development of basic ment are a top priority. A greater focus infrastructure, can be achieved using Innovative on Parliament itself must be matched by Haiti’s vast unskilled and semi-skilled approaches to job improving the government’s capacity to labor pool. Innovative approaches to job “ work with elected officials. creation must be a top priority. creation must be

8. Haiti’s security situation has improved The current juncture in Haiti is criti- a top priority. markedly in recent months. The United cal. International efforts have contributed Nations peacekeeping mission has importantly to peacekeeping and economic ” become much more effective in tackling stabilization, but little visible progress has the gangs that were the sources of vio- been made in promoting economic develop- lence in the slums of Port-au-Prince and ment and improving social well-being. The Gonaives. However, any drawing down Haitian government and its international of UN troops will result in an upsurge development partners now have one year to of violence unless efforts to vet and train focus on these important tasks before the the Haitian National Police are not only UN peacekeeping mandate expires in Octo- sustained but increased. Moreover, Hai- ber 2008. Haiti’s hopeful but fragile progress ti’s overall administration of justice is in will be difficult to sustain unless Haitian and dire condition and should be a core focus international authorities pledge to tackle the of international assistance. country’s problems with renewed urgency.

Delegation to Haiti

The Right Honorable Joe Clark Peter D. Bell Former Prime Minister of Canada President Emeritus, CARE USA Board Member, Canadian Foundation for the Americas Co-Vice Chair, Inter-American Dialogue Member, Inter-American Dialogue

Peter Hakim Carlo Dade Daniel Erikson President, Inter-American Dialogue Executive Director Senior Associate and Program Director Canadian Foundation for the Americas Inter-American Dialogue

Dialogue/Focal   Report 5 The Inter-American Dialogue is the leading U.S. center for policy analysis, exchange, and communication on issues in Western Hemisphere affairs. The Dialogue brings together pub- lic and private leaders from across the Americas to address hemispheric problems and oppor- tunities. Together they seek to build cooperation among Western Hemisphere nations and advance a regional agenda of democratic governance, social equity, and economic growth.

The Dialogue’s select membership of 100 distinguished citizens from throughout the Ameri- cas includes political, business, academic, media, and other nongovernmental leaders. Twelve Dialogue members served as presidents of their countries and more than two dozen have served at the cabinet level.

Dialogue activities are directed to generating new policy ideas and practical proposals for action, and getting these ideas and proposals to government and private decision makers. The Dialogue also offers diverse Latin American and Caribbean voices access to U.S. policy debates and discussions. Based in Washington, the Dialogue conducts its work throughout the hemisphere. A majority of our Board of Directors are from Latin American and Carib- bean nations, as are more than half of the Dialogue’s members and participants in our other leadership networks and task forces.

Since 1982—through successive Republican and Democratic administrations and many changes of leadership elsewhere in the hemisphere—the Dialogue has helped shape the agenda of issues and choices in inter-American relations.

The Canadian Foundation for the Americas (FOCAL) is an independent, non-partisan think tank that works with government, civil society, academics and the private sector to produce alter- natives and innovative solutions to the political, economic and security challenges that underlie Canadian engagement in the Western hemisphere. Through research and dialogue, our goal is to encourage, support and facilitate a robust Canadian engagement in the hemisphere that benefits Canada and brings Canadian ideas, perspectives and resources to bear on issues facing countries of the hemisphere.

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