Florida International University FIU Digital Commons FIU Electronic Theses and Dissertations University Graduate School 4-2-2012 The nflueI nce of Corporate Interests on USAID's Development Agenda: The aC se of Haiti Guy Metayer Florida International University, [email protected] DOI: 10.25148/etd.FI12050218 Follow this and additional works at: https://digitalcommons.fiu.edu/etd Recommended Citation Metayer, Guy, "The nflueI nce of Corporate Interests on USAID's Development Agenda: The asC e of Haiti" (2012). FIU Electronic Theses and Dissertations. 609. https://digitalcommons.fiu.edu/etd/609 This work is brought to you for free and open access by the University Graduate School at FIU Digital Commons. It has been accepted for inclusion in FIU Electronic Theses and Dissertations by an authorized administrator of FIU Digital Commons. For more information, please contact [email protected]. FLORIDA INTERNATIONAL UNIVERSITY Miami, Florida THE INFLUENCE OF CORPORATE INTERESTS ON USAID'S DEVELOPMENT AGENDA: THE CASE OF HAITI A dissertation submitted in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY in POLITICAL SCIENCE by Guy Metayer 2012 To: Dean Kenneth G. Furton choose the name of dean of your college/school College of Arts and Sciences choose the name of your college/school This dissertation, written by Guy Metayer, and entitled The Influence of Corporate Interests on USAID's Development Agenda: The Case of Haiti, having been approved in respect to style and intellectual content, is referred to you for judgment. We have read this dissertation and recommend that it be approved. _______________________________________ Richard S. Olson _______________________________________ John F. Stack, Jr. _______________________________________ Jean-Claude Garcia-Zamor _______________________________________ Ronald W. Cox, Major Professor Date of Defense: April 2, 2012 The dissertation of Guy Metayer is approved. _______________________________________ choose the name of dean of your college/school Dean Kenneth G. Furton choose the name of your college/school College of Arts and Sciences _______________________________________ Dean Lakshmi N. Reddi University Graduate School Florida International University, 2012 ii © Copyright 2012 by Guy Metayer All rights reserved. iii DEDICATION To the memory of my father Antoine Metayer. To my lovely mother Marguerite Metayer, my son Garvendi, my wife Dachena, my sisters and brothers Marcelle, Maud, Valentine, Ermith, Hugues, Rémy, Enock, Carlo, and Josué. To my country Haiti, for which a better future is possible. I have faith in the emergence of a legitimate and competent Haitian political leadership capable of articulating and implementing a development vision primarily intended to promote the socioeconomic development of the poorest Haitians. iv ACKNOWLEDGMENTS First and foremost, I thank God for assisting me in my studies and making my life a success story. I am grateful to my parents, Antoine and Marguerite Metayer, for teaching me the virtue of hard work and the value of education. I owe a debt of gratitude to my sisters and brothers for supporting me, in every respect, during my studies. Without their support, the Ph.D. degree would probably remain a dream for me. My heartfelt thanks go to my wife, Dachena. Her love has been to me a source of inspiration. She has been a tremendous mother in terms of taking care of our beloved son, Garvendi, allowing me time to focus on my studies. I am pleased to thank two great friends, Goebels J. Cyriaque and Yves Theodore. Goebels contributed to guide my first steps in the United States and both friends have emotionally supported me. I am thankful to the members of my dissertation committee Dr. Ronald W. Cox, Dr. Richard S. Olson, Dr. Jean-Claude Garcia-Zamor, and Dr. John F. Stack, Jr for their insightful comments on my dissertation. I am particularly thankful to Dr. Cox, my Major Professor. Since the day I entered the political science program at Florida International University (FIU), Dr. Cox has provided me with intellectual guidance and emotional support. Professor Cox assisted me in the formulation of the topic of my dissertation and meticulously revised each of the five chapters while providing extensive comments. Lastly, I thank the FIU Department of Politics and International Relations for the Teaching Assistantship, which has considerably helped me in the process of my studies. I also thank the FIU University-Wide Scholarships for the Delores Auzenne Fellowship and the Garcia-Zamor Scholarship. By the same token, I commend Dr. Jean-Claude v Garcia-Zamor for establishing the Garcia-Zamor Scholarship, which tells about his faith in the ability of Haitians to work for a better Haiti. vi ABSTRACT OF THE DISSERTATION THE INFLUENCE OF CORPORATE INTERESTS ON USAID'S DEVELOPMENT AGENDA: THE CASE OF HAITI by Guy Metayer Florida International University, 2012 Miami, Florida Professor Ronald W. Cox, Major Professor This dissertation is an attempt to use the radical political economy approach, which assumes that there is a connection between a state’s strategic interests and the interests of dominant multinational corporations (MNCs) located within a state’s territory, to explain continuity in the USAID development agenda and lending patterns during the past 30 years of development aid to Haiti. Employing the qualitative method of "process- tracing," my study concludes that the radical political economy approach has an explanatory power when it comes to understanding continuity in the USAID development agenda and lending patterns during the past 30 years of development aid to Haiti. The evidence shows that USAID has implemented in Haiti, from the 1980s through the post- 9/11 Washington Consensus period, neoliberal policies that conform to the political economy of US multinational corporations (US MNCs). Contrary to the claim that the USAID-sponsored post-earthquake development paradigm has departed from previous development strategies, the study has shown that USAID has used the occurrence of the January 2010 earthquake tragedy to accelerate in Haiti the implementation of a neoliberal agenda congenial to the business promotion of multinational investors, particularly US vii multinational corporations. In terms of the way ahead, the study argues for the implementation of a new development approach articulated by a legitimate Haitian state and primarily intended to promote the socioeconomic development of the poorest Haitians. viii TABLE OF CONTENTS CHAPTER PAGE I INTRODUCTION ..........................................................................................................1 The Radical Political Economy Approach and MNCs ...................................................3 The Radical Political Economy Approach and Development Policies ...........................8 Propositions to Test.......................................................................................................29 Methodology .................................................................................................................30 II NEOLIBERALISM AND THE PRIVATIZATION OF USAID LENDING ..............39 Review of the Concept of Neoliberalism ......................................................................40 USAID Privatization Lending.......................................................................................51 Washington Consensus and the 1980s WB/IMF Development Policies in Haiti .........79 III USAID DEVELOPMENT LENDING IN HAITI BEFORE THE “WAR ON TERROR”………………………………………………...………………………… 91 Historical Context and Meaning of the Aristide Election ............................................93 The Military Coup and the Restoration of Aristide to Power ....................................103 Countermeasures of the Haitian Parliament ..............................................................117 USAID-Funded Programs and Extensive Support to the Private Sector...................121 IV USAID DEVELOPMENT LENDING IN HAITI DURING THE “WAR ON TERROR” ...................................................................................................................136 USAID Poverty Reduction Strategy (1999-2004) ......................................................137 Aristide’s Downfall on February 29, 2004 and the Establishment of an Interim Government (2004-2006)……………………………………………………….… 139 USAID/Haiti Development Strategy FY 2007-2009 ..................................................147 USAID’s Widespread Support to the Private Sector/NGOs/PVOs During the “War on Terror” Period ..............................................................................................152 HOPE I and HOPE II Acts..........................................................................................157 V THE END OF DEVELOPMENT ...............................................................................181 The Earthquake Tragedy: Implications for Future Development Strategies in Haiti ........................................................................................................................182 Action Plan for National Recovery and Development of Haiti ..................................186 Haiti’s North Industrial Park and the Business Interests of US MNCs ......................192 US MNCs and Haiti’s Post-Earthquake Reconstruction ............................................198 Conclusion ..................................................................................................................204 Bibliography ...............................................................................................................217