*   *   *   HAITI INFO   *   *   *

            News direct from the people and organizations 
             of Haiti's democratic and popular movement

                    15 June 1996, Vol. 4, #16

       ***   HAITI INFO now has photos in every issue   ***

Contents:
                 PREVAL PASSING THE HAT
                 MORE CRITICISM OF POLICE
Work of Labor:   EXPLOITATION CONTINUES, BUT SO DOES ORGANIZING
>From Les Cayes:  CATCHING UP WITH UNNOH
Box:             WHAT IS NEOLIBERALISM?
Close-Up:        HAITI: LIBERALIZATION IN ACTION


Stories:

                    PREVAL PASSING THE HAT

PORT-AU-PRINCE, June 15 - President Rene Preval returned yesterday 
from a ten-day trip where he passed the hat in France, Belgium, 
Germany and maybe even at the Vatican, perhaps included in the 
tour to make amends for his errant predecessor.

Leaves His Worries Behind

Preval left behind well-known problems: insecurity - more police 
officers have been shot or robbed and now ex-soldiers of the 
former army are threatening to take up arms to "force authorities 
to pay" 20 months of back salaries; the rising cost of living; 
impunity - criminals are repeatedly released from jail and last 
week the Gonaives commissaire resigned because judges refuse to 
investigate crimes, and more reports of corruption in the 
administration.

Another worry is sealing the deal with the International Monetary 
Fund (IMF) by obtaining approval for the economic program [see 
page 4] and by lining up the parliament votes necessary to pass 
the "modernization" of state enterprises law and other measures. 
The president no doubt left feeling calm and light-hearted. After 
his June 2 meeting with deputies, not surprisingly, a number of 
the "fierce" opponents of privatization had already begun to see 
things differently, meaning his way. Last night on his return, he 
reminded them that Haiti stood to "lose" one billion dollars if 
they did not do what was "responsible."

The government got a step closer to final approval at a "mini-
summit" in Washington on Wednesday, where Minister of Finances 
Fred Joseph and Director of the Central Bank Leslie Delatour 
appear to have gotten a stamp of approval from the IMF. Although 
the government still has not told the public the details of its 
program, it did say a first US$119 million will be forthcoming.

Hat-Passing Pays Off

Accompanied by a delegation of over a dozen ministers, officials 
and the inevitable Jean Edouard Baker, head of the Presidential 
Commission on Growth (and former associate of Duvalier thug 
Luckner Cambronne of Hemo-Caribbean which exported up to five tons 
of Haitian plasma and untold numbers of bodies a month), the 
president met with the head of UNESCO, with French, Belgian and 
German officials, officials from the European Union (EU) and with 
the Pope. He pledged his government's adherence to neoliberal 
policies and to the IMF-designed "structural adjustment program," 
and was duly praised and rewarded.

"The signature of the accord with the IMF is a guarantee of 
economic development," parroted an official from the EU (cited in 
Haiti-en-Marche), which pledged to raise its "aid" by 40 percent, 
promising about US$120 million over the next three years. Germany  
pledged another US$60 million.

Haiti is cashing in all over for toeing the neoliberal line: Japan 
pledged to drop US$40 million in the hat over two years and 
Taiwan, perhaps also nervous at Haiti's recent interest in 
establishing diplomatic relations with China, appears to be 
bidding itself up. This week another mission came to make more 
promises of "aid."


                    MORE CRITICISM OF POLICE

PORT-AU-PRINCE, May 13 - This week the Haitian National Police 
(HNP) celebrated its first year anniversary, but it did not 
receive kudos from Haitian human rights organizations. Rather, in 
reaction to the recent murders, banditism and other attacks, 
several groups have once again launched a cry of alarm, demanding 
reform of the HNP and of how it is trained.

"The Platform of Haitian Human Rights Organizations is indignant 
and rises up against the fact that the dismantling and/or 
disarmament of the networks of terror has not yet been a priority 
of the new constitutional regime," it said on June 3.

The Platform, also outraged at the "institutionalized " impunity, 
"invited" the government ("again") to respond to its previous 
correspondences [see Haiti Info v.4 #10] and demanded: the 
publication of the findings of the Commission of Truth and 
Justice; steps to recuperate the FRAPH documents from the U.S.; 
the revision of all members of the HNP; the registration of all 
police vehicles; a "coherent project of national security"; 
concrete steps to dismantle the gangs [the U.N. military mission 
here announced there are 11], and a revision of the training and 
deployment of the HNP.

After a three-day assembly, on June 10 delegates to the Gonaives 
Justice et Paix  from many parishes of the diocese denounced the 
lack of disarmament, noting "maybe the U.N. did not want a real 
disarmament," the "bad elements and former soldiers" in the HNP 
and the atmosphere of impunity, and demanded an "Evaluation 
Commission" to review all HNP members, the publication of the 
Truth Commission report and the return of the FRAPH documents. 
They also demanded a "cleaning out" of the judicial system, 
including the Ministry of Justice, and condemned "recycling" of 
"rotten" personnel.

Finally, the Port-au-Prince Justice et Paix severely criticized 
the first year of HNP, and put much of the blame on the "external" 
training, directed by "Washington."


Work of Labor:   EXPLOITATION CONTINUES, BUT SO DOES ORGANIZING

PORT-AU-PRINCE, June 12 - At the same time the Haitian government 
is betting on the assembly factories and the slave-level minimum 
wage [see previous articles and also page 3] to "develop" the 
country, exploitation of workers continues unabated. 

Nevertheless, attempts of workers to organize in some of the 
factories and denunciations in the U.S. media of the conditions at 
factories assembling clothing for companies like Disney have 
caused problems for the usually hegemonic U.S. and Haitian bosses.

More Exploitation 

Over the past two weeks, Haiti Info spent a number of mornings in 
the factory zones, trying to talk with workers about the latest 
acts of repression. It was not an easy job. Being seen talking to 
a journalist can cost someone her or his job. Nevertheless, some 
were willing to talk while they quickly ate lunch in the dirt road 
at the factory gates.

A women at Classic Apparel, owned by Frantz Behrmann (the Behrmann 
family is one of Haiti's wealthiest), one of the factories that 
sews for Disney, said they cannot organize at her factory. 

"If there was something like that, there would be dismissals," she 
said. "That's what would happen. They would kick you out, and 
nothing would change."

The woman said the factory is very hot. It has a ventilator that 
"blows hot wind. You can't breathe well." If workers ask for an 
advance on their 36-gourde (US$2.20) a day salary, the bosses are 
willing, but only with 15 percent interest. She said it costs her 
4.5 gourdes for transport (and she lives relatively nearby) and 
about 19 for meals, leaving 12.5 gourdes (less than US$1.00) for 
rent, and for feeding and caring for her three children.

Workers are supposed to be paid for all holidays, up to 15 days of 
sick leave and a two-week annual vacation. Queried, the crowd of 
eating workers laughed. "Annual holiday!? Your 'vacation' is when 
you are sick and they send you home with no pay. When you are 
better you come back," said one man.

Asked if the Ministry of Social Affairs, responsible for enforcing 
the Code du Travail and inspecting factories, is aware, they 
cynically laughed again. Just the other day, when workers 
protested in an effort to be paid for May 31, a holiday, Social 
Affairs did send someone over to discuss with the boss, but one 
woman said: "I don't know what the vagabond did but we did not get 
paid." 

"We would like for the state to intervene, because Social Affairs 
is an accomplice in this," said a man. Another lady noted that 
when they recently protested conditions, the bosses "sent for two 
guys who said they are from Social Affairs who yelled at us."

An older lady from another factory remembered: "A long time ago 
they used to pay us for holidays, but now they don't." In fact, on 
Ascension, her factory had to come to work, while schools, the 
government, stores, the media and everyone else was closed.

In front of ASA, where four workers were recently fired after a 
leaflet demanding clean drinking water circulated, and another 
eight last week without explanation, nobody would speak except a 
girl who said she was 16 years old. 

In front of Brocosa, another clothing assembly plant, people 
confirmed repression that makes it almost impossible to organize. 

"If you try to form a union you will get fired right away," said 
one woman. "Even if some want to and are not afraid, there are a 
lot of 'suck-ups' that are." 

"If they see us talking to you, we'll be fired," reminded another. 
They were eating bread because the lunch merchant who knows them 
and gives them credit did not come that day. 

Asked what should be done, one replied: "We cannot say, because we 
would be fired.... We used to hear them talk about 75 gourdes [as 
a minimum salary], but we don't hear that any more." 

Embassy & Disney React

Agitation in the U.S. as a result of a report from the National 
Labor Committee (NLC), a coalition of U.S. labor unions effected 
by the loss of jobs to overseas assembly plants [see Haiti Info 
v.4 #6] is giving U.S. contractors and Haitian factory-owners 
problems. In recent weeks, U.S. celebrities like Kathie Lee and 
Michael Jordan have been assailed because Central American 
sweatshops full of children put together products bearing their 
names. That attention is now spreading to Haiti, where factories 
assemble clothing for Disney and J.C. Penny.

NLC has been shining the spotlight on Disney. No doubt 
embarrassed, Disney sent down a team to "inspect" the factories 
and talk to "workers." At one plant, workers were instructed to 
say they were paid falsely high salaries. 

The U.S. embassy, obviously worried about bad publicity which 
could stymie its plans for Haiti, also got involved and conducted 
a survey of the factories (questioning owners and managers, not 
workers). In a February telegram to the U.S. State Department, 
Ambassador William Swing claimed that many factories pay above 
minimum wage ("the median daily wage is 60 gourdes"), but then 
contradicted himself by saying that, at 36 gourdes, or about 26 
U.S. cents an hour, the Haiti wage is lower than those of its 
potential competitor, China, which is 29 cents an hour. He also 
noted factory owners are not getting a lot of orders because 
manufacturers are "hesitant," and that they are worried about 
Haiti's "image," and want embassy assistance in attracting 
contracts. 

Workers Fighting Back

 Despite the oppressive conditions and opponents like the Haitian 
bourgeoisie and the U.S. government, small committees of workers 
in several factories are trying to sensitize others about their 
rights and organize them into pressure groups. At Classic Apparel, 
workers did succeed in getting paid for one holiday, and at a 
number of  factories, workers circulate leaflets with information 
about meetings, worker rights and the laws in Code du Travail , 
which workers' organizations want reformed. Some mention five 
demands to Disney: a 75-gourde minimum wage, the right to 
organize, direct contact between workers and Disney, that the 
factories be cleaned up, and job security.

The organizing has been having the expected negative impacts, too. 
Besides the firings at ASA, Caribbean Contractors  fired people 
after a leaflet was found denouncing lay-offs without pay and the 
high quota. But the leaflets continue. Recently, one said: "The 
bosses can continue their methods, but it will not lead to 
anything. We are standing up to them here, and we will tackle 
those who command them from the U.S." 

Not only do the bosses here and in the U.S. need to be "tackled," 
but also the Haitian government. Despite the denunciations from 
unions, rights groups and others, the government has stayed 
silent. It continues to openly support the 36-gourde wage and does 
nothing to protect workers' constitutional rights.


>From Les Cayes:  CATCHING UP WITH UNNOH

LES CAYES, June 3 - The application of neoliberal policies and the 
continued deterioration of the general situation is causing all 
sectors of the population to react and develop methods of 
struggle. 

Haiti Info has often mentioned UNNOH, the Union Nationale des 
Normaliens d'Haiti, a union founded in 1991 of teachers and 
professors who graduated from the Ecole Normale Superieure 
(Teachers' College).

UNNOH was involved in the struggle last year to raise teacher's 
wages, fighting for  300 percent [see Haiti Info v.3 #15 & 16], 
and winning 120 percent. (The government said it would give the 
other 180 percent for the fall of 1995, but then reneged on its 
promise.) UNNOH also mobilized against the "National Education 
Plan" [Haiti Info v.4 #7] and a conference this winter to "ratify" 
it. (UNNOH asked parliament to look into how much was spent on the 
plan and the meeting but has not had any response.)

Yesterday, Haiti Info met with Professor Wilson Italis, a member 
of UNNOH South.

What are the overall objectives of UNNOH?

Our first objective is to defend the interests of teachers, and 
especially Normaliens... so they can work in the best conditions 
because we note that, whether it is the private schools or the 
state, professors are working in truly deplorable conditions, and 
therefore one of the first objectives we set for ourselves is to 
improve and fight to change conditions for teachers with a raise 
in salaries... Middle-term, we want to sensitize them on the 
problems of teachers... and the necessity to struggle to change... 
so our objective is to do consciousness-raising among teachers and 
together see how we struggle to change things...

A third objective, in the very long term, is to participate in the 
battle with all other organizations and unions that want to change 
the structure of society... We also want to participate in the 
struggle that is going on to reform the education system... And 
that brings us to another objective, which is to give value to the 
teaching profession... A few years ago someone would be ashamed or 
at least not be proud to say he teaches... There is no 
compensation or recognition when someone is a teacher in this 
country. Finally, another is to work to raise the academic level 
of schools, because ever since 1986, with all the repression, 
courses could not be well-taught, there was never nine months of 
school, it was eight or seven months.

What do you think about doing education in neoliberal context?

Since we were not sure what effect that would have on education, 
we have had meetings where people who know about 'globalization' 
or neoliberalism or whatever you want to call it spoke... and we 
see that the neoliberal vision puts the accent on what is 
"profitable." When we looked at the different aspects, where the 
state is going to disengage, etc., that made us realize that the 
education sector is one of the sectors that will really feel the 
policies. Prices go up everyday and the state will not be able to 
respond with raising salaries, and also, we think that the state 
will give less importance to the education question... education 
will only develop in the private sector, and we know the nature of 
the private sector in Haiti... We in UNNOH are against 
neoliberalism.

Haiti Info hopes to look further into education in the South 
department in the future.



[In a Box:]             WHAT IS NEOLIBERALISM?

Neoliberalism is a way of conceiving of economic activity and how 
it should be organized. Fundamentally, everything should be based 
on the market which regulates itself without any external 
intervention, the overall role of the state is reduced to a 
minimum, where it serves as police and protector of private 
property, and liberty of enterprise is not hindered. It is  a 
renewed form of classical liberalism: no more, no less. 

A "structural adjustment program" (SAP) is a program specifically 
aimed at and designed for the public finances of countries in 
financial crisis - like with a high debt or spiralling deficit - 
with the goal of achieving financial equilibrium and stability of 
the currency. SAPs are currently being overseen by the 
International Monetary Fund (IMF) in over 80 exploited countries 
in Asia, Africa and Latin America. 

Neoliberalism is meant to create new markets for capital, national 
and foreign. A country in the process of liberalizing its economy 
undertakes many or all of the following: eliminates 
"protectionism" and opens its borders;  re-orients the economy to 
produce for export in order to earn the currency to pay back its 
loans to the banks of the North, including from the World Bank and 
the IMF, and to buy the foreign goods flooding in; privatizes 
state-run industries (creating another destination for hungry 
capital); its government cuts costs (although not military and 
police budgets), collects more taxes, collects fees for services 
like health and education, and is not allowed to run at a deficit. 
"Success" is measured in terms of the economy's "growth," 
determined by a rise in the Gross Domestic Product, its ability to 
keep inflation low and the currency stable and, of course, to 
service its debts. It is not measured by the increased well-being 
of the population. 

Where an SAP is being applied, agencies like U.S. AID and the U.N. 
Development Program (UNDP) work together with the IMF in designing 
the programs and keeping the country under tutelage, with staff in 
its Central Bank and its ministries. 

If neoliberalism and SAPs sound familiar to those living in the 
North, it is because since the 1980s, almost all of the countries 
on the planet have been applying neoliberal policies, calling them 
"Reaganomics" and "Thatcherism" or, more recently, the "Criteria 
of Convergence" of the European Union... but with several big 
differences. Many governments in the North operate with a debt 
(the U.S. owes US$5 trillion) and an annual deficit (U.S. in 1995 
= US$163.8 billion). And, despite the mandate of the newly created 
World Trade Organization, many rich countries continue to protect 
key sectors of their national production. 

The effects of applying neoliberal policies are by now well-known 
and predictable. GDP may or may not rise, but many other results 
are practically guaranteed: the gap between rich and poor grows, 
local industries close, government cuts staff, unemployment rises, 
fees for services  rise, trade balance worsens, more people fall 
below the poverty line, previously eradicated diseases reappear, 
prices of staples rise, etc.


Close-Up:        HAITI: LIBERALIZATION IN ACTION

Ever since the details of the "Paris Plan" came to light in 
August, 1994, on the eve of the U.S. military invasion and 
restoration of President Jean-Bertrand Aristide to office, Haiti 
Info has written about neoliberalism and structural adjustment 
programs (SAP) across the planet and here in Haiti. 

For the past 22 months, the neoliberal direction of Haiti's 
governments has been clear. (Dictator Jean-Claude Duvalier began 
to move Haiti that way in the 1980s, in order to get certain World 
Bank and U.S. government funding.) The delay has only been because 
the two Lavalas governments - Aristide's and Rene Preval's - 
themselves convinced of the route, have had to deal with the 
mistrust and resistance of the population which is, to say the 
least, far from being as convinced as its elected officials. 
Authorities have had to resort to all kinds of propaganda, 
psychological pressure, "aid"-blackmail and other measures to try 
to convince, or at least neutralize, the Haitian people. Last 
month's visit by IMF Director Michel Camdessus was a last step in 
the campaign. The final step is parliament's vote on several laws 
[see last issue], and IMF approval for the government's economic 
program, which appears to have occurred this week, making it 
eligible for IMF and other financing.

Haiti Info obtained a nearly final draft of the letter of 
agreement and the 30-page Memorandum on Economic and Financial 
Policies (referred to hereafter as the "Memorandum") presented by 
the Preval government to the IMF on June 12, and which, together 
with the 44-page Policy Framework Paper (PFP) released in August, 
1995, outlines the specifics of Haiti's neoliberal program. Both 
papers, in English, were written by the Haitian authorities "in 
collaboration" with the IMF and World Bank. What follows is a 
summary of the salient points. Although lengthy, it is presented 
here because it engages the country for many years.

Overall Framework

The government has enthusiastically embraced neoliberal doctrine 
and the SAP which will together "provide the policy framework and 
the external support for the adjustment and reforms that are 
needed to lay the foundation for sustainable economic growth." In 
fact, according to the Memorandum, "considerable progress was made 
towards economic recovery" last year with a growth of real GDP by 
4.5 percent and a rise in the Central Bank's reserves by US$116 
million. Prices went up 18 percent between September 1994 and 1995 
(as opposed to a 50 percent rise for the same period a year 
earlier), the paper boasts. (The figures are presented alone, out 
of context, and anyway, an 18 percent rise in the cost of living 
is far from being "progress" for the majority of the population.)

The broad objectives of the three-year program as laid out in the 
two documents are to achieve a high "growth rate", reduce 
inflation, stabilize the gourde (achieved last year only through 
the Central Bank's emission of as much as US$50 million), increase 
government revenues while cutting costs, and eventually make it 
less dependent on foreign "aid." 

In exchange for these measures, the IMF would okay US$950 million 
to one billion in loans and grants over three years. Exact figures 
have not been announced, but the external debt would probably at 
least double. (The government estimates interest payments for this 
fiscal year will amount to 22 percent of export earnings.)

More Revenues, Less Services

The main goal for the government is to cut costs and increase 
revenues. Not surprisingly, the Memorandum clearly promises: 
"government spending will be reduced sharply in the second half of 
FY95/96 and FY96/97 following overruns in FY94/95 [Aristide's 
term] and the first half of FY95/96." (Of course, money for the  
police force will be duly allocated.)

Faced with the extent of the poverty here, neoliberal technocrats 
are forced to promise programs to address the "immediate and worst 
manifestations of poverty," but overall, the Preval government's 
"strategy on poverty" is "the pursuit of appropriate policies for 
economic recovery and growth." To fund and enact the "poverty" 
programs, the government is not planning any major interventions 
itself. Instead, it will rely on "humanitarian aid," and non-
governmental organizations (NGOs). Plans for the education sector 
- about 70 percent of it in the hands of the private sector - do 
not appear to include any build-up of the public system. Instead, 
existing buildings will be "rehabilitated." 

"The Government also recognizes the importance of cost recovery," 
says the PFP, going on to say that in Haiti "medical services" are 
"virtually free" with "free" medicines. (Medicines are not free, 
and the cynicism of saying "services" are "virtually free" is 
inescapable when one notes that, according to the UNDP, 3.4 
million Haitians have no access to health care.) According to the 
PFP, a consultant has been hired to "study health care financing," 
in other words, to figure out how to make patients pay "user 
fees."

In the meantime, in order to generate more money, while tariffs 
have been cut for imports (lowering government revenues but making 
Haiti a ready market for foreign goods), the government will 
extend the 10 percent taxe sur le chiffre d'affaires (TCA) to all 
goods except pharmaceuticals, some agricultural inputs and rice.  

In a country already characterized by profound inequality in the 
tax system, the TCA, because it is indirect, further aggravates 
this gap. Also, merchants use it as an excuse to raise prices well 
beyond 10 percent. Finally, the only ones not hurt are those who 
sell - capitalists like financiers and merchants - because they 
can recuperate the 10 percent. Collecting the TCA, property taxes, 
and income taxes will be major objectives. 

Other sources of income are increased fees for passports, licenses 
and other documents, a projected 15 percent hike in electricity 
tariffs in 1996 (they already went up about 25 percent last year) 
and rise in the tax on fuel during the next fiscal year. (The 
price of all fuels is already "liberalized." It rose 15 percent 
last month.)

Administration & Decentralization

Another key element of the program is cleaning up the public 
administration, which is not necessarily a bad thing in itself, 
but also drastically cutting the public sector work force through 
"voluntary separation," early retirement and other schemes. While 
no totals are given, the Paris Plan proposed dropping one-half 
(about 22,000 people). 

In the meantime, a "wage bill freeze will remain in effect during 
the 3-year period." Money "saved" from lay-offs will be used for 
raises or adjustments to remaining employees or to "increase in 
non-wage spending on health, education and other priority items." 
In other words, raises to underpaid public school teachers and 
others, and increased spending in social sectors, will only come 
as employees are dumped. (The lay-offs will not  be cheap, because 
employees will be paid "damages." This will be funded with loans.)

Another aspect is "decentralization," which in the neoliberal 
handbook means transferring administrative power to local 
authorities in order to facilitate the development of capitalist 
activity throughout the country. It also shifts the burden of 
providing services to the local level, without necessarily giving 
them the means (the papers say "resources generated locally" will 
pay for services, a cruel irony given the state of Haiti's rural 
areas), or letting them have a say in national policy which 
determines the framework.

"Decentralization" might have a democratic ring, accompanied as it 
is by a discourse of "participation" in "decentralized" projects, 
but in fact it is merely a way to integrate people and instances 
into the unfurling neoliberal project.

Privatization

Privatization of state enterprises is a key step in Haiti's 
neoliberalization. The Memorandum obviously assumes laws will be 
adopted as required by parliament. It also affirms that in June, 
the cement plant will be sold and the flour mill leased with an 
option to buy. Further, the paper says, the government will seek 
management firms for the capital's port and all the airports, and 
is considering "capitalization" (the "flavor of the month") of the 
electricity and telephone company. All profits earned by the new 
managers or new owners will be tax-free for three years. Two 
government banks (the Banque Populaire and the Banque Nationale de 
Credit) will "invite investment partners" who will "assume 
operation control."

In the meantime, despite the fact that, with a little investment, 
the enterprises could be turned around to make a profit, and the 
fact that the Memorandum admits that during FY94/95, "the overall 
public sector deficit was smaller than contemplated... (by 1 
percent of GDP)," the government's goal appears to be to force the 
enterprises to turn to the private sector: "The public 
enterprises, with the exception of EDH (the electricity company), 
will not receive financial support from the Central Government in 
the remainder of FY95/96 and FY96/97." 

Other Liberalization Measures

Liberalization of trade and exchange, "essential if Haiti is to 
become a competitive economy" (PFP) is already nearly complete. 
The Memorandum shows once again that Haiti is a "straight-A 
student" of Washington, saying it wants to give the economy a full 
"market-orientation" and pledging: "The longer term objective is 
to reduce tariffs further in line with the commitment made by the 
Government at the 1995 Regional Summit Meeting in Miami." 

As regards specifics, the paper states that "all remaining import 
restrictions (on seven agricultural commodities) were eliminated 
in early 1995" and that in May, 1996, "maximum tariff rates were 
reduced from 15 to 10 percent." (It is unclear whether or not this 
last measure has yet been adopted.) It also swears to use its 
revenues to build up foreign reserves to "help strengthen private 
business confidence" and to "develop a market for short-term 
securities."

Agriculture & Industry

Directly related to the liberalization of the economy is the well-
being of its largest sector: agriculture, where 65 percent are 
employed and which accounts for about 30 percent of the GDP. With 
lower tariffs on imported foodstuffs, Haitian farmers are already 
having a very difficult time competing with U.S. dumping of excess 
production as well as cheaply produced foreign products. For 
example, last year Haiti imported US$52 million of U.S. rice, 
making it the fourth-largest consumer of U.S. rice in the world. 
Also last year, Haiti bought almost 25,000 tons of U.S. sugar, as 
well as sugar from a number of other countries. (Haiti has closed 
all its sugar mills.) A sure result of liberalization will be more 
peasant bankruptcies and more rural to urban migration.

The government does not appear too concerned and instead, while 
admitting that the sector has performed poorly because of land 
tenure problems and poor infrastructure, it also blames 
"protection of non-competitive import substitution crops" as well 
as falling commodity prices. It proposes to improve the 
transportation and irrigation infrastructure, increase credit, and 
"through INARA [the National Institute of Agrarian Reform, which 
has yet to enact even the smallest "reform"] seek ways of 
allocating part of state lands to peasants directly farming them." 
[our italics] Those broad outlines do not appear to be geared 
toward the massive increase in "national production" Preval has 
been promising, nor any kind of large-scale land reform where the 
exploitative grandons - traditionally linked to the bourgeoisie as 
well as the repressive imperialist structure of control of the 
rural population - are finally wrenched off the peasants' backs.

As expected, the government is counting on the assembly industry - 
which in August, 1995, accounted for two-thirds of "modern sector 
output" and, with about 12,000 workers, three-quarters of its 
employment - to dynamize the economy. The "contributions" of this 
type of economic activity to exploited countries are well-
documented.

Interestingly, the PFP revealed very clearly where the government 
stands on the minimum wage, which is currently 36 gourdes or about 
US$2.20 a day: "The legal minimum wage was raised to G 36 a day in 
June 1995 from the level of G 15 that had been in effect since the 
mid-1980s. The new level falls well short of the real and U.S. 
dollar equivalent minimum wage of 10 years ago, and should not 
affect the good prospects for the export sector." [our italics] 

There is no mention of any other types of industry, except the 
"tourist industry".

Infrastructure Investment

A great deal of the one billion U.S. dollars promised to the 
government is earmarked for infrastructure, which could be 
positive if the needs of the country and population were what 
guided the choices of where and how to intervene. Yesterday, 
Preval announced 45 percent will go for infrastructure, 24 percent 
for agriculture and "the rest" for "health and education."

Not surprisingly however, the emphasis here also is on attracting 
investors and tourists. The PFP is clear: "A reliable supply of 
power will be essential to the growth of the export assembly 
industry and to the re-establishment of tourism as a source of 
foreign exchange earnings."



ABOUT HAITI INFO:

* Haiti Info is published every two weeks in Haiti by the 
Haitian Information Bureau, an alternative news agency, and 
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