Cheryl Luna Economical Analysis

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{draw:frame} {draw:frame} Presented by: Edwin Lucas - Cheryl Luna Economical Analysis Haiti´s GDP/PPP per capita is $1300(2007), with an inflation of 9%. It has a real growth rate of 3.2%, but in 2001 and 2001 there was a negative economic growth, following almost 4 years of recession, ending in 2004. 28% of their land is arable, and 66% of all Haitians work in this sector; unfortunately this represents only 27% of the GDP. They crop mainly coffee, mangoes, sugarcane, and rice. Workers in Haiti are guaranteed the right of association. Unionization is protected by the labor code. The legal minimum wage is 70 gourdes (about $1.70) per day. They export the most coffee and mangoes, which represent $554.8 million f.o.b. Imports grow to 1.844 $billion f.o.b. The major trade partners are U.S, Dominican Republic, Canada, Trinidad and Tobago, Cuba, and UK. The other sectors of the economy contribute to the GDP in the following way: industry 8% (apparel, handicrafts, electronics assembly, food processing, beverages, tobacco products, furniture, printing, chemicals, steel), services 40% (commerce, hotel and restaurants, tourism), and others 25%. Foreign aid makes up approximately 30%-40% of the national government´s budget. The largest donors are US, Canada and the European Union. It is important to mention that after the renewed alliances with Venezuela and Cuba, Haiti has been receiving contributions from them too. It is expected that Haiti receives debt forgiveness for about $525 million through the Heavily Indebted Poor Countries (HIPC) initiative by mid-2009. Haiti's economic problems is the result of earlier inappropriate economic policies, political instability, a shortage of good arable land, environmental deterioration, continued reliance on traditional technologies, under-capitalization and lack of public investment in human resources, migration of large portions of the skilled population, a weak national savings rate, and the lack of a functioning judicial system. Since 2006, there have been some actions done by the Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE), supported by the U.S. Congress, which provides new trade preferences for textile /apparel products that could boost production in the sector. However, growth has been stalled by investor concerns over security, lack of access to credit, and legal and physical infrastructure constraints. Even though, since 2004, it has had an economic growth, to make a significant improvement in living standards, would require almost doubling the growth rate. Since, the departure of President Aristide, the financial situation has stabilized, but the external help remains critical for keeping the economy afloat. In November 2006, Haiti was approved for an International Monetary Fund (IMF) Poverty Reduction and Growth Facility (PRGF). *Social* Analysis Demographics {draw:frame} About 95% are African descent; the rest is mostly mixed Caucasian-African ancestry. Analyzing the next table, we see a deeper screen of what is happening in Haiti, and why its index is so low. _ {draw:frame} _ Due to the facts such as the one seen in the previous table, the status of mortality registered until now are summarized in the following table: As seen in the table, Haiti has worse indexes than the rest of Latin American countries, and even worse than the whole world. The situation is very delicate because they don´t have the resources to improve this numbers. In the following section, we will explain more how is the medicine and health care in Haiti. Medicine and health The most common diseases in the population are Malaria, typhoid, tuberculosis, intestinal parasites, and sexually transmitted diseases. The 11% of the people between 22 and 44 years has HIV, in the case of prostitutes is as high as 80%. There is less than a doctor per eight thousand people. Medical facilities are poorly funded and understaffed, and most health care workers are...
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