The World Bank Group Country Partnership Framework for Haiti was validated by the Board of Directors in September 2015. It is designed to support the country’s efforts to provide economic opportunities to all its people and to combat poverty. In the context of the rapid reduction in international aid and the drop in concessional financing, the objectives of the Framework are to strengthen institutions and government capacity, and enhance public financial management. The Framework is based on three priority pillars and one cross-cutting pillar on governance:
- Promote inclusive growth by creating greater economic opportunities, particularly outside of Port-au-Prince, by strengthening access to energy, developing renewable energy, facilitating access to financing and promoting the competitiveness and productivity of the private sector through the development of public and private energy and port infrastructure.
- Strengthen human capital and access to services by improving primary education and maternal and child healthcare, while extending access to water and sanitation in the communes most affected by cholera and implementing preventative healthcare and treatment measures.
- Improve capacity to adapt to climate shocks, by strengthening capacity to respond to disasters and protecting a greater number of Haitians through investments in mechanisms to combat flooding as well as in other climate-resilient infrastructure projects, including drainage systems, reinforced bridges and all-weather roads.
- Strengthen governance to improve State effectiveness by investing in mechanisms to promote transparency and accountability, including accountability within the framework of public financial management, strengthen institutions and government capacity to generate key data and adopt policies based on reliable data; and, finally, to enhance government capacity to finance the provision of basic services.
The World Bank’s portfolio in Haiti now stands at $728.67 million and covers 16 active projects. With over 24 percent of the allocated resources, the transport sector is the largest recipient of World Bank funding, followed by the social, urban and resilience sectors with almost 17 percent, the energy sector with 14 percent, the health sector with 13 percent, the agricultural and environmental sector with 12 percent and the water and sanitation sector with 12 percent. The remaining resources are earmarked for the education, governance, trade and competitiveness sectors.
This sum ($728.67 million) includes the $100 million that was mobilized after Hurricane Mathew, within the framework of the IDA’s Crisis Response Window (CRW), to provide additional financial support to agriculture, health, water and sanitation as well as for transport and disaster risk management. The implementation of these 16 projects is supported by various trust funds totaling over $91 million in additional resources.
The envelope allocated to Haiti under the Eighteenth Replenishment of IDA (IDA-18, which covers the 2017-2020 period) totals $260 million (compared to $120 million under IDA-17). This funding allocation may be strengthened by contributions from global trust funds.
Support to the Private Sector
The investment climate in Haiti is constrained by a number of factors related to the business climate, the availability of land, and property rights, as well as by the level of access to basic infrastructure, logistical and financial services and capacity issues. IDA resources finance tourism development in the northern region, the transportation networks and market infrastructure in the central and Artibonite regions, the development of regional value chains in each of the 10 departments, and technical assistance for financial inclusion.
In addition to IDA activities, the World Bank Group also supports the Haitian private sector through the International Finance Corporation (IFC).
The IFC strategy in Haiti is twofold:
- In the immediate term, and notwithstanding the obstacles facing the country in these areas, to create jobs, facilitate access to basic infrastructure and financial services, and create revenue sources by making investments that have a catalytic effect;
- To contribute to the development of a sustainable and inclusive economy through advisory programs designed to promote problem solving and enhance the climate for investors and for micro, small and medium enterprises.
The IFC portfolio in Haiti stands at $117 million, of which $51 million has been mobilized from other partners. IFC provides support to a number of large private sector projects in Haiti in the areas of energy, water, transport, manufacturing, financial markets and the hotel industry. These investments and IFC’s advisory services program in Haiti have helped generate 8,000 jobs and preserve 5,000 others, as well as provide water and clean energy at affordable prices and strengthen the competitiveness of the real economy.
By virtue of these advisory programs with the private sector and the Government, IFC helps promote access to financing, public-private partnerships, an improved investment climate and mechanisms to strengthen the productivity of small and medium enterprises. Notably, these programs have provided support for the training of some 3,000 entrepreneurs and managers (45 percent of whom are women) through the vehicle of the Haitian Development Finance Corporation (SOFIHDES) and facilitated insurance coverage against natural disasters for 60,000 micro entrepreneurs within the framework of the MiCRO Project.
lastupdated: Sep 21, 2018