Overview

  • Haiti is extremely vulnerable to natural disasters with more than 90 percent of the population at risk. Last year, Hurricane Matthew battered the south of Haiti on October 4, 2016, which was the most devastating disaster since the 2010 earthquake. It caused damages equivalent to 32% of GDP. In the country’s Southern Peninsula, a third of hospitals were affected, more than 500 schools were destroyed and the losses in agriculture, fishing and livestock had a long-term impact on the livelihood of the affected communities.

    However, the country has been taking significant steps to get ready for inevitable natural disasters. While the recent storms Irma and Maria skirted the island of Hispaniola, initial assessments show that the government was better prepared and had incorporated lessons learned from the experience with Hurricane Matthew.

    POLITICAL SITUATION

    Haiti’s new President, Jovenel Moïse, the candidate from former President Martelly’s party, was sworn in on February 7, 2017. On March 21, 2017, the mew Prime Minister and Cabinet were ratified by the Parliament. The international community has continued to support Haiti. With the presidential and parliamentary elections resolved, and newly elected mayors in place, Haiti and its partners have a chance to strengthen their ties, accelerate reforms and move programs forward for more sustainable development for all Haitians.

    ECONOMY

    Haiti faces important challenges to generate faster growth and fight poverty.

    Haiti remains the poorest country in the Americas and one of the poorest in the world (with a GDP per capita of US$846 in 2014). According to the latest household survey (ECVMAS 2012), more than 6 million out of 10.4 million (59%) Haitians live under the national poverty line of US$2.41 per day and over 2.5 million (24%) live under the national extreme poverty line of US$1.23 per day. It is also one of the most unequal countries, with a Gini coefficient of 0.59 as of 2012.

    The fiscal deficit is expected to widen substantially this year. Economic growth has slowed to one percent. Public expenditure is on the rise to meet the post-Matthew reconstruction needs. Resource mobilization continues to be a challenge with internal revenues only reaching 12.9% of GDP. In addition, Hurricane Matthew caused agricultural output to fall by 5.1 percent over the first half of the fiscal year.

    However, The depreciation of the Haitian gourde against the dollar continues to slow. The Central Bank of Haiti is holding to a monetary policy aimed at smoothing exchange rate variations and containing inflation.

    Last Updated: Oct 02, 2017

  • The World Bank Group country partnership framework – discussed by the Board in September 2015 - aims to support the country’s efforts to provide economic opportunities for all Haitians and reduce poverty. The framework aims to strengthen institutions, government capacity and public financial management as aid and concessional financing rapidly decline. The focus is on three main areas:

    ·       Generating greater economic opportunities outside Port-au-Prince by increasing energy access and developing renewable energy, improving access to finance, and supporting a more competitive and productive private sector through public and private infrastructure in energy and ports. 

    ·       Strengthening human capital and access to services through better primary schools, improved maternal and child health services, combined with greater access to water and sanitation in communities most affected by cholera, as well as health prevention and treatment. 

    ·       Enhancing climate resilience by improving disaster response capacity and increasing the number of Haitians protected by new investments in flood mitigation and other climate resilient infrastructures, including drainage, reinforced bridges and all weather roads. 

    The World Bank’s portfolio in Haiti is currently comprised of 14 active projects for a total committed amount of US$786.20 million, this includes the US$100 million from the IDA CRW to respond to Matthew through additional financing to agriculture, health, water and sanitation, and transport programs. Additional US$83.1 million from different Trust Funds support the implementation of these 14 projects.

    The IDA18 allocation for Haiti is US$260 million (up from US$120 million under IDA17).  This allocation could be further leveraged through global trust funds.

    SUPPORT FOR THE PRIVATE SECTOR

    The investment climate in Haiti is hampered by a number of challenges, including business environment, land availability and ownership rights, access to basic infrastructure, logistic and financial services, and access to skills. IDA resources finance tourism in the North, transport connectivity and market infrastructure in the Centre and Artibonite regions, the development of regional value chains in each of the 10 departments, and technical assistance on financial inclusion.

    In addition to IDA, the World Bank Group engages in Haiti’s private sector through an active IFC portfolio.

    IFC’s strategy in Haiti is twofold:

    ·       Creating immediate jobs, access to basic infrastructure, and income opportunities by making catalytic investments despite remaining challenges;

    ·       Supporting the development of a sustainable and inclusive economy, through advisory programs that help address challenges and foster a more conducive environment for investors and for micro, small, and medium enterprises.

    The IFC current committed portfolio in Haiti amounts to US$123.57 million, of which US$69.59M is on IFC's own account and US$53.98 million is mobilized from other partners. The IFC has supported many of Haiti’s flagship private sector projects in sectors such as energy, water, transport, manufacturing, financial markets and hospitality. These investments have helped create over 5,000 new jobs and safeguard 5,000 existing jobs, provide clean and affordable water and energy, and improve real sector competitiveness.

    Through its advisory programs with the private sector and the government, IFC supports access to finance, public-private partnerships, improvements to Haiti’s investment climate, and programs that make small and medium enterprises more productive. These programs have supported the business training of nearly 3,000 entrepreneurs and managers (45% of whom are women), through partner SOFIHDES. MiCRO, an IFC Advisory Services project, insures 60,000 micro-entrepreneurs against natural disasters. 

     

    Last Updated: Oct 02, 2017

  • Over the last four years the World Bank has financed 437,905 tuition waivers were financed allowing disadvantaged children to attend primary schools, provided daily quality hot meals to over 372,359 children attending primary schools, and grants for 2,824 schools, allowing them to re-open after the 2010 earthquake

    • Financed rental subsidies for more than 50,000 people to move from camps to safer housing
    • Upgraded neighborhood infrastructure in areas badly damaged by the earthquake, including improved roads and drainage, better street lighting, and reinforced ravines for 200,000 people.
    • Rebuilt or repaired housing for more than 12,000 people
    • Provided for cholera treatment and prevention education for over 3 million people and water treatment products and/or soap to nearly 600,000 people
    • Supported more than 200 cholera treatment units and oral rehydration posts with personnel and/or supplies; and trained over 6,000 health and hygiene agents and medical personnel
    • Improved access to clean water for 60,000 people in Southern
    • Financed solar-powered street lights that benefited 18,000 people
    • Repaired the road from Port au Prince to Jacmel, enabling half a million people in Southern Haiti to remain connected to the capital    

    International Finance Cooperation:

    • Codevi, a garment manufacturing company, is one of the largest private sector employers in Haiti. It employs about 7,000 workers and is expected to add 2,000 over the next three years. About 30,000 people in the northern town of Ouanaminthe, where Codevi is located, derive their livelihoods from indirect jobs associated with the company’s operations
    • E-Power has increased the installed electric production capacity in the Port au Prince metropolitan area by 35 percent; the company generates power for 1.59 million customers
    • Teleco, the national phone company was losing $1 million a month and barely serving 20,000 customers. NATCOM, a public-private partnership supported by IFC, now serves about 1.7 million subscribers
    • Nearly 3,000 entrepreneurs and managers received business training through a partner SOFIHDES
    • Approximately 60,000 low income micro-entrepreneurs are insured against natural disasters through an IFC/Micro/Fonkoze partnership. This helps protect their livelihoods against weather-related risks and natural disasters

    Haiti Reconstruction Fund (HRF)

    At the request of the Government of Haiti, the World Bank established the Haiti Reconstruction Fund (HRF) in March 2010, in partnership with the Inter-American Development Bank, the United Nations and 19 contributing donor countries. The HRF has emerged as the largest source of flexible finance for reconstruction. The World Bank serves as the Fund’s trustee and secretariat, as well as supervises some of the activities financed by the HRF. 

    Contributions to the HRF total $411.4 million, of which $401.4 million has been received as of June 2016. Since the Fund began operations in June 2010, $351 million has been allocated to 29 projects addressing post-quake issues in debris management, relocation and housing of displaced people, rehabilitation of public infrastructure and spaces, and disaster risks management, as well as, budget support and long and medium term development issues, such as education, energy and private sector development. The HRF-financed activities supported the Government in achieving results including:

    Removing over 900,000 cubic meters of debris in urban neighborhoods;

    • Supporting the repair and rebuilding of nearly 2,600 houses;
    • Facilitating the closing of more than 50 camps and providing housing solutions for over 24,000 displaced households;
    • Delivering food to a total of 252 schools and covering more than 93,000 students per day for current school year;
    • Planting more than 500,000 plants in the buffer zone of the Macaya park by agroforestry operators;
    • Creating nearly 4,500 jobs as part of road rehabilitation and home reconstruction;
    • Establishing 12 Community Resource Centers to facilitate planning, coordination and information sharing on local development and reconstruction;
    • Distributing more than 14,000 school supply kits, 24,000 school uniforms and 76,000 textbooks throughout the country; and
    • Training more than 900 teachers.

    Last Updated: Oct 02, 2017

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LENDING

Haiti: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments


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Additional Resources

Country Office Contacts

USA +1 202 458 2656
1818 H Street NW, Washington, DC 20433
cchapoy@worldbank.org