Overview

  • Seven years after the magnitude 7.0 earthquake struck Haiti, the country remains vulnerable to natural disasters. On October 4th 2016, the Caribbean island was hit by Category 4 Hurricane Matthew, which was the most devastating disaster since the 2010 earthquake. A rapid assessment by the government, with help from the World Bank and IDB estimated that damages and losses could reach up to USD $1.9 billion or 22% of GDP.

    Losses in agriculture, livestock and fishing are estimated at US$ 600 million. With a long term impact on the livelihoods of the rural population. Over 500 schools were completely destroyed, and 3,400 public and private schools were damaged. In Haiti's Southern Peninsula, a third of hospitals have been affected.

    The impact of Hurricane Matthew on infrastructure and livelihoods has contributed to a spike in the number of new cases and deaths of cholera but the trend has quickly been reversed thanks to a quick response from health partners including the World Bank.

    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 New Prime Minister and Cabinet were ratified by the Parliament. President Moise and his government have articulated a desire to pursue reform in energy and agriculture.

    ECONOMY

    Haiti faces important challenges to generate faster growth and fight poverty. Haiti’s 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 and resources mobilization continues to be a challenge with internal revenues only reaching 13 percent of GDP.

    The depreciation of the gourde against the dollar continues to decelerate. The Central Bank (BRH) maintained its monetary policy aimed at smoothing exchange rate variations and containing inflation.

    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) with significant needs in basic services. 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$ 2.42 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 0.61 as of 2012.

    Last Updated: Apr 11, 2017

  • The World Bank Group country partnership framework - endorsed by the board in September 2015 - aims to support Haiti’s efforts to provide economic opportunities for all Haitians and reduce poverty in the country.  The strategy had a long consultation process which helped identify what the country needs and looked at how the WBG can best respond to some of the country’s biggest challenges.

    It was jointly prepared by the Haitian Government, and the World Bank Group (WBG), comprised of the International Development Association (IDA), International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) and identifies three main areas for support:

    • Generate 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. 
    • Strengthen 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 communes most affected by cholera, as well as health prevention and treatment. 
    • Enhance 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. 

    An underlining focus of the strategy is to strengthen institutions and Government capacity, and improve public financial management in the context of rapidly declining aid and concessional financing.

    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.

    The World Bank’s portfolio in Haiti comprises 13 active projects for a net committed amount of US$637.8 million (as of April 2017). The program finances government projects in areas such as disaster risk management, housing, electricity, transport infrastructure, water and sanitation, agriculture, education, health, regional development, private sector growth, statistical capacity building, and public financial management.

    Following Hurricane Matthew, US$100 million have been mobilized from IDA’s Crisis Response Window to support the most affected population in the Southern departments through additional financing to agriculture, health, water and sanitation, and transport, which are expected to be approved by the Board in June 2017.

    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 finances 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 portfolio of IFC, the largest global development institution focused exclusively on the private sector.

    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.

    IFC’s committed portfolio in Haiti amounts to US$ 111 million, including US$21 million mobilized from other partners. 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 sectors 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: Apr 11, 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: Apr 11, 2017

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LENDING

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

*Amounts include IBRD and IDA commitments


PHOTO GALLERY

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Additional Resources

Country Office Contacts

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