Citation
Country presentation by the Government of the Republic of Haiti

Material Information

Title:
Country presentation by the Government of the Republic of Haiti
Cover title:
Country presentation
Added title page title:
Description of the current situation in Haiti and the development strategy for the period 1990-1999
Creator:
Haiti -- Ministère de la planification et de la coopération externe
Conference:
United Nations Conference on the Least Developed Countries, 1990
Place of Publication:
Geneva
Publisher:
United Nations
Publication Date:
Language:
English
Physical Description:
1 online resource (iv, 28 p.) : ;

Subjects

Subjects / Keywords:
Economic assistance -- Congresses -- Haiti ( lcsh )
Aide économique -- Congrès -- Haïti ( ram )
Economic conditions -- Congresses -- Haiti -- 1971- ( lcsh )
Economic policy -- Congresses -- Haiti ( lcsh )
Conditions économiques -- Congrès -- Haïti -- 1971- ( ram )
Politique économique -- Congrès -- Haïti ( ram )
Genre:
statistics ( marcgt )
international intergovernmental publication ( marcgt )
non-fiction ( marcgt )
conference publication ( marcgt )

Notes

System Details:
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
General Note:
"UNCLDC II/CP.3."
General Note:
Second United Nations Conference to be held in September 1990 in Paris.
General Note:
"Description of the current situation in Haiti and the development strategy for the period 1990-1999, Ministry of Planning and External Co-operation"--P. iii.
General Note:
"English and French only."
Statement of Responsibility:
United Nations Conference on the Least Developed Countries.

Record Information

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Columbia Law Library
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Columbia Law Library
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The University of Florida George A. Smathers Libraries respect the intellectual property rights of others and do not claim any copyright interest in this item. This item may be protected by copyright but is made available here under a claim of fair use (17 U.S.C. §107) for non-profit research and educational purposes. Users of this work have responsibility for determining copyright status prior to reusing, publishing or reproducing this item for purposes other than what is allowed by fair use or other copyright exemptions. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder. The Smathers Libraries would like to learn more about this item and invite individuals or organizations to contact Digital Services (UFDC@uflib.ufl.edu) with any additional information they can provide.
Resource Identifier:
622773030 ( OCLC )
Classification:
HC153 .U5 1990 ( lcc )
330.97294073 ( ddc )

Full Text

















This volume was donated to LLMC to enrich its on-line offerings and
for purposes of long-term preservation by

Columbia University Law Library

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SECOND UNITED NATIONS CONFERENCE ON THE
LEAST DEVELOPED COUNTRIES




COUNTRY PRESENTATION


HAITI 1990


NATIONS


UNITED

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UNITED NATIONS CONFERENCE ON THE LEAST DEVELOPED COUNTRIES






Country presentation

BY

THE GOVERNMENT OF THE REPUBLIC OF HAITI


UNCLDC II/CP.3 ENGLISH AND FRENCH ONLY

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J4(



NO1- E






NOTE,


The views expressed in this document are those of the Government of Haiti and do not necessarily reflect the views of the UNCTAD secretariat. The designations employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or its authorities, or concerning the delimitation of its frontiers or boundaries.

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MINISTRY OF PLANNING AND EXTERNAL CO-OPERATION (MPCE)




DESCRIPTION OF THE CURRENT SITUATION IN HAITI AND THE DEVELOPMENT
STRATEGY FOR THE PERIOD 1990-1999


MAY 1989

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CONTENTS


I. PERFORMANCE IN THE 1980s .

Macro-economic trends II. STRATEGY FOR THE 1990s .

A. General and specific objectives .

B. General strategy .

C. Financing of the strategy .

ANNEXES

I. Macro-economic projections II. Financing conventions under negotiation .


Paragraphs

1 14 1 14 15 71 15 24 25 64 65 71


GE.90-50397


Page

1 1 5 5

6 14

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I. PERFORMANCE IN THE 1980s

Macro-economic trends

1. Changes in the main indicators of the situation of the Haitian economy show that the trend in the 1980s was towards stagnation or recession and that there were problems in nearly all sectors.

2. Overall production in real terms declined at an average rate of 0.66 per cent per year, both in the agricultural sector and in the industrial sector. Real per capita income dropped steadily over an eight-year period from 1,087 gourdes in 1980 to 880 gourdes in 1988, so that the already low standard of living of the majority of the population which lives below the poverty line, grew even worse.

3. The drop in the level of real production, which led to an increase in unemployment in the industrial sector and in underemployment in the agricultural sector, is related to the low level of private and public investment throughout the 1980s. The major private investors which traditionally come mainly from abroad and have for some time limited themselves to the assembly industries were afraid to make further investments because of the climate of political instability in the country throughout the period, thereby slowing the momentum gained in the export industries sector in the 1970s. Public investments on which agriculture depends so much to meet its infrastructure and management requirements, have been seriously affected by the drop and by cuts in foreign development assistance.

4. After a brief upward movement in 1982, the export curve in constant values fell and has not gone back up since. This is as much the result of the steady drop in the volume of exports of coffee (the major agricultural export product, whose world price was also decreasing) as of the falling-off of orders from the United States for unfinished goods assembled in Haiti.

5. The trade balance deficit, which had thus started to improve in 1982 (dropping to 414 million gourdes at 1976 constant prices) began to worsen again in 1983 and stayed at much higher levels during the rest of the period, even though imports tended to be slightly lower in real terms.

6. The worsening of the trade balance deficit, taken together with the reduction in public and private capital inflows (as well as a drop in the unrequited transfers that many persons receive from emigre relatives), has caused serious balance-of-payments problems and shortages of foreign exchange that have now become the general rule. In 1983, for the first time, there was an official currency market for changing the national currency for United States dollars, with a discount of the gourde ranging from 3 per cent to 30 per cent, depending on the scarcity of dollars.

7. Those responsible for the management of the economy, as well as public opinon in general, are concerned about the Goverment's financial deficit, which has been increasing at an alarming rate. Government investment

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expenditure for the setting up of the infrastructures required for development is not only financed primarily through the co-operation of international agencies and friendly countries, but ordinary spending for public administration often outstrips the available financial resources, mainly because of the questionable practice of incurring extra-budgetary expenditure. The current deficit has thus ordinarily been financed by borrowing from the Central Bank, i.e. by ill-advisedly issuing new money.

8. In order to deal with these problems, which plunged the country into crisis throughout the 1980s, the authorities adopted and implemented remedial measures with the assitance of organizations such as the International Monetary Fund-(IMF) and the World Bank. Most of these measures were, however, only short-term solutions that were designed to re-establish purely financial balances without going to the root of the chronic problems affecting the Haitian economy and population.

9. "Stand-by" agreements were thus concluded with IMF in 1982 and 1984 with a view to the elimination of the budget deficit and the formation of positive public savings to serve as counterpart funds for development projects with mixed financing, both national and foreign.

10. In view of the limited results of these measures, a structural adjustment programme was designed in 1986 by the Haitian Government with IMF and World Bank assistance and the financial participation of USAID. This renewable programme, which was initially to be carried out during the three-year period from 1987 to 1989, provided not only for short-term stabilization measures, but also for basic reforms aimed at combatting structural imbalances, such as those of the trade balance, the balance of payments and the labour market, as well as the permanent imbalance in the overall budget of the Haitian public sector. The full implementation of the programme was, however, hampered and even suspended in late 1987 as a result of the withdrawal of financial support by the multilateral and bilateral assistance agencies.

11. In fact, the negative growth rates recorded for most of the key macro-economic variables and the negative growth of the main sectors of the Haitian economy clearly show that the management of the economic and social crisis by the authorities did not prevent the situation in the country from worsening in the 1980s.

12. One of the explanations for this deterioration is that the Haitian economy cannot react adequately to external crises, such as the economic recession in the industrialized countries in the early 1980s and the second oil crisis that preceded it.

13. Another explanation is that most of the measures taken by the authorities as a result of concerns about the economic situation did not tackle the major problems which confront the Haitian economy and society, which are structural in nature and which will continue to be bottle-necks and stumbling blocks until they are solved or greatly alleviated.

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14. Of these major problems, particular attention is drawn to:

(a) The very serious deterioration of the physical environment, one
aspect of which is deforestation, which has reached a very advanced stage and is the cause of the rapid erosion of mountain slopes and the inexorable process of desertification. This environmental deterioration is the cause of increasing soil infertility, low income in rural areas, the flight from the countryside and growing social problems in the country's main towns.

(b) The inadequacies and shortcomings of the production system which are hampering the expansion of the supply of goods and may be identified as follows:

(i) The lack of skilled workers, particularly in the productive
sectors, primarily as a result of the very high illiteracy rate;

(ii) Low capital accumulation and non-optimal utilization of
installed capital in the various production sectors;

(iii) The weak network of small- and medium-sized industrial
processing and handicraft enterprises;

(iv) The inefficient organization of the institutional credit system
which does not satisfactorily meet all of the economy's
financing requirements;

(v) The lack of any genuine price policy and the existence of many
monopolies which create distortions in the allocation of
resources to the most efficient sectors;

(vi) Low productivity in practically all sectors, with, as a
corollary, high production costs and weak competitive capacity
in export markets;

(vii) Low volume of output in all sectors leading to massive imports
and chronic trade balance deficits;

(c) Marked disparities in several areas:

(i) Disparities between urban and rural incomes, with
over-concentration of income in the hands of a very small
segment of the population;

(ii) Disparities between urban and rural economic infrastructures,
with concentration in the metropolitan area of Port-au-Prince;

(d) The persistence of such overall imbalances as chronic budget
deficits, structural trade balance deficits and the permanent imbalance in the labour market;

(e) Illiteracy, which even now affects nearly 80 per cent of the population aged 10 years and over. This situation is not without consequence for the country's ability to overcome its social and economic underdevelopment, which will depend first and foremost on a change of attitude and behaviour by the population, which is still by and large totally ignorant.

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CHANGES IN MACRO-ECONOMIC AGGREGATES

Average annual rate in real terms for the period 1979/80-1983/89 Overall GDP -0.49%
Agricultural GDP -0.32%
Industrial GDP -2.85%

Per capita income -1.66%

Overall investment -6.23%
Private investment
Public investment

Exports -3.58%
Imports -3.68%
Trade deficit -3.87%

In nominal terms for the period 1980/81-1987/88

Private capital 6.23%
Public capital -22.38%

External public debt 9.77%
Internal public debt 11.88%

Budget balance 0.98%

Credit to private sector 4.71%
Credit to public sector 11.42%

Price level 3.31%
Unemployment rate

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II. STRATEGY FOR THE 1990s

A. General and specific objectives

15. Government action in the next 10 years will make it possible to achieve the following two general objectives:

(a) Eliminating poverty and social injustice;

(b) Promoting and developing human and natural resources, while preserving the national cultural identity.

16. The aim is to achieve the following four specific objectives:

(1) At the economic and social level (two objectives):

17. The first objective is to ensure a decent standard of living for the majority of the population, by improving housing and raising health, nutrition and educational standards to enable the population to move above the poverty line.

18. In macro-economic terms, this means increasing per capita consumption by 30 per cent in the next 10 years, i.e. an average of 2.6 per cent per year.

19. To bring about such an increase, emphasis must be placed on:

(a) The creation of paying jobs through a process of steady economic growth of 63 per cent for the 1990s, i.e. an average annual growth rate of
4.5 per cent. In order to set this process in motion and keep it going, the following action should be taken immediately and continued throughout the entire period: reorganization of the production system; mobilization of national savings; intensification of manpower training; functional literacy programmes for the illiterate masses (with particular emphasis on instruction in basic farming techniques); finding foreign markets for Haitian products; and elimination of regional disparities;

(b) The expansion of community services (education, health, drinking
water, electricity) to make them available to the majority of the population, which is now deprived of them;

(c) The reorganization of the social security system, as an effective means of bringing about the more equitable distribution of income between socio-professional categories and stimulating domestic demand;

(d) A significant increase in low-cost housing for low-income socio-professional categories.

20. The second objective is to halt the deterioration of the environment and improve its quality.

21. Efforts must be made to prevent soil erosion and deforestation by improving the operation of the structures set up for this purpose and ensuring the development and management of national forests, in particular the pine forest in the la Selle mountains and the Pic Macaya forest in the Hotte mountains.

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22. Pollution must be dealt with and steps taken to prevent the dumping of toxic waste in the national territory, in accordance with the requirement laid down in the Constitution of 29 March 1987.

(2) At the cultural level (one objective):

23. The aim is to preserve the Haitian cultural identity, both in terms of customs and in terms of assets, while remaining open to other civilizations in order to ensure the full development of the individual. Government action in this regard will focus primarily on:

(a) The revaluation of the historical heritage, namely, historical monuments and sites and styles of architecture;

(b) Support for artistic and literary creation.

(3) At the institutional level (one objective):

24. The aim is to establish a healthy institutional environment to ensure respect for national values and the material and cultural possibilities of the population as a whole. Priority will be given to:

(a) The reorganization of the administration and Government enterprises in the areas of management and rules and procedures, as well as to the strengthening of decentralized Government bodies;

(b) The adaptation of legislation governing State undertakings, the organization of political life, the system of justice, the armed forces and the police to the new requirements of the socio-political situation;

(c) The establishment of new institutions, both Government and mixed, with a view to the smooth functioning of society.

B. General strategy

25. In view of the very serious and complex problems which have been identified and which are structural in nature and of the specific objectives to be achieved, a general strategy with the following main components will have to be implemented in the next 10 years:

(1) Economic component

26. The basic option is a liberal one that is in keeping with the national interest. It is characterized by the recognized predominant role of private enterprise in the production of commercial goods and services, as well as by the State's responsibility to establish adequate infrastructures and to create the appropriate political, legal and institutional conditions to promote the full development of productive activities. There will be few obstacles to free trade and, since the production system will be up against foreign competition, local entrepreneurs will have to develop more competitive production methods and opt for the re-allocation of resources to the most profitable sectors and activities.

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27. This option also implies:

(a) Disengagement of the State from certain activities in the industrial sector if State management makes these enterprises unprofitable;

(b) Improvements in the efficiency of central and local Government bodies with a view to the management of and support for public and private undertakings.

28. The State will nevertheless continue its dialogue and co-operation with all political forces and socio-professional associations with a view to reaching a national consensus on major issues of concern to society as a whole.

29. Priority will be given to the agricultural sector, in which four main types of action will be taken:

(a) Optimum food crop production, for which farmers already have enough know-how, in the irrigated plains and humid valleys. Productivity efforts will focus mainly on basic cereals (rice, maize, millet) and pulses (peas, beans);

(b) Promotion of the production of chickens, eggs, pork, goatmeat and fish;

(c) The production of oilseed, fruit and aromatic plants (vetiver,
citronnella, amyris) used as basic raw materials by Haitian agro-industries and of export crops (coffee, cocoa, sisal, flowers and ornamental plants) will be the focus of attention of managers and technical staff in the agricultural sector;

(d) Since the reforestation of the country (particularly of the steep slopes and crests of the main mountain areas) is an absolute priority, energetic and sustained measures will be adopted to re-establish the vegetation cover which will conserve the country's arable land and make it fertile again.

30. Most of the action taken in the other economic sectors will, moreover, be complementary to that taken in the agricultural sector.

(a) Industry

31. The maximization of local added value, agro-industrial integration and the decentralization of industry for the benefit of the main provincial towns are the key elements of the Government industrial strategy.

32. The State will pay particular attention to the processing industry. Specific policy measures will be taken to realize the agro-industrial potential of oilseed, aromatic plants, fruit, milk, butter, cheese, fish, leather goods and cellulose waste, which are now imported.

33. Incentive measures will also be taken to promote the small-scale light mechanical engineering industry, which can be used by the agricultural sector (motor-cultivators, pumps, etc.).

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34. Small and medium-sized enterprises which use labour-intensive methods and rely on natural skills, ingenuity and an innate artistic sense, as well as the types of manufactures requiring a low level of capital investment per worker, the fullest possible use of existing raw materials, the development of by-products and the recycling of recoverable materials will be supported in their efforts to derive the greatest benefit from national potential.

35. With regard to international subcontracting, moreover, emphasis will be placed on the branches that can best stand up to international competition, for example, electronic products. Systematic research will, however, be undertaken on ways and means of integrating the subcontracting industry both upstream and downstream.

36. Existing industries that are geared to the domestic market will be encouraged to modernize their equipment and thus to reduce their production costs; investment will be facilitated upstream and downstream of existing branches in order to promote their integration.

(b) Handicrafts

37. With a view to the development of the family labour force and the integration of small production units into the circuit of local and national economic activity, handicrafts should be promoted, particularly in the informal sector.

(c) Infrastructures

38. Activities to strengthen infrastructures will be co-ordinated in time and space with development activities in productive sectors.

39. With regard to agricultural infrastructures, action (projects and measures) will be taken to improve existing infrastructures and build new ones, such as irrigation and drainage systems, anti-erosion structures, agricultural secondary roads, etc.

40. As to transport, account will be taken of activities for which the State had to make enormous expenditures by ensuring efficient maintenance, repairs and rehabilitation. Activities will focus mainly on road networks in priority development areas with a good level of productivity where highly labour-intensive work can be done.

41. The main roads linking departmental capitals will also be modernized in order to facilitate the transport from one part of the national territory to another of freight, persons and goods, particularly to support the agriculture, industry and tourism sectors.

42. Where the postal services and telecommunications are concerned, the aim is to continue to replace out-of-date infrastructures by more appropriate equipment which conforms to new technological standards and will make for the smoother flow of denser traffic.

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43. With regard to energy, the supply of electric power to the industrial sector and its extension to the domestic sector continue to be matters of high priority. Support will be given to the national policy of decentralization by building small power stations in a number of towns and work will continue on the interconnection of regional networks by setting up distribution lines. Where small systems cannot be installed in rural areas, the systems to be built will use solar energy. On the other hand, in order to mitigate the effects of deforestation resulting from the widespread use of charcoal, the use of other types of energy will be encouraged. A sustained effort in this direction will be made as from the first five-year period.

44. In addition, the following specific overall policies will be implemented:

(a) An active policy of controlled credit for production, particularly for current and potential small-scale producers who do not have access to the traditional credit channels. The public institutions which grant production credits will be put in a position to cope with the implementation of this policy to make credit available to small-capital entrepreneurs; a national promotion fund will also be set up;

(b) A policy to give small-scale producers technological assistance and to support export-oriented sectors by organizing a systematic search for foreign markets and favourable trading conditions with Haiti's trading partners;

(c) A fiscal policy based on a tax system that does not hamper
production and an improved and better monitored system of tax collection making it possible to increase revenue substantially so that more public investments may be made;

(d) A foreign trade policy designed to raise Haiti's level of trade with the outside world while reducing the trade deficit as much as possible. The policy will thus be characterized by what would amount to the active and systematic marketing of Haitian products on foreign markets, both neighbouring and traditional, and on new markets. Imports will be restricted to the country's ability to pay its bills, i.e. its capacity to generate the necessary foreign exchange to pay for its imports taking due account of its priorities in this regard;

(e) A price policy aimed at obtaining the real prices practised by
leaving the market to play its role freely, but with Government intervention when there are flagrant distortions in the levels of certain prices, particularly the prices of staple products;

(f) In view of the current level of the deterioration of the
environment, one of the most flagrant causes of which is the ill-considered exploitation of Haiti's forestry reserves, a national environment policy will be implemented with a view to committing the country to the gradual restoration of the ecological balance. It will be aimed at improving the context and quality of life of the people of Haiti, both in urban and in rural

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areas, and using natural resources more rationally, particularly by reducing the pressure on timber and soil resources on step slopes. Specifically, it will be necessary to:

(i) Preserve arable land for agriculture as far as possible;

(ii) Apply a type of management to agriculture which will take
account of the role of the land and bioclimatic zones, the
danger represented by certain fertilizers and pesticides, both
for agricultural products themselves and in terms of the pollution of underground water and the environment, etc.;

(iii) Ensure that areas with steep slopes are used only for permanent
crops, fruit trees or forestry;

(iv) Plan the assessment, use and protection of water resources or,
in other words, organize water management (underground water,
surface water, rain water);

(v) Promote the establishment of national parks so as to conserve
the balance between fauna and flora;

(vi) Take legal measures on standard setting for the conservation,
protection and preservation of the environment;

(vii) Promote increased participation by para-governmental and
private bodies in national reforestation efforts;

(viii) Popularize scientific research and encourage environmental
education, this popularization will take place at all levels:
primary, secondary and university education, functional
literacy centres, etc.;

(ix) Develop alternative sources of energy, such as biomass energy,
solar energy and wind energy;

(x) Promote substitution energies for charcoal, such as
electricity, propane gas, alcohol, paraffin, palma christi oil and olive oil for cooking purposes. The State should subsidize
distributors so that prices will be within the reach of the
largest number of persons, since the individual choice of energy depends on the socio-economic standing of the user
and on market prices;

(xi) Encourage the development of improved stoves to reduce energy
consumption through the use of wood and charcoal;

(xii) Give tax breaks and credit facilities to entrepreneurs to
enable them to obtain suitable equipment for the use of new
fuels (tax reductions on imports of gas and equipment).

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45. With a view to obtaining the maximum rate of return on investments and ensuring the harmonious and balanced distribution of the population, and of economic activities, infrastructures and services throughout the territory, concerted action by the public and private sectors will be carried out in high priority areas known as "spatial development units" (USD).

46. It should be stressed that, in view of the need for foreign exchange to finance at least compulsory imports, some specific action will be taken by the State to support the activities of private money in the mining and tourism sectors when the expected rate of return is relatively high.

(a) Mining

47. The Governments will give high priority to developing mines and quarries whose potential has been identified on the basis of reliable studies. They will encourage the development of these resources by private companies, strictly respecting contracts which safeguard both the general interest and the interests of the local population. Sites for the exploitation of the gold-mines in the north and the calcium carbonate mines at Miragoine will be started up.

48. The Governments will also encourage the establishment of self-managed groups which will receive support from technical experts for the working of marble, sand and clay quarries. It is understood that the protection of the environment will be a major concern in the development of national mines and quarries.

49. Another element of the Government's strategy in this sector will be to intensify the inventory and detailed studies of the country's potential mineral resources.

(b) Tourism

50. In view of the many natural, historical and cultural assets that make Haiti a definite tourist attraction, the Governments will pursue a strategy based on the encouragement of the national and foreign private sector with a view to taking advantage of the country's favourable conditions for tourism by investing in the expansion of hotel capacity and the construction of seaside resorts and tourist centres and by establishing additional services to attract tourists.

51. The Governments will encourage stop-overs in Haiti by cruise ships and, through Haitian embassies, particularly in North America, Europe and the Caribbean, will intensify campaigns to promote tourism.

52. The training of managerial staff and incentives to municipal authorities to build holiday resorts will be other steps in the establishment of the Government tourist strategy. A more "popular" type of tourism aimed at middle-income consumers will also be promoted. Particular attention will be paid to the Haitian "diaspora" clientele in addition to traditional North American customers.

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(2) Social component

53. Government action to try to provide lasting solutions to the various social problems which have been diagnosed will be directed at the rehabilitation of the individual in Haiti with a view to making him a genuine economic, social and political agent. To this end, better conditions of access to basic services must be created for him, particularly in education and health. At the same time, his material environment must be improved and measures to ensure his social protection must be reinforced.

(a) Education

54. The State must play a more active role by defining the main elements of the educational system; the private sector must also be more fully integrated in efforts to meet educational needs and improve the efficiency and the productivity of the system.

55. Emphasis will be placed on the ongoing introduction of educational reform, vocational and technical training at the secondary level, university reform and functional literacy programmes in a context of co-operation between the private and public sectors and the improved distribution of infrastructures between urban and rural areas. These reforms will be carried out in order to meet the great need for skilled workers and middle and higher management staff and will lead to the establishment of an economy that will gradually become increasingly complex.

(b) Health

56. The previously recommended policy which aims at health for all by the year 2000, will be continued. Compared with the previous period, there will be a difference in how the established objectives are achieved, in the way the implementation of programmes is scheduled and in arrangements for programme funding, will be very considerably increased. Particular emphasis will be placed on primary health care and on:

(i) Transmissible diseases;

(ii) Nutritional problems;

(iii) Sanitation;

(iv) Mother and child protection and family planning, particularly in
order to slow down the population growth rate;

(v) The organization of the health services network;

(vi) The encouragement of health education.

(c) Housing

57. Priority will be given to Government action on behalf of low-income families, which will include three types of activity:

(i) The rehabilitation of over-populated slum areas which do not have
even a minimum of basic infrastructures;

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(ii) The development of sites and services on vacant plots of land for
the settlement of persons moved out of areas to be rehabilitated;

(iii) The development of sites and services for the settlement of persons
living in non-rehabilitated areas.

(d) Social security

58. Particular importance will be attached to full co-operation between the State, employers and workers, especially with regard to the strengthening of the accident, sickness and maternity insurance scheme and the improvement of working conditions and safety at work. In the case of least-favoured and marginal groups, such as handicapped persons, drug addicts, delinquents, prostitutes and the needy in general, the State will do everything in its power to help them to become aware of the need to get out of the situation they are in and will facilitate their return to a normal life.

(e) Drinking water

59. The objectives will be achieved by continuing with the rehabilitation, construction and installation of infrastructures, which must be maintained and monitored in order to prevent water from being wasted. This tyoe of activity will be carried out mainly in towns.

60. High priority will also be given to drinking water supplies for rural communities, only 5 per cent of which are currently covered. In sparsely populated areas, there are plans to drill wells and install hand pumps to improve the water supply, while, in more densely populated areas, encouragement will continue to be given to the construction of small gravity-operated systems to facilitate supply from public wells.

61. In addition, emphasis will be placed on the systematic identification of new sources of supply and the study of new projects particularly in rapidly growing urban areas.

62. In all spheres, the agencies responsible for carrying out these activities will receive additional technical and institutional support.

(f) Urban development

63. The process of urbanization must be re-organized through the modernization or transformation of certain built-up areas which were incorrectly or too rapidly classified as towns. Efforts will focus on the establishment of new sanitation and drainage systems, the reconstruction and surfacing of urban roads and the expansion of inhabited areas, which will be done in a controlled way to prevent any further encroachment on the country's remaining fertile land.

(3) Institutional component

64. The public administration has to be restructured. Procedures will be simplified and methods of managing human and material resources will be modernized and standardized. The efficiency of the public services will be improved by integrating officials in the civil service which will be governed by a revised general statute and special statutes for the joint bodies

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offering career job security. In addition the strengthening of the decentralized services and the delegation of power to the responsible departmental and communal authorities, in accordance with the model set out in the 1987 Constitution, will allow local concerns to be taken more fully into consideration.

C. Financing of the strategy

65. The implementation of the strategy requires enormous investments, which will amount to 53,283 million gourdes for the next 10 years, or $US 10,657 million, i.e. $US 1,066 million per year.

66. The public component of the investment, i.e. 33,045 million gourdes or $US 6,609 million accounts for slightly more than 60 per cent of the total and will be the most dynamic element, with an average annual real growth rate of 9.55 per cent. It will be used mostly in highly labour-intensive work consuming large quantities of local materials.

67. The financing of the public investment will be ensured by resources from the Treasury and funds from independent bodies amounting to $US 1,030 million (19 per cent of the total) as a result of special provisions to enable the public sector regularly to have a substantial budget surplus.

68. An increase in the value of the foreign contribution to development is therefore necessary. Emphasis will be placed on loan negotiations and operations with regional and international financing organizations. However, the Government's ongoing efforts to set up a programme to improve the country's financial situation should make it possible to arrive at an increasingly larger budget surplus, which will lead to an increase in Treasury funds to be earmarked for development and, as a side effect, to a reduction in the share of official foreign capital in the financing of the country's investment budget.

69. The present Government will also continue its efforts to inform multilateral and bilateral financing agencies of its new way of looking at the problem of foreign assistance to Haiti. Account will therefore have to be taken of the need to bring projects financed in whole or in part by such assistance into line with the priorities set out in this programme.

70. The Inter-American Development Bank, the World Bank and the International Monetary Fund will continue to be the preferred partners. However, greater efforts to strengthen South-South co-operation and create a more pragmatic opening towards some European and Asian countries will further diversify the country's sources of external financing for development.

71. The elements of the national co-operation policy are described below.

Elements of a national co-operation policy

Justification:


The interdependence and solidarity of nations.

..




- 15 -


Objectives:

To promote the well-being of the community by seeking to make the most of the impact of co-operation on development.

To play a more balanced role in international co-operation, taken in the strict sense of trade and complementarity. Strategy:

Differentiation between multilateral co-operation and bilateral co-operation.

A. Multilateral co-operation

(1) Strengthening Haiti's presence in multilateral organizations in order to influence their approach, strategy and policy in favour of the interests of the least-developed countries.

(2) Seeking solidarity with countries whose socio-economic conditions are comparable to those of Haiti so that the multilateral agencies will do more to promote the development of the least developed countries; and working for the establishment of consultation machinery. B. Bilateral co-operation

(1) Strengthening ties of friendship and solidarity with traditional partners.

(2) Establishing bilateral relations with other countries (Nordic, Asian,
etc.).

(3) Promoting and establishing South-South co-operation and working for regional integration.

(4) Identifying bilateral partners whose cultural affinities, geopolitical situaiton and political aspirations are likely to strengthen ties of co-operation with Haiti. Financial co-operation A. Gifts

Maximum use of non-reimbursable financial assistance, in keeping with the principle of self-determination. B. Loans

Maximum use of reimbursable financial co-operation.

(1) By seeking minimum financial costs.

(2) By seeking maximum reimbursement periods.

(3) By giving preference to economically viable sectors of investment
in order better to guarantee reimbursements.

..




- 16 -


Co-operation in kind

A. Food aid

(1) Eliminating food shortages.

(2) Conserving the balance of the domestic market.

(3) Protecting local production from disruptions.

(4) Determining food aid requirements on the basis of a national food
policy linked to the agricultural policy.

B. Plant, equipment, etc.

(1) Selection in terms of identified needs.

(2) Rational use as a result of integration in structured projects.

C. Technical assistance

(1) Clearly identifying technical shortcomings in the light of
development priorities.

(2) Intervention in the definition and choice of the required profile.

(3) Gradually solving problems of technical shortcomings through
transfers of know-how and a policy of training in Haiti and abroad.
National priorities must prevail in all circumstances. The
principles of national sovereignty and self-determination must be
constantly safeguarded in all co-operation relationships. Efforts
to find partners in co-operation must be continued in order to
combat the power struggle that all too often influences
negotiations. Sovereignty, self-determination and partnership are
possible if the country has the means to strengthen its position
in negotiations by making serious efforts to ensure the sound management of the national economy and setting up appropriate
structures for the use of available resources.

..
























Agriculture, forestry, fisheries Agriculture Stock-breeding, forestry
and fisheries Mining
Manufacturing:
Food production
Carbonated beverages
Tobacco
Textiles, clothing, leather
Chemicals
Non-metallic mineral products
Metal processing
Miscellaneous industries Electricity, water Buildings and public works Trade

Restaurants, hotels Transport, communications Financial institutions Real estate Community services Non-market services GDP/factors Duties, taxes on imports GDP/market prices


Annex I

MACRO-ECONOMIC PROJECTIONS

A. SECTORAL GDP TRENDS IN 1998-1999


(In thousands of gourdes
at 1975-1976 prices)

1987-1988 Sl 52 S3


1 659 094 2 233 393 2 602 255 3 202 702 1 392 678 1 881 542 2 190 690 2 694 311
266 416 351 851 411 565 508 391


5
776 238
23 33
107
45 39 183 105

53

320 867

23 104

5

290 176

605 4 889

220 5 109


9 362
961 566 270 491 19 635 33 202
195 562
74 584 67 027 148 750 152 315

34 448

504 288 1 058 723

20 267 121 367 14 437

321 474 124 670 705 629 6 109 624

272 103 6 381 727


11 1 154
313
22 38
233
88 87 187 182

41

670 1 248

23 142

17

375 145 815 7 249

328 7 577


--------------------- ------L--------I---------I--------


13 951 1 422 623
386 014 27 990 47 313
284 974 109 276 111 169 233 394 222 493

50 913

858 883 1 540 660

28 888 175 193

21 801

464 398 100 359 1 005 464 8 885 835

408 090 9 293 925


Average annual rate
(per cent)


SI


2.74 2.77 2.56


5.27 1.96 1.16
-1.57
-0.02
5.57 4.54 4.90
-1.88
3.40

-3.97

4.22 1.82

-1.47

1.34

8.60 0.92

-3.09

1.40

2.05 1.95 2.04


S2


4.18 4.20 4.03 7.21 3.67 2.52
-0.26
1.31 7.30 6.21
7.49 0.20 5.10

-2.40

6.96 3.36

-0.16

2.81 10.53 2.37

-1.69

2.75 3.64 3.70 3.65


53


6.16 6.18
6.05 9.16 5.66 4.48
1.65 3.25 9.24 8.23 9.84
2.23
7.02

-0.50

9.39 5.35 1.75 4.78

12.75 4.35

-4.98

4.72 5.58

5.78 5.59


Source: Data from the model of the Haitian Statistical Institute (IHSI), DP/MPCE, 17 May 1989.

..







--------------------------------Agriculture, forestry fisheries Agriculture Stock-breeding, forestry and fisheries Mining
Manufacturing: Food production
Carbonated beverages
Tobacco
Textiles, clothing, leather
Chemicals
Non-metallic minerals
Metal processing
Miscellaneous industries Electricity, water Buildings and public works Trade

Restaurants, hotels Transport, communications Financial institutions Real estate Community services Non-market services GDP/factors Duties, taxes on imports GDP/market prices




Source: DP/MPCE, 17 May 1989.


B. SECTORAL GDP TRENDS IN 1998-1999


In thousands of gourdes
at 1975-1976 prices

1987-1988 Sl S2 S3


1 659 094 1 392 678
266 416


5
776 239 23 33 107 45 39 183 105 53 320 867 23 104

5

290 176 605 4 889

220 5 109


320 754 328 376 265 758 770 603 193 461 777 062 985 858 805 825 649 085 323 537 000 537


2 319 522 1 954 790
364 732


9
1 013
314
19 33
196
74 67 150 156

37

507

1 129

20 129 15 337 149 909 6 579

434

7 014


369 557 905 647 202 701 640 551 287 624 922 514 512 731 678 613 572 003 597 590 899 489


2 701 847 2 275 388
426 459


11 449 1 218 067
368 259 22 730 38 390
235 274
88 816 88 236 189 100 187 262

45 172

674 412 1 330 030

23 975 151 699 18 873 394 474 172 951 1 051 721 7 794 670

522 314 8 316 984


3 325 157 2 798 448 526 709


1


13 1 500 453 28 47 286 109
111 235 228 55 863 1 641

29 187 23 487 213 1 297 9 638

647 0 286


960 839 436 007 313 594 353 914 578 644 854 470 257 551 003 475 275 099 412 352 810 162


Average annual rate
(per cent)


SI


3.09 3.13
2.90


5.28
2.45 2.57
-1.57
-0.2
5.62 4.55 4.97
-1.78
3.66

-3.13

4.28 2.42

-1.27

1.95 9.38 1.37

-1.51

3.77 2.74 6.39

2.92


S2


4.53 4.56 4.37


7.22 4.17 4.04
-0.25
1.31 7.36 6.21 7.55 0.29 5.36

-1.57

7.01

3.96 0.04 3.42 11.28 2.82

-0.16

5.15 4.33 8.18 4.53


S3


6.52 6.55 6.39


9.17 6.17
6.02 1.66 3.25 9.30 8.24 9.90 2.31 7.29 0.35 9.44 5.96 1.96 5.40 13.51 4.81 1.75 7.18 6.36 10.32 6.57


-----------

..




- 19 -


C. VECTOR OF IMPORTS AT CURRENT PRICES (In thousands of gourdes)



Average annual growth rate 10.00%

Import price index, base 1975/76 498.4394


Sl S2 S3

Imports 12 306 14 945 18 593


Source: IHSI model, DP/MPCE, 17 May 1989.


Source: DP/MPCE, 17 May 1989.

..





D. OVERALL INVESTMENT TRENDS, PERIOD 1987/88 1998/99


In real terms In nominal terms


Deflator


-- --- -



In real terms In nominal terms Deflator


1988


955


1989 1990


-------------


1 035


1 501 1 789 157.17 172.89


1988






544 855


157.17 L --------


1989






596 1 030 172.89


1 122 2 133


190.18


1990






653 1 242 190.18


- - - - - - - - - - - - - - - - - -


1991 1992






715 784


1 496 1 803 209.20 230.12


1993






858 2 173 253.13


1994






940 2 618 278.44


1995






1 030 3 155 306.29


1996






1 128 3 802 336.91


1991 1992 1993 1994 1995 1996


--------------------------------------------------------1 216 1 318 1 428 1 548 1 677 1 818 1


2 543 3 032 3 615 4 310 5 138 6 125


L 209.20 230.12 253.13 278.44 306.29 336.91 27


PUBLIC INVESTMENT TRENDS, PERIOD 1987/88 1998/99


1997






1 236


4 582 370.61


1997






970 7 302 70.61


1998






1 354 5 521 407.67 L -1" _


1998






2 135 8 706 407.67


1999






1 484 6 653 440.43


Over the period 1990-1999
---------16 547


53 283


Over the period 1990-1999
---------10 183


33 045


----------------------------------


PRIVATE INVESTMENT TRENDS, PERIOD 1987/88 1998/99
(in millions of gourdes)


In real terms In nominal terms


Deflator


1988 1989


.-- - - - -



411 438


646 758


157.17 172.89


1990






467 889 190.18


1991






498 1 042


209.20


1992






531


1 222 230.12


1993 1994 1995 1996 1997


566 1 433 253.13


-------604 1 681 278.44


644


1 972 306.29


686 2 312 336.91


732


2 712 370.61
L-- __


1998






780 3 181 407.67


1999


832 3 730


448.43


Over the period 1990-1999




6 341 20 175


Annual average Abs. Growth value rate


634 6.62% 2 017 17.28%


1999






2 314 10 379 448.43


Annual average
--------------Abs. Growth value rate


1 655 8.38%


5 328 19.22%










Annual average
--------------Abs. Growth value rate


1 018 9.55%


3 304 20.50%

..









E. CHANGES IN GROSS DOMESTIC PRODUCT, PERIOD 1987/88 1998/99


1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Over the
period
1990-1999
--------------------- -------- --------------------------------------------------------------------------------------------In real terms 5 110 5 341 5 583 5 836 6 101 6 377 6 666 6 968 7 284 7 614 7 958 8 319 68 706

In nominal
terms 9 729 10 983 12 399 13 998 15 803 17 840 20 140 22 736 25 668 28 977 32 713 36 930 227 203


Deflator 190.39 205.62 222.07 239.84 259.03 279.75 302.13 326.30 352.40 380.59 411.04 443.92
--- --------I-------- -------- L-------- L-------- L-------- I-------- I-------- L-------- -------- L-------- -------- ---------ESTIMATE OF GOVERNMENT REVENUE, ANNUAL AVERAGE

--------------------------- --------- --------- --------- --------- --------- --------- -------- --------- -------- ---------1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Over the
period
1990-1999
----------------------------------------------------------------------------------------------------------------------------------


Tax ratio In real terms In nominal terms


10.00%

511


973


10.65%

569 1 170


11.34%

633 1 406


12.08%

705


12.86%

785


1 691 2 033


13.70%

874 2 444


14.59%

973 2 939


15.54% 1 083 3 533
---------


16.55% 1 205


17.63% 1 342


4 248 5 107


18.77%

1 494 6 141


19.99%

1 6631 7 383


153.06% 10 757 36 925


Annual average
------- --------Abs. Growth value rate


6 871 22 720


4.53% 12.89%


Annual average
------ ------Abs. Growth value rate


15.3%

1 076

3 693


6.5% 11.32% 20.23%

..




F. TRENDS IN PUBLIC CONSUMPTION, PERIOD 1987/88 1998/99


In real terms In nominal terms


Deflator


1988 1989 1990-------------------------------------1 1988 1989 1990


203.10


838


1 339 219.34


861 2 041 236.09


1991 1992 1993 1994



---------.------ ----------------


885 2 265 255.84


910


2 513 276.31


935 960


2 789 3 095 298.41 322.29


1996


1998


V--------------------------------


987 3 434 348.07


1 014 3 811 375.92


1 042 4 229 405.99


1 070 4 693 438.47


1 100 5 208 473.55


Over the period 1990-1999
E--------9 763


34 077


Annual average
---------------Abs. Growth
value rate


976 2.75%


3 408 10.97%


TRENDS IN REVENUE OF INDEPENDENT BODIES INTENDED FOR INVESTMENT


In real terms In nominal terms Deflator


1988


1989]




71 146 205.62


1990


69


153 222.07


1991


67 161 239.84


1992


65 169 259.03


1993 1994


63 178 279.75


62 187 302.13


1995


60 196 326.30


58


206 352.40


1997


57 216


380.59


1998






55 227 411.04


1999


Over the period 1990-1999



611


238 1 930 443.92


Annual average
---------------Abs. Growth value rate


-2.78%


193J 5.00%


------------------ _,_,__ -- I ---- ---- ----------- ---------- ---I------


L_


I I I 1 I I

..














G. FINAL



1988 1989


----------.------------------Government revenue 569

Public consumption 838

Balance -270

Revenue of independent 71
bodies

National resources 0

Public investment 596

Financing requirements -596

National resources/
public investment 0.00%


,NCING REQUIREMENTS FOR THE PUBLIC INVESTMENT PROGRAMME IN REAL TERMS 1990 1991 1992 1993 1994 1995 1996 1997 1998


633 861

-228

69


0

653

-653 0.00%


705 885

-180

67


0

715

-715


0.00%


785 910

-125

65


0

784

-784 0.00%


874 935

-61 63


3

858

-856 0.31%


1 083

987

96 60 156

1 030

-874


1 205 1 014

192

58


250 1 128

-878


7.89% 15.16% 22.15%


1 342 1 042

360

57


357 1 236

-879 28.88%


479 1 354

-876 35.35%


1999 Over the
period
1990-1999
-- - -


617

1 484

-867


41.58%


10 757 9 763 994 611 1 936 10 183

-8 247


19.01%


Annual average
---------------Abs. Growth value rate


1 076 11.32%

976 2.75%

99

61 -2.78%


194 1 018

-825


19.01%


9.55% 3.20%


--------------------------------------------------------------------- -

..























Government revenue Public consumption Balance

Revenue of independent bodies

National resources Public investment Financing requirements National resources/ public investment


H. FINANCING REQUIREMENTS FOR THE PUBLIC INVESTMENT PROGRAMME IN NOMINAL TERMS

(Unit: millions of gourdes; base year: 1975/76)


1989 1990 1991 1992 11993 1994 1995 11996 1997 1 1998


1 406 2 041

-634 153


0

1 242

-1 242 0.00%


1 691 2 265

-574 161


0

1 496

-1 496 0.00%


033 513

-480 169


0

1 803

-1 803 0.00%


-I'--(---t--1


2 444 2 789

-345

178


0

2 173

-2 173 0.00%


2 939 3 095

-156

187


30

2 618

-2 588 1.16%


295 3 155

-2 860 9.34%


4 248 5 107 3 811 4 229 437 878

206 216


643 1 094 3 802 4 582

-3 159 -3 487 16.90% 23.88%
- - - - -


6 141 4 693 1 448

227


1 674 5 521

-3 847 30.33% LK ------


1999


Over the period 1990-1999


1------------------------


7 383 5 208 2 175

238


2 413 6 653

-4 240 36.27%


6 150 33 045

-26 895 18.61%


Annual average
---------------Abs. Growth value rate


3 693 20.23% 3 408 10.97% 285

193 5.00%


615

3 304

-2 690 18.61%


20.50% 14.62%


Source: Scenario 2 Forecast, DP/MPCE, 19 May 1989.


1988


------------------------- T ------- ------------------=---


1 170 1 839

-659 146


0

1 030

-1 030 0.00%


'---'----

..




- 25 -


I. GROSS DOMESTIC PRODUCT ACCOUNT

RESOURCES-EMPLOYMENT BALANCE

(in millions of gourdes at 1975/76 prices)


SCENARIO 2


1987/88

GDP 5 110

Imports 1 799

Resources 6 909

Construction 4 973

Public construction 816

Private construction 4 157

Investment 955

Public investment 544

Private investment 411

Exports 981

Employment 6 909


Source: DP/MPCE, 19 May 1989.


71998/99

8 317 2 998 11 315 7 400 1 100 6 300 2 315 1 484 832 1 600 11 315


FRate/period
62.76% 66.67% 63.78% 48.80% 34.80% 51.55%

142.44% 172.72% 102.36%

63.10% 63.78%


Rate/annual average

4.53%

4.75% 4.59%

3.68% 2.75% 3.85% 8.38% 9.55% 6.62%

4.55% 4.59%

..



Annex II

FINANCING CONVENTIONS UNDER NEGOTIATION

May 1989


AGENCIES


OVERALL ---------------------------------


World Bank













IMF IFAD USAID WFP


-- --- --- ------ PURPOSE DURATION
PURPOSE FD-------TTDI,,;,,


AMOUNT
(gourdes)

3 074 542 600 271 375 000


CAMEP master plan Support for ED'H ECONOMIC Recovery Fund (ERF) Economic Social Support Fund (ESSF) Urban development, phase II



Construction of Cales de Halaye



Industrial restructuring



20 small irrigated areas



Food programme ESF: Assistance to the Payments Bank



Support for victims of cyclone Gilbert


100 000
75 75
100 000 16 525 17 350 18 220 19 130


1988/89 1989/90 1990/91 1991/92


50 000 000

50 000 000 49 200 000

49 200 000 184 000 000

60 000 000 124 000 000



10 153 160
10 153 160

..







PURPOSE


------------AGENCIES OAS












FRG FAO UNDP


DURATION


1989/90 1990/91 1989/90 1990/91 1989/90 1990/91 1989/90 1990/91



1989


.1


AMOUNT (gourdes)

4 350 000


47 I 475 500
1 000
400 400 550 550


uuu 000 000 000 000 000 000 000


Multinational food biotechnology project

Multinational microelectronics and data-processing project

Multinational materials project

Multinational library data and documentation project





Food assistance
Support for the Hinche and BelladLres health services Food security fund in the north-west Regional development of the central Plateau



Master plan for water resources management in
the Plaine des Cayes
Development of irrigation Reforestation in the Dauphin plantation Rehabilitation of six irrigated areas in the
Plaine des Gonaives
Management of the Trois Rivibres catchment area



Industrial use of lignite Geological map of mineral resources Support for the tourism sector Support for small- and medium-sized enterprises Restructuring and development of the postal services Technical assistance to improve infrastructure and
conditions in five provincial towns
Information and documentation centre (advancement of women)


000 000 000 000 000


15 620 000
850 000


1 860 000

1 860 000
not available not available not available

14 853 000


3 330 000 1 820 000 3 463 000

2 760 000 3 480 000

24 620 000

..





AGENCIES PURPOSE DURATION %


IDA IDB


ODVA III
Sond6 Mirebalais bridge Drinking water, Port-au-Prince Plaine du Cul-de-Sac ED'H transmission lines and rural distribution MTPTC secondary roads



Regionalization of public health services Irrigation, Rivibre Blanche II MARNDR Sectoral loan Banque Agricole de Cr4dit (Agricultural Credit Bank) Improvement of the teacher training system SONAPI industrial area ED'H Electricity generation Artibonite III-IV MSPP, malaria control Drinking water III Rehabilitation University Hospital Malaria control Nutrition
Institutional support for MSPP Agricultural policies Education programme Reforestation, soil protection Secondary roads


76.4


AMOUNT
(gourdes)

2 347 500 000


1989 1989 1989 1990 1990 1990



1990 1990 1990 1991 1991 1991 1991 1992 1992 1992 1993


60 000 000 50 000 000 50 000 000 25 000 000 100 000 000 40 000 000 300 000 000 75 000 000 100 000 000 60 000 000 40 000 000 150 000 000 150 000 000 150 000 000 150 000 000 150 000 000 150 000 000
-- -- - -

..