This note reviews the effects of dollarization on the ability of the Bank of the Republic of Haiti (BRH) to conduct monetary policy and the risks to macroeconomic stability and the banking system. Haiti's external indebtedness has been compared with that of countries eligible for debt relief under the Initiative for Highly Indebted Poor Countries (HIPCs). Haiti's accession to the Caribbean Common Market and the impact of trade liberalization measures on the strategic rice sector is discussed. The causes of poverty in Haiti are also analyzed.

Abstract

This note reviews the effects of dollarization on the ability of the Bank of the Republic of Haiti (BRH) to conduct monetary policy and the risks to macroeconomic stability and the banking system. Haiti's external indebtedness has been compared with that of countries eligible for debt relief under the Initiative for Highly Indebted Poor Countries (HIPCs). Haiti's accession to the Caribbean Common Market and the impact of trade liberalization measures on the strategic rice sector is discussed. The causes of poverty in Haiti are also analyzed.

V. Poverty and Social Policies43

Abstract

During recent years, Haiti has experienced an extended period of political distress leading to a worsening of the country’s social and economic indicators and a deepening of poverty. Social programs, which are largely financed by international donors through nongovernmental organizations, have been scaled down or suspended in the last two years as a consequence of the ongoing political crisis, economic uncertainties, and a slow pace of structural reforms. This chapter examines the causes of poverty in Haiti and analyzes the education, health, and environment sectors. We conclude that it is essential that Haiti returns to a stable and sustainable macroeconomic framework and undertakes structural reforms that will lead to a higher growth path that would permit a reduction in poverty and an improvement in social indicators.

A. Introduction

86. Haiti occupies 27,750 km2 of the western half of the island of Hispaniola. The country is divided into nine departments, 133 municipalities, and 561 districts. It became independent in 1804. In its turbulent political history, poverty alleviation was rarely a priority and recurrent political crises have tended to deepen poverty. The de-facto government that controlled Haiti between 1991 and 1994 faced an international financial and trade embargo, again worsening the country’s social and economic indicators. Democratic rule was reinstated in 1994, but the country has suffered a continuous political crisis since 1997, leading to a slowdown in structural reforms, project implementation, and external assistance to alleviate poverty

87. Measured by the Human Development Index (HDI), Haiti is the poorest country in the Western Hemisphere. The causes of poverty in Haiti are political instability, poor governance, lack of personal safety, a weak justice system, low levels of physical and human capital investment, lack of basic infrastructure, and demographic pressures. Social programs, which are largely financed by international donors through nongovernmental organizations, have been scaled down or suspended in the last two years as a consequence of the ongoing political crisis, economic uncertainties, and a slow pace of structural reforms. It is therefore essential that Haiti returns to a stable and sustainable macroeconomic framework and undertakes structural reforms that could lead to a higher growth path and a reduction in poverty.

88. The remainder of the chapter is organized as follows. Section B describes poverty incidence and aggregate social indicators in Haiti and compares them with other countries in the Western Hemisphere and sub-Saharan Africa that are eligible for the Fund’s Poverty Reduction and Growth Facility (PRGF). Section C describes the social sectors in Haiti, in particular the education and health systems, and the environment.

B. Incidence of Poverty

89. Haiti’s GDP per capita in 1998 was US$524, just slightly above the sub-Saharan African average. Its social indicators are significantly lower than those of the poorest countries in the Western Hemisphere and are comparable to those of sub-Saharan Africa (Table 1 and Figure 1). 44 Two-thirds of the population lives in rural areas in Haiti, and over 80 percent of the rural population fall below the poverty line. 45 This compares unfavorably with the rural poverty rates of PRGF-eligible countries in the Western Hemisphere. 46

Table 1.

Social Indicators: International Comparisons, 1990 and 1998 1/

(In percent)

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Source: World Development Indicators, 2000, World Bank, unless otherwise indicated.

In some cases, data are not available for the year indicated, hi those cases, the reported data refers to a range of +/- 2 years around the year indicated.

World Economic Outlook database.

For Haiti, latest survey year is 1995; for Bolivia, 1995; for Honduras, 1993; for Nicaragua, 1993.

Number of infants who die before reaching one year of age, per 1,000 live births in a given year.

Percentage of population age 15 and above.

United Nations Development Programme, Human Development Report, 1993 and 2000.

Pan American Health Organization, Improving the Health of the Peoples of the America, 1998, and UNDP, World Development Report, 1993 and 2000.

Figure 1.
Figure 1.

Haiti: Social Indicators—Comparison with PRGF-Eligible Countries

Citation: IMF Staff Country Reports 2001, 004; 10.5089/9781451954654.002.A005

Sources: World Development Indicators, 2000, World Bank; World Economic Outlook; and United Nations Development Programme, Human Development Report.

90. Population pressure has exacerbated poverty in Haiti. Although the growth rate has slowed since 1990, population was still growing at 2 percent in 1998. The fertility rate has declined from 5.1 births per woman in 1990 to 4.3 in 1998, and is lower than the sub-Saharan African countries’ average. The high fertility rate exerts pressures on the environment, and reduces available resources per capita for basic education, health, sanitation and access to safe water. 47 The urbanization ratio in Haiti is below the average level for Western Hemisphere countries. However, substantial disparities and limited opportunities in rural areas have caused migration to urban areas in recent years and a rapid proliferation of slums in Haitian cities (Port-au-Prince, Cap-Haïtien, Gonaives, Les Cayes). Overpopulation has also become a major problem in Haiti. Haiti’s population density of 278 persons per square km is by far the highest among the comparator countries.

91. The death rate in Haiti is 13 per 1,000 people a year and is about twice that of Guyana, Honduras, or Nicaragua. Life expectancy is only 54 years, the lowest among the PRGF-eligible countries in the Western Hemisphere and comparing unfavorably to the average for sub-Saharan Africa countries. This has been the result of poor access to health care services, malnutrition, and insecurity created by the economic and political distress that affects the country.

92. The human development index (HDI) in Haiti has improved from 0.3 in 1990 to 0.4 in 1998. However, its rank relative to other countries has worsened during the same period from the 137th to 150th position, comparable to that of the poorest sub-Saharan countries. 48 The HDIs for Bolivia, Guyana, Honduras and Nicaragua are all above 0.6 and their rank is in the range of 96th-116th

C. Social Sector Indicators

Education

93. Formal education system in Haiti is mostly provided by the private sector. About 80 percent of primary students are enrolled in privately operated schools, with somewhat lower percentages for secondary and tertiary education. The large incidence of private schools is a reflection of the marginal government participation in past decades and the intense involvement of religious and foreign-funded NGOs in the sector. Two-thirds of private schools are supported by religious groups and most belong to FONHEP (Fondation Haitienne de l’Enseignment Prive), a foundation created in 1988 by the Episcopal Commission for Catholic Education (CEEC) and the Federation of Protestant Schools of Haiti (FEPH). 49 Most private schools are small (1-2 teachers, 100-150 pupils, 1-2 classrooms) and charge a moderate schooling fee. Only 10 percent of the private schools at the primary level are licensed, and not more than one-third at the secondary level. Teachers are poorly qualified and paid and schools lack instructional material, and an appropriate curriculum and facilities. 50

94. Public spending on education amounted to 2.1 percent of GDP in FY 1997-98 (Table 2). Access to public schools in Haiti is limited, given the scarce resources from the Ministry of Education. While teachers in public schools are on average better trained than teachers in private schools,51 they earn about 6 times as much as private school teachers, straining further the scarce public resources. 52 Although public, these schools charge a fee for the academic year destined to defray expenses, but provide uniforms, some school material and meals. Public schools suffer from lack of resources, poorly trained teachers, absence of school maintenance, and an ill-defined curriculum not adapted to the labor market requirements of Haiti.

Table 2.

Haiti: Education Indicators 1/

(In percent)

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Source: World Development Indicators, 2000, World Bank, unless otherwise indicated.

In some cases, data are not available for the year indicated. In those cases, the reported data refers to a range of +/- 2 years around the year indicated.

Ministry of Economy and Finance.

Percentage of population age 15 and above.

UNESCO database.

The source is Annuaire Statistique des Ecoles Fundamental es et Secondaires d’ Haiti.

95. The quality of the education system in Haiti is poor. More than half of the adult population in Haiti is illiterate, the highest proportion in the Western Hemisphere and above the average for sub-Saharan African countries. The female illiteracy rate was only slightly higher than male illiteracy, 54 percent and 50 percent, respectively in 1998. The enrollment rate at the primary level deteriorated from 60 percent in 1975 to 51 percent in 1995, but increased somewhat in 1998 after the embargo was lifted and international assistance resumed. Repetition rates in primary schools have increased from about 10 percent in 1985 to 17 percent in 1995. Almost two-thirds of all children drop out of primary school before concluding the six-year course. As a result, it takes 15 pupil-years to have one pupil complete 6th grade against 10.5 pupil-years in Guatemala, 8.7 in Chile, and 7.5 in Costa Rica. Secondary school enrollment rates stood at 15 percent in 1998.

96. The high repetition and drop-out rates are due to school fees, child labor, poor education quality, migration, sickness and malnutrition, school population, school location, and teenage pregnancy.

97. An additional problem in the education system is the significant difference in schooling conditions between rural and urban areas. The rural education system suffers from the limited number of public schools, especially in poor communities. The quality of schooling is particularly poor in rural areas, with high pupil-teacher ratios, commonly exceeding 100 students per class; irregular attendance of teachers; poor teacher qualification; poor school facilities, and a curriculum not adapted to the needs of the poor in rural areas. Private schools are rarely licensed or inspected. Costs associated with schooling, such as uniforms, shoes, and instructional material are often prohibitive for low-income families. To address severe problems in the education system, the government is reforming the education system (Box 1).

Reforming the Education System

The Ministry of Education developed the National Education and Training Plan (PNEF) in early 1997 to provide a framework for education investment for a ten-year period. This project would be financed by the IDB, IBRD, and the Govemment of Haiti. The plan has identified 10 major objectives: (1) improve the quality of education; (2) promote a solid strategy for the development of instructional material; (3) attain universal primary education by the year 2010-2015; (4) reform secondary education; (5) coordinate efforts with other agents (Ministry of Health; Ministry of Social Affairs, and NGOs) for the development of children of pre-primary school age; (6) establish technical and professional training schools; (7) implement a system of higher education geared toward research and development; (8) improve informal education services and programs for distance education; (9) reinforce institutional capacity of the Ministry of Education, and (10) reevaluate the quality and professional preparation of teachers. As this plan sets goals for achievement of universal primary education and for improvement of quality, a database with a set of key indicators will be established and will serve as part of the monitoring strategy of indicators to better follow the progress of the plan.

To strengthen efforts for reforming and developing the education system in Haiti within the framework set by the PNEF, the National Partnership Commission (Commission Nationale du Partenariat) was created in December 1999 as a result of an agreement between the Ministry of Education and the USATD. Its main objective is to streamline and develop the education system. This agreement consists of four elements: (1) coordination between private and public schools; (2) reforming the education system; (3) improvement of governance and integration of the national education system; and (4) directing support to keys partners in the private sector.

Given the large number of private facilities and the poor quality of education in the private sector, two laws were drafted and are being discussed by the commission. A draft law on private schools was prepared for reforming and setting standards for licensing private schools. The main clauses set in the law- are that: (1) the functioning of each private school is conditional upon the possession of a license; (2) each student will have to sit for state exams after completion of their studies; and (3) each private institution should keep records of each student. The other law pertains to subsidies to private schools and will set the criteria to subsidize private schools with public funds.

Health

98. The health care system in Haiti is composed of a public, a donor-financed, and a private sector. Each sector operates about one third of the 663 health care facilities in the country, but donor-financed NGOs mainly provide basic health care services in rural areas, while the private sector consists of physicians, dentists, and other specialists who are employed in private health care establishments mainly in Port-au-Prince. NGO and private health care facilities operate without quality standards or inspections and with little or no coordination with the public sector.

99. Expenditure by the Ministry of Health in FY 1997/98 amounted to only 0.8 percent of GDP (Table 3). As a result, the provision and quality of public health services in Haiti is poor. Hospitals and health centers are scarce, ill equipped, lack a sufficient number of skilled workers, and experience recurring drug and supply shortages. 53 In addition, the public sector has been negatively affected by the political crisis, which led foreign assistance to be directed to NGOs and more recently by the suspension of financing for new projects.

Table 3.

Haiti: Health Indicators 1/

(In percent unless indicated otherwise)

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Source: World Development Indicators, 2000, World Bank, unless otherwise indicated.

In some cases, data are not available for the year indicated. In those cases, the reported data refers to a range of +/- 2 years around the year indicated.

Ministry-of Economy and Finance.

Number of infants who die before reaching one year of age, per 1,000 live births in a given year.

The percentage of 15-year-olds who will die before their sixtieth birthday.

Children age 12-23 months.

Survey on Mortality, Morbidity and Utilization of Services, Institut Haitien de l’ Enfance, 1987, 1994/1995, and 2000.

U. S. Bureau of the Census, International Data base.

Lower than two standard deviations below the median of the reference population.

100. Health services and conditions in Haiti are among the poorest in the Western Hemisphere and Sub-Saharan Africa. Approximately 40 percent of the population has no access to primary health care, compared with 26 percent for the Western Hemisphere countries average. In addition, transportation to health care centers is a problem, particularly in rural areas. 54 Moreover, as costs of modern medication are sometimes prohibitive, Haitians revert to the use of traditional medicine, which consists of family recipes or medicinal herbs, sometimes aggravating their health conditions.

101. Haiti has the highest mortality rates among Western Hemisphere countries. Both female and male adult mortality rates have worsened over time, with female mortality increasing from 332 deaths per 1,000 female adults in 1995 to about 340 in 1998, compared to 116 for the Western Hemisphere countries average. The male mortality rate increased from 427 deaths per 1,000 male adults in 1995 to 432 in 1998, compared to 216 for the LAC average. Conversely, infant and under-five mortality rates decreased by almost half since 1970 but remain very high. The infant mortality rate decreased from 141 deaths per 1,000 births in 1970 to 71 in 1998, while the under-five mortality rate fell from 221 to 116 during the same period. The leading causes of child mortality in Haiti are diarrheal diseases, acute respiratory infections, and malnutrition.

102. The maternal mortality rate in 1991 was estimated at 456 deaths per 100,000 live births. This high maternal mortality rate results from short intervals between births, chronic malnutrition, including anemia, and low antenatal care visits. 55 Antenatal care visits to a medically trained person took place in 79 percent of pregnancies, while delivery attendance was only 60 percent. About 80 percent of deliveries took place at home in 1995, owing to inadequate access to health centers and the high costs of services when available.

103. Haiti has low immunization rates, although some significant improvement has been registered since 1985. Immunization rates for DPT3 (diphtheria, whooping cough, and tetanus), polio, and measles doubled between 1985 and 1998. DPT3 increased from 22 to 43 percent during that period, polio from 23 to 43 percent, and measles from 26 to 54 percent. However, about 17 percent of the population have not benefited from any immunization.

104. The use of modern contraception is very low. In 1995, 82 percent of women did not use any method of contraception. As a result, Haiti registers a high incidence of sexually transmitted diseases, further aggravating high mortality rates. 56 While attention has been given to increasing HIV/AIDS awareness, rural areas are particularly affected, given the higher incidence of prostitution and the stigmatization of the disease. In Port-au-Prince, HIV prevalence among antenatal women was estimated at around 8-10 percent between 1986 and 1996. The incidence of tuberculosis has declined from 280 per 100,000 people in 1995 to 180 in 1999 as a result of the establishments of treatment sites countrywide (it is estimated that by March 2001 there will be about 180 sites) including a center for the treatment of resistant tuberculosis in the rural community. Further developments in the health sector are found in Box 2.

Reforming the Health Sector

The misallocation of resources is of great concern given that over the years greater emphasis has been given to financing of tertiary health services in lieu of more cost-effective basic health services, quality standards, and maintenance. According to the World Bank (1993), there should be at minimum a package of essential clinical interventions of high cost-effectiveness. This package should include: (1) services to ensure pregnancy-related care; (2) family-planning services; (3) tuberculosis control; (4) control of sexually transmitted diseases (STDs); and care for the common serious illnesses of young children—diarrheal disease, acute respiration infection, measles, malaria, and malnutrition. It was estimated that these interventions cost substantially less than US$50 per disability-adjusted life year (DALY) gained. 57 Therefore, in recognition of the importance of basic health care access to all, the Ministry of Health introduced a health program in March 1996 aiming at reforming the health sector as part of the decentralization effort by the government to ensure a minimum package of health services.

The government of Haiti, with the support of the IDB, developed a program for the reorganization of the national health system which would be implemented during a six-year period. The objective of this program is to improve the quality and access to health services; increase efficiency of services; and use new ways of financing and of provision of basic health systems. In addition, as part of the effort for improving health service delivery, the Government of Haiti and international donors have committed to formalize a framework for communal health units (Unite Communales de Sante (UCS)); define a framework for a partnership with the private sector; follow up on analysis of budget execution; finalize the works of the Mixed Commission (Ministry of Health and Ministry of Finance) concerning budgetary allocations; define a framework of cost recovery for health; initiate the implementation of a development program of human resources and of sanitary information system; conduct a drug study that defines an action plan for the next five years; and define the needs concerning contraceptives, vaccines, and anti-tuberculosis for FY 2000/01.

As part of the effort of the Ministry of Health to strengthen the monitoring of health indicators, three surveys on mortality, morbidity and utilization of services (Enquête mortalité, morbidité et utilisation des services) were conducted by the Haitian Children’s’ Institute (Institut Haïtien de l’Enfance) in 1987, 1994/95, and 2000. This most recent survey was financed by the USAID, UNICEF, Haiti-Canada Cooperation Fund, and the United Nations Fund for the Population. The database generated by the three surveys will serve as a basis for monitoring health indicators in the future.

The government of Haiti has signed a cooperation agreement with Cuba to improve the quality of the health system in Haiti. As part of this Cuba-Haiti cooperation, 450 Cuban doctors were sent to work in Haiti for about 2 years. Given the satisfactory results of the program, the Ministry of Health is discussing the renewal of this agreement. In addition, the Ministry of Health has sent 240 Haitian students to study medicine in Cuba and 260 additional will be sent over the course of about four years. The government also aims to send 20 female students to nursing school.

Nutrition

105. The nutritional situation in Haiti is difficult. It was estimated that the average daily caloric intake per capita was 1,869 in 1997, equivalent to about 80 percent of the daily caloric intake of 2,260 recommended by the Food and Agricultural Organization (FAO). 58 Nutritional deficiency has an adverse effect on the formation of human capital, especially affecting children, and pregnant and breast-feeding women. 59 It has a permanent effect on the future development of a child and in his cognitive skills therefore affecting his performance in school.

106. In 1995 it was estimated that 28 percent of children under five had a weight for age lower than 2 standard deviations below the median of the reference population, compared to 8 percent in Bolivia, and 12 percent in Nicaragua in 1998. In 1995, 32 percent of children had a height for age lower than 2 standard deviations below the median, compared to 27 percent in Bolivia, and 25 percent in Nicaragua in 1998.

107. The poor nutrition of Haitian children has resulted from overpopulation, environmental degradation, lack of economic opportunities in rural areas, and infectious diseases. In addition, the food insecurity during the embargo years and more recently the continued political instability have prevented the establishment of more programs to relieve the worst cases of malnutrition.

Water and sanitation

108. Access to safe water and basic sanitation is precarious in Haiti, particularly in Port-au-Prince and other large cities, where demographic pressures have overburdened existing water and sewerage systems. The percentage of the population with access to safe water remained about unchanged at 43 percent between 1990 and 1998, falling far below the average of Western Hemisphere and sub-Saharan African countries. About 22 percent of the population had access to sanitation facilities in 1990, increasing to 27 percent in 1998. There is also a wide disparity in the proportion of the rural and urban population with access to basic sanitation. In 1998, 43 percent of the urban population had access to basic sanitation, compared to only 16 percent of the rural population. The lack of access to basic sanitation has further exacerbated water pollution. 60

109. Lack of maintenance of the existing infrastructure and the suspension of projects during the embargo period resulted in a deterioration of the water and sanitation systems. In addition, an outdated water distribution network and mismanagement have further strained the systems. While most of the water and sanitation projects that were suspended during the embargo resumed since October 1994, investment has fallen short of the necessary expansion and maintenance to cope with demographic pressures and rural-urban migration. As a consequence, access to clean water and sanitation has deteriorated in urban areas.

Environment

110. Haiti suffers from extreme environmental degradation, resulting from a high level of poverty, demographic pressure, and the effects of decades of neglect. Due to the critical levels of environmental degradation, Haiti is in danger of experiencing epidemics of diarrheal diseases or cholera mainly in the overpopulated low-income urban areas. The freshwater resources in Haiti were estimated at 1,468 cubic meters per capita in 1998, compared to 27,393 cubic meters for the Western Hemisphere average and 8,441 cubic meters for the sub-Saharan African countries’s average.

111. The agricultural sector in Haiti, which employs about a third of the total labor force and provides sustenance for a large majority of Haiti’s poor, has been affected by deforestation and erosion due to overuse, inadequate agricultural technologies, in particular on steep slopes, and the production of wood charcoal. Deforestation, already extremely advanced in Haiti, is still proceeding at a faster pace than in other countries. Haiti lost 3.4 percent of its forest cover annually during 1990-95, compared to 0.6 percent and 0.7 percent for Western Hemisphere and sub-Saharan African countries, respectively. The nationally protected areas as percent of total land area was estimated at just 0.4 percent for Haiti in 1996, much lower than the average of 7.3 percent and 6.2 percent for Western Hemisphere and sub-Saharan African countries, respectively.

112. Urban environmental degradation has also advanced. Solid waste management is deficient in cities. Poor human waste disposal practices are contaminating all 18 water sources that supply Port-au-Prince. In addition, the growing number of motor vehicles and their inadequate maintenance have created a serious air pollution problem in Port-au-Prince.

113. The Ministry of Environment was allocated G 20 million (0.03 percent of GDP) in the FY 1999/2000 budget. Within their scant resources, the Ministry of Environment is giving emphasis to informing the population, studying plastic waste recycling and deforestation, and conducting an energy study to search for alternatives to charcoal production (Box 3).

Protecting the Environment

Given the severe environmental degradation and in the spirit of the Rio Declaration on Environment and Development (UN Conference on Environment and Development, Rio de Janeiro, Brazil, June 1992), the Inter-Ministerial Environment Commission prepared an Environment Action Plan (EAP), which was approved by the government in December 1999. This plan was prepared with technical and financial support from the USAID, the World Bank, the UNDP, ACDI, and the Government of Haiti, and provides a framework of ten priority programs to be implemented during a 15-year period. The program includes measures to promote: (1) a better management of national resources; (2) energy for a sustainable development; (3) environmental education; (4) conservation and durable use of biological diversity; (5) management of strategic hydrological basins; (6) integrated management of coastal and maritime zones; (7) rehabilitation of the environment; (8) management of natural disasters; (9) support to activities related to sustainable development; and (10) support to mineral exploration.

D. Conclusion

114. During the past 30 years, Haiti has witnessed only a modest improvement in some of its social indicators. Political instability and poor governance, the lack of personal safety and a weak justice system to protect persons and property rights, the lack of economic opportunities and pervasive structural impediments to new investments, low levels of human capital investment, and demographic pressures have prevented Haiti from emerging from a long-lasting vicious cycle of poverty. The unsettled political situation during the early 1990s further aggravated poverty as donors and foreign investors scaled back or suspended financial assistance or investment. After the return of democratic rule in 1994, foreign assistance returned to Haiti and some social indicators have shown improvements. However, the ongoing political stalemate is again reducing foreign aid flows and domestic and foreign investment and Haiti could again experience a deterioration of its already poor socio-economic conditions.

115. In the education sector, although primary and secondary enrollment rates have risen moderately, the quality of education has not experienced any significant progress. High repetition and dropout rates reduce the effectiveness of a system that is already marked by poor and inadequate infrastructure, poorly trained teachers, and a curriculum poorly adapted to the necessities of the poor and rural environment of Haiti. Emphasis should be given to increasing in-service training for teachers to improve their qualification and to institute standards to evaluate student performance. While the government should concentrate its scant resources on support services, the international community should support efforts to expand the system’s coverage, reaching students who have dropped out, improving facilities, providing adequate materials, and improving teacher training.

116. Indicators in the health sector in Haiti fare poorly in comparison with other countries in the Western Hemisphere. Although there have been improvements in some health indicators, access to health care services is still inadequate and costly. In particular health services for the wider segment of Haiti’s poor and rural population are deficient. It is in this area that the largest positive externalities of investment in health services can be expected and the vicious cycle of poverty and ill health broken. The government should therefore give priority to the provision of basic health care services, including to reduce communicable diseases. Basic health care services should strive to close the gap between traditional and modem medicine, reduce malnutrition, promote family planning services, and increase access and coverage of antenatal care and delivery attendance by qualified health personnel.

117. Progress in the education and health sectors is linked. On one hand, several health programs rely on basic skills learned at school regarding personal hygiene and sanitation. Education is also needed for the formation and training of health personnel. On the other hand, health is an important factor affecting school attendance and the results of attending school. It is essential to increase investment in basic education and health to alleviate the burden on the poor from morbidity and mortality and to improve the efficiency of labor in order to attain sustained growth. In addition, the synergy between education and health is evident from to the fact that a longer-lived individual will have more years to earn a return on educational investments (Mushkin 1962).

118. Given that factors affecting poverty are interdependent, an improvement in one sector will have a positive impact on other sectors. As a result, policy makers should coordinate policies in the various social sectors and in areas like agricultural policies, property rights and provision of basic infrastructure in their efforts to design a comprehensive strategy to reduce poverty in Haiti.

Table 1.

Haiti: National Accounts at Current Prices 1/

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Sources: Haitian Institute of Statistics; Bank of the Republic of Haiti; and Fund staff estimates

There are serious problems with national accounts in Haiti including incomplete coverage, outdated activity surveys, and poor quality of raw data.

Table 2.

Haiti: National Accounts at Constant Prices 1/

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Sources; Haitian Institute of Statistics; Bank of the Republic of Haiti; and Fund staff estimates.

There are serious problems with national accounts in Haiti including incomplete coverage, outdated activity surveys, and poor quality of raw data.

Table 3.

Haiti: Origin of Gross Domestic Product 1/

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Sources: Haitian Institute of Statistics; Bank of the Republic of Haiti; and Fund staff estimates.

There are serious problems with national accounts in Haiti including incomplete coverage, outdated activity surveys, and poor quality of raw data.

Includes import duties.

Table 4.

Haiti: Agricultural Production

(In thousands of metric tons)

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Sources: Ministry of Agriculture; Food and Agricultural Organization (FAO); and Bank of the Republic of Haiti.
Table 5.

Haiti: Savings and Investment 1/

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Sources: Haitian Institute of Statistics; Bank of the Republic of Haiti; and Fund staff estimates.

There are serious problems with national accounts in Haiti including incomplete coverage, outdated activity surveys, and poor quality of raw data.

Includes Trust Fund, publicly guaranteed capital, SDR allocation, and other unrequited earnings.

Includes monetary capital and net errors and omissions.

Table 6.

Haiti: Monthly Changes in the Consumer Price Index

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Sources: Statistics Department; Bank of the Republic of Haiti; and Fund staff estimates.
Table 7.

Haiti: Consumer Price Index

(Percentage change in period averages)

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Sources: Haitian Institute of Statistics; Bank of the Republic of Haiti; and Fund staff estimates.
Table 8.

Haiti: Changes in Consumer Prices by Category

(Percentage change in period averages)

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Sources: Haitian Institute of Statistics; Bank of the Republic of Haiti; and Fund staff estimates.
Table 9.

Haiti: Prices of Selected Items

(In gourdes per unit)

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Sources: Haitian Institute of Statistics; and Bank of the Republic of Haiti.
Table 10.

Haiti: Selected Price Indicators

(Average for year ended September 30; base year, FY 1975/76 = 100)

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Sources; Haitian Institute of Statistics; and Fund staff estimates.

Data before 1980 were obtained by splicing the old consumer price index based on 1948. Before 1991 the index covered only the Port-au-Prince area and since 1992 the whole country.

Estimate based on calendar year data from the IMF World Economic Outlook.

IMF Information Notice System data rebased to FY 1980/81 = 100.

Table 11.

Haiti: Minimum Wage Rates

(Fiscal Year Ending September 30)

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Sources: Ministry of Social Affairs; Haitian Institute of Statistics; and Bank of the Republic of Haiti

Last quarter of 1971=100. Deflated by consumer price index for Port-au-Prince until 1991, Deflated by an index covering the whole country beginning in 1992.

Table 12.

Haiti: Summary Operations of the Nonfinancial Public Sector

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Sources: Ministry of Economy and Finance; Bank of the Republic of Haiti; and Fund staff estimates.

Refers to five major enterprises (see Table 15).

Includes budgetary support, project and technical assistance, and support for the clearance of arrears accumulated in FY 1995.

Includes domestic arrears.

Table 13.

Haiti: Summary Operations of the Central Government 1/

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Sources: Ministry of Economy and Finance; Bank of the Republic of Haiti; and Fund staff estimates.

Does not include expenditures on projects and technical assistance financed with concessional loans and grants.

Includes transfers to public enterprises.

Comprises spending over discretionary checking accounts, regular float, extraordinary carry-over, and discrepancies.

May include outlays on goods and services and other current expenditures.

Includes domestic arrears.