Haiti: trade, migration and poverty

Darryl McLeod

World Poverty, Spring 2012

Fordham University

$4,175 $4,084$4,425

$5,026

$5,653

$6,722

$8,672

$909 $1,000 $1,047 $1,097 $1,069 $1,199 $1,189 $1,340

46%

42%

36%

34%

24%22%

20%

17%15%

19

80

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81

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82

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83

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84

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85

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86

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87

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89

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00

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20

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20

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20

07

20

08

20

09

Dominican Republic vs. Haiti income (GDP) per person (Source: IMF World Economic Outlook, October 2009 $ppp 2009)

Dominican Republic Income

per person (U.S. dollars and prices, 2009)

Haiti (income per person)

Income per person in Haiti as a % of DR

$2,146

$3,001

$6,081

$8,853

$987 $945$1,150 $1,373

19

80

19

81

19

82

19

83

19

84

19

85

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86

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87

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88

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89

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00

20

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Figure 1: Per capita income $2005 PPP

Dominican Republic Haiti

-15%

-10%

-5%

0%

5%

10%

15%

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Figure 2: Per capita Economic Growth

Haiti Dominican Republic

-4%

-3%

-2%

-1%

0%

1%

2%

3%

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

Figure 3: Population Growth

Haiti Dominican Republic

31

43

57

71

87

103

117

129

139148

35

5158

88

99

124131 133 136

140

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Source: World Bank, World Development Indicators (WDI online)

Haiti vs Domincan Republic net out migration (1000s)

Dominican Republic Haiti

1.914 14

24

53

Dominican Rep (2003)

Guatemala (2002)

Honduras (2003)

Bolivia (2002)

Haiti (2001)

$1/day Poverty rate

3.117 18

28

59

Dominican Rep (2003)

Guatemala (2002)

Honduras (2003)

Bolivia (2002)

Haiti (2001)

$1.25/day Poverty rate

Haiti

Bolivia

16

3842

48

82

Dominican Rep (2003)

Guatemala (2002)

Honduras (2003)

Bolivia (2002)

Haiti (2001)

Source: World Bank Povcalnet

$2.50/day Poverty rate

428.387.554.1

30.6

21.9

19.8

17.1

14.2

9.6

9.5

9.0

4.3

3.2

2.7

2.3

USA

Dominican Rep

Canada

Guadeloupe

France

French Guiana

Bahamas

Cuba

Germany

Martinique

Pakistan

Kuwait

Netherlands …

Russia

Congo

Where Haitian migrants were in 2000(thousands of immigrants)

Source: Development Research Center, Migration Database v.4 (March 2007 update) Univ of Sussex

Share Thousands

China, People's Republic 14.9% 26.3

Colombia 14.8% 26.1

Haiti 7.2% 12.6

Ethiopia 4.6% 8.1

Somalia 3.7% 6.5

Indonesia 3.0% 5.4

Armenia 3.0% 5.3

Venezuela 3.0% 5.3

Iran 2.6% 4.6

Cameroon 2.4% 4.2

Russia 2.1% 3.8

India 2.1% 3.8

Liberia 2.1% 3.7

Iraq 2.1% 3.7

Burma 1.8% 3.1

Guatemala 1.7% 3.1

Egypt 1.7% 3.0

Pakistan 1.5% 2.7

Sudan 1.4% 2.4

Albania 1.3% 2.4

El Salvador 1.3% 2.3

Yugoslavia, former 1.0% 1.8

Kenya 0.9% 1.6

Eritrea 0.9% 1.5

Nepal 0.8% 1.5

Congo, Republic 0.8% 1.5

Persons Granted Asylum in U.S., 1999-2008

Source: U.S. Department of Homeland Security, U.S.

Citizenship and Immigration Service (USCIS), Refugee, Asylum,

and Parole System (RAPS).

0

2

4

6

8

1019

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Apparel Exports to the U.S. (Otexa)

Bangladesh

Dominican Republic

Haiti

Cambodia

India

Sub-Saharan Africa

Honduras

0

10

20

30

40

50

6019

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Apparel Exports to the U.S. billions of dollars, China on the same scale

China CBI CAFTA India Mexico Indonesia

0

10

20

30

40

50

60

70

0

5

10

15

20

2519

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Apparel Exports to the U.S. $billions, China alone on right axis

CBI CAFTA India Mexico Indonesia China

10.6

9.1

8.0

7.1

5.5

4.0

2.4

1.0

0

2

4

6

8

10

12

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Figure G-1: Garment exports to the U.S. heading into Crisis, post MFA end and China WTO entry... $billions

Vietnam India Indonesia

Bangladesh Pakistan Honduras

Cambodia Thailand El Salvador

Sri Lanka Guatemala Philippines

Haiti

13

9.1

3.0

8.0

63

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Apparel Exports to the U.S. $billions, China alone on right axis from Otexa

CBI CAFTA India

Mexico Indonesia China

China joins WTO

MFA ends

http://otexa.ita.doc.gov/Webinars/FINAL_Haiti_presentation_for_May_2011_Webinar.pdf

U.S imports of Haitian apparel are increasing!

Haiti Case Study

Trade Preference Programs for Haitian Textiles and Apparel (OTEXA)

Helping Haiti - Vijaya Ramachandran and Michael Clemens

Haiti: From Natural Catastrophe to Economic Security by Paul Collier

Haiti: trade, migration and poverty presentation

In Haiti, U.S. rectifies missed opportunity to help by Michael A. Clemens

Let Haitians come to the U.S.: The best way to help Haiti rebuild is through immigration by Clemens

Let them leave: Why migration is the best solution for Haiti’s recovery by Clemens

To help Haiti’s earthquake victims, change U.S. immigration laws by Clemens

The Observatory of Economic Complexity at MIT. http://atlas.media.mit.edu

The World Factbook 2013-14. Washington, DC: Central Intelligence Agency, 2013 .

Danner, Mark. “To Heal Haiti, Look to History, Not Nature.” The New York Times. January 22, 2010.