Economic development in Haiti vs. the Dominican Republic – Personal Observations

Apologies if this was posted before, but it is a topic we monitor frequently.

One of our favorite development questions is why the Dominican Republic (DR) did so well when compared to Haiti.

Ah, one of my favorite all-time developmental questions. Spent some time in Haiti and DR for extended periods. I had family member by marriage, who was an educator and tried to create a national educational curriculm, fled Baby Doc Duvalier then returned under Preval.

Both places are rough, stunningly beautiful and the people are warm and friendly.

First, there is geography. The DR is twice the size of haiti with a similar population. The DR recieves roughly 2 times more rain than haiti. The second is population. Both are roughly equal at 11 million.

There is not one thing or even five but a hundred things DR got sort of right. Some highlights: (1) The stability, institutions and reduced corruption (land titles, functioning courts, contract enforcement) that let DR build the Zona Industrial’s (ZI) which generated export earnings. 2) The large diaspora of hard workers and political trouble makers (leaving created stability) who send back remittances for school children and housing. 3) The government focused on tourism when China (with US help) began to dominate low wage manufacturing. They attracted foreign investment and created megaresorts and jobs during the 1990-2020. (4) Finally, in the DR, corporate and elite control the state (much like Haiti) but with a voice for the poor. DR also has a “cultural” optimism that drives some of the success.

The DR is still plagued by poverty, corruption, and human trafficking.

Haiti, if you can imagine, is a completely institution-less country. The major institutions are the weak government with a limited police force, the cellphone company, EDH, the ports, the airport and the schools. If you go to a government office there is no one there or no one who can resolve the problem. The politicians do not meet. Rubbish is burned, not picked up. Water is spotty. And there are rumors everywhere (often very accurate). Everything is private: Hospitals, schools, doctors, bodyguards. There is no personal security. If you are elite, you live behind a strong fence with broken glass embedded on top. You have a bodyguard/driver. If you are middle class, you have a personal firearm.

And if your poor, you hope you have your community to protect you. It is hard to imagine the level of personal “insecurite.” Note: Had an off-duty cop flash his firearm because he wanted us to move our car so his truck could pass.

Haiti also has resource issues and an exploding population. Much of the country is mountainous with limited rainfall. There is also a limited amount of arable land for farming, primarily in the Artibonite Valley. Haiti grows rice. In Haiti’s case, development is more of a failure to launch. They could not stabilize their institutions to build the infrastructure needed to attract foreign investment. They could not create a tourism industry.

Haiti started exporting right when the China shock started. So basically, the jobs and development of Haiti took place: But in China. Despite being one of the most interesting places in the Caribbean, Haiti never made the transition to tourism. The Haitian diaspora sends back about $3B vs. 9B for DR. Most likely due to US discrimination.

Finally, I would go back in a minute to Haiti (if it was safe) or DR. Two of my favorite places to visit. 

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