Haiti is making a good
move toward foreign investment despite existing obstacles to business starting
New industrial park has been launched with hopeful
perspective while the country is suffering negative perception in international
arena.
A new industrial park has been launched in Haiti in the
North part of the country, the Caracol Park, in a completely new area removing
rural infrastructure and free from urban life. This is the second main
industrial park built since thirty (30) years and the existing one is located
around the capital, Port-au-Prince, in the middle of the country where
political risk and known threatening state is more noticeable. Nonetheless a
negative aspect has lessen the positive result from this event since the
country has a lower rank in the last Doing Business Report, 2013, published by the
World Bank.
This effort happens in a context in which industrial
infrastructure has been severely damaged since the 1994 general embargo and
infrastructure reconstruction and foreign investment have been repeatedly
disrupted by chronic political turmoil and the 2010 major devastating
earthquake. From this perspective, the new industrial zone opening is a major
move toward rebuilding overall economy, including industrial sectors and FDI
attraction.
But this action appears to be only a first step in the light
of some considerations:
- Foreign investment policies are not clearly defined in order to state areas, sectors, geographical location and incentives planned to convince foreign firms or businessmen. This new industrial park is expected to receive mainly textile and garment assembling. But the local demand and potential tourism resources are among competitive advantage for the country.
- Industrial policies are not explicit pertaining to major decision regarding potential competitive industries like tourism, agribusiness…. This industrial park is achieved from top international Haiti donors’ initiative such as US government and Inter-American Development Bank (IDB) World Bank while Haitian policymakers act as a follower.
- Consequently from this inconsistency and lack of global goals and strategies, the construction designing and implementation show some disadvantage according to compelling argument from critics and opponents that point out the fact that the location affect future tourism development in the neighborhood area which comprises one of the major touristy reserve classified as world heritage and protected by UNESCO.
- The new industrial park capability to rebuild Haiti assembling or textile industry remain limited since the country old park used to provide up to sixty thousands jobs in 1986 or around twenty thousand in 1999 whereas the new park is expected to reach the thirty thousand jobs by 2020 according to IDB prediction.
Nonetheless, the new industrial park bring important
change and hopeful perspective for FDI in garment or assembling industries:
1. First
the park is located in a safer place away the well-known politically risky
capital, and its overcrowded metropolitan area with awfully heavy traffic
creating stress and pressure. A newly modernized international airport is
connected to the park.
2. Haiti
garment and assembling industries have access to trade benefits in entering US
market. It is especially good for US businessman and firm involving in
assembling. For other foreign businessman the rule of origin can be considered
as determinant.
3. Haiti has offered so far a competitive low-rate salary for non-qualified workers
The government has announced new industrial park construction in other
distant location in the country. China also shows some interest regarding
economic zone construction linking Haiti with other industrial zone in the countries within the region as we know the successful implementation of such
economic zones in South-East Asia. Haitian policymakers need to seize the
opportunity at hand to blossom the flattered country industrial infrastructure
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Reference:
IDB (2012). Fact
sheet: The IDB and Haiti’s Caracol Industrial Park
World Bank (2012). Doing business report 2013,
http://www.doingbusiness.org/data/exploreeconomies/haiti?topic=paying-taxes.
