Topic: Economics of Development
Country: Haiti
Delegate Name: Mallory Snyder
School: Saginaw Arts and Sciences Academy
Topic page: background guide and all position papers All Haiti position papers GLIMUN 2015 committees
Haiti falls under the first category of countries. The first category is countries that focus on resource extraction. Haiti falls under this category because of its focus in agriculture, forestry, and fishing. The first portion of the paper will focus on what sectors of the economy Haiti has chosen to develop: resource extraction, manufacturing, and services. The second portion will focus on what sectors countries should choose to develop and how to prioritize these sectors.
Haiti's economy depends upon the crops, fish, and lumber that it exports. In 2004, these three industries accounted for 28% of Haiti's GDP. Over 66% of the workforce is employed under one of these industries. Haiti also has a growing mining industry, which generates over $13 million US dollars.The major products are Bauxite, copper ore, calcium carbonate, gold ore, and marble. These industries are easier for developing countries to manage, because they do not require expensive buildings and a extensive education. The only things they require are equipment and a workforce.
Haiti is becoming a leader in the apparel industry. As of 2010, the textile industry employed over 27,000 workers. 80% of Haiti's exports arise from the textile industry. Other major manufacturing exports are electronics and shoes. Under the Trade Preference Programs, an unlimited amount of various apparel from Haiti is duty-free in the United States. This was established by CBTPA (Caribbean Basin Trade Partnership Act) and HOPE (Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006). Additional textiles and apparel was added to this agreement by HOPE II (Food Conservation and Energy Act of 2006) and HELP (Haitian Economic Lift Program of 2010). These programs make it easier for Haitian goods to be bought and sold. These acts have improved the development of Haiti.
There are many services that provide economic gain in Haiti. These services make up 52% of the GDP and employ 25% of the labor force. Tourism and Banking are the two major services in Haiti. The banking and finance industries are extremely unstable because of political turmoil. Most of the population does not have access to loans. Many organizations are trying to make banks more accessible for Haitians.
Countries should choose to develop sectors that are important for the country to improve its economy, but not make its economy unsustainable. For example, a country should make use of its natural resources, but not overuse them so the environment suffers. Also, a country should not only develop the manufacturing sectors without developing the extraction sectors.
Countries should prioritize the extraction sectors first, and then manufacturing and service sectors. These sectors are dependent on each other. In fact, countries cannot have any of the sectors without educating your workforce. Countries need to prioritize the extraction sectors first, because without agriculture the country will have to import all food and that will result in a total net loss. Manufacturing and services are prioritized second because countries cannot have the manufacturing sector without the banks in the services sector. However, countries should prioritize education also.
Educating your workforce is also necessary, not only to maximize efficiency, but also ethically. By the ethical principles every human being has the right to know. If countries wish to develop, they should follow these ethical principles and educate their workforce. It is therefore unethical to deny your population an education.
Haiti has followed this policy by prioritizing its resource extraction, and slowly moving more towards education. In order to move completely to the second category of development, Haiti will have to focus most on establishing a stable banking system and educating the populace.
