The biggest reason for Haiti being one of the world's poorest countries is its restrictions on economic liberty. Let's look at some of it. According to the 2009 Index of Economic Freedom, authorization is required for some foreign investments, such as in electricity, water, public health and telecommunications. Authorization requires bribing public officials and, as a result, Haiti's monopolistic telephone services can at best be labeled primitive. That might explain the difficulty Haitian-Americans have in finding out about their loved ones.
Corruption is rampant. Haiti ranks 177th out of 179 countries in the 2007 Transparency International's Corruption Perceptions Index. Its reputation as one of the world's most corrupt countries is a major impediment to doing business. Customs officers often demand bribes to clear shipments. The Heritage Foundation's Index of Economic Freedom says that because of burdensome regulations and bribery, starting a business in Haiti takes an average of 195 days, compared with the world average of 38 days. Getting a business license takes about five times longer than the world average of 234 days -- that's over three years.
Crime and lawlessness are rampant in Haiti. The U.S. Department of State website (travel.state.gov), long before the earthquake, warned, "There are no "safe" areas in Haiti. ... Kidnapping, death threats, murders, drug-related shootouts, armed robberies, home break-ins and car-jacking are common in Haiti." ... Crime anywhere is a prohibitive tax on economic development and the poorest people are its primary victims.
Private property rights are vital to economic growth. The Index of Economic Freedom reports that "Haitian protection of investors and property is severely compromised by weak enforcement, a paucity of updated laws to handle modern commercial practices, and a dysfunctional and resource-poor legal system." That means commercial disputes are settled out of court often through the bribery of public officials; settlements are purchased...
Haitian President Rene Preval is not enthusiastic about free markets; his heroes are none other than the hemisphere's two brutal communist tyrants: Venezuela's Hugo Chavez and Cuba's Fidel Castro.
Wednesday, February 17, 2010
Fixing Haiti
Some hard-hitting points from economist Walter Williams, Haiti's Avoidable Death Toll:
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