Economic Stagnation
"A sustained period of growth at 3% or above per year would be needed to have a significant impact on Haiti’s high poverty levels and aid-dependency. Faster growth is not possible without more effective and urgent implementation of a capital investment and employment creation program."
The Economist Intelligence Unit: Haiti, February 2009
We will never be successful at solving the problem of malnutrition over the long-term if we fail to address why it occurs in the first place. For several decades, the traditional model for aid to Haiti has been based on rescue: handing out food to impoverished families or providing short-term quick fixes. But rescue is not enough. Handouts encourage dependency and offer only temporary solutions. Malnutrition is rooted in poverty and poverty in economic stagnation. From 2007 to 2008, the Haitian economy grew by just 1.3%. Altogether, Haiti’s economy is expected to contract between 2008 and 2009.
Consider these troubling statistics:
- Poverty rates are staggering: 80% of Haitians live below the poverty line and 76% live on less than $2/day.
- More than two-thirds of people do not have formal jobs
- The average income in Haiti is about $400/year
Read about Haiti's agricultural problems.
