[p2p-research] Haiti and debt

[Ryan]

Should reparations be paid by France back to Haiti?

Sent to you by Ryan via Google Reader: Haiti and debt via Chris
Blattman by Chris Blattman on 1/14/10

After a dramatic slave uprising that shook the western world, and 12
years of war, Haiti finally defeated Napoleon’s forces in 1804 and
declared independence. But France demanded reparations: 150m francs, in
gold.

For Haiti, this debt did not signify the beginning of freedom, but the
end of hope. Even after it was reduced to 60m francs in the 1830s, it
was still far more than the war-ravaged country could afford. Haiti was
the only country in which the ex-slaves themselves were expected to pay
a foreign government for their liberty. By 1900, it was spending 80% of
its national budget on repayments.

In order to manage the original reparations, further loans were taken
out — mostly from the United States, Germany and France. Instead of
developing its potential, this deformed state produced a parade of
nefarious leaders, most of whom gave up the insurmountable task of
trying to fix the country and looted it instead.

In 1947, Haiti finally paid off the original reparations, plus
interest. Doing so left it destitute, corrupt, disastrously lacking in
investment and politically volatile. Haiti was trapped in a downward
spiral, from which it is still impossible to escape. It remains
hopelessly in debt to this day.

Emphasis mine. From the London Times. Hat tip to Naunihal.

Having such a heavy weight round one’s neck is an onerous thing. But I
would still look into early governance patterns and power relations,
land distribution, and social control for clues to Haiti long struggle
against poverty and disaster.

I am reminded of Coffee and Power, by Jeffrey Paige, that looks at the
widely different paths four Central American nations took due to
(somewhat idiosyncratic) patterns of land distribution and control for
coffee production. Coffee is one of those rare crops that produces
profitably at several levels of scale. Costa Rica, which opted for
smallholder production, would soar, while Guatemala, which moved
towards haciendas and plantations, would crumble. This area remains
understudied.

I’m conscious that historical ruminating is callous at a time of
crisis. At the same time, the reason why we keep hearing that Haiti is
devastated by earthquakes and hurricanes, and the Dominican Republic or
Bahamas is not: one has remained poor and badly governed, while the
other has not. There are nearly 20 earthquakes of similar magnitude a
year on the planet. In some nations disasters kill masses, while in
others they merely damage (and so don’t make the news).

In the meantime, my brother tells me that translators (Creole ones,
especially) are the relief resource most scarce at the moment. If you
speak it, maybe consider a trip. Otherwise, do consider giving.

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