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1. Political Risk Analysis: Haiti
Brady Lorek
Dr. James Thoma
February, 27, 2012
SB 450Q

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Table of Contents
INTRODUCTION 3,4
Devastating 2010 4
COUNTRY’S SPORT STRUCTURE 5,6
Popular Sports 6
University of Mount Union & Haiti 6,7
Indigenous Sports & Games 7
POLITICAL RISK ANALYSIS 8
Regime Change and Political Turmoil 8,9
Government Restrictions 9
Tariffs 9,10
Currency Transfer 11
Import Licensing 11,12
Media/Social Media 12
Economic Policies 12,13
CONCLUSION 13
REFERENCES 14

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INTRODUCTION
The Republic of Haiti is a Caribbean-based country, located on the island of
Hispaniolathat it cohabits with the Dominican Republic. Haiti has a population of 9,089,085 with
its three largest cities being Port au Prince (capital), Carrefour, and Delmas (807,301/ 541,511/
425,501 respectively). It has a very tropical
climate, but semiarid in the mountain regions
(―Country watch,‖ 2012).
French is one of the two official
languages of Haiti, but is only spoken by 10
percent of the people. The main language
spoken by all Haitians is Creole. Creole is
French-based but is considered a ―new world hybrid‖ language. English is increasing throughout
the education systems because most schools are hosted by American NGO’s and missionaries.
Ethnically, 95 percent of the Haitians are of African descent. The rest of the population is
a mix of African-European ancestry and Europeans. This group often makes up the elite class. In
recent years, a small group of Arab migrants have colonized in Haiti (―Country watch,‖ 2012).
In Haiti the largest religion practiced is Roman Catholic (80 percent). However, a very
monumental part of their culture revolves around voodoo—African spiritual rituals. There is no
conflict in maintaining voodoo practices and adhering to their Christian faith; similar to many
Latin Americans practicing Catholicism and Santeria.
Haiti is the poorest country in the Western Hemisphere with a poverty rate well over 80
percent, and one of the lowest on the United Nations’ Human Development Index (145out of
169). The currency in Haiti is gourdes. One U.S. dollar is the equivalent of 40 Haitian gourdes.

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Haiti’s population lives on an average of $2 USD a day. While Haiti is one of the world’s most
densely populated countries,approximately 15 percent of the Haitians are under five years old. 25
percent are between ages six and 14. 56 percent of the population is between the ages of 15 and
64 years old (working class) and those over 65 years old form four percent of the population
(―Country watch,‖ 2012).
DEVASTATING 2010
Attention was drawn to Haiti on January 12, 2010 when a 7.0 magnitude earthquake
struck and devastated Port-au-Prince. The estimated death count was well above 300,000 leaving
the community in ruins and more than 1.5 million homeless. With an already instable economy,
the earthquake left the community in ruins and forced the country to turn to international relief
organizations for aid.
The destruction left morale severely low, but the reintroduction of sports has brought a
glimmer of hope to the eyes of millions. Foreign relief sport programs have brought laughter
back to the country through recreational sports for the kids. This analysis will explore the
rebuilding of Haiti, as well as the rehabilitation of the sports industry.

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COUNTRY’S SPORT STRUCTURE
The earthquake in January of 2010 left the country of Haiti in ruins. 50 percent of the
population is composed of children and youth, who were left vulnerable with the tragedy of the
earth quake. The majority of these kids have been left to fend for themselves or have been placed
in group homes and orphanages. This alone has left a monumental impact on the sports industry.
In the United States, sport recreation programs are started at a young age. These can be
run though the community recreation departments or club/private teams. Individuals can begin
competing for their school teams as early as middle school (7th grade norm) and throughout high
school. They may then go on to compete at the collegiate and professional levels. For Haiti this
is not the case.
Since the natural disaster, the primary focus is placed on educating the youth in Haiti.
The education levels are low with a literacy rate of 53%. Most Haitian schools are privately
owned and operated rather than state-funded, and are often facilitated by foreign religious
organizations and NGOs. The community understands that in order to grow from the rubble, the
youth needs to stay in school. That is a primary reason why there is no sport structure in Haiti; all
the family earnings go to food and education. Another reason for the lack of sport structure is
the amount of destruction. Streets are mounded high with debris and rubble, leaving no room or
facilities available for recreation (Garcon, 2012).
Outside relief groups such as AIS (Ambassadors in Sports) have made it a priority to
revive the sport community. Richard Mears, Director of AIS in Haiti has created a soccer league
of 75 teams, 18 kids each to provide an escape from the daily despair and to also develop their
relationship with Christ. AIS volunteers pick up the kids to bring them to a centralized field,
provide soccer uniforms, and feed them after games, practices, and bible studies. An emphasis is

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not placed on competition but recreation. Bringing sports to countries that have suffered major
tragedies has helped boost the sense of community and morale (Mears, 2012).
POPULAR SPORTS
The most popular sport in Haiti is football (soccer). Not only does it draw a sizable crowd
to the stadium in Port au Prince it is also
dominant on the rubble-filled roads of
poor towns and neighborhoods (Garcon,
2012). In 1974, Haiti became the first
Caribbean nation to qualify for the
World Cup finals, and some Haitian
football players, such as Joe Gaetjens
have played for teams in the United
States and Europe. Their most recent achievement was winning the 2007 Caribbean Nations Cup
(―Haiti,‖ 2012).
Other popular sports include basketball, American football, swimming, track & field, and
boxing. For those in the Haitian elite class tennis and cycling are popular as well (Garcon, 2012).
UNIVERSITY OF MOUNT UNION & HAITI
Soon after the tragedyof the earthquake in Haiti, Professional American football player
and University of Mount Union Alum, Pierre Garcon created ―Helping Hands‖ Organization to
generatefunds to support his family back home in Haiti. The University of Mount Union and
radio station Q92 collaborated to produce over $18,000 to provide schools, food programs,
orphanages, medical clinics, agricultural development, churches and a Bible college for the
people of Haiti (Garcon, 2012).

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This relief effort not only showed the humanity of the university and giving nature of
Pierre Garcon, but built a following of new American football fans throughout Haiti.
INDIGENOUS SPORTS AND GAMES
Sports and gambling tend to go hand in hand in
Haiti. Card games (such as Cassino) and dominoes are
popular pastimes, but the most entertainment is derived
from cockfighting (Garcon, 2012). This usually takes
place every Sunday in almost every village throughout
the country. For a poor community, considerable amounts of money can be generated at these
gatherings and the successful trainers become powerful figureheads to the community. Another
popular form of gambling is Borlette. The Borlette part bank part lottery system is very popular
and can be found at many street corners and kiosks. Individuals can pay as little as $.12 (USD)
and receive pay outs to be 50 times their wager. This system is a fascinating one because not
only does it allow for a chance to win rewards; it also helps with money management and
savings. This system is utilized by virtually everyone and has managed to help the economy
(―Haiti,‖ 2012).
One sport played by children in Haiti is Blagaball. Blagaball holds similar rules to
baseball but instead of playing with a ball it is played with an orange. However, because they do
not play on regulated diamonds with homerun fences, homeruns are achieved when a player
shatters the orange (Garcon, 2012).

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POLITICAL RISK ANALYSIS
REGIME CHANGE& POLITICAL TURMOIL
Haiti has seen constant regime changes since its beginning. Haiti was originally occupied
by the Native American Taino tribe when it was discovered by Christopher Columbus in 1492.
These native inhabitants were virtually conquered by the Spanish settlers within twenty –five
years. In the 17th century, the French made their presence known and were given the western
portion of theisland, Haiti, in 1697. In 1804, due to revolts, Haiti became the first black republic
to declare independence (―The world factbook,‖ 2012).
Haiti experiences 22 changes of government from 1843 to 1915 followed by 19 years of
military occupation by the United States. Within this time period U.S. intervention capped a
period of commotion in Haiti. Series of assassinations and overthrows, rioting, and mob-rule
contributed to this political and economic disorder. There was a great need for external control
for more stable conditions. The United States upgraded public administrations and improved the
government infrastructure. The United States allowed for the first elections in 1930 and then
winning government negotiated for a full withdrawal by the U.S. military by 1934 (The world
factbook,‖ 2012).
The 1940’s and 50’s brought about more unsuccessful and unstable regimes. In 1957, any
hopes for democracy was abandoned when Dr. Francois ―Papa Doc‖ Duvalier was elected
president. He nominated himself president-for-life, formed a paramilitary movement that
sustained his absolute power. Duvalier punished all those he saw as threats to his power. In 1971
this authoritarian regime continued under the leadership of his son Jean-Claude ―Baby Doc‖
Duvalier. After an uprising the Duvalier were exiled to France ―The world factbook,‖ 2012).
After many uprisings, a democratic election was set, electing Jean-Bertrand Aristide in

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1991. His administration only lasted until September when he was ousted by another military
coup. In the days following, over 1,000 Haitians were slaughtered, and 3,000 were killed in the
following three years.
Years of turmoil continued with government takeovers and military interventions. The
2000’s saw a massive shift in illegal drug trafficking, murders, and bombings. After an armed
rebellion led to the forced resignation and exile of Jean-Bertrand Aristide in February 2004, an
interim government took office to organize new elections under the United Nations Stabilization
Mission in Haiti (MINUSTAH). Haiti finally held a democratic election for a president and
parliament in May of 2006. Currently, Michal Martelly is the President of Haiti (―The world
factbook,‖ 2012).
Throughout history there have been constant attempts at government over throws.
Whenever there was too much power being dominated by an individual, destruction was hot on
its heels. This unstable government created an unstable economy, and no roots for growth. Haiti
was in a rapid downward spiral and sadly, it was not until the earthquake of 2010 that the fights
for power ceased. Individuals understood a need for unity to survive and overcome. While the
earthquake crippled, it also provided a wake-up call to those in higher power to unite locally and
internationally to save its people (―The world factbook,‖ 2012).
GOVERNMENT RESTRICTIONS
A. TARIFFS
As a member of the Caribbean Community and Common Market (CARICOM), Haiti
applies the group’s Common External tariff (CET). By eliminating its export duties, simplifying
and lowering its applied tariff rates, and abolishing the majority of its restrictions, Haiti has
greatly liberalized its trade regime since 1986. Haiti’s Most Favored Nation (MFN) tariff has

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remained constant at 2.8 percent which stands lower than that of Latin America and Caribbean
(LAC). It holds a low 15 percent, excluding alcohol and tobacco, and its 67.2 percent share of
tariff lines with zero MFN is the highest in the region. Haiti is very protective of its agricultural
products (5.7 percent) than its non-agricultural ones (2.4 percent). Based on the extent of its trade
services, Haiti ranked 80th out of 148 countries according to the GATS Commitment Index.
In response to the food crisis, CARICOM agreed in 2008 to a two-year suspension for the
CET so that other governments could drop duties to counteract rising food prices. Haitian
government introduced subsidies on imported rice, reducing the price of a 50 kilogram bag by 15
percent.
The average of world tariff exports is 9.8 percent. Haiti’s exports have greater access to
international markets than those of competitors. Haiti’s weighted tariff is 0.7 percent. This is
lower than the regional (3.2) and income group (3.9) averages. However, the Haitian gourde
depreciated by 6.1 percent compared to 1 USD making exports cheaper in foreign currency terms
(―Political risk Analysis,‖ 2012).
In 2007, Haiti joined an Economic Partnership Agreement (EPA) with the EU and part of
the CARIFORUM EPA group. This means it receives benefits/preferences under the Africa,
Caribbean, and Pacific (ACP)-EU Cotonou Agreement. Haiti’s textiles benefited greatly from
this.
In 2009, Haiti was in the bottom 20 percent of international business environments (151
out of 183- Ease of doing business). Haiti’s Logistics Performance Index (LPI) was below the
regional and income group averages stating a less conducive climate for trade. In 2010 there was
a large decrease in exports from a fall in demand by the United States (Haiti’s main trading port).
B. CURRENCY TRANSFER

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As mentioned previously the gourde is the currency used in Haiti. The Bank of the
Republic of Haiti is the centralized bank of Haiti. Coins in circulation are 50 centimes, 1 gourde,
and 5 gourdes. Bank notes include 10, 20, 25, 50, 100, 250, 1000 gourdes (―Country watch,‖
2012).
C. IMPORT LICENSING
The United States is the main commercial partner of Haiti. It accounts for about 60% of
the imports and exports. Primarily Haiti exports coffee, mangoes, sisal and essential oils. It
currently imports petroleum products, foods, beverages, and fats.
In order to start a cargo business in Haiti and start shipping goods to and from Haiti,
foreigners need four basic documents: Residence Visa; Work Permit issued by the Ministry of
Social Works following submission of applicant’s passport, residence visa, job offer and a
receipt from the Tax Office; license from the Tax Office; Registration Certificate from the
Ministry of Commerce and Industry.
Local producers and importers must obtain a professional identity card that is issued by
the Ministry of Trade and Industry (MCI) for an annual fee of 5 gourdes. Before the professional
identity card is issued, importers and local producers must first obtain a tax registration card and
an occupation tax certificate. The tax registration card is issued by the

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Direction Générale des Impôts for an annual fee of 300 gourdes for natural persons and 600 for
legal persons. The occupation tax consists of a fixed levy that depends on the sector of economic
activity and the group to which the commune activity carried out belongs. There is also a
variable levy.
D. MEDIA/SOCIA MEDIA
In Haiti, the forms of media consist of print publications, radio, television, and internet.
There are more than 300 radio stations that broadcast throughout the country. Talk show
programs are one of the few ways that Haitians can speak openly about politics and the
government. In 1997, a law was passed declaring the airwaves property of the government.
However, there are over 133 unlicensed radio stations open freely. There are also, more than 50
community based radio stations.
Within the past couple of years television has made an a great recovery. In the
metropolitan area there are no fewer than 25stations broad casted. Tele Haiti, the oldest TV
station offers many foreign channels.
Haiti’s media is under strict control of the government. The Ministry of Information and
Coordination issue renewable cards to the press that has legal registration. Foreign journalists
much request a card from the Ministry to report in Haiti.
ECONOMIC POLICIES
On January 12, 2012, Haiti was struck by a 7.0 magnitude earthquake that caused
monumental damage and casualties. The core of this earthquake struck Port au Prince, where
one-third of the country’s population and most of the state and economic infrastructure are
located. Six months later the country suffered and outbreak of cholera. The international
community responded with millions in donations, and volunteers and relief groups. However,

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this was a major setback to Haiti and reaching their economic stability goals. The Inter-American
Development Bank quoted the total cost of the disaster to be between $8 billion and $14 billion.
Haiti received $1 billion through the Highly-Indebted Poor Country (HIPC) initiative and $400
million from donor countries. As of 2011, only 43 percent of the $4.59 billion promised to Haiti
had been received (―Country watch,‖ 2012).
From 2007-2008, inflation rose from 9 percent to 14. 4 percent due to rising world food
and fuel prices but dropped to about 3.5 percent in 2009 because of the falling commodity prices.
By 2010, the prices climbed to 5.7 percent; taking a fiscal balance from a surplus of 0.4 percent
of GDP to a deficit of 4.4 of GDP (―Political risk analysis,‖ 2012).
CONCLUSION
Looking at decades of political turmoil and unstable regime, the country is not in a
position to host any major events for the safety of all involved. This is also taking into
consideration that they are financially unable to finance an event of this magnitude. Haiti is
still rebuilding from the earthquakes and cannot even clear the rubble from some streets to
allow for two way traffic. There are also very few sport facilities and any hotels/ motels to
accommodate for so many guests. There would need to be a very large amount of money
poured into planning of a major sporting event that Haiti would be much further in debt
than it already is. Simply, they do not have the means to accommodate the tourists.
Furthermore, the weather and disease does not allow for the hosting of any Games.
Flooding is very frequent in Haiti and causes annual damage. Also, there had been a huge
cholera outbreak recently, leaving all travelers at risk and susceptible to conjuring this
disease and returning to their country with it and spreading it.

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References
Garcon, P. (2012, February 26). Email interview.
Mears, R. (2012, February 9). Ambassadors in sports [Video
file]. Retrieved from http://www.youtube.com/watch?v=4yDLWHcP6S0
Country watch. (2012). Retrieved from
http://www.countrywatch.com/cw_country.aspx?vcountry=73
Haiti. (2012). In Encyclopædia Britannica. Retrieved from
http://www.britannica.com/EBchecked/topic/251961/Haiti
Haiti trade brief. (2011). Retrieved from
http://info.worldbank.org/etools/wti/docs/Haiti_brief.pdf
Political risk analysis: Haiti. (2012). Retrieved from
http://www.pri-center.com/country/country_specific.cfm?countrynum=87
The world factbook. (2012). Retrieved from
https://www.cia.gov/library/publications/the-world-factbook/geos/ha.html

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