Public Private Dialogue Critical for Policy Changes (3rd Qtr Newsletter)

The Ministry of Commerce in Haiti along with the United Nations Conference on Trade and Development (CNUCED) and the Integrated Organization for Reinforcement (CIR) organized a 3 day seminar at the Karibe Convention Center from August 30 to September 1^st on how to improve and facilitate the business environment and the reconstruction of the country. The seminar also looked at how it can integrate the private sector within the national strategies of development of Haiti.

It is very important for the Private Sector to take part in this dialogue on guiding the government on issues to resolve, and how to incentivize the private sector to play a role which will have significant implications in creating jobs and increasing wealth. According to Jean Francois Bourque, it is very difficult for an entrepreneur to create a 1-person company in Haiti due to the legal structures on how a company can be created in Haiti. Thus, it is important for Associations and Chambers of Commerce to guide start ups and SMEs on succeeding. As of today, there aren’t any Associations that focus on SMEs which are an engine of growth and can potentially be the largest employer in Haiti. However, one of the difficulties is the access to financing. Local banks have strict requirements and a very conservative approach which makes it difficult to secure financing. Most entrepreneurs have to take life insurance policies to secure the loan, and use land or homes as collateral. This makes it impossible for start ups or young entrepreneurs to finance their companies.  “The Private sector invests and creates jobs” says the Haitian Minister of Commerce Jocelyn Fethiere Colimon. She reiterated that it is critical for the public sector to know the needs of the Private sector and continue to facilitate the environment.

Haiti can take some lessons from Cambodia which has made some great strides over the past decade by posting double digit GDP growth several times as a result to political stability and a functioning government. Mr Sorasak Pan, Secretary of State for Commerce in Cambodia, noted that Haiti today is where Cambodia was 15 years ago.  Cambodia has benefited from jobs leaving China for Vietnam, soon after the same jobs move on to Cambodia. “Cambodia is also benefiting from the ASEAN pact” said Pan where the countries are forming a large tariff free zone and will have a common currency by 2018. Haiti is a member of CARICOM, but has not benefited much from it and has suffered fro m imports through Dominican Republic but originated from Central America thanks to CAFTA-DR. The Haitian government and the private sector will have to come up with a formula that supports and defends the private sector in Haiti in order for the country to benefit through jobs and economic growth. Haiti has to push for trade policies that will benefit the country 10 to 15 years down the road. In addition, the private sector has to get involved in the government and make sacrifices for the country said Pan. Cambodia sets up monthly meetings between the Private and Public sector to resolve issues that impact certain sectors. Currently Cambodia has a GDP per capita of $900 and looking to reach $1,000 over the next 2 years.