Meeting on the IMF Report

On January 29, 2025, AmCham Haiti participated in an important discussion on the recent agreement signed between the Haitian government and the International Monetary Fund (IMF) in December 2024. The session, led by economist Mr. Pierre-Marie Boisson, offered a critical analysis of the IMF’s role in Haiti’s economic management and the broader implications of its policies on the country’s fiscal trajectory.

Mr. Maulik Radia, President of the Association des Industries d’Haïti (ADIH), opened the session by emphasizing the importance of understanding the IMF’s influence on Haiti’s economic framework. He point out the need for informed engagement with IMF protocols to better evaluate their potential impact on national economic stability. In this context, he invited Mr. Boisson to provide a comprehensive presentation.

Mr. Boisson began by addressing common misconceptions surrounding the IMF. While often perceived as imposing reforms, the institution primarily issues strategic recommendations aimed at achieving macroeconomic stability through inflation control, fiscal discipline, and exchange rate management. However, he acknowledged that some of these recommendations such as the removal of government subsidies—can have severe socio-economic consequences in fragile contexts like Haiti.

Key Issues and Recommendations:

1. Fuel Subsidies: Citing the 2018 removal of fuel subsidies, Mr. Boisson noted the social unrest and economic hardship that followed. He urged a more cautious and context-sensitive approach to implementing such measures.
2. Exchange Rate Policy: Mr. Boisson criticized the artificially maintained exchange rate, explaining that it erodes the purchasing power of households receiving remittances resulting in a 32% loss in one year. He recommended a gradual depreciation of the gourde, aligning monetary policy with inflation trends, as practiced in the Dominican Republic and Mexico.
3. Customs Reform and Taxation: He stressed the urgent need to overhaul customs operations, proposing the adoption of a standardized “blue book” valuation system to ensure equity and reduce corruption. A predictable tax environment with consistent rates and increased transparency was also recommended to support business confidence and investment.
4. Public Sector Transparency: Although the IMF agreement calls for enhanced government transparency, Mr. Boisson highlighted the absence of detailed strategies to address critical areas such as customs valuation—an essential element in increasing public revenues and fostering a fairer business climate.

The session concluded with a consensus on the need for IMF recommendations to be adapted to Haiti’s unique socio-economic realities. While IMF engagement offers a framework for macroeconomic stability, true economic recovery must balance fiscal responsibility with social equity and robust private sector participation.