In July 2018, the IMF approved a $96 million dollar loan to Haiti with 2 conditions;
(1) Stop all fuel subsidies, and
(2) Do a better job of collecting taxes from their citizens.
In addition to the above, the IMF expects Haiti to use the loan funds towards improvements in infrastructure, education, and medical care. This sounds great right? Keep reading.
“Haiti gives the IMF a fresh lesson in the value of subsidies” – TIME Magazine July 19, 2018.
“Haiti’s Prime Minister Resigns after riots over fuel price hike” – NPR July 15, 2018.
The IMF received a country report on Haiti aimed at reducing poverty and accelerating economic growth. Instead, what was accelerated was the resignation of a Prime Minister and 18 cabinet members amidst public riots.
Offer Haiti a loan distributed in installments for the building of better infrastructure, neighborhood medical centers, and educational facilities. Use professional construction services to oversee and train as many local workers as possible; foundation & framing, electrical wiring, pipes & sewage systems, etc. Continue training for locals in building maintenance, landscaping, cleaning, staffing, and program development where needed. Haitians would then be better abled to afford gradual fuel increases, and be more willing to pay their taxes.
That’s WHY I’m in Poverty Reduction, to Create Better Solutions.
The U.S. spent approximately 4 trillion dollars on foreign aid in 2017, still there are more than 1.3 billion people living in extreme poverty.
We can do better with spending and the development of effective programs for the poor.