10/07/2024
THE HISTORY THAT LED TO TODAY’S CRISIS – AND THE PROMISE OF CHANGE
While Haiti has faced deep underlying problems since its people revolted against France and claimed their independence from France in 1804, it was 1981 that marked its rapid decline.
Economic Failures
The 1979 Oil Crisis raised the price of crude oil drastically, more than doubling the price per barrel. The influx of cash deposited from the spike encouraged banks to extend loans to all without much discretion. Haiti’s dictator at the time, Jean-Claude Duvalier, took advantage of the easy money and amassed excessive loans while not effectively investing in the development of Haiti’s economy. When inflation in the U.S. was curtailed a few years later, repayment of the loans had to be made in the now-inflated dollar.
Duvalier continued to make disastrous decisions for Haiti’s economy, culminating in the slaughter of Hait’s chief source of protein, pigs, due to international pressure to curtail a new swine flu. Attempts to replace Haiti’s pigs with a heartier type failed. In the absence of a traditional protein source, desperate Haitians cut down trees to clear more farmland and sell charcoal, accelerating Haiti’s deforestation.
A decade later in 1995, President Bill Clinton ordered Haiti to drop its tariff on U.S. rice (which was coincidently subsidized and primarily grown in Arkansas) from 50 percent to just 3 percent. As a result, Haiti’s rice production collapsed.
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