Patterson: Haiti has potential to drive Caribbean development

The region needs a major thrust forward and while the rebuilding of the new Haiti will create opportunities in virtually all areas, the challenge is for CARICOM investors to take advantage of these opportunities, says P.J. Patterson, CARICOM Special Representative for Haiti, and former  Prime Minister of Jamaica.

Speaking on Wednesday at a conference organized by the Jamaica Stock Exchange on “rebuilding Haiti”, Patterson  noted that Haiti has chosen a path towards development through integration and collaboration with its Caribbean neighbours.

An earthquake wreaked havoc on the population, economy and ecology last year with the loss of lives of more than a quarter of a million persons, Patterson recalled.

P.J. Patterson

Now the country will require new systems and new technologies and most importantly it will require strategic alliances and partnerships among all actors – those in Haiti, those in the Caribbean and those who belong to the Caribbean Diaspora, Patterson asserted, according to the CARICOM Secretariat’s  copy of his address on “Rebuilding Haiti: A Priority for the Caribbean”.

“My challenge to you all, Caribbean investors and facilitators, is to organize yourselves, to take advantage of this opportunity.  That others are lining up to do just that, is no secret,” Patterson declared.

He contended that the disaster in Haiti and the huge sums which have been pledged for its reconstruction have opened wide the doors of opportunity for the entire Caribbean spectrum –  businesses, academia, consultants, entrepreneurs, construction, and creative artists.

Patterson noted that the  Haiti Action Plan for National Recovery and Development “identifies and prioritises investment opportunities in agriculture, light manufacturing, including garments and textiles, tourism and other services, construction (housing, physical infrastructure such as schools, hospitals and clinics), energy and transportation, social infrastructure and facilities for education and health, as well as cultural and sporting activities.”

And these investments, he pointed out,  are not just for the Haitian market but for the CARICOM and international markets.

He also observed that Haiti has been given duty free and quota free access for a list of products which it requested from CARICOM and the country also has special access for certain products to the United States market under the HOPE programme and the EU market under

the “Everything but Arms” programme.  “These open opportunities not only for Haitians but other CARICOM investors,” Patterson maintained.

He argued further that the rebuilding of Haiti has to be a priority of the Caribbean and pointed out that as a full member of CARICOM,  positive developments in Haiti can create the potential for positive growth across the entire region.

“On the other hand, instability in Haiti has the potential to represent instability in the rest of the region.  Social and economic unrest in Haiti can, therefore, impact negatively on the entire region,” Patterson said.

Responsibility and
Opportunity

Meanwhile, he also noted that the regional private sector from the very beginning had shown interest in partnering with their Haitian counterparts but found it difficult to find bases for action.  In that regard, he said, a CARICOM private sector delegation participated in a CARICOM-Haiti Private Sector Forum in Haiti last July.

The participants were overawed by the potential opportunities, Patterson said,  but they were also concerned about critical gaps such as the absence of  mechanisms to facilitate networking and partnering among potential investors in Haiti, in the rest of CARICOM and in the Diaspora.

Another concern was for mechanisms to  mobilize  capital,  in particular loan funds and export credits and guarantees on terms that would make CARICOM investors, service providers and suppliers competitive with counterparts from developed economies with governmental support mechanisms
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They were also  in need of arrangements for generating systematic information on business opportunities, including for technical services and consultancies.
In respect of loan financing, the Prime Minister of Haiti requested Patterson, as the CARICOM Special Representative, to coordinate the development of a CARICOM-Haiti Fund to facilitate the Caribbean Private Sector investment in Haiti.

And since then, a technical group is in the process of designing an open-ended, not-for-profit entity to mobilize and manage funds in a sustainable manner.

“The fund will be directed primarily to small and medium-sized enterprises investing in the priority sectors identified in the Action Plan using a variety of investment instruments,” Patterson said.

The fund will operate in partnership with other bodies such as Development Banks and Export-Import Banks and will concentrate its resources on interventions of less than US$20 million.

The fund has a target of US$1 billion but can commence operation with US$100 million and will garner resources through contributions from CARICOM states, bilateral and multilateral agencies, global funds, public and private foundations and individuals, including the Diaspora, Patterson explained.

“In light of the volume and types of financing required, I can see major possibilities for our Commercial Banks, our Development Banks, Export Import Banks, and the Stock Exchanges,” Patterson added.