Haiti on the brink

Slow progress following the 2010 earthquake has led dissatisfied aid providers to reconsider support

Slow progress following the 2010 earthquake has led dissatisfied aid providers to reconsider support

When the last tremor of the Haiti earthquake faded away in January 2010, it left some 300,000 dead and about the same number of wrecked homes in its wake, not to mention the destruction of schools, hospitals, government buildings, roads, lighting and just about every other item of infrastructure that a nation needs to go about its business.

But the international response was instant and generous. No less than $12.32bn was pledged in humanitarian and recovery funding under the highly optimistic title, given the nation’s benighted past, of “Towards a new future for Haiti.”

Now that we’ve reached the third anniversary of the disaster, about half the money has been spent. But to what good? In short, how does Haiti’s vaunted new future look?

For some 347,000 people, not good at all. They’re the ones still living in tents in 450 restless and dysfunctional “temporary” camps all over Haiti. They survive on a dollar a day or less, and about 80,000 could soon be evicted.

At the worst of the homeless crisis, in July 2011, about 1.5m Haitians lived in 1,500 of these tattered tent cities, so it could be said the humanitarian mission has been reasonably successful. But closer inspection reveals that Haiti is as far from achieving a decent future as it ever was. In fact, things could be worsening.

As the International Organisation for Migrations, one of the hardest-working bodies in Haiti with 486 staff on the ground, reported in January, “even with a 76 percent reduction [this] is still one of the largest on-going displacement crises caused by natural disasters to date.”

Amnesty International’s latest report is blunter, describing the homeless situation as “nothing short of catastrophic”.

Meanwhile armed paramilitary groups are roaming the countryside after being demobilised. The justice system is virtually absent for most Haitians. A cholera epidemic that visiting researchers described as “preventable” has killed 7,800 and still stalks the land. Unemployment varies between 70 and 86 percent of the 10m population, despite earlier billion-dollar loans to boost jobs.

And although the optimists set considerable store on the new government of president Michel Martelly, a 51 year-old pop singer, and prime minister Laurent Lamothe, we’ve been here before. Most previous Haitian governments have varied between kleptomaniac, brutal, dysfunctional or merely weak. Ominously, the new government is asking for “aid sovereignty”, which looks very much like getting its hands on the lolly.

In short, the worst fears of former World Bank president Robert Zoellick may have been realised. In the immediate aftermath of the disaster – a period when international rescue operations were performing miracles, he warned that the spending of all donor funds must be carefully targeted and conscientiously monitored. Above all they must not be wasted on “feel-good projects”, in his own words.

So what have we got for that $12.32bn? A lot of feel-good projects. Only a fraction has been allocated to decent housing, although it’s surely the most urgent need. Little wonder then that Canada’s minister for international cooperation, Julian Fantino, has just frozen his country’s generous contributions because he is so dissatisfied with progress.

The tsunami-devastated region of Aceh in Indonesia should have shown the way. Virtually flattened in 2004, it bounced back within six years. In a model of project coordination, 140,000 houses were rebuilt, 2,500 miles of roads constructed, and 200,000 small businesses – the building blocks of the economy – granted financial support.

In Haiti, the omnipresent non-governmental organisations are part of the problem. In a recent review of the reconstruction project, Time magazine referred to their “bloated presence” and added that “the NGO-industrial complex can seem more bent on perpetuating itself than on purging the problems it came to fix.” Put another way, what did Homeopaths without Borders do for Haiti?

Of course, much good has been done. A US-funded farming programme hugely boosted yields of corn and rice. Foreign doctors have pitched in to help overworked local medics. Some schools have been rebuilt and educational reforms put in place. But none of that means anything to 347,000 tent-dwellers.

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The May – June 2013 Issue

Highest corporate tax
rates in Europe

European countries are scrambling to raise every last penny of funds through taxes. But some countries may have gone too far...

Belgium

Though all business taxes in Belgium can be paid online with little effort and preparation, the rates are still sky-high at 57.7 percent, including a staggering 50.8 percent total rate on profits only in social security contributions.

Belarus

In Belarus, a company spends up to 338 hours annually preparing for and paying ten different taxes and duties. The total tax rate has incredibly been lowered to 60.7 percent, from 117.5 percent in 2008.

France

A company in France pays seven different taxes and duties, the sum of which can amount to 65.7 percent of profits; though President François Hollande has announced a wave of business tax rate cuts coming up.

Estonia

A business in Estonia pays 67.3 percent of profits in tax, 37.2 percent exclusively in social security contributions. The country has gone against the grain in Europe by raising businesses taxes from 48.6 percent in 2008 to the current rates.

Italy

While corporate income tax (IRES) in Italy is limited to 38 percent of taxable profit, a company operating in Italy can expect to pay 14 other taxes and duties, including social security contributions, bringing their total payable tax to 68.7 percent of profits, according to the World Bank.

Norway

Norway taxes motor fuels twice, with a road use tax and a CO2 emissions tax. Combined with strikes in the energy sector that have curbed output, the price of gas at a local pump has soared to $10.12 per gallon.

Turkey

Though Turkey sits on the Suez Canal and neighbours many oil rich countries, the price of a gallon of average gas clocks in at $9.41 in Turkish pumps, because of a 60 percent share of taxes. 

Israel

Like Turkey, Israel is surrounded by oil-rich neighbours, but drills very little itself. Gas prices are controlled by the government, so about half of the $9.28 per gallon goes to taxes.

Hong Kong

There are few gas stations in Hong Kong, but the ones available charge up to 76 percent more per gallon than mainland China, where the government caps the cost of fuel. A gallon at the pumps will cost around $8.61 on the island.

Netherlands

Expensive labour costs make the Dutch petrol prices the dearest in Europe, at $8.26 per gallon; though the 57 percent tax add-ons don’t help.

The credit crisis

8 February 2007
HSBC warns of subprime mortgage losses

2 April 2007
New Century goes bus

14 September 2007
Wholesale markets have dried up

17 March 2008
Rescue of Bear Stearns

7 September 2008
Rescue of Fannie Mae

15 September 2008
Lehman Brothers file for bankruptcy

3 October 2008
US congress approves $700bn bailout

14 February 2009
$787bn stimulus approved by congress

 

The effects of the current financial crisis are global and irrefutable. With the collapse of Lehman Brothers, the domino effect of irresponsible public monetary policies, huge levels of unsustainable debt, and a deregulated financial sector, has escalated to the point where no corner of the globe has been left untouched.

1973 oil crisis

October 1973
Syria and Egypt launch an attack on Israel on Yom Kippur and set off a twenty day war;

1977
US President Carter creates Department of Energy, which develops the US strategic petroleum reserve

 

The Organisation of Petroleum Exporting Countries (OPEC) used their oil reserves as a weapon with the Arab Oil Embargo against those who supported Israel. By January 1974, world oil prices were four times higher than they were at the start of the crisis, especially in the US, and the shock led to a huge drop in the stock market with NYSE losing $97bn in just six weeks.  The embargo lasted five months, and the effects are still seen today.

German hyperinflation

1922-1923

Hyperinflation
1923 – 1924
Stabilisation

 

The trouble began when Germany missed a repatriation payment, worth about one third of the German deficit in this period. Inflation was already high but by 1923 it was raging. Prices doubled within hours, and by late 1923, it cost 200bn marks to buy a single loaf of bread. People burned money as it was cheaper than buying firewood. Germany eventually regained control of its economy when it introduced the Rentenmark into circulation in 1923, and then the Reichmark in 1924.

The Great Depression

1929-1933
The Great Crash
1934-1939
Recovery and Recession

 

After the decadence of the Roaring Twenties, the 1930s saw the biggest economic slump of all time. The stock market crashed on 29 October 1929, and optimism and decadent living tumbled along with the figures. The GDP fell from $103.6bn in 1929, to $66bn in 1934 and the subsequent years of recovery were the most dramatic in US history.

1907 bankers’ panic

1907
Otto Heinze and his brother Augustus Heinze bought shares of United Copper.

 

The stock market was already cautious over the tight money supply, but the US was thrown into a depression after the stock market fell nearly 50 percent from its peak in 1906. The Heinze brothers thought they could influence market shares but ended up bankrupting lenders that provided the financing to buy the stock. A chain reaction left nine institutions bankrupt. By February 1908, the panic was over and the government created the Federal Reserve system, to prevent banks from exercising too much control over the economy.