Haiti - Current economic position and prospects

RESTRICTFD Report No. CA- 1 7a This report is for official use only by the Bank Group and specifically authorized organizations or persons. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. L ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION CURRENNT ECONOMIC POSiT ION AND PROSPECTS OF HAITI May 3, 1972 Central America and Caribbean Department  ClIRRiRJGY FII TVATINTS U.S. $1 = 5 Gourdes 1 Gourde (G) = U.S. g 20 All annual data are for fiscal years (ending September 30), unless specified otherwise.  MrAD2TVr nV rf%kT1irVX7rC Page No. BASIC DATA SUl4ARY AND CONCLISIONS ........................,.. i-v I. THE DEVELOPMENT FRAMEWORK. 1 Physical Endowment. 1 Human Resources. 2 Infrastructure. 4 Economic Management. 5 Economic Trends. 6 II. SECTORAL PROBLEMS AND POLICIES. 7 Agriculture. 7 Industry and Mining .13 Highways .14 Electric Power .15 Telecommunications .16 Education .16 Public Health and Population Policy .17 Community Development .18 Sectoral Priorities .19 III. FISCAL, MONETARY AND BALANCE OF PAYMENTS POLICIES AND PROSPECTS .21 Fiscal Policies and Prospects .21 Monetary Policies and Prospects .26 Balance of Payments .29 Conclusion .35 This report is based on the findings of an economic mission to Haiti in November 1971 composed of Messrs. G.P. Pfeffermann (mission chief), H.B. Meier (investment analyst) and R.A. de Campos (assistant economist). Parts of the sectoral discussion draw on the Natural Resource Inventory of the Organization of American States.   II. SOCIAL AND RELATED INDICATORS Life expectancy (1970) b3 years Birth rate (1965-70) 44 per thousand Death rate (1965-70) 20 per thousand Infant mortality (1970) 147 per thousand live births Population per physician (1968) 14,069 Population per hospital bed (1968) 1,403 Adult literacy (1970) 30 percent   BASIC DATA Area and Population Area: 28,700 square kilometers of which 27,750 on Island of Hispanida 1960 1967 1971 Population (thousands) 3,991 4,577 )4,968 Armual rate of population growth % 1.8 2.0 2.1 GDP per capita at factor cost: (current US$) 87 81 108 (constant 1964 US$) 91 75 82 I ECONOMIC INDICATORS GDP at constant 54/55 factor cost (millions of gourdes) 1,671.2 1,580.1 1,877.5 Origin of GDP (in percent) 100.0 100.0 100.0 Agriculture w9.1 51.1 lV8.2 Mining 1.5 1.2 1.9 Manufacturing 10.3 9.5 11.3 Construction 3.3 2.7 3.6 Power and Water 0.6 0.8 0.9 Trade 12.4 10.6 9.9 Other 22.5 2h.1 24.2 1960-67 1967-71 1960-71 Average annual charges in selected economic indicators (in percent) GDP at constant factor cost -0.8 4-, 1.1 Agriculture value added -0.3 2A8 0 8 Manufacturing value added -1.9 9.1 1.9 E-norts of 0n00is Ql.h 91 1.7 Imports of goods -1.0 10.h 3.0 Cost of liv_ng index (lower classes) 3.7 2.1 3.1 1QA7 1QAQ 1971 Publie Fi nan-es (millions of vourdAls) NAtMonnal (CovAnnm.nt.? Total revenues 155.6 197.6 263.7 Tortal ernaA treA 178.2 2Ono. 276.3 Net borrowing (-) 22.6 -12.3 12.6 Revrenues as % of GDP 8.0 9.L 10.5 Expenditure from funds earmarked for development (curent - capital) 'A'.8 18.6 18.9 as % of total expenditures  1967 1969 i977 Money and Credit (millions of gourdes) Net foreign assets -30.9 -29.1 452 Net credit to National Government 159.8 186.3 193. Net credit to other public sector -3.0 8.3 t.h Credit to private sector 42.;. c9.u .5 Other assets -16.5 -16.8 21-7 TOUAL ASSEiS= LIA01-1T1- 151.8 197.6 -6.-7 Currency and demand deposits 107.0 13137 1 Savings deposits 34.1 2.2 67t.8 Other 10.7 23.7 53-- Balance of Payments (million US$) 1960 1967 1971 EXports (fob) 38.1 32.2 h5.7 Imports (fob) 3.4 hO. 6o.o Trade Balance -5.3 -8.2 LL-il Receipts from tourlsm (gross) o.1 2.1 6.7 Other services (net) -10.7 -12.0 -20 . Net Goods and Services -7.9 -18.1 -26.2 Net transfers 9.2 17.2 2?.7 CURRENT BALANCE (net) 2.3 -0.9 -.3.-.> Private direct investment 0.1 1.1 6.( Public sector borrowing (net) 1.3 -1.5 2.-. Drawings on official loans 1.5 0.2 9 Repayments of official loans -0.1 -0.9 -1