Å·ÃÀÈÕb´óƬ

Haiti's development continues to be hindered by political instability, increasing violence, and unprecedented levels of insecurity, which exacerbate fragility. Haiti remains the poorest country in Latin America and the Caribbean and among the poorest countries in the world. In 2023, Haiti had a GDP per capita of US$ 1,693 and a GINI index of 0.41 (consumption-based). Haiti's Human Development Index value for 2022 is 0.552 ¡ª which put the country in the medium human development category ¡ª positioning it at 158 out of 193 countries on the United Nations metrics, published in March 2024.

Amid the lingering crisis, high vulnerability to natural hazards, coupled with violent gangs vying to gain control over business districts, the economy contracted for five consecutive years by 1.7% in 2019, 3.3% in 2020, 1.8% in 2021, 1.7% in 2022, and 1.9 percent in 2023. GDP is estimated to have contracted for a sixth year by 4.2% in 2024 behind the backdrop of gang violence. Improvements in tax revenue collection in 2023 (6.3% of GDP compared to 5.2% of GDP in FY22) reversed in 2024 (5.4% of GDP), as weak economic activity and insecurity offset tighter customs administration and higher oil tax revenue. 

As a result of insecurity, capital expenditure slowed significantly, leading to a narrower fiscal deficit of 0.6% of GDP in FY24, compared to a 2.3% fiscal deficit in 2023. Debt relief from Venezuela is expected to reduce the debt ratio from 24.2% of GDP in 2023 to 15.2% of GDP in 2024, allowing a reduction of monetary financing. For the first time in many years, monetary financing remained within the statutory limit of 20% of the previous year¡¯s tax revenues. Supported by reduced monetary financing, inflation has fallen from its peak of 49.3 percent in January 2023 but remains elevated at 29.3% by August 2024 amidst ongoing supply constraints in a context of insecurity.

Growth remains highly uncertain and will depend critically on stabilization of the political context and improvements in security. In the near-term, private investment is expected to remain depressed amidst persistent insecurity and private consumption is forecast to recede owing to weak agricultural wage income and persistent inflation. Modest GDP growth is expected in 2025 and 2026, assuming improvements in political stability and security ahead of expected elections by end-2025 or early 2026. Although growth is stabilizing, poverty is expected to remain elevated, with 36.6% of the population projected to live on less than US$2.15 per day (2017 PPP) in 2026.

Haiti remains one of the most vulnerable countries worldwide to natural hazards, mainly hurricanes, floods, and earthquakes.  More than 96 percent of the population is exposed to these types of shocks.  On August 14, 2021, an earthquake measuring magnitude 7.2 on the Richter scale, struck the southern region of Haiti, an area where approximately 1.6 million people live.  

The direct human toll of the earthquake resulted in 2,246 deaths, 12,763 injured, and 329 missing in the three departments of the Southern Peninsula.  In terms of infrastructure, 54,000 houses were destroyed while 83,770 other buildings were damaged, including schools, health facilities, and public buildings.  

Despite some signs of progress, Haiti continues to face important security challenges.  At least 3,661 people have been killed between January and June 2024, according to the United Nations High Commissioner for Human Rights. As the country¡¯s security crisis continues, 5.4 million Haitians struggle daily to find enough to eat and gang activity has displaced over 700,000 people.  

On the human development front, Haiti currently has a total of 34,896 confirmed cases of cholera as of June 20^th, 2024. Improvements in human capital have stalled and, in some cases, deteriorated. Infant and maternal mortality remain at high levels, and coverage of prevention measures is stagnating or declining, especially for the poorest households.

According to the 2020 Human Capital Index, a child born today in Haiti will grow up to be only 45 percent as productive as they could be if he or she had enjoyed full access to quality education and healthcare. Over one-fifth of children are at risk of cognitive and physical limitations, and only 78 percent of 15-year-olds will survive to age 60.

Last Updated: Nov 06, 2024

Å·ÃÀÈÕb´óƬ¡¯s (WB)  for Haiti was discussed by the Board of Directors in September 2015 and updated in 2018 through the . It is designed to support the country¡¯s efforts to provide economic opportunities for all its people and to combat poverty. A new Framework is under development for the 2024 to 2028 fiscal year.

Over 80 percent of the World Bank¡¯s programs are implemented outside of Port-au-Prince, in communities where the security situation is more stable. This includes projects in the south of the country which support post-earthquake reconstruction efforts, and in the north around Cap Haitien, focusing on disaster risk management, resilient infrastructure, and urbanization.  

August 2021 Earthquake Recovery and Reconstruction

Following the earthquake on August 14, the Government of Haiti has underscored the critical importance of the ¡¯s (Å·ÃÀÈÕb´óƬ) assistance to effectively address early recovery action, and medium and long-term earthquake response needs, which should support recovery and strengthen the resilience to future disasters in the affected areas, mainly to support education, transportation, and food security.

On February 2022, the Government of Haiti mobilized US $600 million through a high-level international donor conference, in which the World Bank engaged to provide US$168.6 million through different Å·ÃÀÈÕb´óƬ channels including the Å·ÃÀÈÕb´óƬ 19 Crisis Response Window (CRW), the reallocation of funds, the amendment of ongoing contracts in Bank-financed projects, and the activation of the Contingent Emergency Response Components (CERCs). As of MARCH 15, 2024, the total disbursement has reached approximately US $59 million, corresponding to 35 percent of total Bank commitment to the ¡°Plan de rel¨¨vement int¨¦gr¨¦ de la P¨¦ninsule Sud (PRIPS)¡±. 

World Bank Group Program

Å·ÃÀÈÕb´óƬ's portfolio in Haiti comprises 18 active projects for a total commitment amount of US$1,266.9 million as of September 2024. Of this amount, US$1,213.1 million comes from the International Development Association (Å·ÃÀÈÕb´óƬ), complemented by US$ 53.77 million from trust funds that support the implementation of these projects.

The transport sector represents the largest segment of the World Bank portfolio, with 28 % of the total financing, followed by the agriculture and food sector at 14 %, and the urban, resilience and land sector with 12% of total financing.  The health, nutrition and population sector represent 10%, followed by the education sector with 8%. Other key areas with 14% of the portfolio include the social protection, finance, competitiveness, and innovation sectors. Remaining resources are earmarked for the water, governance, energy, and digital development sectors.

International Finance Corporation (IFC)

In addition, the International Finance Corporation (IFC) supports the private sector in Haiti. As of April 2024, IFC¡¯s portfolio is comprised of eight advisory projects with an initial commitment of $22.36 million. IFC supports private sector projects in Haiti in the areas of energy, beverages, and financial markets.

Despite the political and security crisis significantly affecting economic activity in Haiti, IFC has continued to engage with the private sector and collaborate with the Haitian government in key areas, with a strong focus on renewable energy. 

The IFC program aims to increase financial inclusion, create jobs, and facilitate access to sustainable basic infrastructure by making catalytic investments. IFC also contributes to the development of a competitive and inclusive economy through technical assistance and advisory programs designed to make the business environment more attractive for investors and for micro, small, and medium enterprises.?

IFC has offered several advisory programs in disaster and risk management in Haiti. These include the development of the insurance sector, building on public-private partnerships (PPPs), and assistance to the private sector in developing business continuity plans and financial preparedness. IFC continues to support its clients to tap into opportunities in climate-smart agriculture, telecommunications, urban infrastructure, renewable energy, and sustainable finance.

Last Updated: Nov 06, 2024

People 

• Å·ÃÀÈÕb´óƬ supported education access with improved learning conditions (such as school repairs and safe new classrooms, school feeding, textbooks, and school kits) to about 80,000 students in 263 public primary schools in the southern region, in the 2023-2024 school year. About 40,000 students from 109 non-public schools is providing with grants for free schooling. 

• At the system level, World Bank financing supported improved planning of national assessments, improved data collection and management through the Education Management Information System, the accreditation of non-public schools for quality assurance, promotion of mother tongue and provision of textbooks in mother tongue in early grades, in-class pedagogical practices, inclusive education, and processes related to decentralized governance. 

• Å·ÃÀÈÕb´óƬ has enabled access to reliable solar energy solutions in 5 major hospitals and laboratories, formerly reliant on fuel generators. Fuel use decreased by 50%-100%, saving $1,200 monthly per hospital. Previously, electricity shortages (due to scarcity of fuel in the country or lack of financial resources to buy fuel) caused up to 3 months of service disruptions yearly. Now, 2 hospitals offer uninterrupted 24/7 services, and 3 have battery autonomy for nighttime operations.

• Health projects support the results-based financing program of the Ministry of Health contributing, among other things, to the delivery of basic nutrition services for women and children (665,000) vitamin A supplementation, the vaccination of 640,000 children and pregnant women, and skilled health worker attendance for over 67000 women delivering in institutions. The projects also supported the improvement of infrastructure in over 52 health facilities, since 2020. 

• , allows almost 22,000 vulnerable households in Grand¡¯Anse to receive a monthly cash transfer, mostly via mobile e-wallets. And over 4,000 families who lost their homes or suffered serious damages following the 2021 August earthquake have received US$300 each to help with rebuilding or repairing their homes.

• The project has helped updating the information on over 100,000 households and collect information on 70,000 new households registered in SIMAST, the database of the Ministry of Social Welfare and Labor, contributing to cover over 700,000 families in the registry. This will help to help other Government and non-government programs prioritize their investments and target the populations most in need.

Planet

• Under the Resilient Productive Landscapes in Haiti Project (TPR) a total of 4,267 farmers have adopted improved agricultural technology, of which almost 38 percent were women. 2,050.347 hectares are under sustainable landscape management practices and 4 sub-watersheds with participatory plans were developed. In addition, a spatial decision support tool for the prevention and management of climatic risks has been applied to 21,968.31 hectares covered by the Project.

• A total of 112 farmer field schools have been set up in the 4 selected sub-watersheds, supporting the training and support of farmers and communities in the adoption of improved agricultural practices through the provision of improved technical packages. A total of 2,800 farmers have participated in farmer field schools, of which 37.83 percent were women. In addition, 50 family tanks (3m x 3m x 2m) with a capacity of 18 m3 for the benefit of 250 vulnerable households were built.

• During the implementation of the project, a total of 70,162 beneficiaries, of which 29,468 are women, have benefited from agricultural incentives within a total sown area of 37,455.40 hectares in the Nippes Department. 

• The Water and Sanitation project improved living conditions for internally displaced persons in Port-au-Prince, providing potable water to 22,000 people across 18 sites in the metropolitan area. Other achievements include training 400 people in water chlorination, rehabilitating existing toilets, installing additional facilities, constructing separate showers for men and women, and setting up handwashing stations equipped with soap. Furthermore, hygiene kits were distributed to 3,665 individuals, while solid waste management initiatives were implemented to maintain cleanliness at the sites.

• Overall, the World Bank has played a critical role in Haiti's water and sanitation sector. Over 521,000 people in rural areas and small towns benefited from increased access to drinking water and 31,000 individuals for improved sanitation facilities thanks to the previous Haiti Sustainable Rural and Small Towns Water and Sanitation Project (EPARD), closed in January 2024.  

• The Disaster Risk Management projects rehabilitated Emergency Operation Center at national (1), department (1) and communal levels (4). Meanwhile, the construction of 14 multifunction emergency shelters has started in the department of Grand¡¯Anse and Sud. 

• In the Grand Sud region, 140 vulnerable families have received a hurricane and earthquake resilient house build with the improved local building techniques (TCLA). Training sessions, awareness campaigns, and contingency plan updates have been completed, benefiting nearly 1,000 individuals across 66 Communal Committees of the Civil Protection (CCPC). 

• Regional and Urban Development projects strengthened service provision in six municipalities in the Cap-Haitian metropolitan area; improved public spaces and basic urban infrastructure in seven municipalities in the North; improved municipal buildings in Quartier Morin and Milot; supported cultural heritage preservation initiatives and reduced flood risk in selected areas of Cap-Haitien. 

Infrastructure

• Å·ÃÀÈÕb´óƬ post-earthquake recovery support included the cleaning and rehabilitation of more than 100 kilometers of road, and the construction of a temporary bridge over the Grand¡¯Anse River which has been completed in less than one year allowing safe and resilient connectivity for more than 200,000 people. Overall, the World Bank infrastructure financed projects purchased 18 emergency bridges to improve Haiti¡¯s capacity to quickly respond to future emergencies.

• 10 key bridges were rehabilitated or constructed over the past six years connecting over 3 million Haitians in the departments of Center, Nippes, Sud, Grand'Anse; and Artibonite.

• Over the past 15 years the transport projects contributed to stabilizing the Marigot-Jacmel; Port-Salut-Les Anglais segments; and more than 350 km of road sections; reconstructed the Chalon, Dolin, Fauch¨¦, La Th¨¨me, and Boucan Carr¨¦ bridges with resilient methods; rehabilitated and reinforced 210 small bridges, culverts, reinforced and repaired more than 28 major engineering structures.

• Å·ÃÀÈÕb´óƬ supported access to electricity for approximately 233,830 people through the rehabilitation of the 1.5MW small hydropower plant in Drouet (Artibonite) and four power distribution networks in the metropolitan area. The projects rehabilitated four distribution networks and installed consumer meters to improve the reliability of electricity service in Port-au-Prince.

• Ongoing projects in the energy sector awarded 13 loans and 11 catalytic results-based grants to six distributors of off-grid solar products. As of March 31, 2024, 60,961 off-grid connections have been already realized and are benefiting 304,805 people. In governance, the Bank is supporting the Government of Haiti in elaborating its national electrification strategy for access to electricity for all by 2035.

Digital 

• Å·ÃÀÈÕb´óƬ is actively supporting the country in developing the digital ecosystem, including providing broadband services to government institutions, developing cybersecurity strategies and frameworks, establishing wide area network services, and implementing digital skills programs for the private and public sectors. 

• Acquiring spectrum monitoring and quality of service equipment for the Conseil National des T¨¦l¨¦communications (CONATEL), the telecommunications regulator that will use this equipment to ensure better services for the end user.

• Conducting the Cybersecurity Maturity analysis by the University of Oxford to define priorities and help the government invest in priorities and orient the government¡¯s strategy.

Last Updated: Nov 06, 2024