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HAITI. Economic reform strengthens democratic rule
President René Preval has introduced a series of major economic reforms
RENÉ PREVAL
RENÉ PREVAL, President of the Republic of Haiti.

aiti’s government is determined to construct a new society based on democracy and economic well-being. The international community is lending its support to the efforts of President René Preval’s administration.
“We want to see investors going back in there again and giving jobs to the people. We have to do what we can to see the benefits of freedom flow to ordinary citizens through the economic standing,” declared US President Bill Clinton after his meeting with the new Haitian President, René Preval, in March of 1996.

But the road to democracy has been tortuous. In 1986, president for life Jean-Claude Duvalier fled into exile following a 29-year family dictatorship established by his father François Duvalier, Papa Doc. From 1987 to 1990, Haiti witnessed military coups and undemocratically installed regimes. In 1990, populist priest Jean Bertrand Aristide won the presidential election through a landslide but he had no opportunity to govern. In September of 1991, Aristide was overthrown by a military coup. A week later, the Organization of American States (OAS) decreed a trade embargo on Haiti to pressure coup leader Raoul Cedras to give up. The US and Canada proclaimed their embargo in November.

President Clinton is hoping that investors will now begin to return to Haiti

Jean Bertrand Aristide, exiled in the US, counted on the support of Washington for his return to the country. In 1993, he signed an agreement with Raoul Cedras and in October of 1994, 20,000 US troops landed on the island to assist Mr. Aristide in reestablishing democracy. In May of 1995, the US handed over the peacekeeping mission to the United Nations Multinational Force, whose mandate has been extended until July of 1997.

Unable to run for a third presidential term due to constitutional constraints, Aristide was not on the ballot for the December1995 election. René Preval, Prime Minister during the first Aristide mandate, won the elections. It was the first time since Haitian independence in 1804 that a democratically elected president succeeded a democratically elected president.
Determined to contribute to the construction of a new Haiti, Preval launched a series of political and economic reforms centered on constructing new, efficient government institutions and on privatizing nine state-owned enterprises.

International donations, credits and loans would be used to rehabilitate infrastructure and alleviate poverty, while money obtained from the sell-off of public firms would be used to boost agriculture, the key to country’s stability. Over 70% of Haitians live in the countryside.

ROSNY SMARTH
ROSNY SMARTH, Prime Minister

Mr. Preval’s reforms, supported by the international institutions and UN agencies, provoked immediate criticism. However, the Prime Minister, Rosny Smarth, and his ministers did their best to explain the meaning of the economic program to the population and demonstrate that it was the only route to future prosperity.
According to international economic experts, it would take about two years for the economy to take off, considering the dilapidated infrastructure. However, impoverished Haitians expect an immediate well-being which the government cannot provide. Yet they are aware that it took them two centuries to have a democratic regime and they do not want to lose it.

In addition, it is the first time that the Haitian authorities are enjoying the confidence of the international community, willing to assist in development efforts and to guarantee a continuous financial inflow.
Balancing the long-term goals and satisfying the short-term needs of the population represents a complicated task. Haitian leaders knew from the start that it would not be easy. Mr. Preval did not make unrealistic offers during his presidential campaign, while the Prime Minister, Rosny Smarth, declared on several occasions that he expected to receive some opposition to economic reforms.

Haitian authorities will be measured by their ability to deliver concrete results. The population expects better living conditions - food, shelter, social safety network - which imply increased government spending. At the same time, the international financial institutions hope to see progress in macroeconomic figures as well as a clampdown on the budget deficit.
Meeting these two contradictory and yet interdependent targets constitutes the major challenge for the Haitian authorities.

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