What do Haiti, Egypt, Sudan, and Iraq have in common? They are all countries blessed with extremely fertile ground allowing for not only self sufficiency but were tradionally exporters of food.
Another common theme of those four countries is that they currently have hunger and food shortages due to war and intentional destruction of the agricultural infrastucture.
The problem with Haiti is not the ground because it can support two harvests a year, the problem is that the rice is imported instead of homegrown, the farmers have been chased from their lands, and no resources are allocted for mass irrigation of the area.
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For subscriptions, other correspondence and help for journalists: Haitian Information Bureau, c/o Lynx Air, Box 407139, Ft. Lauderdale, FL, 33340, USA. For electronic mail: hib@igc.apc.org.Neoliberalism in Haiti: The case of riceHaiti Info, Vol. 3, #24, 16 September
1995With the focus on the impending privatization of state-owned enterprises, it is easy to forget Haiti has been undergoing similar measures since the early eighties, when the Jean-Claude Duvalier government began to apply some liberal measures, and with the big push for liberalization in 1987. The current privatizations are only one aspect of an over-arching program aimed at integrating Haiti more into the international market which, in Haiti's case, means the U.S. and its multinational companies.
An examination of the plight of Haitian rice, of symbolic and food security importance because it is the second-most consumed cereal crop, offers a look at how liberalization has effected and will continue to effect the Haitian population and economy, and shows clearly the cynicism of the international lenders (the International Monetary Fund (IMF), the World Bank and Inter- American Bank (IDB)), U.S. government agencies, and the current government, all of which know their
policies are leading to the further impoverishment of peasants, further dependence of Haiti on the U.S. for basic foodstuffs, and the shift of Haiti's best lands into the hands of export-crop agribusinesses.Historical/Economic Background Not long ago,
Haiti was self-sufficient in rice. Haitian rice is expensive to produce (for example, in the 80s, it was 40% more expensive to produce than Thai rice), due to a number of reasons: low level of mechanization; high cost of leasing land; high cost of fertilizers and other inputs; usurious credit systems where peasants pay up to 100% interest per month; high taxes; high transport costs, and a disorganized, exploitative system of distribution and marketing. Like other agricultural products, historically it has been produced in the complete absence of state regulating agencies or support and an untrammeled exploitation of the peasants. An IDB study in the 80s determined, for instance, that in the Artibonite Valley, where most rice is grown, about 22% of the land are plots of 3.26-10.25 hectares and are owned by 1.7% of owners; 23% of the land are plots of 1.01-3.25 ha., owned by 4%; 37% of plots measure .26-1 ha., owned by 31%, and the majority of landowners, 63%, have plots measuring .01-.25 ha., accounting for only 18% of the land.
Another interesting statistic is that only 70,000 ha. of land in Haiti (32,000 in the Artibonite) is irrigated, whereas
studies indicate 200,000 ha. (a total of 40,000 in the Artibonite) could be irrigated, showing the potential for higher production.(...)
The breaking down of Haiti's rural economy through the flood of U.S. products, the destruction of the creole pig and other measures are not by hazard. They are part of the same neoliberal vision pushed by the U.S. and the multilateral institutions in all “dependent” countries. By the early 1980s, the U.S.
Agency for International Development (AID), had decided Haiti should not grow its own food or develop any national industries. The international division of labor, AID and the other planners and bankers said, called for Haiti to do “export manufactur(ing) and process(ed) agricultural products, but with a sharply growing need to import grain.” Through Ronald Reagan's Caribbean Basin Initiative (CBI) in 1983, a vast increase in food aid and credit for agroindustries and other programs, during the 80s,
“experts” worked consciously to dismantle the rural economy even though, according to authors DeWind and Kinley, AID knew that would cause increased poverty and “a decline in income and nutritional status.”
(...)
Rice Corporation of HaitiOne of the companies to profit was Erly Industries, which had positioned its Rice Corporation of Haiti (RCH) perfectly to take advantage of the coup.
Erly, a massive agribusiness headed by Gerald Murphy and his son Douglas, is the largest marketer of U.S. rice (as well making agricultural chemicals and orange juice). Its 1994 rice sales topped $350 million.
In December, 1992, a year after the coup and three years after filing papers in Port-au-Prince, it signed a nine-year contract with the illegal government of neoliberal champion, former World Bank employee and illegal Prime Minister Marc L. Bazin, where it promised to import at least 5.5 MT per month. (RCH also promised to help improve rice production in the Artibonite with U.S. agronomists, but three years later, they are not evident. What is more likely is that RCH will position itself to buy up land as little and big landowners go broke, and then grow export products like oranges.)
The RCH deal was squired through the various Washington and Port- au-Prince agencies by Larry Theriot, the first director of CBI and now V.P. of American Rice, one of the Erly rice spin-offs.
Erly knows the ins and outs of Washington. Despite a reputation that even the New York Times questioned and a brush with bankruptcy a few years ago, the Murphys still have many friends and they get subsidized loans, government contracts and other perks. In addition to the agribusiness,
Gerald Murphy, a longtime Republican and supposed close friend of Ronald Reagan, wholly owns Chemonics, one of a myriad of parasitic “consulting firms” that live off of AID. Founded in 1976, Chemonics had won over US$89 million in AID contracts during the first six months of 1995 alone, and is now bidding heavily for contracts in at least two ministries here (justice and environment). Murphy, a Harvard Business School graduate, said he set up Chemonics because he
“always wanted a way to do two things: one, have my own CIA; and two, be helpful to people.”
(...)
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