Reimagining the Haitian Diaspora's Role in Haiti’s Reconstruction

This op-ed marks the third installment in our series that examines how the Haitian diaspora can actively shape Haiti’s economic recovery after the current security and political crises stabilize.

In the previous installments, Breaking the Cycle: Why Haitians Need to Anticipate the Next Steps highlighted the necessity for a proactive policy assessment to ensure policies are beneficial to Haiti. Anticipating and Seizing the Moment: 6 Key Demands for Haitian Diaspora Inclusion outlined strategies to secure the diaspora’s involvement in Haiti’s political future.

In this piece, I advocate for a new role for the diaspora. Instead of complaining or simply sending remittances, the diaspora can actively participate in Haiti's reconstruction through a Public-Private-Philanthropic Partnership (P4) model. This model addresses the limitations of traditional remittances, which often bypass the local economy and don't promote long-term development.

As Haiti’s governance changes to the new Transitional Presidential Council (TPC), The P4 model offers and approach to foster collaboration between the government, private sector, philanthropic organizations, and the diaspora itself. This collaboration would channel diaspora resources toward sustainable growth initiatives. The recent formation of the Transitional Presidential Council presents a timely opportunity for the diaspora to leverage the P4 model and contribute to Haiti's post-crisis recovery.

Remittances: A Lifeline with Terrible Hidden Costs

In 2023, the Haitian Diaspora contributed nearly $3.8 billion in personal remittances, a slight decrease of 1.2% from 2022. These funds primarily came from the US, Chile, France, and Canada. At a a presentation former central bank board members Fritz Durosau and Edwidge Jean reported that most remittances range from $100 to $500, primarily covering basic needs like food, education, health, and rent. This data shows the importance of remittances to Haitians’ survival. But it also has unintended consequences.

These remittances play a complex role in Haiti. While they provide vital support to families, they also weaken the government's accountability to its citizens. Typically, taxes funding public services create a link between citizens and the government. Citizens expect good governance in return for their financial contributions. However, excessive reliance on remittances can lessen this dependence on public services. This, as economist Mancur Olson argues in his book "The Logic of Collective Action" (1965), can lead to a decline in service quality and a weaker demand for good governance. Olson highlights that individuals may not actively participate in demanding public goods if they don't feel a direct connection to their provision through taxation.

Early research on migration, like the study "Community Organization, Migration, And Remittances In Oaxaca,” highlighted potential downsides. It described a "culture of migration" fostering a "migrant syndrome" where communities become overly reliant on remittances.

In Haiti, remittance dynamics create a wealth transfer from the working class to the wealthy. Low-to-medium income migrants often feel pressured to send money back, potentially straining their own financial security. This benefits Haiti's elite, who often favor imported goods over local production. This diverts funds away from the local economy and widens global economic disparities.

Breaking the Cycle: Opportunities for Positive Change

However, the same "Oaxaca" study] also points to newer research showing that well-organized communities can leverage remittances for positive development. This suggests an opportunity for Haiti, with its upcoming government and security reforms, to redirect remittances towards more impactful development efforts. This could potentially break the cycle that has hindered Haiti's progress.

MHAVE and the P4 Model: Transforming Remittances into Development

Haiti's reliance on remittances, essential for many families, faces limitations; these funds often bypass the local economy and fail to foster long-term development. This section proposes a transformative approach: the Public-Private Philanthropic Partnership (P4) model, with the Ministry of Haitians Living Abroad (MHAVE) at its core.

The P4 model encourages collaboration across government, private sector businesses, philanthropic organizations, and the Haitian diaspora. Led ideally by a diaspora member, MHAVE serves as the critical link among these groups. This model is well-positioned to leverage initiatives like the 2022 Global Fragility Act, which aims to fund efforts that prevent conflict and promote stability in designated regions, including Haiti. Haiti's inclusion as one of the five priority countries under this act, coupled with a 10-year strategic plan aiming to support local organizations and public institutions, complements the objectives of the P4 model.

The P4 model's well-structured and organized collaboration has the potential to revolutionize key sectors. To illustrate this, let's explore three examples: agriculture, education, and healthcare. In these areas, the P4 model can drive sustainable growth and development.

1. Build a Stronger Food System

Haiti has some of the lowest tariffs on key imports like rice (3%) a legacy of past trade policies. This presents a unique opportunity for the new government. By implementing a gradual increase in import tariffs and an exemption from the Value Added Tax (VAT), they can prioritize and stimulate local production. The Haitian diaspora, with its significant buying power, can be a powerful force for agricultural reform by supporting this shift.

A shift is needed: from sending food to directly purchasing from networks of local cooperatives and farmers. This will result in short-term price increases until the market stabilizes, but it's a strategic investment in Haiti's agricultural future. Our buying power can ensure a stable supply of essential goods like rice, flour, and cooking oils.

The P4 model offers a collaborative approach. The government focuses on infrastructure, the private sector on financing, and NGOs on strengthening cooperatives. The Ministry of Agriculture can support established groups like RACPABA, the Peasant Movement of Papay (MPP), the Food System Alliance (FSA), the EDEM Foundation, and other farmer collectives to increase production.

MHAVE can connect the diaspora with these organizations and Haitian e-commerce platforms that prioritize local sourcing. This allows the diaspora to support local agriculture while enjoying online convenience.

School feeding programs offer another market for local produce, creating a stable demand that benefits farmers and communities. These interconnected initiatives can create a thriving domestic food source for Haiti, ensuring long-term stability and food security.

2. Bridging the Gap in Education

Haiti struggles with limited public education funding, forcing over 80% of schools to be private, making quality education inaccessible for many. Despite this obstacle, the Haitian diaspora remains a significant contributor to the sector through its remittances.

The P4 model offers a promising solution. The Ministry of Haitians Living Abroad (MHAVE) can bridge the gap between hometown associations and the Ministry of Education, fostering key partnerships to strengthen public schools. This collaboration would strategically combine resources:

• Infrastructure: The government, with donor support, would focus on building modern facilities.

• Teacher Salaries: Haitian families abroad and friends of Haiti could contribute to regional education funds, similar to community foundations, to supplement the existing Education Fund to subsidize teacher salaries and school materials.

• Curriculum: Partnerships with educational networks such as ProDev and Anseye pou Ayiti can work with the Ministry of Education to develop a Haitian-focused curriculum, replacing traditional French influence. Other organizations like Larelève, which makes “quality ebooks accessible to children and youth” can ensure adoption across public schools.

Transparency and community involvement are key. A board composed of students, parents, local leaders, and diaspora representatives would oversee the regional funds and school governance. This ensures efficient resource allocation for teacher salaries, materials, and other needs while fostering good governance and accountability within the next generation.

3. Healthcare: A Fragile System in Need of Support

Haiti faces a critical healthcare crisis, with a severe shortage of medical professionals., According to the OECD,  “Haiti measured the lowest rate of physicians, at 0.2 physicians per 1,000 people.” It had “the lowest rate of nurses when adjusted for population, at approximately 0.4 nurses per 1,000 people.”  This crisis has been further worsened by recent security issues that have driven many healthcare workers to leave the country.

The P4 model offers a promising solution by leveraging the Haitian diaspora's resources. This model builds on existing networks with established local organizations like Zanmi Lasante or Hope for Haiti.. Additionally, partnerships with affordable health insurance providers like Santé Nou and DASH (Development of Health Activities in Haiti) can expand coverage, with plans starting as low as $435 per year.

Collaboration with organizations like the Dalton Foundation provides essential technical support, improving healthcare infrastructure and access to medical services. By increasing the insured population, MHAVE can work with the Ministries of Social Affairs and Commerce to integrate informal street vendors into the national healthcare system. Programs like OFATMA (Office of Workers' Insurance, Disease, and Maternity) can be instrumental in this process. This integration benefits everyone: vendors gain access to crucial healthcare, the pool of insured increases reducing overall risks and improving the health of the population.

Rebuilding the Nation Together

Remittances from the Haitian diaspora have provided essential support for countless families but have also hindered long-term economic growth due to unintended consequences. It's crucial for us in the diaspora to develop strategies to maximize the impact of our resources.

The Public-Private-Philanthropic Partnership (P4) model is instrumental in this effort. It encourages collaboration between the government, private sector, philanthropic organizations, and the diaspora. As Haiti’s governance changes to the new Transitional Presidential Council (TPC), we face a unique opportunity to influence Haiti's future during this political transition. However, this requires us to strategically select a legitimate representative who can serve in the incoming administration to advocate for collective diaspora action.

I call on diaspora organizations to model the Transitional Council's approach by initiating a process to select a representative to lead the revitalized Ministry of Haitians Living Abroad (MHAVE). I also urge the TPC to enhance MHAVE's role and appoint the diaspora’s chosen representative to lead this crucial ministry. Elevating MHAVE as a central pillar in their engagement strategy will unlock the full potential of the P4 model, transforming the diaspora’s contributions into a solid foundation for Haiti’s economic development.