Minimum Lost Economic Productivity Due to 200K Displaced People in Haiti
Patrick Prézeau Stephenson
et al., Collectif du Manifeste L'Appel du Lambi.
October 3, 2023
Introduction
Haiti, a nation already grappling with poverty and
political instability, faces a deepening crisis as approximately 200,000 people
are internally displaced due to ongoing clashes among armed gangs. This essay
explores the lost economic productivity resulting from this mass displacement,
delving into the social, economic, and political repercussions faced by the
nation.
The Humanitarian Crisis
The internal displacement crisis in Haiti has reached
alarming proportions, with criminal groups controlling significant portions of
the capital, Port au Prince, and vital infrastructure routes. Kidnappings have
become a daily occurrence, leaving the citizens in a state of perpetual fear.
With a total population of around 11 million and only 12,800 policemen, the
Haitian government is struggling to maintain law and order, resulting in a
vacuum filled by armed gangs and criminal organizations. The UN recommended
ratio of police to population is 293:100K or 32,230 police officers for a
population of 11 million. Certain individuals contend that maintaining an army
or police force comes with a hefty price tag. However, a basic cost analysis
considering the social and economic repercussions of the current security
forces' inadequacy disproves this notion.
Lost Economic Productivity
The economic impact of 200,000 internally displaced
individuals is profound. Many of these displaced people were once part of the
workforce, contributing to various sectors of the economy. Their displacement
has led to a significant loss in economic productivity. To comprehend the scale
of this loss, it is essential to consider the various aspects of economic
activity affected:
·
Labor Productivity:
Displaced individuals often comprise the working-age population. Their
inability to engage in productive employment due to the crisis results in a
direct loss of labor productivity. The absence of their skills and
contributions affects multiple industries, from agriculture to services.
·
Business Disruptions:
The ongoing insecurity and displacement disrupt local businesses, forcing
closures and hindering economic transactions. Business owners face significant
challenges in maintaining operations, leading to revenue losses, unemployment,
and a decline in economic output.
·
Investor Confidence:
Pervasive insecurity and political instability diminish investor confidence in
Haiti. Businesses, both domestic and international, are hesitant to invest in a
nation marred by violence and uncertainty, hindering economic growth and job
creation.
For example, using the 2022 GDP per capita
value:
Potential GDP Contribution = $ 2799.11× 200,000 = $
559,822,000
This calculation provides an estimate of
the minimum lost economic productivity in terms of the potential contribution
these displaced individuals could have made to Haiti's economy. However, this
is a simplified calculation, the real total cost is likely higher.
Social and Political Repercussions
Beyond the economic consequences, the displacement
crisis exacerbates social and political challenges. Internally displaced
persons face inadequate living conditions, limited access to healthcare and
education, and heightened vulnerability to exploitation. Additionally,
political tensions escalate as the government struggles to address the crisis
effectively, leading to further unrest and discontent among the population.
Conclusion
The plight of the 200,000 internally displaced people
in Haiti represents a multifaceted crisis with far-reaching consequences. The
lost economic productivity estimated at a minimum of 560 Million dollars,
stemming from disruptions in labor, businesses, and investor confidence,
underscores the urgent need for both national and international intervention.
Addressing the root causes of the crisis, restoring stability, and fostering
economic growth are paramount to mitigating the impact on Haiti's people and
paving the way for a more prosperous and secure future.
REFERENCES
AMBIMED 2023. HAITI:
INSECURITY GROWS IN THE COUNTRY
https://www.ambimed-group.com/en/haiti-insecurity-grows-in-the-country
Trading Economics 2023. Haiti GDP per capita PPP
https://tradingeconomics.com/haiti/gdp-per-capita-ppp
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