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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