Cost-Benefit Analysis of President Boyer's Decision to Sign the 1825 Indemnity
Cost-Benefit Analysis of President Boyer's Decision to Sign the 1825 Indemnity By Patrick Prézeau Stephenson Context and Assumptions • Historical Situation: In 1825, under the threat of 14 heavily armed French warships, Jean-Pierre Boyer agreed to pay an indemnity of 60 million francs or to France to secure recognition of Haiti’s independence and avoid military devastation. • Assumptions: o Haiti's GDP in 1825: 6 million francs or. o Cost of Total War: Total devastation of Port-au-Prince and major coastal cities. Disruption of all economic activity. Population losses, destroyed infrastructure, famine. o Duration of War: 10 years (analogous to the Napoleonic Wars or other prolonged conflicts of the era). o GDP Decline during War: Assume GDP falls by 80% due to destruction and famine (common historical benchmark during wartime occupation). o Recovery Period: Assume that after the war, Haiti would need another 15 years to return to pre-war GDP levels (c...