Haiti: Relief and Reconstruction Watch is a blog that tracks multinational aid efforts in Haiti with an eye towards ensuring they are oriented towards the needs of the Haitian people, and that aid is not used to undermine Haitians' right to self-determination.
The World Bank announced today that they have cancelled the remaining $36 million in debt owed by Haiti. The Bank said that the cancellation was “made possible by contributions from Belgium, Canada, Finland, France, Germany, Ireland, Italy, Japan, The Netherlands, Norway, Spain, Sweden, and Switzerland.” The decision comes nearly one month after the United States passed a law directing the “Secretary of the Treasury to instruct the U.S. Executive Directors at the World Bank, the International Monetary Fund (IMF)” to completely cancel Haiti’s debt.
The International Monetary Fund, however, has yet to cancel Haiti’s debt. According to IMF figures, Haiti’s debt to the Fund stands at $282 million. Although interest rates on outstanding loans are zero until 2012, the IMF projects that obligation will reach nearly 3 percent of government revenue by 2014. This includes the $114 million loan the Fund approved for Haiti after the earthquake. In contrast, the World Bank has made $479 million available to Haiti in the form of grants.
Given that the US congress is pushing the treasury secretary to cancel Haiti’s debt, and that the US treasury continues to hold an effective veto over the IMF, one may wonder why it is taking the IMF so long to grant debt relief to Haiti.
The World Bank announced today that they have cancelled the remaining $36 million in debt owed by Haiti. The Bank said that the cancellation was “made possible by contributions from Belgium, Canada, Finland, France, Germany, Ireland, Italy, Japan, The Netherlands, Norway, Spain, Sweden, and Switzerland.” The decision comes nearly one month after the United States passed a law directing the “Secretary of the Treasury to instruct the U.S. Executive Directors at the World Bank, the International Monetary Fund (IMF)” to completely cancel Haiti’s debt.
The International Monetary Fund, however, has yet to cancel Haiti’s debt. According to IMF figures, Haiti’s debt to the Fund stands at $282 million. Although interest rates on outstanding loans are zero until 2012, the IMF projects that obligation will reach nearly 3 percent of government revenue by 2014. This includes the $114 million loan the Fund approved for Haiti after the earthquake. In contrast, the World Bank has made $479 million available to Haiti in the form of grants.
Given that the US congress is pushing the treasury secretary to cancel Haiti’s debt, and that the US treasury continues to hold an effective veto over the IMF, one may wonder why it is taking the IMF so long to grant debt relief to Haiti.
MSNBC ran a segment yesterday on the 55,000 Haitians who had been approved prior to the earthquake to come to the United States. Now, with many – including the family of North Miami Mayor Andre Pierre – living in makeshift camps, they are being denied entry to the US because of immigration quotas. As Steve Forester of IJDH explains, the MSNBC report would have been strengthened by discussing the positive impact these immigrants could have on Haiti through increased remittances, if allowed to come the United States. As the World Bank pointed out on May 17, since remittances make up such a large portion of Haiti’s GDP, “Haiti represents the first time the restoration of remittances services was seen as a critical part of disaster relief and response.” Allowing increased immigration from Haiti has been endorsed by both the Washington Post and Miami Herald editorial boards, as well as by numerous members of Congress. As Congress has recently allocated $2 billion in funding to Haiti for the next two years, incorporating language that would allow increased immigration would be an easy and cost-effective measure to help Haiti rebuild.
MSNBC ran a segment yesterday on the 55,000 Haitians who had been approved prior to the earthquake to come to the United States. Now, with many – including the family of North Miami Mayor Andre Pierre – living in makeshift camps, they are being denied entry to the US because of immigration quotas. As Steve Forester of IJDH explains, the MSNBC report would have been strengthened by discussing the positive impact these immigrants could have on Haiti through increased remittances, if allowed to come the United States. As the World Bank pointed out on May 17, since remittances make up such a large portion of Haiti’s GDP, “Haiti represents the first time the restoration of remittances services was seen as a critical part of disaster relief and response.” Allowing increased immigration from Haiti has been endorsed by both the Washington Post and Miami Herald editorial boards, as well as by numerous members of Congress. As Congress has recently allocated $2 billion in funding to Haiti for the next two years, incorporating language that would allow increased immigration would be an easy and cost-effective measure to help Haiti rebuild.
