P 101247Z FEB 09
FM AMEMBASSY PORT AU PRINCE
TO SECSTATE WASHDC PRIORITY 9487
INFO HAITI COLLECTIVE PRIORITY
AMEMBASSY SANTO DOMINGO

UNCLAS PORT AU PRINCE 000134 
 
 
STATE FOR WHA/EX AND WHA/CAR 
S/CRS 
SOUTHCOM ALSO FOR POLAD 
STATE PASS AID FOR LAC/CAR 
INR/IAA 
WHA/EX PLEASE PASS USOAS 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EAID EAGR EINV ETRD BEXP HA
SUBJECT: HAITI MONTHLY -*JANUARY 2009 
 
Summary 
------- 
 
¶1. (U) This is a monthly report on a variety of topics of interest 
which do not merit full reporting cables.  End summary. 
 
Foreign Economic Assistance 
--------------------------- 
 
¶2. (U) Association of Caribbean States. 
Haiti hosted the Council of Ministers of the Association of 
Caribbean States (ACS) from 28 to 30 January 2009.  25 Foreign 
Ministers of the Caribbean participated in this meeting.  It was an 
opportunity to boost the image of Haiti and begin to revive the 
tourism sector.  ACS was created in 1994 to strengthen regional 
cooperation and integration of the Caribbean countries. 
 
¶3. (U) Haitian ''Marshall Plan''. 
The ''International Commission for Haiti,'' (ICH), a nonprofit 
organization based in the U.S., presented a revivalist version of 
the Marshall Plan for Haiti at a conference on January 19.  ICH said 
its goal is to facilitate economic development in key areas, such as 
education, health, and agriculture, and that their plan differs from 
the National Document Strategy for Growth and Poverty Reduction 
(DSNCRP, Haiti's name for the PRSP) which aims to reduce poverty. 
ICH said that it would identify problem areas and seek to implement 
the plan over the next two years. 
 
Transportation 
-------------- 
 
¶4. (U) Suspension of CaribAir Flights. 
The Dominican Republic's Institute of Civil Aviation (IDAC) 
announced the total suspension of flights by Dominican airline 
Caribair due to operational irregularities and violations of 
aviation regulations. (Note: Post is following up on the subsequent 
ban on Haitian carrier TortugAir flights to Santo Domingo from 
Port-au-Prince by IDAC during the first week of February.  End 
note.) 
 
Industry and Manufacturing 
-------------------------- 
 
¶5. (U) Digicel Lay Offs. 
Caribbean-based mobile phone company Digicel announced plans to 
reduce its Haiti workforce by 10 percent.  (Note: During the month 
of January, the GoH announced and then rescinded, following howls of 
protest, the idea of imposing higher taxes on the lucrative telecoms 
sector.  Digicel accounts for nearly 10 percent of total ''large 
taxpayer'' annual revenues of approximately USD 250M.  End note.) 
 
 
¶6. (U) Propane Stoves and Gas for Haiti. 
The Dominican Republic's State Secretariat for Industry and Commerce 
authorized Dominican company, Excel Gas, to transport and sell 
propane gas and equipment in Haiti.  Excel Gas plans to distribute 
250,000 propane stoves, some free or subsidized, along with the gas 
to fuel them.  (Note: propane, while the fuel of choice for 
prosperous Haitians, is still not quite competitive on a daily basis 
with ubiquitous charcoal made locally from dwindling Haitian 
forests.  End note.) 
 
Economic Conditions 
------------------- 
 
¶7. (U) Inflation Rate Declines Again in December. 
For the third successive month, the Haitian Consumer Price Index 
(CPI) decreased, this time by 2.2 percent from November.  The 
12-month inflation rate is now at 10 percent, down from 13.8 percent 
in November.  This trend is due to decreases in the Food/Beverage, 
Transport, Housing and Energy categories, mostly because of falling 
imported food and fuel prices(a 4.4 percent drop). 
 
¶8. (U) Remittances from U.S. to Haiti Up Slightly. 
Despite fears that the U.S. recession would immediately reduce money 
transfers (remittances) to Haiti, they actually were up during the 
first quarter of FY 09 compared to the same period in FY 08. Total 
remittances during the period (USD 258 million) increased by 4 
percent over the year earlier, mostly due to a seasonal peak in the 
lead up to the holiday season.  (Comment: Post fully expects that 
remittances will be down beginning in 2009, but does not have 
Haitian Central Bank figures for January yet.  End comment.) 
 
¶9. (U) Lower Haiti-DR Trade in 2008. 
Trade between the Dominican Republic and Haiti for 2008 totaled USD 
421.1 million, a drop of USD 21 million from 2007.  Preliminary 2008 
figures indicate the DR imported USD 50.1 million worth of products 
from Haiti, while Haiti imported USD 371 million of Dominican 
Republican products. 
 
¶10. (U) Much Lower GDP Growth, Negative GDP per Capita Growth in 
¶2008. 
The Haitian Institute of Statistics and Data (IHSI) reported real 
GDP growth of 1.3 percent for 2008.  Factoring in an estimated 
population growth rate of 2.4 percent, GDP per capita was actually 
negative. The primary sector has been hardest hit by the fall in 
real terms of 6 percent.  The only sectors that were up 
substantially were construction (5 percent) and services (5 
percent.)  Projected GDP growth for FY 09 is estimated at between 
2.0 and 2.5 percent.