We have said many times after disasters that you have to give people a reason to return to the area and reinvest.  This includes appropriate housing and job opportunities, and the systems structure of schools, hospitals, roads, police, etc. that keep a community functioning normally. 

In Haiti, we need to give people a reason to invest in the first place. 

Some of BCLC’s staf just returned from Port au Prince, where we led a business delegation to the country in partnership with CHF International and Executives without Borders.  (See also: Firsthand Look at Haiti Five Months After the Earthquake by Shane O’Connor, FedEx.)During the trip, we saw first-hand the incredible devastation that the earthquake caused, the countless tents where internally displaced persons (IDPs) are now living, and the poverty that far too many people face daily. 

But even before the earthquake, Haiti was the poorest nation in the Western Hemisphere.  According to the CIA World Factbook, Haiti’s per-capita GDP (purchasing power parity) was $1,300 in 2009.  Neighboring Dominican Republic had a per-capita GDP (PPP) of $8,300 in 2009. Before the earthquake, Haiti needed investment and opportunity.   After the earthquake, Haiti is even more desperate for investment and wealth creation.

For those of you that know BCLC’s structure, we have a Disaster Assistance and Recovery Program and a Global Corporate Citizenship Program.  The disaster program focuses on response and recovery after major disasters and the global program focuses on emerging market development.  The earthquake in Haiti is an example of how both disaster recovery and market development are needed.  The earthquake caused devastation on top of an already fragile economy. 

In order for the IDPs to get out of the camps and into homes, they need sources of income.  Right now, Haiti does not have a structure that invites capital and investment—it is simply too risky.  Haiti has a history of political violence and coups that disrupt the entire country.  This political instability does not invite capital investment.  Additionally, Haiti’s infrastructure needs to be vastly improved.  Telecommunications costs are high because they only have one fiber optic cable to connect it with the rest of the world.  Roads are in poor condition; we have heard complaints about the erratic nature of the customs process; the ports need to be improved, etc. 

Especially in this economic environment, many companies and investors are looking at ways to reduce risk, not take on more. 

I believe that there is hope for Haiti.  I saw the hard-working, entrepreneurial spirit of many people throughout Port au Prince.  Given the right conditions, I believe that people can thrive, but until those conditions are met, investment will be painfully scarce.