HOPE Act- Response to Robert

Thanks Robert, for pointing out the importance of jobs, to Haitian workers and their families and communities (posted under "US Elections and Haiti- what has been won?"). I think few would argue with the premise that creating more jobs, through HOPE or any other means, would make a real difference for people in Haiti. And in a narrow sense the changes made by HOPE- allowing Haitian garment manufacturers to use cheaper fabric imported from China or elsewhere- will cause little harm in Haiti.

The real problems with HOPE are that 1) it misses an opportunity to do better; and 2) it supports a flawed model of economic development that has failed Haiti for 2 decades.

Tom Ricker's piece discusses some of the missed opportunities; to me the biggest one is in supporting workers' rights. You are right that HOPE has some worker protection provisions, but they are toothless, and if past is prologue, they will do nothing to address the widespread exploitation of Haitian workers. It may be true that some workers make $4US per day, but more make closer to the minimum wage of $1.85. That minimum wage is far below the minimum wage of the late 1980's and early 1990's,when the country hosted many times more manufacturing jobs. It does not support even two people at the average level of subsistence in Haiti ($1US below), which is itself brutal. Even $4 per day does not, after paying for a family's food, lodging and transportation to work, leave much left over to pay school fees and otherwise break the cycle of poverty.

All the HOPE proponents justify the Act by the benefits it provides Haitian workers; but I have yet to hear of any workers who were consulted about the bill, or who are themselves promoting it.   

In the bigger picture, textile jobs only stay in a country as long as it has some slight edge over the competition. Trade preferences can give an edge, but they can be easily taken away- ask all the former assembly workers in Cambodia. Haiti's only real edge is the exploitability of its work force, which is not a foundation for long-term growth. As you note, Haiti's assembly jobs are way down- and it isn't because of the cost of fabric or the minimum wage. HOPE may bring them back up some, but they will fall again.

It is true that some countries have leveraged assembly manufacturing jobs into  broad-based development. But that leverage only happens as part of an aggressive government plan to promote national production, substitute for imports, and invest in human resources through improvements in public education and healthcare. Those are exactly the steps that Haiti has been prevented from taking: the International Community forced its tariffs down to the lowest levels in the hemisphere, which allows cheap imports (especially from the US) to flood the market and outcompete  local production.

Although the government has plans to improve the healthcare and education systems, the International Community has historically failed to support them. There is a chance that will change under the current Interim Cooperation Framework, but as of yet no concrete results.

I believe that HOPE is now the law. I know the House passed it Friday, and believe that any differences between the House and Senate version were ironed out- but I could be wrong.

By the passage (or failure) of HOPE does not end the debate over the larger issues of trade and economic development. I hope this blog can continue to discuss the points that Robert raises- I'd be especially interested to hear from people more knowledgeable than I about trade and development issues.  I'd like to hear more details from Robert about Cintas Corp.: what is their average wage? how much healthcare are workers provided? Does the factory allow a union?

Comments

[Bob Agledor]

Haiti has issues not because of no one else but the French who initially took them there and mad eno attempt to help them satart a system of governing themselves that was sustainable. They left it up to the Americans, yes, the Americans. One need to wander, what were going throught the minds of the french.Just how would have ever been made possible to have 2 countries nearly the same age one helping the other, in any significant way. America born in 1775 and Haiti 1779. Help, meaningful help, could only have come from one of the older nations with the residency experience in democratic governmentship. There is a simple solution- three prong to solving the haitian dilema. One, a revolutionary cultural transformation. This means changing the language from French to a more universaly significant language like English or Spanish. Come on, who does these negroes are kidding? They are the only nation(independent) to speak french in this hemisphere, apart from 2 little other groups, one in Canada and the other in French Guiana whose french language can be regarded as a fashion statement(For fun and games). In order to attract people to your home, haiti, you have to speak their language and they have to understand you. Look at how well all the English speaking countries are doing. Language is more than a way of communicating. Language is a way of thinking. Secondly, Energy needs of a country can sometimes become a cripling and trapping instrument. With a way of meeting the energy need of haiti, they can focus their synergies in both economics and technological development in catching up to countries like Korea and South Africa and Brazil. The billions of dollars that Haiti paid to France during their post colonial relationship needs to be revisited and dealt with so as to provide a sense of justice. There is no need to ask for reprarations in the form of hard currency. Simply have the french build, equip, operate, and safeguard two nuclear reactors to power up your industrius desires. With only ten million total subjects, two new reactors can certainly end haiti's energy crisis whereby, so much of the country's resources are spent to buy oil and other fuels. Thirdly, and perhaps the most controvertial aspect of the plan is for haiti to engage the first-world in both economic and technological espionage. Making all able-body men serve a mandatory 3 year term in the military where all training is conducted in english with emphasis is placed on brain-washing them to think that patriotism to country is second only to paying reverance to GOD. The Motto "One GOD, One Country, One People". Recruiting talent globally should be a priority, Especially JEWS. These people has a knack for making and keeping money. A note in point. Haiti's newly formed military's main focus is to fight other country's war. The haitian Government should also keep a register of all haitian-american and haitian born individual that have trained in any military in the world. this list is to be used in order to form a sort of Haitian Foreign Legion Corps. This, my friend, can bring in billions of dollars to a country whose main resource is "people". The great powers would also use the haitians in places where they are not able, ashame, or willing to go and fight. As a moral leader of democratic principles, one can understand why a country like the US could use the haitians to do their dirty work in AFRICA and elsewhere. The final piece of the puzzle is for haiti to become a member of the Organization Of African States. This gesture is symbolic in nature but yet its implications are unimaginable. The leader to achieve this must be well exposed to how the white men operates and has a keen sense of their psyche. He must also understand that he must use RELIGION in his quest to transform Haiti. It was with religion that the "man" was able and is still able to control the masses of negroes world-wide, the most exposed being the African-American. No offense to the late Dr, Martin Luther King. He must erase the boundaries of education by using the information age to its capacity and immortalize such Godly men as the writer's personal hero, John Brown of Harper's Ferry..... God Bless

[Brian]

Thanks for the head's up Robert. I am swamped right now, but will try to add some comments soon. In the meantime, if anyone has any experience with the comment form, please share it.

[Robert Miller]

Today, the United States Trade Representative made a request for comments from the public on Haiti's eligibility for benefits under the HOPE Act. This is the opportunity for those with concerns regarding labor standards, et al, to voice their opinion officially.

To learn more, please visit:

http://www.haitiinnovation.org/node/1111

[Christian Heyne]

Dear Brian,

I am so glad to hear your clear view of the jobs issue. I am chiming in, not as an economist ( though that would be a questionable credential if your name is Friedman ), but as an observer of the worldwide effort to screw down the standards and wages ever more, calling it FREE TRADE, by pitting the workers of the poorest countries against each other. The only free thing in sight being the ability of the corporation to leave freely, and go to the next exploitable country.

Haitians must get Human Rights as in the American Convention of Human Rights, then real jobs may have real benefit, i.e. the wages are high enough to live from and the working conditions are human and sustainable.
We have to insist on that. HOPE is not enough! Thanks for your good piece!

For peace in deed

Christian

[J Sprague]

I posted some thoughts on H.R.6406 on my blog. www.freehaiti.net

[Robert MIller]

Brian,

I agree that there is still a lot the Congress could have done, but who is going to convince them of it? I will use TPS, or Temporary Protected Status, as an example. Undoubtedly, Tropical Storm Jeanne was the worse storm to hit Haiti in recent memory. 3000+ dead, hundreds of thousands homeless, and a devastated Gonaives. Members of both the House and Senate, numerous advocacy organizations, the Gov't of Haiti all pleaded to stop the deportation of Haitians from the US. Alcee Hastings of FL introduced legislation to make it statute. But it didn't do a thing. The Bush administration said Haiti didn't meet the minimum requirements, which are 1) natural disaster, 2) civil instability, or 3) extraordinary circumstance. Surely, you agree with me that Haiti fit, not just one, but all three of these.

When Hastings' bill went no where, there was no outrage from the American people, only a suffering country made worse by having to accept deported citizens it could not support.

Is HOPE a missed opportunity? Not from where I sit. When HERO was introduced in 2003, it passed the Senate and didn't go anywhere in the House. It took nearly four years of negotiations before HOPE was even introduced in the House, then it was ripped from the calendar because of Republican dissent. HOPE wasn't passed because the majority of Congress cares about Haiti. It was passed because it was part of an omnibus trade package that made everyone equally upset, i.e. a compromise.

You'd just as soon sell ketchup Popsicles to ladies in white gloves as sign into law the kind of legislation you are envisioning. Even during the pro-trade, DR-CAFTA congress, Haiti could barely catch a break.

You make great points and your understanding of Haiti is unparalleled, but selling Haiti to Congress and the President as you've described doesn't seem possible today. Perhaps, if more people read our discussion and begin to contact their Senators and Congressmen, our mutual goal to advocate on the behalf of Haiti and to raise awareness will be successful and come January 4, 2007 we can make a real difference.

Kind regards,

Robert Miller
Haiti Innovation, Inc.