Clintons encourage investment in Haiti while showcasing an industrial park

• Email
• Print
• Comments (0)

Secretary of State Hillary Clinton encouraged foreigners to invest in Haiti as she and her husband Bill led a star-studded delegation gathered yesterday to inaugurate a new industrial park in Caracol, Haiti, at the center of U.S. efforts to help the country rebuild after the 2010 earthquake.

Actors Sean Penn and Bill Stiller, fashion designer Donna Karan and British business magnate Richard Branson were among the luminaries at the opening of the new Caracol Industrial Park, which is projected to create thousands of jobs more than 100 miles from the quake-ravaged capital of Port-au-Prince.

The secretary of state told a roomful of investors gathered for a luncheon that she had made Haiti a priority when she became secretary of state.

“We had learned that supporting long-term prosperity in Haiti meant more than providing aid,” she said. “It required investments in infrastructure and the economy that would help the Haitian people achieve their own dreams.

“So we shifted our assistance to investments to address some of the biggest challenges facing this country: creating jobs and sustainable economic growth,” she added.

Earlier yesterday, thousands of Haitians lined the roadway to wave at her motorcade as it wound its way from the airport. Hillary Clinton and other U.S. officials, including Labor Secretary Hilda Solis and Sen. Patrick Leahy, a Democrat from Vermont, toured a housing development for industrial park workers supported by the U.S. Agency for International Development.

The Clintons and their allies hope that the $300 million industrial facility will transform the northern part of this impoverished country by providing thousands of desperately needed jobs.

But some Haitians say the industrial park does little more than replicate failed efforts from the past and will benefit outsiders more than Haitians. They also worry it will harm some of the few pieces of undamaged environment that still exist in Haiti.

“It’s really all-in on this project, and there’s a high bar to deliver,” said Laurent Dubois, a historian who teaches at Duke University and is author of Haiti: The Aftershocks of History. “It really needs to deliver in a big way so that people will think, yeah, this was the right thing to do.”

The stakes are high in large part because the Clintons have been so heavily involved.

The Caracol project was in the works before the earthquake but it became a top priority for the Obama administration soon after the disaster.

The $124 million put in by the U.S. makes the park Washington’s biggest single investment in the aftermath of the quake and it is certain to shape the legacy of the Clintons, who last visited Haiti together in 1975 on a wedding gift after their honeymoon in Mexico.

The industrial park was built on a 617-acre site meant to “decentralize” Haiti’s economy away from the crowded capital of Port-au-Prince and help develop the long-neglected countryside.

The anchor tenant is South Korean apparel giant Sae-A Trading Co. Ltd, which begun production in May. It has agreed to create 20,000 permanent jobs within six years and also build 5,000 houses. Backers say the entire park has the potential to generate up to 65,000 jobs in all.

Sae-A, which shipped 76,000 T-shirts to Walmart in the United States on Oct. 15, says it is training 1,050 people it hired, 70 percent of them from the area surrounding Caracol. Daniel Cho, a representative of Sae-A in Haiti, said the employees will be paid almost $5 for eight hours of work.

A local paint manufacturing company, Peintures Caraibes SA, became the second tenant in July and will export paint made by Sherwin Williams along with its own paint; production begins next month. It’s supposed to hire 350 people.

Details are still being worked on to bring in other tenants, but the project’s architects hope its duty-free status and a 15-year tax holiday will lure more.

Everyone agrees Haiti needs jobs. The country of about 10 million people is among the world’s poorest, and unemployment and underemployment hover around 60 percent.

Despite the promises of up to 65,000 jobs at the site, and projections of possibly 133,000 more jobs through related cottage industries, the Caracol project has drawn much skepticism.

Critics say it’s not much different from the factories to make baseballs that were built in the 1970s and 1980s under the regime of playboy dictator Jean-Claude “Baby Doc” Duvalier.

Those jobs prompted thousands of farmers to leave their fields for the capital, and agricultural areas suffered from neglect. Shantytowns like Cite Soleil emerged to house the new workers. The factories got tax breaks but there was no income to offset Duvalier’s alleged plundering of state coffers.

“This is: Been there, done that,” Alex Dupuy, a Haiti-born sociologist who teaches at Wesleyan University in Connecticut, said of the Caracol project.

Because of the tenants’ tax breaks, outside investors will have more to gain than Haitians, he said.

“This is not a strategy that is meant to provide Haiti with any measure of sustainable development . . . The only reason those industries come to Haiti is because the country has the lowest wages in the region,” Dupuy said.

Backers of Caracol stress that it will bring tens of thousands of jobs to an area where subsistence farming has long been the only alternative to migration. Jean Cherenfant, mayor of Cap-Haitien, sees the facility as a boon.

“We don’t have a lot of employers here, and we’re talking about several hundred thousand jobs,” Cherenfant said by telephone. “I will not go along with those people who are pessimistic.”

Associated Press writer Josh Lederman contributed to this report from Caracol, Haiti.