Starting a Venture in a Struggling Land
A well-meaning plan to export food to Haiti would hurt local producers
Q: I'm a Haitian living in the U.S. and currently researching a project
of exporting and direct-selling groceries to lower- and middle-class consumers
in Haiti, creating an environment of reasonable prices, jobs, and a teaching
format in free enterprise. Is there any advice you can give to the business,
which I'm calling Marche de Dieu (Market of God)?
--J.N., Jacksonville, Fla.
A: Your intentions sound good, but experts say that in an economy as
weak as Haiti's, a plan to bring in cheap, imported food from the U.S.
could devastate the already fragile market for local producers. And investing
in a country that is the poorest in the Western hemisphere, where the political
situation is unstable and crime rates are high, promises to be an extremely
risky business move.
"The best thing for Haiti is to encourage the poor people there to develop
their own products that they can consume on the island, so that the cash
stays in the region, the local currency circulates throughout the country,
and their economy becomes independent and self-sustaining," says Mildred
Robbins Leet, president of a New York-based nonprofit organization called
Trickle Up, which has helped establish 75,000 small businesses in 115 countries.
"Bringing in goods and business from abroad is difficult in an economy
that is largely informal and lacking in the basic infrastructure, including
electricity and viable ports," says Leigh Carter, executive director of
Fonkoze USA, a fund-raising arm for the Fonzoke ("shoulder-to-shoulder"
in Creole) alternative Haitian bank, established to assist street vendors
and small, mostly rural enterprises. "The country is still struggling with
the concept of democracy. The economy has declined in recent years. There's
continued political instability and crime. It's a pretty desperate situation,"
Carter says.
You might consider getting involved with a group called The Haiti Projects
in Partnership, which exists to provide opportunities for U.S. and Haitian-American
investors to put funds into the island nation's homegrown business ventures.
"We have half a million in assets now, which is substantial given the low
capitalization of the country," says Steeve Coupeau, who heads up the project.
"We provide relatively high returns to investors, and the funds we receive
fuel a pool of low-interest loans to Haitians running their own small businesses."
Coupeau says he can provide information on the project if you contact him
at (212) 961-0686 or by E-mail at scoupeau@gte.net.
In any case, when a businessperson invests in an overseas venture, it's
important to research the nuances of the local economy and political situation
and establish in-country business contacts. When a developing country is
the target for investment, those steps are even more crucial, experts say.
Mark Siegelman, international trade specialist for the U.S. Commerce Dept.'s
Office of Latin America & the Caribbean, advises U.S. businesses to take
advantage of myriad programs, information, and services provided to assist exporters.
The International Trade Administration has a one-stop trade information
center in Washington that can be reached at (800) USA-TRAD, or on the Internet
at www.ita.doc.gov. Country information, databases, introductions to overseas
business partners and leads, and data from U.S. trade missions are available
there, Siegelman says. The ITA has a district office in Miami, at (305)
526-7425 that might also be helpful. Businesses planning to export food
should contact the U.S. Agriculture Dept.'s Trade Assistance &
Promotion office at (202) 720-7420, Siegelman advises.
There are a number of Web sites offering information about doing business
in Haiti. Here are a couple of places to start:
www.itd.org/51eng_links/region/cac/haiti.htm gives trade and development
links to Web pages that offer a wealth of information and links to market
research, country reports, and the nongovernmental organizations involved
in the Haitian economy. The International Development Network, www.idn.org,
gives information and resources about sustainable development in Haiti.
The Haitian embassy in Washington also has a Web page, www.haiti.org.
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