Why the Dominican Republic is much better off than Haiti: Policy implications

Monday, 14 March 2011 04:05

Written by Marvin Bionat

It is most curious why two countries on the same island of Hispaniola, both colonized and exploited by Europeans, and ruled by equally ruthless dictators have ultimately followed disparate paths. One, Haiti, is the poorest country in the Western Hemisphere, while the other, the Dominican Republic, is doing much better.

As a French colony, Haiti was in fact the richest agricultural economy in the Western Hemisphere. To further maximize their gains, the French imported great numbers of slaves from Africa. The Dominican Republic, during the same period, contributed little to the coffers of Mother Spain. Lower profits did not necessitate the purchase of slaves, and workers were freer to cultivate their own land.

After the Haitians defeated and sent the French packing, they declared their independence and withdrew from the world market. They then occupied the Dominican Republic for 22 years and created a mainly subsistence agricultural economy, similar to their own. Many landowners decided to flee rather than live under Haitian rule.

In addition, associating Roman Catholicism with the French, the Haitians made sure they deported all foreign clergy, severed ties of the remaining clergy to the Vatican, and confiscated all church property.

When the Dominicans won their independence from Haiti, both countries were pretty much at the same level of economic disarray. And through the next several decades, both countries were ruled by corrupt and brutal dictators.

Fast forward to the present: While the population of both countries is similar (10 million), the economic indicators point to a huge gap. Haiti’s GDP is only $6.4 billion, compared to $46.7 billion for the Dominican Republic. While both have a high incidence of poverty, it is significantly worse in Haiti where up to 80 percent of the population live below the poverty line; the figure for the Dominican Republic is 48.5 percent. Literacy in Haiti is 35 percent, compared to an impressive 88 percent in the Dominican Republic. (Sources: World Bank and the CIA’s World Factbook)

The root of the economic divergence can be traced to at least three factors, which have obvious policy implications in the Philippines. First, the traumatic experience of the Haitians, brutally exploited by the French as slaves, made them rabidly nationalistic. One landmark legislation disallows foreign ownership in Haiti. The Dominicans, however, are more open to immigrants. In fact, during the 19th century, they voluntarily gave up sovereignty to be ruled by Spain again. After gaining independence, they allowed Europeans and the Japanese to immigrate and do business in the country.

Second, while Trujillo ruled the Dominican Republic with iron-clad hands (reportedly murdering more than 50,000 of his opponents), he invested heavily in infrastructure, building extensive roads and bridges. The Duvaliers in Haiti had less foresight.

Third, partly as a result of the extensive slave trade during the French era, Haiti is more densely packed with people than the Dominican Republic. The neighbors have about the same number of people, but Haiti’s land area is significantly smaller. Pressure on the land is evident in the way Haiti’s forest cover has been denuded for fuel and housing needs. While the Dominican Republic side is still lush with trees, Haiti’s forest cover is down to 2 percent.

Bottom line: a more open economy, investment in infrastructure, and a more manageable population allowed the Dominicans to leave the Haitians economically far behind.

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