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Joseph G. Sullivan, Special Haiti Coordinator Bureau of Inter-American Affairs Statement before the Subcommittee on the Western Hemisphere House International Relations Committee Washington, D.C., May 14, 1997

Mr. Chairman:

Thank you for the opportunity to appear before this subcommittee to discuss our efforts to promote stability, democracy, and economic growth in Haiti. I would like to review the progress that Haiti has achieved since the restoration of democracy in 1994 and to examine some of the significant challenges that remain. I will then be pleased to respond to your specific questions.

Beset by deep-rooted, long-standing social, economic and political problems, Haiti presents complex challenges. With a per capita income of $229 in 1995, Haiti remains by far the poorest country in the hemisphere, at less than half the per capita income of the next poorest country, Honduras. Haiti's population has the lowest health and educational indicators in the hemisphere. Less than 60% of the population receive primary health care and the illiteracy rate is about 50%. The mortality rate for children under five is more than double the regional average and life expectancy is a mere 57 years. Pervasive poverty, repression, and instability in Haiti have long been of concern to the United States both as a good neighbor, and also because if ignored, they could cause large numbers of Haitian boat people to risk the perilous journey to reach our shores. For these reasons, successive U.S. administrations have sought to promote stability, democracy, and economic development in Haiti.

Haiti's problems of poverty, poor education and health conditions are the legacy of years of neglect and misrule, which will take many years to overcome. Haiti's new government is committed to working on behalf of the Haitian people which elected it. President Preval has set forth clear national priorities: strengthening fragile democratic institutions; development of a credible legal and law enforcement system; and private sector, agricultural, and infrastructure development. Although he faces enormous difficulties, Preval has demonstrated his resolve to move Haiti forward and has made important advances.

Haiti has made significant progress toward establishing a democratic society. Since 1994, six free elections have taken place, including elections for one-third of the Senate, and local authorities which took place on April 6, 1997. This election was monitored by the International Civilian Mission of the UN/OAS, U.S. Embassy personnel, and the International Republican Institute, along with the informal presence of the National Democratic Institute (NDI), the International Foundation for Electoral Systems (IFES), and other international donors and private groups. A run-off vote for Senate seats is scheduled for May 25. These latest elections are setting in place the building blocks to decentralize government as mandated by the 1987 Constitution. They will also complete the current round of elections and will enable selection of a permanent election commission and judges to be trained to serve as part of the reformed judiciary.

A popularly elected president peacefully succeeded another for the first time in Haitian history, in February 1996. An elected parliament plays an increasingly important role, also for the first time in Haitian history. The progress made in political and economic reform has an impact on the United States. In 1994--before the restoration of democracy--the U.S. spent $400 million dealing with 25,000 interdicted Haitian migrants. From April 1996 to April 1997, only 188 Haitians were interdicted.

Haiti's economy is recovering from several years of severe decline, exacerbated by international sanctions. Real GDP fell by around 30% during the 1990-1994 period, and exports and imports dropped to a fraction of pre-sanctions levels. Output grew 4.5% in 1995, but slowed to 2.3% in 1996 after the Preval Government adopted restrictive monetary and fiscal policies to stabilize the economy. As a result of these measures, the inflation rate fell from 30% in 1995 to 16% in 1996, international reserves increased, the Gourde strengthened, and the fiscal deficit virtually disappeared. Preval's commitment to responsible fiscal and monetary management, coupled with Parliamentary approval of privatization and civil service reform legislation, allowed the Government of Haiti to reach agreement with the International Monetary Fund (IMF) on a three-year Enhanced Structural Adjustment Facility (ESAF) program.

The Haitian economy has achieved a tenuous stability, but growth is still weak. Unemployment and flagging public support for reform remain significant concerns. Nevertheless, considerable donor resources have been mobilized and should begin to disburse in the months ahead. Business confidence remains weak. Progress on privatization has picked up considerably in the past six months after initial vacillation.

Haiti's fiscal adjustment has been harsh. In part, this is caused by delayed disbursements of external budget support, and the sharp limitation on public spending to one-twelfth of last year's nominal level in the absence of a budget approved by Parliament. This has represented a real reduction in government spending since October 1996, notwithstanding increased revenues. A combination of factors may enable higher growth in the second-half of 1997. A more expansive fiscal policy is possible since passage of a budget on May 6. This should put money in the pockets of government workers and suppliers. In addition, disbursement of two IDB public sector investment loans (PURE II--$50 million and FAES II--$30 million) is expected to begin within several weeks; projects they fund will provide jobs, improve infrastructure, and show the public that reform improves people's lives. Moreover, disbursement of two significant budget support loans--the World Bank's $25 million Economic Recovery Credit (ERC) and the IDB's $50 million Investment Sector Loan (ISL)--should also begin in the second-half of the fiscal year.

Sustainable growth cannot be built on public spending; private investment is necessary. Wary investors, both Haitian and foreign, will be carefully watching government leadership on privatization. The privatization council (CMEP) has established an ambitious time-bound plan for privatizing nine parastatals by March 1998. CMEP has decided on the modalities for four parastatals. According to their program, the flour mill and cement plant will be capitalized and the winner is scheduled to be selected by the end of July. The airport is scheduled to be turned over to a private concessionaire by January 1998, and the seaport will be operated under a management contract scheduled to be let by December 1997. Granting private management contracts for the port and airport would be a strong signal of the government's determination, and would improve service to business. Similarly, final approval of a pending cellular license for an American company would improve access to telephone service. Even if optimistic, these plans clearly set the right course.

U.S. economic assistance to Haiti in FY 1997 is $96.1 million--consisting of $72 million in ESF and $24 million in PL-480 food programs. This aid level is down from the unusually high level of $193.6 million in FY 1995. U.S. bilateral assistance is targeted at three interrelated strategic objectives--strengthening and modernizing democratic institutions, building a viable market economy, and promoting healthier and better educated families. U.S. assistance is part of a large multi-donor effort with total commitments of about $2 billion in the 1995-1999 period.

Haiti has achieved considerable success in creating its first civilian police force to replace the predatory security apparatus of the past. Established in 1995, the 6,000 member Haitian National Police (HNP) is an important guarantor of long-term stability and democratic development. The HNP is in the third year of a five-year Department of Justice International Criminal Investigative Training Assistance Program (ICITAP), and performs a difficult, dangerous public service in a steadily improving manner. Since 1995, we have renovated a former Haitian military base and opened the Haitian National Police Training Center. The police training curriculum we developed at the Training Center--an intensive 16-week program in Haitian Law, non-lethal use of force and traditional police skills, and human rights--is both appropriate and effective. This is followed by a 4-month Field Training Program administered by United Nations Civilian Police monitors from the United Nations Support Mission in Haiti (UNSMIH), which was established to help professionalize the HNP and maintain a secure and stable environment.

We are pleased by HNP progress, but we and the Haitians recognize that much work remains. The conduct of most HNP officers has been above reproach and in keeping with principles of human rights, but a relatively small number of officers have engaged in abuses, as documented in our recent Human Rights Report. But the principal difference from the security forces of Haiti's past is that these abuses are investigated and the perpetrators suffer consequences.

The Inspector General of the HNP has demonstrated independence and firmness in taking disciplinary action against rogue officers. To date, a total of 103 HNP personnel have been separated from the police force for human rights violations or other abuses. Another 10 officials of other security entities have been suspended from regular duty while the Haitian Government investigates past incidents and determines appropriate action. In total, the HNP Inspector General has referred cases of 32 former HNP officers to the prosecutor's office, and we are urging that the Haitian Government prosecute them, the crucial next step in creating a lasting atmosphere of personal accountability.

Overall, the HNP is a young, inexperienced force; most of its officers are under the age of 30, and its most seasoned officers have less than two years of on-the-job HNP experience. Professional conduct and public service are an integral part of the training they receive at the police academy administered by ICITAP with assistance from Canada, France, and the UN. We expect that, with additional training, emphasizing respect for human rights, and greater experience, instances of HNP misconduct will diminish. HNP development should also be viewed in the context of recent Haitian history. As stated in the most recent UN/OAS report, the overall human rights situation has improved dramatically since the restoration of democracy in 1994. Prior to the formation of the HNP, an untold number of people were the victims of human rights abuses committed by Haitian security forces; some human rights groups estimated that some 3,000 political murders took place during the 1991-1994 Haitian coup period alone. This is in stark contrast to what has been achieved today.

We are proud to have provided funding for up to 50 Creole-speaking Haitian-American law enforcement officers who participate in the 300-officer UNSMIH Civilian Police (CIVPOL) program. The language skills and community policing techniques brought to the job by our officers have revitalized CIVPOL and continues to improve Haitian law enforcement. The UNSMIH mandate, with 500 UN and 800 voluntary troops to support the 300 man CIVPOL mission, expires on July 31, and the UN Secretary General will make recommendations on the need for and nature of a post-UNSMIH international role in June. The Haitian Government has requested that the UN mission remain in place until December 1997 to give the developing HNP more training and time to develop. We are consulting closely with other participants in this UN Mission about how best to provide continuing support to HNP development.

We are concerned about the slow rate of progress in the investigation of murders of certain political figures. We continue to urge at the highest levels that the GOH carry out thorough, credible investigations of these crimes. President Preval has moved to professionalize and gain firm control of palace security units and integrate them into the administrative and disciplinary structure of the HNP. In the murders of two opposition political figures in August 1996, the government has taken a number of positive steps to remove those implicated from positions of authority and to identify and bring the perpetrators to justice, but further progress is imperative on this case and others.

While progress has been made in building a credible police force, there is still work ahead and judicial reform is critically needed. The Haitian judiciary is dysfunctional, lacks popular respect and is widely viewed as an enemy of the people. We have joined with a number of other partners to assist the Haitian Government in reforming its judicial and penal systems. USAID--in conjunction with the Department of Justice--is implementing an Administration of Justice Project to help improve the competence of the criminal justice system. Through this project, USAID and DoJ are providing judicial training; developing and implementing a model parquets (prosecutor's offices) program in seven jurisdictions across the country (to be expanded into 15 jurisdictions this year); strengthening case tracking, trial preparation, and oral advocacy by prosecutors; providing training in the Courts of First Instance and Justice of the Peace courts; and providing grants for legal assistance in seven jurisdictions.

In an expanded program, the Department of Justice has begun a new phase to assist the Ministry of Justice develop a sustainable judicial center, and assist the Government of Haiti in developing a program of professionalizing the Justices of the Peace, First Instance Court Judges, and investigating magistrates. USAID will expand its training for Judicial Inspectors and further assist the Ministry of Justice in budgetary and financial management.

In addition, USAID has financed renovations at the National Penitentiary, the Cap-Haitien prison and others throughout the country. A special prison was established for women and juveniles in Port-au-Prince to separate them from male prisoners held at the National Penitentiary. Assistance in basic materials and equipment was made to the first civilian penal administration. The USAID program established a current register of prisoners nationwide and a Haitian legal intern program which provides legal service to indigent defendants to assure timely trials. A multi-donor effort to address comprehensively the issues of prison rehabilitation and management is now underway. While we are encouraged by initial results, we are aware of the formidable challenges ahead and know that lasting success will take time.

Haiti is a major transit country for drugs destined for the United States. While we have no credible evidence that illegal drugs are grown, processed, or manufactured in Haiti, there is evidence that Colombian traffickers have set up operations in Haiti to transship Colombian narcotics to the U.S.

As certified by President Clinton on February 28, Haiti is fully cooperating with the United States to stop the narcotics trade. The Government of Haiti's leadership is aware of the danger to the nation posed by the power of the international drug organizations. Since the return of democratic governance in October 1994, the Haitian Government has made steady progress in combating narco-trafficking. In August 1996, the Haitian Government established a small, operational coast guard unit and more recently selected a counternarcotics unit which is currently receiving specialized training. Both of these units are part of the national police. The Haitian Coast Guard captured 938 kilos of cocaine in 1996 in two operations conducted with the U.S. Coast Guard. In joint operations with the U.S. Coast Guard, the Haitian Coast Guard has made sizable seizures recently: 9,960 pounds of marijuana and 24 kilos of cocaine from a vessel interdicted off Haiti's south coast on March 20, 1997, and 729 kilos of cocaine seized on March 23, 1997.

Since August 1995, we have actively pursued a comprehensive maritime counter-drug agreement with the Haitian Government. The Haitians want to ensure that an agreement respects Haitian sovereignty and we have made progress in addressing Haitian concerns. Negotiations are ongoing and we believe this year is the time to reach an agreement. We are making a major push to that end.

In sum, Haiti presents a number of daunting challenges which are likely to persist for years to come. However, the Haitian people and their elected representatives have shown a commitment to building a democratic society which offers opportunities for political participation and economic achievement. They will continue to require the assistance of the international community.

The Administration wants to work closely together with Congress to address Haiti's problems and help Haiti build upon the democratic and economic progress that has been made to date. We share the hope of Senator Michael DeWine voiced recently on the Senate floor that it is "important for Congress and the Administration to work out a realistic consensus on Haiti. The U.S. won't make Haiti an island paradise. Only the people of Haiti can determine their destiny. But we can help the Haitian people transform their country into one that works--one that exports goods and services, one where people will come together to escape their past, rather than escaping from their homeland. That is their only hope for a viable future. And that's a goal worthy of U.S. support."

The path to a better future is now in the hands of the Haitian Government. It must act decisively to take advantage of the restoration of democracy to bring not just greater freedoms, but also economic benefits to the people. Haiti will continue to need our help and that of the rest of the donor community. The people of Haiti still must make enormous sacrifices to bring their country into the 21st century with the rest of the hemisphere, and we will help them along that path as we have helped many of Haiti's neighbors in the past. The road ahead for Haiti is long and difficult, but real progress has been made.

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