Economic and Political Development of Haiti


Since regaining independence over two centuries ago, Haiti’s economic and political development has been crippled by the pervasive impacts of enormous public debt and the imperialist institutions of the former French colonial rule. The extractive economy and the oppressive and enslaving colonialist policies inflicted widespread inequalities in the country, which left it unprotected from suppressive external interventions. Historically, Haiti’s efforts of fulfilling the aspirations of its people have been supplanted and displaced by aggressive foreign interests. The situation has rendered the country the poorest in the Western Hemisphere. Additionally, eroded sovereignty severely paralyzed Haiti’s capacity to influence resource allocation, public policies, and social processes.

Haiti hosts many external players, including hundreds of NGOs, military establishments, and donors. The foreign operatives are self-serving and strictly enforcing their interests and aggravating the inequalities (Pierre, 2020). Moreover, influential nations have exploited these internal institutional flaws to sponsor political instability and enslave the country in debts. Although Haiti grew to be the most successful and wealthy colony in the Caribbean, the imperialists imposed massive punitive obligations and left weak institutions, ultimately contributing to the worsening economic, political, and social growth.

Role of Public Debt in Haiti’s Independence Struggle and Nation-Building Process

Haiti’s public debt played an instrumental role in the country’s independence struggle and the nation-building process. The French imperialists imposed an independence debt, ostensibly to compensate for the losses incurred by the white settlers (Armand, 2020). After the slaves revolted and defeated Napoleon’s forces in 1791, they founded the first independent republic in the world (Armand, 2020). However, France demanded enormous monetary reparations amounting to 185 million gold francs to the overthrown French slaveholders, which exceeded the Haitian annual budget tenfold (Armand, 2020). Notably, the successful uprising against the institution of slavery was viewed as a formidable threat by other slave-holding countries. The decades of regular payments raised from voluntary contributions from the public rendered the government insolvent, created a chronic climate of economic instability, and severely impaired Haiti’s ability to prosper. Therefore, after the country regained internal rule, the independence struggle mutated into an economic recolonization through the onerous indemnity debt.

Nation-building entails structuring and constructing a national identity using the state’s power to unify the people and guarantees political stability in the long run. Such a challenging endeavor taps into a country’s resources to reduce the existing economic and social disparities in society. Countries like Haiti are already disadvantaged by the chronic, layered, and deep-seated challenges, which still linger today and are attributable to the colonist’s exploitative and punitive policies. In Haiti, the imposed public debt burden led to the return of slavery and runaway inflation due to currency turmoil. The French government manipulated the impoverished and needy administrations of Haiti and extended extraction beyond independence. Consequently, Haiti’s nation-building capacity and processes were impaired by internal and external influences, contributing to the long-term institutional instability, weaknesses, and poverty.

The immediate consequences of the public debt included the widespread inefficiencies in the education system and the creation of an over-militarized society due to invasion threats from foreign powers. Additionally, the systemic obstructions to equality, the unwillingness to work, and the ideological tension between the elite and the uneducated can be understood as the direct consequences of domination, slavery, and exploitation, which transcended beyond independence. Bertocchi (2016) asserts that the institution of slavery adversely impacts the way people feel about work and aggravates socioeconomic outcomes. Therefore, Haiti’s public debt is financial enslavement, which weakened the social, institutional, demographic, and economic structure and compounded its inability to recreate itself.

Impacts of Colonial Institutions in Haiti’s Nation-Building Process

Nation-building can be construed to imply a country’s rebirth by overcoming the pre-existing structural, internal, and external boundaries to forge a new identity. Although the concept’s potential benefits and opportunities are available to all countries, the realization of a unifying identity is strongly influenced by historical, socioeconomic, and cultural conditions. According to Hoefte and Veenendaal (2019), nations with colonial legacies, weak economic foundations, and profoundly heterogeneous societies experience restricted nation-building opportunities. The countries hardly have any historical foundations for supporting shared national pride and identity. The extractive institutions established by colonialists in Haiti have persisted long after the departure of the French. For instance, the colonists’ post-independence property rights institutions prevented farmers from cultivating their land despite the optimal climate and weather for sugar farming. From this perspective, Haiti’s nation-building processes face unfavorable circumstances in adversarial social, economic, and political conditions.

Moreover, the French colonists stimulated the formation of distinct political associations for the cultural, ethnic, and racial groups. The arrangement was designed to frustrate any collaboration between the ethnicities, which they could exploit to oust the imperialists. However, this scheme undermined the building of a unified nation by cultivating inter-group distrust. Moreover, the structure generated a new class of wealthy elites recruited by the slaveholders to pacify the discontentment and give them the impression that they were beneficiaries of the plantations. Hoefte and Veenendaal (2019) argue that comprehensive nation-building should demolish any pre-existing disparities, which are contradictory to a unified identity. The self-serving culture created by the colonists is presently manifested by the extractive neoliberal economic development policies, led by international societies and NGOs, which are at odds with nation-building. Therefore, by intensifying divisions in the country’s socioeconomic structure through various institutionalized schemes, the French imperialists encumbered Haiti’s unification efforts, whose adverse effects are still evident today.

Effects of Economic Inequality on the Economic and Political Development of Haiti

The institutionalized and colonist-enabled economic inequalities have impeded the political and economic progress of Haiti. Currently, over half of the Haitians live below poverty, and many others rely on subsistence farming. Historically, the prevalent economic inequalities were rooted in the varying income levels and exploitation during the colonization period. To this day, the developed policy interventions do not adequately address the fundamental gross inequalities and seemingly erode the country’s ability to create functional economic and political institutions for midwife development. Moreover, the country’s debt burden hampers its ability to provide essential services, which could minimize disparities. The reliance on foreign aid and extensive influence by foreign powers cripple Haiti’s political development agenda.


Haiti was once the wealthiest country in the Caribbean, but the French colonist’s invasion, the subsequent pervasive exploitation of resources, and the slave rebellion brought severe blows to the country. The imposed colonial debt enormously impaired the country’s ability to function independently and can be attributed to the failed attempts at the nation-building process. Therefore, the colonial institutions impeded the state-building venture and aggravated the economic and political underdevelopment, and the effects are evident today.


Armand, J. (2020). Establishing economic independence in Haiti through public-private partnerships and foreign direct investments. Northwestern Journal of International Law and Business, 40(3), 363–390.

Bertocchi, G. (2016). The legacies of slavery in and out of Africa. IZA Journal of Immigration, 5(24), 1–19. Web.

Hoefte, R., & Veenendaal, W. (2019). The challenges of nation-building and nation-branding in multiethnic Suriname. Nationalism and Ethnic Politics, 25(2), 173–190. Web.

Pierre, G. (2020). Poverty in Haiti. Open Journal of Political Science, 10(3), 407–427. Web.


  • [1] The World Bank in Haiti. (2020). The World Bank. Web.
  • [2] Sperling, D. (2017). In 1825, Haiti paid France $21 billion to preserve its independence – Time for France to pay it back. Forbes. Web.
  • [3] Daut, M. (2020). When Haiti paid France for freedom: The greatest heist in history. The Africa Report. Web.

Cite this paper

Select style


DemoEssays. (2022, April 10). Economic and Political Development of Haiti. Retrieved from


DemoEssays. (2022, April 10). Economic and Political Development of Haiti.

Work Cited

"Economic and Political Development of Haiti." DemoEssays, 10 Apr. 2022,


DemoEssays. (2022) 'Economic and Political Development of Haiti'. 10 April.


DemoEssays. 2022. "Economic and Political Development of Haiti." April 10, 2022.

1. DemoEssays. "Economic and Political Development of Haiti." April 10, 2022.


DemoEssays. "Economic and Political Development of Haiti." April 10, 2022.