The soaring increase in food and oil prices has had an enormous impact on the Haitian population. Towards the end of 2007, UN agencies started recording increases in prices and alerting on possible consequences on the already weak coping mechanisms of the population.
Even if Haiti is not the only country touched by the global food crisis, it is probably the least capable to compensate any external shock because of its dependence on imports, limited investments, low productivity and lack of social safety nets. In April 2008, the National Commission for Food Security (CNSA, for its French acronym) estimated that around 2.5 million Haitians were in need of assistance.
Haiti imports some 52% of its food, including over 80% of its rice. Local food production only covers 43% and food aid accounts for 5% of the needs. Significant price increases have been recorded since October1, but have somewhat stabilized or in certain cases decreased since April, when President Preval has introduced a subsidy on rice, and produces from the summer harvest have started arriving in the market. The recession in the US economy is also affecting remittances from the Haitian diaspora in the US, the key coping mechanism for some 70% of the households.
Of the estimated 9.8 million Haitians, 5.1 million people live on less than USD1 a day and 7.6 million people with less than USD2 a day. At current prices, one dollar buys only half a meal per day. In 2005, according to surveys, 24% of children under five were affected by chronic malnutrition and 8% by acute malnutrition. FAO 2007 data indicates that up to 47% of the population was undernourished. The crisis forced some families to further reduce food consumption. Agriculture producers have decreased the amount of land worked in reason of the high cost of inputs (seed, fertilizers, etc.).
Social services are almost entirely run by the private sector. This has a huge impact on the already limited economic capabilities of the Haitian families. It is estimated that some 40% of the poorest families' budget is used for poor quality education. Health services, including emergency ones, with the exception of HIV/AIDS, are provided on cost-recovery basis. Water and sanitation quality and accessibility is generally poor. The crisis caused a progressive degradation of the already fragile nutritional status of the poorest among the poor.
Over the years, widespread poverty in rural areas resulted in an increase of urban migration (75,000 persons every year). The slum areas - where some 50% of the urban population lives - are expanding. Recent analysis undertaken jointly by UN agencies, the CNSA and other government bodies indicate that the crisis has hit in particular peri-urban centers where the highest number of destitute is concentrated. Isolated rural areas are also highly exposed. Landless farmers are particularly vulnerable.
The crisis has resulted in the ouster of Prime Minister Alexis on 12 April. The political stalemate continues until now, and has resulted in the weakening of decision-making power of government institutions. Furthermore, the lack of an appointed government has impeded the official launching of a government response plan to the food crisis. Furthermore, this impasse has slowed planning and reaction capacities of the State and has affected, in some cases, program implementation.
The international trend is unlikely to change, and the share of prices increases on the Haitian families will be even more severe in the near future. In April, violent demonstrations resulted in the death of six people, nine injured and various arrests. Frustrations and social tensions continue to exist. Events such as the end of the subsidy on oil prices, which led to an increase in transport and other energy costs, or the forecasted end of rice subsidies, coupled with the lean season, the beginning of the school year and the hurricane season could trigger more social unrest episodes.