Briefing Note for Haiti Briefing Research Proposal

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The country has one of the biggest international debts in the world. Even more, the country is not able to pay this debt.

Given the economic and social conditions in Haiti, the workforce in the region is highly unskilled, making it even more difficult for a company or government to make successful investments here.

The natural disasters that often happen here must also be taken into consideration. Even if something is built here, there are significant chances to be destroyed in an earthquake like the recent one that shook the country, or by frequent tropical storms affecting the region.

Social risks are inherent given the circumstances. The majority of the population is living below the poverty line, there are frequent riots because of the high prices of food and lack of formal jobs.

The political situation can also be considered a risk (BBC, 2010).

Also, street riots and the country's involvement in drugs traffic lead to increased violence, which can be considered an important risk. This is why the country is rated D, while the business climate is also rated D (Coface, 2009).

Recommendations

Although the country presents high economic, social, and political risks, the current situation in Haiti can be considered an opportunity for the Canadian government. The damages produced by the earthquake can represent an opportunity for rebuilding the entire infrastructure that was already damaged and for helping the country exploit its economic potential.

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The U.S. economic involvement in Haiti was very successful, helping the country boosts its apparel sector. The country's exports have significantly increased as a consequence.

Conclusions

The current situation in Haiti can be considered an opportunity that the Canadian government can exploit. The U.S. economic implication in the region has proven to be successful. However, the risks are very high, the natural disaster risks being the most important, because of the significant damages that may produce.

In case the Canadian government manages to build something here, there is no guarantee that a tropical storm will not affect the investment, situation that has previously occurred. Also, the violence and the political instability in the region are important obstacles that must be taken into consideration.

Reference list:

1. Iranzo, S. (2008). Delving into Country Risk. The Bank of Spain. Retrieved January 22, 2010 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1120723.

2. Haiti (2009). Central Intelligence Agency. The World Factbook. Retrieved January 22, 2010 from https://www.cia.gov/library/publications/the-world-factbook/geos/ha.html.

3. Cordoba, J. & Luchnow, D. (2010). Fierce Earthquake Rocks Haiti. Wall Street Journal. Retrieved January 22, 2010 from http://online.wsj.com/article/SB126333470907826737.html.

4. Country Risk Assessment (2009). COFACE. Retrieved January 22, 2010 from http://www.coface-usa.com/CofacePortal/US_en_EN/pages/home/wwd/inform/Country_risk/Country%20Risk%20Assessment.

5. Country Profile: Haiti (2010). BBC News. Retrieved January 2010 from http://news.bbc.co.uk/2/hi/americas/country_profiles/1202772.stm......

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