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Friday, 23 June 2017
 
 

 
 

In August 1996 European American Equity Trading was organized for the purpose of setting up a securities market in Haiti. In March 1999 the name of the company was changed to European American Capital Corporation. That same year the name was finally changed to Global Trading Group, Inc (GLTG) a New York Corporation.

The company provides services in the areas of investment banking, securities trading, fixed income trading, commodities trading, derivative products trading and asset management.
 
The Company intends to organize in HAITI a “Societe Anonyme” to be named SOCIETE HAITIENNE DE VALEURS
MOBILIIERES, SA-HAITIAN STOCK EXCHANGE, HAITI STOCK MARKET ( HSE) . HSE will endeavor to:
 
  1. Develop a securities market in HAITI
  2. Organize primary and secondary markets for fixed income and common stocks in the Republic of Haiti-
  3. Train recruit the personnel
  4. create the alliances and the institutional framework necessary to support the operation of a securities market in Haiti
  5. Conceive the regulatory requirements for listing on the Haitian market and for affiliation with the Haitian Stock Market
  6. Securing listing on a US market, for Haitian companies listed on the Haitian market
  7. Maintaining close contact with GLTG to ensure ensure that HSE operates in the spirit of the rules and
  ....regulations established in the USA and which regulates the activities of GLTG.
  8. Market the equities traded on the Haitian Exchange and market and also the shares of HSE
  9 - Develop the alliances necessary for settling, clearing and for central depository functions
   
  THE PATH TO PHENOMENAL GROWTH
  The HAITIAN STOCK EXCHANGE (HSE) is poised to be launched. With its launch, there will be set in motion one of the biggest business opportunities in Haiti in the last fifty years.  
  HSE‘s goals are far reaching as they vary among other activities:  
  • From encouraging the formation of new businesses, to the expansion of all the economic sectors.  
  • From the facilitation of the flow of capital to Haiti, to the growth of per capita income.  
  • From the reduction of poverty, to a general increase in the aggregate level of output, employment and wealth  
     
  HAITI AND ITS CARIBBEAN NEIGHBORS  
  There is empirical evidence to suggest that, within the last three years, the rate of growth of GDP in Haiti has trailed the rate of growth of GDP of many other countries in the Caribbean Basin. It is often argued that the lag is due to three main factors:  
  1. A lack of financial infrastructure to attract capital  
  2. Insufficient capital investment per worker  
  3. Inadequate and underutilization of human capital.  
     
  QUESTION OF FINANCIAL INFRASTRUCTURE  
The lack of financial infrastructure is well captured in the fig (1) It is reflected directly in the level of GDP produced in Haiti and it is best seen when GDP in Haiti is compared to the GDP of other countries in the Caribbean region. It is argued in most of the development literature , Increasing GDP necessarily requires the flow of foreign direct investment .Foreign direct investment does not just happen. The lack of financial infrastructure is well captured in the fig (1).
Fig 1
It is reflected directly in the level of GDP produced in Haiti and it is best seen when GDP in Haiti is compared to the GDP of other countries in the Caribbean region. It is argued in most of the development literature , Increasing GDP necessarily requires the flow of foreign direct investment .Foreign direct investment does not just happen. It generally goes to countries where there exists reliable financial infrastructure.There is ample evidence that Dominican Republic, Jamaica, Trinidad all enjoyon an annual basis,large inflow of foreign capital. This is best reflected in the level of national debt of the countries (Fig 2).
COUNTY
DEBT (bil.)
CREDIT RISK
Haiti
1.2
B- / CCC (excl. Remittances)
Dom. Rep
7.1
B
Trinidad
2.7
BBB
Jamaica
6.2
B
Fig 2
 
GDP GROWTH AND ECONOMIC RESSOURCES
In addition to financial infrastructure and foreign direct investment, GDP growth is also a function of how available economic resources are allocated in the production of output. The following chart (Fig 3) portrays how Haiti measures up when compared to other countries in the Caribbean region.
 
COUNTY
LABOUR (bil.)
GDP (bil.)
GDP Labour
RES LABOUR
AV. Net Profit 40%
Literacy
Haiti
1.6
3.8
2375
1437
950
43%
Dom. Rep
2.3
18
7826
2895
3130
85%
Trinidad
620
13
20967
7757
8386
99%
Jamaica
1.2
9.5
6300
2331
3780
88%
 
Fig 3
 
 
Let’s analyze the charts. The bureau of statistics from the IMF, the World Bank and the ECONOMIST agree that in Haiti, the population is estimated to be about 8.5 million people with a labor force of about 1.6 million and GDP for the fiscal year 2004-2005 of about 3.8 billion, hence on average $350.00 per capita.
 
 
Given a labor force estimated at 1.6 million workers, (3.8billion/1.6million), estimated GDP per worker is on average about $2,375.00. If we assume a standard minimal rate of net profit of 40% per worker, the aggregate profit realized in the Haitian economy is at a minimum of about 1.5 billion dollars. Given the aggregate GDP of $3.8 billion in 2005 and an aggregate profit of 1.5 billion the cost of producing the total GDP in Haiti is about 2.5 billion dollars
 
 
Economic resources per worker
 
 
2.3 Billion/ 1.6 Million = 1437.50
 
     
 
GDP per worker
GDP per worker Economic resources per worker
Assumes a 39.5 % net profit
$2,375.00
$1437.00
938/2375 = 39.5%
 
 
Fig 4
 
     
 
With GDP per worker of about $2,375.00 and resources allocated per worker of about $ 1437.00 it is evident that average capital invested per worker in Haiti represents another crack in the ability of the country to grow. This crack is best captured as we compare the resource per worker in Haiti with the resources per worker in other countries of the Caribbean region. (Fig-5)
 
 
 
 
Fig 5
 
  The lag in GDP growth that Haiti experiences when compared to other countries in the Caribbean region is not a one-year phenomenon. Let’s compare the GDP per worker (Fig 6).  
     
 
 
 
Fig 6
 
 

 
 
and GDP over the most recent three-year period.
 
 
 
 
Fig 7
 
 
One must realize at this point that the lack of GDP growth in Haiti is a phenomenon that is very recent. To realize it let’s compare the dominant sectors of the Haitian economy to those of other Caribbean countries (Fig-8).
 
 
JAMAICA
TRINIDAD
DOMINICAN REPUBLIC
ST. KITTS & NEVIS
HAITI
Tourism
Tourism
Tourism
Tourism
-
Bauxite/alumina
-
-
-
-
Agro processing
Agro industry
-
-
Coffee Bean Coco Bean
Light Manufacturing
Light Manufacturing
-
-
-
Rum
-
-
-
-
Cement
Cement
Cement
-
-
Metal
-
-
-
-
Paper
-
-
-
-
Chemical prod.
Chemical prod.
-
-
-
Telecommunication
-
-
-
-
-
Petroleum
-
-
-
-
Food Proc.
-
-
-
-
Beverage
Beverage
Beverage
-
-
Cotton/Textiles
Textiles
Cotton
-
-
-
Sugar Proc.
Sugar Proc
-
-
-
Gold/ferronickel
-
-
-
-
Tobacco
-
-
-
-
Cigar
Salt
-
-
-
-
Copra
X
-
-
-
Clothing
X
-
-
-
Footwear
X
-
-
-
-
Light Assembly
         
 
     
  SEISMIC SHIFTS  
  The first seismic shift the country experienced brought about an increase in population in Port au Prince resulting from migration from the countryside.  
  Among the many explanations for this migration one finds:  
  1. Persistent decrease of world agricultural prices
2. The impoverishment of the peasant farmers
3. Fiscal policies unfavorable to the peasant farmers
4. Decrease investment in the agricultural sector
5. Unfavorable pricing on the local market for export crops
6. Normal urbanization process
 
     
  HAITI vs. HAITI  
 
Today about 3.5 million people live in the Greater Port au Prince area. By 2015 it is estimated that the population in Port au Price alone will reach 4 to 4.5 million. Pressure will be felt all across the city. The pressure will be felt on the socio-economic relations, on the, roads, the telecommunication system, the electricity grids, water supply, energy demand, national security, health care, sanitation, the environment, land, real estate etc.
 
 
Using Port au Prince as an example, if nothing is done today; by 2015 Haiti current situation will appear mild compared to what will occur. Do not forget in the 1960’s the population of the whole country was about 5 million people. This increase population the country is experiencing will represent as much a threat as it will represent economic opportunities. There will be
 
  • Geometric expansion of consumer market due to the density of the population
• Increase velocity of the money supply
• Expansion of labor force
• Expansion of the tax base
• New sources of investment
 
  People will want schools for their children, cars to drive, a steady job and retirement plan, healthcare facilities and healthcare professionals, etc.  
  This first seismic shift will be viewed as miniscule compared to the effect the projected increase in population in Port au Prince will have on the country. When it can be envisioned that Port au Prince is a microcosm of what may happen elsewhere, it become imperative that remedial action be taken now.  
     
     
     
     
 
 
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