GDP Per Capita (purchasing power parity) and analysis$1,800
Many factors such as low education, natural disasters and a corrupt government have hindered Haiti's economic growth making it the poorest country in the Western Hemisphere. Low levels of education combined with poverty have cease growth within the Haitian communities since many citizens don't have the skills to have a job that can sustain their families. Political corruption has been an aspect of Haiti for many years. When there is no stable government, this slows the process of developing a stable economy or trade system. The government relies on international assistance, and over 50% of its annual budget comes from outside sources. In January 2010, a 7.0 magnitude earthquake hit Haiti and created $7.8 billion in damage causing their existing challenges to deepen and the country's GDP to shrink. In 2011, two hurricanes impacted agricultural output and the low public capital spending did little to help Haitian agriculture to recover. Since two-fifths of all Haitians depend on the agricultural sector, this natural disaster impacted the economy greatly. HDI RANKING AND ANALYSIS#168
With the low rates of education, life expectancy and GDP per capita, it is not very surprising that Haiti has a low Human Development Index ranking. With the political instability Haiti is still going through and impact of natural disasters on their economy and population, it may be a while until these rates increase. |
level of economic developmentHaiti is a LDC, a lesser developed country.
Haiti has such low development because of the political corruption, limited education, and poverty in the country which hinders economic growth. A majority of the Haitian population is poor, with 80% of the population below the poverty line. Haiti is heavily dependent on their agriculture sector, which makes it difficult for the country to improve with their vulnerability to natural disasters and insufficient funds to easily recover from these threats. LEVEL OF ECONOMIC ACTIVITIESHaiti has economic activities in the primary, secondary and tertiary sector.
Haitian labor force makes up of 38.1% in agriculture, 11.5% in industry and 50.4% in services. The primary sector includes products such as coffee, mangoes, cocoa, sugarcane, rice, corn, sorghum; wood, and vetiver. Secondary sector includes products such as textiles, sugar refining, flour milling, cement, light assembly using imported parts. The tertiary sector, which makes up the majority of the economic activities, includes the informal economy in which many Haitians sell their own products. The service sector flourishes because of the free market economy that has a loose hold on. However, 40.6% of the population is unemployed. economic system and advantages/disadvantages of economic systemThe Haitian economy is a free market system. A free market system is a system in which buyers and sellers make deals without any interference. Supply and demand is what determines success of what is sold.
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