Welcome to the WC, wherein you’re trapped in my mind for eight to ten minutes weekly.
Last week, I promised you a look at how we can better use the 35 million acres of land wasted on corn-ethanol production in the US.
But
Haiti has been in the US news a lot recently, so I wanted to learn more about the country—why it is the way it is and what sort of opportunities may be found in the tiny half-island nation.
- The Haitian Revolution
- Why are things still so awful in Haiti?
- How to invest in Haiti – Art
- How to invest in Haiti – Real Estate & Hospitality
Next week, I’ll dive into some potentially better uses for the 30+ million acres of land (more than 1% of America) currently devoted to ethanol-producing corn.
Let’s go.
Table of Contents
The Haitian Revolution
Before its revolution, Haiti, then known as Saint-Domingue, was France’s wealthiest colony in the Caribbean. This tiny Caribbean jewel produced nearly half the world’s sugar and over 60% of its coffee, raking in unimaginable wealth. But this prosperity came at an enormous human cost. By the late 18th century, roughly half a million enslaved Africans sweated and suffered under brutal conditions to fuel the plantations’ output.
The enslaved population endured lives of relentless brutality, enforced by the notorious Code Noir. Whipping, branding, and amputation were common punishments. Working from dawn till dusk, laboring in punishing conditions with inadequate nourishment, the enslaved faced a high mortality rate. Compared to other colonies, Saint-Domingue was exceptionally harsh, with an average lifespan of only seven to ten years for the enslaved upon arrival.
So, why did they rebel?
The extreme brutality created a powder keg. The French Revolution of 1789, with its clarion call for liberty, equality, and fraternity, resonated powerfully among both free people of color and the enslaved. When the French National Assembly granted equal rights to free people of color in 1791, tensions boiled over. Saint-Domingue’s rigid social hierarchy and the inhumane conditions made rebellion inevitable.
When the uprising began in August 1791, it quickly turned into a gruesome conflict. Enslaved Africans, fueled by their desire for freedom, employed guerrilla tactics, torching plantations, and killing planters to prevent any retaliation. French authorities responded with brutal countermeasures, including mass executions and torture. The conflict dragged on, with both sides committing severe atrocities. Jean-Jacques Dessalines, one of the revolutionary leaders, ordered the 1804 massacre of remaining French settlers to ensure no future colonization would occur.
Several factors contributed to Haiti’s ultimate victory. The numerical superiority of the enslaved people and their adeptness at guerrilla warfare played a significant role. Strong leadership from figures like Toussaint Louverture and Dessalines provided the strategic edge needed. The French Revolutionary government’s temporary abolition of slavery in 1794 earned the revolutionaries support, and Napoleon’s later attempt to reinstate slavery only reignited their fervor for freedom. By 1803, the revolutionaries had decisively defeated French forces, declaring independence on January 1, 1804.
But freedom wasn’t free. In 1825, under pressure from French warships, Haiti agreed to pay France 150 million francs as reparations for the lost “property” (i.e., enslaved people). This immense debt, equivalent to billions today, took decades to pay off, plunging Haiti into severe economic hardship. The financial burden thwarted the nation’s development, triggering cycles of poverty and debt that persist even today.
The aftermath saw internal and external atrocities. Domestically, leaders like Dessalines used repressive tactics to maintain control, including mass executions. In the Dominican Republic, Haitian occupations in the 19th century were marked by violence and exploitation. The deeply painful Parsley Massacre of 1937, ordered by Dominican dictator Rafael Trujillo, saw the slaughter of thousands of Haitians living along the border.
Today, the legacy of Haiti’s tumultuous history continues to loom large. The burden of the indemnity set off enduring cycles of poverty and underdevelopment. Political instability, deeply rooted in the brutal power struggles of post-independence, still haunts the nation. Historical traumas have fostered a cycle of violence and corruption, stifling progress. Yet, through all this, the resilience of the Haitian people remains unbroken, standing as a testament to their enduring spirit and relentless quest for dignity.
As Haiti navigates its complex past, the lessons of its revolutionary history offer both caution and hope. It underscores the profound costs of freedom and the ceaseless quest for equality, illuminating a path toward a future forged through resilience and hope.
Why are things still so awful in Haiti?
In 1825, Haiti, compelled by the threat of French warships, agreed to pay France a staggering indemnity of 150 million francs. This financial burden was meant to compensate French slaveholders for their “losses” following Haiti’s successful revolution. Yes, “losses” means human beings.
Adjusted for inflation and economic shifts over nearly two centuries, the value balloons to an astonishing $21 billion – roughly equivalent to the country’s current GDP.
To understand the impact, let’s consider the mechanics. Haiti had to take out high-interest loans to meet France’s demands, locking the young nation into a cycle of debt that spanned 122 years. This relentless financial strain hampered Haiti’s ability to invest in crucial sectors like education, healthcare, and infrastructure. It stifled economic growth and left the nation vulnerable to political instability.
Throughout the 20th century, Haiti’s focus on repaying the debt diverted resources from urgent national needs. Schools and hospitals were underfunded, roads and utilities remained underdeveloped, and poverty became entrenched. Political instability, fueled by economic hardship, led to recurring coups and government changes, exacerbating the country’s struggles.
Notably, American investors, including today’s CitiBank, acquired the loans in the early 1900s.
The loans were restructured several times, with American investors offering new loans to cover existing debt, often at similarly crippling terms.
The financial entanglement culminated in the U.S. occupation of Haiti from 1915 to 1934. This occupation was justified under the pretext of stabilizing the country but was driven mainly by the desire to secure the interests of American creditors.
The debt, which was paid off in 1947, has had knock-on effects on the country’s economy, education, infrastructure, and more.
You’ve only got to look next door to see the impact. The Dominican Republic and Haiti should be very similar.
They’re not.
Haiti remains one of the poorest countries in the Western Hemisphere, with inadequate infrastructure and weak institutions. The nation’s ability to recover from natural disasters has been severely compromised, as seen in the devastating 2010 earthquake and subsequent hurricanes.
How to invest in Haiti – Art
The international market for Haitian art has seen a significant uptick as pieces from prominent Haitian artists have fetched record prices at Sotheby’s and Christie’s.
Jean-Michel Basquiat is the most well-known Haitian artist. Born in Brooklyn, he was the son of immigrants. His pieces sell for millions, including the Skull, for $110 million in 2017.
While Basquiat is the most famous of the Haitian masters, Edouard Duval Carrie and Duffaut Prefete are also worth a look if you’re on a budget.
Check out William Edouard Scott as well. The Chicago native spent 13 months in the country, producing over 100 works of art.
How to invest in Haiti – Real Estate & Hospitality
Real estate and hospitality investments in Haiti are potentially not a great idea unless you like to live on the edge. Like, way out on the edge.
Recall the country’s endemic lack of solid political institutions and widespread corruption. These exploded in 2018 when protests over fuel prices evolved into demands that President Jovenel Moise resign.
Moise, who was elected with an anemic 21% voter turnout in 2016, was eventually assassinated by a group of foreign mercenaries.
The situation, which has seen tourism statistics plummet while homicide rates go the other way, rumbles on today in the form of gang wars.
Which is, you know, why so many people have fled the country over the last few years.
But!
The international community has mostly gotten its act together, with the US, Canada, nearby countries, Kenya, and the UN cobbling together some money and troops to help sort things out.
And despite the political and criminal crises that have plagued the nation for centuries, it’s a beautiful Caribbean island.
If the chart below (and the homicide stats above) can sort itself out, it’s not a stretch to believe there are medium to long-term opportunities in Haiti.
The country really is very beautiful.
Tourism accounted for over $500 million a year before 2019 and has declined to around $80 million as of 2021. That’s a $420 million gap that someone will fill when things get under control.
That’s all for this week; I hope you enjoyed it.
Cheers,
Wyatt
Disclosures
- This issue was brought to you by our friends at Unchained