Gas Crisis

The gas crisis touches every aspect of life in Haiti. It feels like forced house arrest to individuals unable to find transport. Livelihood activities have screeched to a halt as well as essential services. The effects are everywhere, yet economists struggle to assess the impact due to lack of data.

According to Economist, Enomy Germain's study, "The imperfection of our national information system (statistics) does not permit us to assess the impact of fuel scarcity on the economy." 

He claims that, as a result, no economist can risk a quantitative assessment of the impact of shocks produced by fuel scarcity. It affects everything from local market revenues and macroeconomic indicators to the population's purchasing power.

The government's poor handling of petroleum products damages the economy at all levels: microeconomic (individuals and households), mesoeconomic (companies, public finances) and macroeconomic (jobs and growth).

Residents of Delmas and beyond line up at this gas station
hoping to get lucky.

Individual economic actors who are unable to perform their everyday transactions correctly lose money. Inability to trade goods and services has a significant influence not only on microeconomics but the entire economy.

Companies operate at a slower pace, which is likely to result in poor mesoeconomic performance day after day.

At the macro level, political unrest and insecurity in 2019 (a negative growth rate of 1.7 percent), the health crisis associated with Covid-19 in 2020 (a negative growth rate of 4%), and different shocks recorded this year will all add up to a negative outcome at the end of this fiscal year.

"It is not the strikes, but the recurrent scarcity of gasoline on the local market," the economist argues, painting a grim picture. "Said scarcity is what provokes strikes and social unrest. The scarcity of fuel experienced as a house arrest.” 

"The lack of access to items and the inability to conduct transactions impact the economy's overall performance, particularly revenues for the state."

Enomy Germain also expresses concern about the increasing budget deficit, a lack of public investment in the social sector, and a dramatic decline in purchasing power.

Hospitals are closing their doors, and ambulances cannot respond to emergencies due to a lack of fuel. Telecommunications infrastructure is disrupted and we are witnessing the start of a health catastrophe that may spiral out of control if immediate action is not taken, warns Mr. Germain.

He denounces the authorities' destructive behaviors, which he claims have destroyed any chance of progress.

by Cliff Coulanges