The Root of Haiti’s Misery: Date back to France 19th-century Extortion.

Luckerlme Milien
WRIT340EconFall2022
11 min readDec 6, 2022
Source: Google Images

Policy Brief- Reparations for the Haitian Economy.

Author: Luckerlme Milien

EXECUTIVE SUMMARY. In 1791, the largest slave uprising in history occurred in Haiti. 21 years after the country’s independence from France, a French warship accompanied by two others sailed into the capital, Port-au- Prince and gave Haiti an ultimatum. The ultimatum was a simple one — -reparations for its enslavers in the form of 115 million Francs or blood. As a result of French Hypocrisy this tumultuous cycled continued and Haiti was plunged into a deep cycle of indebtedness resulting in Economic decay. This policy brief aims to discuss such debt and demand monetary forms of reparations for the Haitian economy, and most importantly shed light on the wrongdoings of one country to another. Furthermore, the recommendation section below introduces political insights in understanding such issue on a larger scale.

France is the sole reason that Haiti has plunged into a long history of economic disaster! The island nation of Haiti often makes headlines amid crisis, ranging from natural disasters, political instability to immigration and poor living conditions, but not once has society posed the question of why? Why has a country, which was once the riches in the western hemisphere and global trademark for product exchange, has now turned into a place of madness, political unrest, with unbearable living conditions? The ‘richness’ of the Haitian economy as history serves was all rooted in slaves, and wealth was based on owning and retaining human capital controlled by European descent. However, the Haitian revolution imposed by Toussaint Louverture not only symbolized the epitome of humanity but also pinned a threat to

European economic estate and colonization — thus as a result of Louverture’s 12-year revolt with 4,000 self-liberated slaves against the French, British and Spanish, a sum of a prudent debt worth over $30 billion American dollars was imposed on the Haitian colony. This text will unapologetically portray that freedom during 1825 was a racially driven taxable business that punctured Haiti’s economic stability, government, and political estate that is still being endured in the 21st century. They were forced to pay for such freedom in blood. And then forced to pay it again–In cash. This policy aims to eliminate such debt and propose that France pay restitution for continuing to hold this obligation. The policy also aims to demonstrate that this capitalistic system being benefited by France is indeed another form of modern-day slavery continuing to boost European egos.

The History of French Hypocrisy

In the summer of 1789 when Haiti was still the dormant colony of Saint Domingue, it was France that grabbed the world’s attention. Spices, tobacco, coffee and various other goods made the Haitian economy a gold mine.

The rioting against the French King by Persian mobs, chanting slogans for liberty, equality and brotherhood sparked a revolution for centuries to come. This Revolution created various meanings on a global scale, however on the streets of Paris it marked the end of the apparition of wealth, and France’s brand-new congress meant the idea of its most radical thinkers could be realized. Throughout this event that sparked the French revolution, the ideas of having rights and understanding that those rights are inherent came to be known as the Declaration of Rights of man. These revolutionized ideas were indeed dangerous because the society was constructed based on inequality and was not indeed a system deemed to work for everyone, but it rather served as a pillar of success for minorities. What was known as a dangerous idea in the heart of France was even more dangerous to its slave-holding colonies on the coast of Florida, today known as Haiti. As news traveled by sea on the events unfolding in Paris, few intended colonial slaves should take democratic ideas to heart. The mixed-raced populations of San Domingue however, believed the opposite. Adapting these democratic approaches meant that the economic gains of sugar, coffee, indigo, and cotton generated by an enslave labor force will collapse. And indeed, San Domingue was the sugar capital of the world.

In 1791 the mixed-race population demanded a right of Citizenship– the petition called for civil protection, which enraged the island’s white population. With such a petition a landmark decree was extended that permitted equal rights to a small population of mixed-race people born of two free parents. As a result, colonial rights felt profoundly betrayed. It was then the conflict of San Domingue had become an exterminating war that resulted in a gain of Independence on January 1, 1804.

We must first establish that France granting those who were deemed “free” equal rights was not in the interest of democracy, but rather in the interest of avoiding political outcry. How can you grant one liberty and then impose on that liberty with violence? The answer is easy–French hypocrisy. On a global scale, we must also question whether “this history shows that the principles of the French Revolution were indeed universal in scope, implying freedom for people of color as well as whites. Or does it demonstrate that racial prejudice undercut the soaring rhetoric of the Declaration of the Rights of Man and citizen?” (Jeremy D. Popkin)

While the French Revolution of 1789 signaled the end of colonial rule in Haiti. The military threat later imposed on the colony in 1825 by France, for loss of property, including enslaved people that French owners lost during the rebellion, utterly exposed the driving thirst for greed and power. Aside from this, France also threatened to invade Haiti and reimposed slavery if they did not agree to pay a staggering amount in reparations of five annual payments of 30 million francs equaling to 150 million Francs (shown in figure 2) — which at the time was 30 times the Haitian annual revenue). Figure 1 below clearly demonstrates the trend of Haiti’s per capita GDP in relation to other countries from the years of 1950–2018. As a result, the Haitian government took out unsustainable loans from France banks, which lead to an economic crisis to this day. It must also be exclaimed that the need for exploitation by the French government was not a new approach, but rather a continuing one. An article published by the New York Times, titled, The Ransom, estimated that Haiti has paid over $560 million to France over the next seven decades, but the true economic cost to Haiti is estimated to be an outstanding $115 billion.

Figure 1.

Source: Bloomberg Data set Note: Per Capita GDP in 2011 international $

Figure 2.

Source: New York Times. Note: Original debt contract (French language)

A Bank with no memory

The large amount difference of $114 billion and 440 million dollars is a result of the extraneous interest rate imposed by the French government. In fact, during the year 1880, a French bank established Haiti’s first national bank essentially putting France in control of Haiti’s treasure. That bank, Crédit Industriel et Commercial, that helped finance the Eiffel tower, one of the world’s best-known landmarks– that served as a monument of French liberty, drained millions of dollars from Haiti, impairing its ability to start schools, hospitals, and other building blocks of an independent country. According to the New York Times, Crédit Industriel, known in France as C.I.C “is now a $355 billion subsidiary and one of Europe’s largest financial conglomerates.” Leaving the Haitian economy in a crippling financial extraction, the New York Times also discovered that “original records uncovered evidence that Crédit Industriel siphoned tens of millions of dollars off of Haiti and into the pockets of French investors.” Furthermore, the French government continued this cycle with no regard for the country’s stability. The article also concluded that “Crédit Industriel created charged fees on nearly every transaction the Haitian government made. French shareholders earned so much money that in some years, their profits exceeded the Haitian government’s entire public works budget for a country of 1.5 million people.” (The Ransom). This heinous act provoked by such a government did not deem worthy of the eye of the public, because just like many criminals, not leaving behind evidence was indeed textbook 101. Which according to scholars, most Crédit Industriel archives have been destroyed, and Haiti does not appear on the timeline used to publicize the company’s history as one of France’s oldest lenders.” (UNESCO).

While most of the Haitian population themselves were poor, Haiti was a landmark to becoming rich. British Diplomat, Spenser St. John wrote in 1884: “No country possesses greater capabilities, or a better geographical position, or more variety of soil, of climate, or production.” Half a century later, the C.I.C approached Haiti with a more lukewarm tactic: “the outstretched hand of a business partner.” A new 36 million Francs, now $174 million loan was issued to Haiti to pay back the original debt imposed and to build bridges, marketplaces, railroads, and lighthouses. French bankers took forty percent of that loan in commission and fees, and twenty percent of the French loan “paid off the last of the debt linked to Frances original ransom.” As a result, none of the goals has been achieved. This section of this policy brief should only continue to reinforce its initial agenda that French politicians cared more about feeding their pockets rather than developing a nation.

“Demanding Reparations and Ending up in Exile”

In 2004 France’s former ambassador to Haiti admitted that France and the United States effectively orchestrated the 2004 coup that overthrew the Haitian president, Jean- Behrend Aristide. He also informed that one benefit of the coup was that it ended Aristide’s campaign in demanding France to pay reparations to Haiti. As a result, Aristide was kidnapped and sent to the Central African Republic. The significance of these coups once again demonstrates that France was not only scared but afraid that Aristide was starting to lay claims to reparation from France for the period of colonialism and slavery.

The Aftermath

If you’ve reached this point of the briefing, the corruption of the French government has already been established and thus a clear analysis is deemed important on how the effects of these loans truly impacted the Haitian government, economy, and citizens.

First, it forced the Haitian government to raise taxes, which caused discontent among the population. Second, it led to a decrease in government spending on social programs and infrastructure development. Third, it resulted in the country’s default on its debt payments on several occasions, which damaged Haiti’s creditworthiness and made it difficult to obtain loans in the future. The debt payments also led to a decrease in government spending on social programs and infrastructure development, which harmed the country’s economy and led to a decline in living standards.

While this policy brief comes to demonstrate the role that France played in suffocating the Haitian economy, we must also acknowledge that Haiti’s political instability and corruption are root problems that must be addressed to solve the country’s debt crisis. Haiti’s political instability is largely due to the country’s history of corrupt and autocratic governments. Since its independence in 1804, Haiti has been ruled by a succession of corrupt and autocratic leaders. These leaders have looted the country’s resources, squandered its foreign aid, and suppressed the Haitian people’s democratic rights. Because of this political instability, Haiti has been unable to make the reforms necessary to address its underlying problems, such as poverty and inequality. Haiti’s corruption is also a major concern that needs to be addressed. Corruption is rampant in all sectors of Haitian society, from the government to the private sector which has contributed to the country’s political instability and has prevented it from making the reforms necessary to address its underlying problems. These corruptions however are less prevalent to the issue at hand, and before those could be addressed, a strong movement is required in exposing and addressing French hypocrisy, political scams, and illegal vendetta toward the Haitian population.

Rationale for action

This section calls for the immediate protest of the French government and world recognition of their economic greed, corruption and disgust that leads to not only the death of many Haitian descents, but also the suffering of current Haitian citizens. Political leaders on both sides of the country must understand history as it unfolds and take accountability for the wrongdoings of their predecessors. Within this policy, France must agree in complete transparency in its wrongdoings since the beginning of time. It is to also be noted that freedom is an inherently born right that should be granted to all citizens no matter their race, color, ethnicity and or economic status. This policy aims to cancel all debt imposed on the former colony known as St. Domingue, which is now known as Haiti by France with no limitations using various non-negotiable terms. The terms are as follows:

Reparations & Recommendations

Section I.

This section calls for monetary reparation by the French government to Haiti of $21.7 billion as a result of economic, and political instability to the Haitian citizens and its government. This reparation shall address, to its limits all interest rates paid during the years of oppression since the initial imposed debt. France shall provide complete transparency regarding financial documents during such times in account for all amounts of money paid by the other country at hand (Haiti).

Section II.

This section, with no limit or restriction imposed by the French government, calls for aid in repairing the economic stability of foreign countries hereby known as Haiti. These repairs are not limited to constructing new schools, bridges, roadways, and aid in establishing a strong militia force that will enforce the laws of the Haitian government.

Section III.

Such a section realizes that a strong government can only be enforced by the country and political leaders within it. As a result, this section acknowledges the corrupt political estate of the Haitian government. Leaders of such a government must abide by to use of all money received from such reparations as means for political reform and economic reform. Plans for such reparation must be a matter shared with the public and outlined as such. The funds shall be used to construct new but not limited to schools, hospitals, trademarks, supermarkets, banks, etc.

Conclusion

Haiti became the first and only country where the descendant of enslaves people paid the families of their former masters for generations. The country sent billions of dollars to France over several decades, funding the Eiffel tower, and funding France’s robust economy. This fight for freedom and liberty has resulted in a huge ransom in both blood and money that we are still seeing the impact of. While headlines often depict the Haitian country as the “poorest country in the western hemisphere”, the true reason behind the impoverishment of Haiti was due to greed and lack of value for human life. The richness of Haiti and its culture were rather stolen by France and continue to be stolen by powers around the world. This policy encourages scholars, politicians, and government officials to acknowledge these issues as discussed and to research them as they see fit in understanding the truth behind the frail Haitian economy, government, and political estate. The policy also encourages all individuals to research beyond the scope of this research, as the United States also played a major role in suffocating the Haitian economy. Just as Toussaint Louverture once said, “the prospect of a black republic is equally disturbing to the Spanish, the English, and the Americans.” (Toussaint Louverture). And thus, everyone must understand what he truly meant.

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