Haiti Public Expenditure Review Note Number 2: Public Sector Investment Program
Summary — This policy note analyzes Haiti's three-year rolling Public Sector Investment Program (PSIP) aimed at achieving sustainable growth and poverty reduction through infrastructure rehabilitation, improved health and education access, and environmental protection.
Key Findings
- Haiti's PSIP totals US$1,057.5 million for 1996-1999, with infrastructure representing 44.9% of investments.
- Current planning and budgeting processes have serious problems requiring significant procedural and institutional reforms.
- About 20 major donor agencies are active with overlapping sector involvements and diverse objectives.
- Delays in disbursement authorization and weak project implementation capacity are major obstacles.
- Line ministries have weak management and financial management capabilities.
Full Description
This document examines Haiti's Public Sector Investment Program (PSIP), developed for the first time as a three-year rolling program to support the country's economic development strategy. The PSIP aims to achieve sustainable growth and poverty reduction through three main objectives: reviving growth by rehabilitating neglected infrastructure, improving population access to health and education, and reversing environmental degradation trends.
The analysis reveals significant institutional and procedural challenges affecting PSIP planning, budgeting, and implementation. The institutional framework involves multiple players including the Ministry of Plan and External Cooperation (MPCE), Ministry of Finance (MEF), line ministries, Central Bank (BRH), and various donor agencies. Current problems include delays in disbursement authorization, weak project implementation capacity, and coordination difficulties among the approximately 20 major donor agencies active in Haiti.
The document provides detailed sectoral breakdowns of the PSIP for 1996-1999, totaling US$1,057.5 million, with infrastructure representing the largest component at 44.9% of total investments. Social services account for 29.3% and economic services 23.3% of the program. The analysis identifies critical needs for institutional reforms, improved planning mechanisms, simplified disbursement procedures, and strengthened implementation monitoring.
Key recommendations focus on establishing better budget and planning processes, improving project design and selection methods, enhancing donor coordination, and clarifying roles between executive and legislative bodies in investment planning. The document emphasizes the importance of considering recurrent costs and ensuring sustainability of public investments within Haiti's macroeconomic constraints.