Haiti—Let's Talk Competition: A Brief Review of Market Conditions
Summary — This World Bank report analyzes market concentration and competition conditions in Haiti, finding highly concentrated markets representing 70% of imports. The study reveals weak competitive conditions that create business risks and likely result in higher consumer prices.
Key Findings
- Haitian markets are highly concentrated with 70% of imports in concentrated markets.
- Highly concentrated markets (HHI >2,500) represent 40% of imports including petroleum, food, and consumer goods.
- Weak competition policies create high operational business risks for investors.
- Powerful firms appear to benefit from preferential treatment such as reduced customs duties.
- Haiti ranks poorly in international competitiveness compared to countries with similar GDP per capita.
Full Description
This World Bank background paper examines market concentration and competitive conditions in Haiti as part of a Systematic Country Diagnostic. The analysis reveals that Haitian markets face significant challenges due to weak competitive conditions, with highly concentrated markets representing approximately 70% of total imports.
The study finds that Haiti's business environment is characterized by high operational risks related to weak competition policies, including price controls and discriminatory treatment against certain firms. According to international competitiveness rankings, Haiti performs poorly compared to countries with similar GDP per capita, with investors perceiving high risks in doing business.
Using import data and Herfindahl-Hirschman Index (HHI) analysis, the report identifies that highly concentrated markets (HHI exceeding 2,500) account for around 40% of imports, including petroleum, food, and consumer goods. Moderately concentrated markets (HHI between 1,500-2,500) represent another 30% of imports, covering food, consumer goods, and cement markets.
The analysis also reveals concentration of ownership among powerful firms that appear to benefit from preferential treatment such as reduced customs duties. However, the report acknowledges limitations in providing a comprehensive competition assessment due to lack of detailed data on consumer welfare losses, wealth distribution, and the full extent of preferential treatment received by economic groups.