Investment Incentives Comparative Analysis: Haiti, Dominican Republic, and Puerto Rico

This comparative analysis examines investment incentive policies across Haiti, Dominican Republic, and Puerto Rico, emphasizing Haiti's significant disadvantages in attracting long-term manufacturing investments despite ongoing security crises. The study reveals that Haiti lags behind not only in infrastructure and political stability but also in implementing effective investment incentive strategies.

The Dominican Republic offers comprehensive incentives through Law No. 12-21, establishing Special Border Development Zones with 100% income tax exemptions, full import duty waivers, and 30-year benefit periods. Puerto Rico provides robust manufacturing incentives under Act 60, including 4% fixed corporate tax rates, 75% property tax exemptions, and job creation incentives up to $5,000 per position.

Haiti's investment framework, governed by the Investment Code of 2002, offers various sectoral incentives including 10-year customs and fiscal exemptions for different industries, free zone benefits, and agricultural investment support. However, with over one million displaced persons, 5.5 million needing humanitarian aid, and six consecutive years of negative economic growth, the country faces significant challenges.

The document calls for urgent action from the Government of Haiti and international partners including the World Bank, IDB, and IFC to develop a decisive industrial policy and organize roundtable discussions to support economic recovery efforts.