I am glad I spent time to carefully listen to this clip of Mr. Martelly. At the very end of it, he unveils his plan to reform our agricultural practices or means of production. His plan is pure socialistic, which we don’t need for Haiti.
I am for the state to subvention or give incentives to the farmers to help them to cultivate the lands -just like we do here in the United States. I wholeheartedly disagree with him, however, when he wants the state to run agro-credit institutions to lend the farmers money to cultivate their lands. We don’t need that. Keep the state out of the credit market. Let the private sector compete for better rates to the farmers. When it is like that, you create a competitive marketplace where the farmers can go around and shop for the institution that could give them the best deal.
I also disagree with him in that he wants the state to buy the farmers’ harvests from them in an attempt to control prices on the national market. So if he does that, how could he expect the farmers to compete for better quality products and better prices for those products then? You cannot have players competing against each other in the sector of government. Basically he wants to do (to us) the same thing we allowed the American farmers to do to us. I say let the competition in the market dictate how prices should be fixed and controlled. In other words, let the market control itself. We don’t need the state to be like a godfather controlling the market.
Also, he talks about creating jobs in the peasantry sector, which I disagree with. Government is not in the business of creating jobs. The job of government is, rather, to enact economic policies that would encourage job creation by the private sector.
As I said many times before, in Haiti, the biggest competitor is the state, causing a problem for the private sector to compete for greater performance and returns on their investments. The market tends to be stalled when the state gets to compete against the private sector. If anything, we need to encourage a competitive market environment, not discouraging it. That’s what capitalism teaches us. We don’t need a socialist economy in the likes of Mr. Martelly’s proposal. It is not good for business, and certainly not good for the economy.