Debt to France
When Haiti gained independence from France after its revolution, in exchange for diplomatic recognition from France, the new republic was forced to pay enormous reparations: some 150m francs, in gold. It was an immense sum, and even reduced by more than half in 1830, far more than Haiti could afford.
"The long and the short of it is that Haiti was paying reparations to France from 1825 until 1947," says Alex Von Tunzelmann, a historian and writer. "To come up with the money, it took out huge loans from American, German and French banks, at exorbitant rates of interest. By 1900, Haiti was spending about 80% of its national budget on loan repayments. It ¬completely wrecked their economy. By the time the original reparations and interest were paid off, the place was basically destitute and trapped in a ¬spiral of debt." It is ironic that in the last few days Frances President Sarkozy started talking about wanting to rid Haiti of poverty once and for all when he said "From this catastrophe, which follows so many others, we should make sure that it is a chance to get Haiti once and for all out of the curse it seems to have been stuck with for such a long time,". He conveniently failed to mention Frances role in perpetrating Haitis tragedy.
US interference
Over the last two centuries, the US has also repeatedly interfered in Haiti and even invaded and occupied it in 1915 terrified that Haiti was about to default on its massive debts. A 1922 loan of millions of dollars owed to the US resulted in a financial system that siphoned the country's wealth to offshore creditors instead of reinvesting it in the country's economy. France and the United States have repeatedly intervened in Haitian politics since the country's founding, sometimes at the request of one party or another. The last time the US officially invaded the country was as recently as 1994 after which it then formally withdrew to be replaced by a UN force.
Local leaders as looters
Added to all this is the that fact that a succession of Haitian leaders more or less gave up on trying to resolve Haiti's problems, and started looting it instead. During the 28 years in power of Papa Doc Duvalier and his playboy son and heir, Jean-Claude Duvalier, or Baby Doc, they made themselves very rich indeed reportedly embezzling up to 80% of Haiti's international aid, while the debts they signed up to ¬account for 45% of what the country owes today. And when Baby Doc ¬finally fled, estimates of what he took with him run as high as $900m.
Corrupt Western backed leaders and direct interference by western powers have contributed to the tragic state that became Haiti despite its human and natural resources. As the masses of the world empathise with the people of Haiti, many struggle to imagine how its next chapter will be different to its previous ones.