The Price of Freedom: Haiti’s Debt to France and its Modern Consequences
By Safiya Umrani
Cap-Haïtien, Haiti
Since its founding, Haiti has struggled with stability and economic development. That instability has only heightened since assassination of President Jovenel Moise last summer, followed by a string of natural disaster. Hurricanes and earthquakes are nothing new to the Caribbean, but repeatedly have devastating effects on a country like Haiti. The relief efforts last August were grueling. UNICEF estimated that approximately 800,000 people were left without access to water, shelter, and other basic needs. Under dire circumstances, many Haitians were forced to flee to the United States, hoping to find safety and opportunities for a better life. It’s easy to sum up Haiti’s issues to misfortune, poor management, and widespread poverty. It is currently the poorest nation in the Western Hemisphere. However, it’s important to understand that many of the roadblocks they’ve faced throughout history were the result of extreme exploitation by former colonial powers, namely France. The millions of francs that France forced Haiti to pay back after becoming a free nation was the beginning of nearly a century of institutional subjugation.
Haiti gained its independence from France in 1804 after a slave revolt led by Toussaint L’Ouverture. The Haitian Revolution was the first and only successful slave revolt in modern history. It struck fear into the hearts of slave holding nations all over the world, especially the United States. Haiti became a global pariah, having no diplomatic or trade relations. The newly freed slaves were in a dire situation. In 1825, France ordered Haiti to pay them a total of 150 million francs in indemnities for the amount of “property”, or slaves, lost in exchange for recognition of Haiti’s sovereignty. Refusal meant starting a war that Haiti was in no shape to fight. While France asked for the money in 5 annual installments, each one was worth 6 times Haiti's annual revenue. The loans France granted to help cover the installments became known as “double debt,” and set Haiti back by billions. Haiti is the only former slave nation in the world forced to pay back their old masters after gaining independence. In the time it took for it to pay back the debt, Haiti never had control over its own finances. The first national bank was owned by France, and then CityBank of the United States after the 1915 military occupation. The independence that the Haitian people fought so hard for made them anything but independent.
Decades worth of debt stunted Haiti’s economy and had ripple effects well into the 20th century. It denied Haiti the chance to establish stability or fund its own projects, like building up infrastructure, education, social programs, healthcare system, etc. France experienced a period of wealth and prosperity in the late 19th to early 20th century while Haiti continued to struggle to defend its own sovereignty. The United States has also played a role in Haiti’s stagnation after emptying its gold reserves and then forcing Haitians to work in construction for zero pay. Haiti’s national bank had to borrow from Wall Street, which only added to the mountain of debt. After paying the modern day equivalent of over 112 million Francs, or $560 million, the indemnities were finally waived in 1947. The Haitian government had become a hotspot for corrupt leadership and puppet rulers such as the repressive Duvalier regime, which lasted from 1957 to 1986. It was during this time that immigration to the United States first peaked. For over half a century, it has been the only option for thousands of Haitians.
The international community has been pressuring France to repay Haiti for some time now, considering the outrageous wealth disparity between the two countries. After all, no other European country ever followed in France’s footsteps. The petition for repayment gained the support of various scholars, academics, and politicians throughout the EU. Almost hypocritically, a handful of those in support of repayment have been American. The US is the top destination for Haitian migrants and many others, followed by the Dominican Republic. After last years’ incidents in Haiti caused an uptick in migration to the US-Mexico border, images of Texas border patrol agents on horseback chasing off Haitian migrants with batons gained widespread criticism. Some organizations like the NAACP declared that the images were reminiscent of the slave trade and the historical mistreatment of black people throughout the Americas. There is no doubt that racism is deeply rooted in what makes Haiti a special case. Both the United States and France have a moral obligation not only to foster growth and development in Haiti but to treat Haitian migrants with the basic humanity that everyone deserves.
