Low Income Developing Country (LIDC)

MACROECONOMIC DEVELOPMENTS IN LIDCS: 2014 REPORT by the International Monetary Fund examining 11 States, including Haiti.

 

Box 1. Falling Behind

While most LIDCs have recorded sustained growth since 2000, there is a sizeable group of countries (almost one-fifth of the total) that did not record any increase in output per capita over the period.

 

The weak performance occurred across several macro and structural indicators. Over 2000–13, these 11 countries have been less successful in reducing inflation, attracting FDI, developing the financial markets, and improving social indicators, such as the level of educational attainment.

 

A common feature to all countries in the group is that they are fragile states—countries either with very weak institutions or significantly affected by conflict over the period. The role of fragility in hampering growth is easy to understand in countries affected by sustained internal conflict and political instability over an extended period (such as Côte d’Ivoire, Guinea-Bissau, Comoros, and Yemen). Natural disasters, such as the massive 2010 earthquake in Haiti, result in loss of life, can account for sizeable shocks to output, and have persistent effects. Over the long-term, however, weak institutions and recurrent political instability play a key role in explaining Haiti’s weak performance as the poorest country in the Western Hemisphere. But a review of the country listing shows that bad policy choices, unlinked to fragility, can also produce income contraction over time, as in Zimbabwe (which experienced hyperinflation) and Eritrea (a tightly regulated/controlled economy).

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1 In terms of total GDP growth, all 11 countries had average growth rates in the bottom quartile of the LIDC group (less than 3.5 percent).

Haiti Wages

Someone got paid about 4 dollars a day in Haiti to make your Gildan shirt.
Haiti is one of many countries to establish a minimum wage that varies across employment sectors, with different daily rates established for domestic workers, electricians, bank employees, and other professions.
“As opposed to the bulk of Gildan’s operations, which are vertically integrated, sewing operations in Haiti are subcontracted by Gildan to third parties. Therefore, to address the concerns which were raised regarding the issue of minimum wages in Haiti, Gildan made a commitment in November 2013 to require its third party contractors in the country to comply with the payment of 300 gourdes per day in an eight hour work day to their piece rate workers, based on the expectation that they continue to operate at a reasonable efficiency rate.”

ICC Young Arbitrators Forum

The International Chamber of Commerce (ICC) hosts the Young Arbitrators Forum (YAF) where members can “learn from experienced practitioners about career development and issues of interest in arbitration.”

The forum is free to join through a simple online form.

The ICC YAF is headed in Paris but hosts events world wide, including San Francisco, California.

The events are frequently hosted by law firms and “offer a fresh way for young practitioners of the arbitration world to interact.”

 

International Chamber of Commerce (ICC)

The International Chamber of Commerce (ICC) published a new set of rules called the Incoterms® that  are an internationally recognized standard, used in international and domestic contracts for the sale of goods.

Since their first publication in 1936, the rules have provided internationally accepted definitions and rules of interpretation for most common commercial terms.

“The rules have been developed and maintained by experts and practitioners brought together by ICC and have become the standard in international business rules setting. Launched in mid-September 2010, Incoterms® 2010 came into effect on 1 January 2011. They help traders avoid costly misunderstandings by clarifying the tasks, costs and risks involved in the delivery of goods from sellers to buyers. Incoterms® rules are recognized by UNCITRAL as the global standard for the interpretation of the most common terms in foreign trade.”

Online training on Incoterms® is available.

Contracts for the International Sale of Goods (CISG)

The United Nations Commission on International Trade Law (UNCITRAL) provides information on the United Nations Convention on Contracts for the International Sale of Goods (CISG). CISG was opened for signature at the concluding meeting of the Conference which took place in Vienna, Austria on April 11, 1980. Since that time, 84 states are parties to the CISG.

The CISG applies to contracts of sale of goods between parties whose places of business are in different States: (a) when the States are Contracting States; or (b) when the rules of private international law lead to the application of the law of a Contracting State.

The CISG can apply automatically to your transactions with foreign buyers or suppliers of raw materials, commodities and manufactured goods.

This is because the CISG is a self-executing treaty.

 

Haiti has not yet accented to the CISG.