This post is dedicated to the tens of thousands of Haitians who have lost their lives; to those who will undoubtedly loose their struggle in the coming weeks; to my friends and colleagues at Aimer Haiti and to the wonderful creative economic development ideas we were working on that now mean more than ever before.  See previous posts for more information on Aimer Haiti.

Globalization is no longer optional for any nation, company, or person in the world, regardless of their beliefs.  The realities of our globally interconnected world are more evident now than ever before given the failures in our global financial systems that are far more intertwined than many realized.  This coupled with the shrinking populations in many developed nations ensures that disasters such as Haiti and other atrocities happening in under-developed countries are everyone’s challenges and everyone’s potential.  It is now in the self-interest of the developed world that these tragedies are tended to and we band together to allow capitalism and democracy to bring people out of poverty creating new and sustainable consumers and markets for everyone to access. It’s no longer optional; and for me that brings hope.

In order for economies to grow, they require something to create an increase . . . more consumers, cheaper inputs, faster production, more products . . . you get the idea.  Until this century, the developed world has been able to primarily rely on their own increases in population, growing middle class, advances in technology, and fierce consumerism to feed the ever-increasing wheel of economic activity.  Take a look around today . . .

• Populations in many developed countries are decreasing or slowing
• Consumerism has taken a big hit as many realize debt gone wild is bad and things don’t bring happiness
• The environment is feeling the effects of careless growth increasing production costs around the world
• Non-renewable commodities/resources continue on a trajectory of ever growing costs because, well, they are non-renewable
• Finding cheaper inputs is a strategy of the past, including labor, as the world is realizing its better to pay a decent wage and create a consumer

What does all that mean?  It means that the primary resource of capitalism has moved from capital, to labor, and to knowledge over the past 150 years and is now moving toward Connectivity . . . Stronger, deeper, more trusting, compassionate, and creative connections in every direction imaginable will drive the future.  You can’t touch connectivity.  You can’t buy it.  You can’t even learn it from a textbook, but it can be cultivated and societies are increasingly hungry for it.  Those who can connect the seemingly un-connectable dots in new and inventive ways will win.  Businesses that connect to what their customers and employees value the most will win.  Capitalists that figure out how to connect to and serve the Bottom of the Pyramid will win.  Those who can embrace the connection between failure and success will win.  Those who have the courage to connect to their passion and not to the herd will win. Those who figure out that hording no longer works but collaboration does will win.  Those who learn how to tap into the innate energy that exists in every person to do good in the world will win.  Those who can disconnect from fear and connect to the creativity in courage will win.

The US, Europe, and the rest of the developed world must realize that in order to continue our own standard of living and our own comforts in life we must begin to help other countries build middle classes and become the productive citizens they desire to be.  My hope is that perhaps this tragedy in Haiti can bring light and education to the need for global citizenship and the prosperity it can bring to so many (rich and poor).  We have an opportunity to help Haiti rebuild itself and become a model to be used by other struggling nations.

Changing our outlook and expectations from the short-term to the long-term is key.  Today, liquidity does exist; it just exists with a short-term expectation of return and is invisible to most of us.  So we have what is referred to by some economists as a “wall of liquidity” that is searching the world for immediate arbitrage situations and completely ignoring the long-term opportunities that exist today in many industries and places around the world.  That “wall of liquidity” brings a risk of continued global financial instability as it preys on unlikely places such as Russia where the currency will likely normalize in relation to the USD and EUR and monetary policy has allegedly been mismanaged.  It is critical that we recognize the many unintended consequences of the past and vow not to repeat them in the future.

“The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.”  ~  Theodore Roosevelt

Just a couple of months ago Aimer Haiti and I met with Agronome Noel (“Agronomist Noel”), one of Haiti’s leading agronomists.  You cannot imagine the determination and drive that this man and his wife have for their country and the need to rebuild the agricultural industry.  We dreamt of the possibilities sitting around the table of an office building that was completely destroyed in the earthquake.  He showed us the book that he has written on how to rebuild agriculture in Haiti.  We talked about the need for a master land plan for the island.  Over time, the lower flat lands that are prime for agricultural production have been used for housing and has wrecked havoc on the natural drainage ways.  We talked about how important this step is, but how difficult it would be to implement since it would require huge changes.  It now represents one of the hidden opportunities in the horrors of the earthquake.

After several hours of invigorating discussion, which left our minds swimming with ideas and possibilities, Agronome Noel invited us to visit his farm.  Fifteen years ago, he turned his frustration with politics into action and wanted us to see first hand what he had created.  So, that was that, three of us were going to Jacmel for the weekend!  This was huge treat for me, as I knew that agriculture would be a large part of the success equation for Haiti.  For decades, Haiti had been given the well-intended advice to buy their food on the global markets and instead build factories to manufacture clothing.  That strategy failed when world food prices rose dramatically and no one was interested in building factories in a logistically difficult place like Haiti when they have options like Mexico, Brazil, India and China.  It was simply bad advice that millions paid the price for.  A country should be able to feed itself.  It cuts the risk of being subject to the large fluctuations in world food prices, it provides jobs, and for a tropical country like Haiti it can produce significant exports.  But more importantly, it provides a sense of pride and accomplishment for its people.

Agronome Noel and his wife Nani purchased 15 hectares of dried up and barren land in Jacmel 15 years ago that was considered useless, for what amounted to a few hundred dollars.  He told the community he was going to grow wonderful and rich fruits and vegetables.  Many laughed at him and from that point on he was known as the “crazy agronomist”.  He did not mind because he knew that some years down the road he would prove his point, and he did.  Though at this point, I am not sure the fate of the Agronomist and his wife.  They spent most of their time during the week working in Port au Prince in order to fund their farming operation in Jacmel.

Three of us from Aimer Haiti spent a weekend with the Noels on their farm in Jacmel.  We stayed in the beautiful home they have been building for 3 years that was to eventually to become their retirement home and a bed and breakfast.  I suspect it is no longer standing.  The 3 hour drive from Port au Prince took us on a journey through the slums where all the garbage eventually collects after the rains, over broken roadways still not completely repaired from the hurricanes, and up through a gorgeous mountainous region.  Despite some barren areas, there is still enough vegetation in the mountains that you can see and feel its natural beauty.  The roads in the mountains were actually quite good and we past many small farmers bundling their harvests ready for the trip down the mountains that more often than not ended in spoiled produce before it reached a market.

We arrived at the farm in Jacmel after dark.  The only light we had was from the cars we were driving and a small generator powering a couple of light bulbs in the house.  We sat on the porch facing the ocean enamored with just how striking the stars are when you are so close to the equator and there is very little artificial light.  We drank, we ate, we laughed, and we continually talked and dreamt of the possibilities for Haiti. The energy of hope and passion was strong in the air and it felt good to me.  You cannot spend time in Haiti and not fall in love with the land, the people, and its spirit.  It does not matter how much other heartbreak and sadness you witness, in Haiti love always wins.  I am certain this is why the Clintons have remained so committed to this tiny country after all these years.

The sun arrives early near the equator; at 5:30 am in Haiti.  The breeze from the sea is not as strong as I expected.  Nor is the sound of the waves crashing against the 3-meter wall of rock down to the sea just 30 yards from the back porch of this large, half finished house in Jacmel.  I am a lover of all sunrises, so there was no way I was going to miss this.  The sun arrived on time, but shielded for some time by a large cloud. Soon, Agronome Noel was with me preparing for the day while everyone else still slept.  I heard goats on the adjacent property and asked if he had any.  He pointed to one goat off in the distance tied to a rock and told me that today would be the goat’s last day.  Sure enough, about an hour later he and two others went out to meet the goat.  And by the end of the day, well . . . we were eating goat stew.

A ball of fire finally burst from beneath the cloud and its rays reached far and wide as we quickly move from a shadowy sunrise to the full-fledge beginning of a new day.  What a peaceful and gorgeous place I had awoken to, now that I could see everything.  How could anyone have ever considered this land a lost cause?

When the Noels began 15 years ago with a plot of dry barren land, there was no road, no access to water, no electricity, and no soil.  For the crazy agronomist, these weren’t problems, just things to be done.  On weekends and holidays, with the help of a few farm hands that live on the property, they began the transformation by hand.  There are no big machines and no tractors, just simple hand tools.  They trucked in water and topsoil and began to build the tree canopy.  You see, first you must create enough of a canopy to cool, shelter, and nourish the soil below.  Once the canopy began to work it’s magic they were able to plant the tender topical plants and fruit bearing trees.  They have bananas, cocoa, coconuts, mandarins, figs, papayas, and almond trees.  At least those are the ones I can remember.  The barren land was transformed into a tropic forest full of agricultural treasures in a few short years.

I will never forget the day I woke up in Jacmel!

When you see the level of response from the US and nations around the world to the tragic earthquake that rocked Haiti only a few days ago, it is hard not to feel proud of the quality of global citizenship displayed by so many.  Individuals and organizations have been sent to help with security, medical care, food distribution, general aid, and journalistic coverage and they should be commended for their commitment to humanity.

However, as an economist who was working on economic development in Haiti before the tragedy, I know that the strategy and model used for rebuilding is the key to success.  Despite good intentions, the developed world does not have the best track record for helping under-developed countries gain any significant traction.  There has never been a lack of funds or good intention, but there has been a lack of effective and unifying strategies designed with the population’s physical and cultural needs in mind.  This unfortunate and tragic earthquake has presented the world and Haiti with an opportunity to set the rebuilding of Haiti on a course that will have long term significance for its people, if we are all willing to try something new and think about building sustainable economies with a new perspective.

There are a number of areas that will obviously require simultaneous focus, however the primary force and core strategy should be helping Haiti to rebuild their own country, with their own hands, and resist the temptation to do it for them. Often our own need to help gets in the way of truly understanding what is needed.  This may sound over simplified or inconsequential to many, but I assure you it is not. The rebuilding must be done in a way that unites and aligns citizens, government, businesses, investors, and aid organizations.  Without unity, there will be continued factions, hoarding, corruption, and minimal progress.  This monumental task requires a top-down strategy with a bottom-up implementation plan.  I have faith that with the assistance and guidance from the rest of the world, Haiti can rebuild itself and become much stronger than it was before the earthquake.

We must avoid simply jumping in with quick fixes and rebuilding everything back they way it was.  A master infrastructure plan that is comprehensive in its ability to connect the disparate parts of the country and support agriculture and other industries is critical.   It must take into account the reverse urban migration that is likely to occur as a result of the earthquake.  Many people will go back to the small towns and villages where they are from because they no longer have homes and jobs and have nowhere else to go.  The people in Haiti’s countryside are generally the poorest of the poor — why so many migrated to the big cities in the first place.  Supporting agriculture, tourism, and arts industries in the countryside will provide people the means to stay, to start over and to allow the country to grow in a more balanced way.

Agricultural Development Aid is a crucial component, and it will be required in a way never seen before.  With the traditional strategy of sending a disproportionate amount of food aid compared to Agricultural Development Aid, we generally set a country up for failure.   Sending only food aid does serve an immediate need and feeds people today, but it can also destroy what markets still exist.  Building chicken farms, developing farm land and building other food production facilities puts people in business so they can build up their own markets allows the aid to continue to churn through the economy and even increase economic activity over time.  Simply handing out food produced elsewhere and brought in through an outside distribution channel fills an immediate need, but if it is not balanced with other strategies eventually also feeds the equation of poverty.

Businesses must be created and financially supported so they can hire local employees and begin the re-building process.  Contracts must be structured with built-in profits from the rebuilding efforts that can be used to create further self-sustaining economic activity.  The banking industry must be supported such that the bankers can make enough profits to stay in business and grow while providing heavily subsidized loans for building businesses and rebuilding structures.  The World Bank and the IMF need to find creative ways to support industries and businesses directly as opposed to giving the lions share of funds directly to the government.  When businesses begin to grow and more money is invested in capitalistic endeavors, the government’s revenue will grow in sustainable ways and can it begin to rely less and less on foreign hand-outs.  The government should be orchestrating, aligning, and ensuring coordination of all efforts.  The government should be making master plans and ensuring long-term strategies are properly focused on growth.  Groups like Aimer Haiti, who can help build and mentor businesses, should be working with the government, the World Bank, the IMF, the US, foreign investors and domestic investors to develop completely new strategies for growth.  Aimer Haiti has already been working on such collaborative and creative economic development strategies since their launch in 2009 and for years before as concerned citizens and Haitian business owners.

Energy has been a growing issue for Haiti as its population rises, and is now even more critical.  Electricity has never been reliable and is often supplemented with large battery stores powered by diesel generators.  The good news is that technology has advanced enough that a country like Haiti can leap-frog many of the evolutionary steps in energy that the developed world could not.  It’s a matter of getting the brightest minds together, inside and outside of Haiti, to come up with the best solutions given the unique conditions of the country.  Before the earthquake Aimer Haiti was exploring the possibility of using small solar energy units in some of the poorest areas to provide light, refrigeration, and power. With refrigeration, people can store and sell perishable products such as produce and fish.  With power people who cannot read or write can begin the process of building an education base through radio and television.  Mobile phones can be powered and connect people to markets to sell their goods.

Solving the energy issue is also the key to stopping deforestation.  Until there is a reliable source of energy to replace charcoal, and until there are jobs and small businesses to give people a means to survive, deforestation will continue.  Deforestation causes rapid erosion, which leads to road and bridge destruction, and leaves the land unsuitable for farming ensuring the cycle of poverty continues.  The cutting down of trees does not happen because Haitians do not care about their land, it happens because it has become a means of survival for so many people.

The interconnectedness of all of these major issues in Haiti is another reason why getting the overall re-building strategy right is so key to its long-term future success.  Every solution and every single effort of aid and rebuilding should be viewed as an opportunity to put Haitians in businesses that will create jobs.  For example, the distribution of food and creation of helicopter landing sites, which is happening right now in Haiti, is a huge opportunity to employ people and allow them to feel a part of the solution and not a part of the problem.  There shouldn’t be such a stark line between those giving aid and those receiving aid.  This is an example of the change in thinking and the change in mindset that is needed to change the trajectory of how under-developed countries are assisted, particularly in times of need.

This type of re-building is not done from an office or over the phone, it is done by creating relationships on the ground, building businesses, one at a time, and helping families, one at a time.  It’s about doing, creating, uniting, and elating in each small success that both dedication and determination will bring.

History has proven time and again that capitalism and the building of a significant middle class are still the best ways to bring people out of poverty.   Before the earthquake, one of the first billboards you saw when you were leaving the Port au Prince airport, was the large unity triangle of Aimer Haiti, which of course translates to “Love Haiti” in English.  I hope it is still standing!

This photo was taken just before Christmas of me and my friends at Aimer Haiti.  It was the end of a busy week of planning, dreaming, and believing in what Haiti can be one day when we all work together.  I have not been able to reach any of them and pray that they and all of their loved ones survived.

I can see the shanty towns on the hillside of Port-au-Prince in my mind as if I were standing there right now and know the outcome for many will not be good after the earthquake shook a city already in pain to its knees today.

I have spent the last 4 months working with a group of business men and women in Haiti who have seen enough  disappointment and suffering and are willing to do whatever it takes to show the rest of the world that it is not to late for Haiti.  They have a dream for their country and they are determined more than any other people I have ever met to see that dream come true.  Their country is beautiful, its people are kind, and its potential is off the charts.

We are working on economic and agricultural development and devising new models that would let us use this one country and the momentum their government, the UN, President Clinton, and my friends at Aimer-Haiti have recently created to let it mark a new beginning for global economic development.  Despite this tragedy, it can still be done.

What everyone needs to know is that just because they have now experienced what appears to be massive devastation, we cannot give up on the dreams that both local Haitians and those living abroad still have for their country.  In fact we must use this tragedy to awaken the rest of the world to the story of Haiti.  Haitians have more spirit and more strength than you can imagine and they will not let this beat them.  What Haiti needs, and what Aimer Haiti is organized around, is economic development and the building of a true middle class.  Haiti will need immediate aid for sure, but they also need long term development aid so they can eventually find their own way and loose the title of the poorest country in the western hemisphere.

If you want to help please do two things:  One you can give to Yéle Haiti donations that will be used for immediate relief. Yéle Haiti is a non-profit that did amazing work after the devastating hurricanes in 2008.  Grammy-Award winning musician, humanitarian and Goodwill Ambassador to Haiti Wyclef Jean founded Yéle Haiti in 2005.

Two, you can provide donations to AimerHaiti that will be used to ensure that focus remains on economic development after the period of immediate aid is past.  Long-term development is the real lifeline that will ensure everyone in Haiti has an opportunity to earn a decent wage and take care of his or her loved ones.   If you are interested in helping this organization, please contact me directly.

There is much we are planning as far as creating new and innovative ways of using international aid and government support to promote private investment.  Alignment and partnerships can be created between local governments, private domestic investors, private foreign investors and foreign aid such that all are moving in the same direction.  Aid can be used to incentivize and guarantee investment that will create sustainable progress instead of being primarily used to shore up faltering national balance sheets and lining the pockets of a few.

We are going to insist that when it comes to the developing world:

• We must change the focus from problems to opportunities
• We must take more action and do less analysis
• We must build-up and exploit what each country has to offer
• We must reinvigorate the dreams of people all around the world
• We must let the world participate in it’s own rebuilding

Please don’t give up on Haiti, there is still a chance to rebuild; and rebuild something far better than what exists today.  Haiti is a beautiful country that has much to offer the world.   We have an opportunity to show that the world together can develop a small country into a productive nation that can in turn help others.  We simply must be smart about how things are rebuilt, create partnerships that last, and align all parties in the same direction.