Project Report

Title “ A world of contrasts on one island”

Aleeza Muhammad Rafiq BUS-20F-012

Ramsha Muhammad Ibrahim BUS-20F-089

Hafiz Abdur Rafay BUS-20F-004

Jahanzaib khan BUS-20F-070

Kanwar Valasai BUS-20F-007

Development Economics
BBA 6A Fall 2020
Instruct by
Sir Faran Waleed

TERM PROJECT REPORT SUBMITTED TO THE FACULTY OF BUSINESS

ADMINISTRATION SINDH MADRASSATUL ISLAM UNIVERSITY. IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE COURSE
OF DEVELOPMENT ECONOMICS.
 ACKNOWLEDGMENT

We would like to express our special thanks of gratitude

To our course instructor “Mr. Faran Waleed”

For his able guidance and support in completing
Our project.
 INTRODUCTION
Hispaniola Island
Hispaniola is an island in the Caribbean that is divided between two countries: Haiti and the
Dominican Republic. Despite sharing the same landmass, these nations have vastly different
cultures, histories, and economies.

Haiti
Haiti, the western part of the island, was the first independent nation in Latin America and the
Caribbean, having gained independence from France in 1804. Haiti's history is deeply rooted in
slavery. The country's enslavement began in the 16th century when the French began importing
Africans to work on plantations. By the late 18th century, Haiti was the world's largest producer
of sugar, coffee, and indigo, and the vast majority of the labor force was made up of enslaved
Africans. However, it has faced significant political and economic challenges, including
authoritarian regimes, corruption, and natural disasters. In 2010, a massive earthquake
devastated the country, killing almost 250,000 people and leaving millions homeless. The
earthquake's impact was even greater due to Haiti's already fragile infrastructure and poverty
levels.

Dominican Republic
On the other hand, the Dominican Republic, the eastern part of the island, has been relatively
stable politically compared to its neighbour. It has also seen significant economic growth and
development in recent decades, becoming one of the fastest-growing economies in Latin
America. However, this economic progress has been accompanied by social and environmental
challenges, including inequality, deforestation, and human trafficking.
Looking at the economic conditions in both nations over time, there have been significant
changes. In past , Haiti was relatively better off economically than the Dominican Republic, with
a higher GDP per capita. However, by 2007, the Dominican Republic had surpassed Haiti's
economy, with a GDP per capita three times that of Haiti.
Overall, the contrast between Haiti and the Dominican Republic highlights the impact of history,
politics, and social dynamics on economic development and wellbeing. The reason for Haiti's
natural disaster also illustrates how these challenges can be exacerbated by environmental
factors, affecting vulnerable communities' resilience and ability to recover.
GEOGRAPHY & ORIGINAL ENVIRONMENT
HISPANIOLA
A subtropical island in North America of about 76842 s/km. Most popular island in the West
Indies. Region’s 2nd largest island, which is smaller than Cuba but larger than Jamaica and
Puerto Rico. Both (Haiti+DR) shares the island, so they seem to have started with similar
Geographic and Environment.

SOME MODEST DIFFERENCE BETWEEN HAITI & D.R

LAND AREA AND WEATHER
Dominican Republic occupies about 64% Land Area. And Haiti occupies remaining 36% Land
Area. Rainfall is slightly higher in D.R, because rain typically comes from the east. While Haiti is
more mountainous & due to which its mountains block its rain. The river flows mostly eastward
from these mountains & providing water for the D.R.

Haiti’s Disadvantage
These modest initial environmental differences may have put Haiti at some disadvantage. But
Haiti has done well economically in comparison to D.R, with in some period.

CAUSES OF ENVIRONMENTAL Damages

Both countries were once largely covered with forests. But environmental damages was already
under way under colonial rule, with deforestation due to extensive logging and overuse of soil.
If we overuse of soil we see a decline in soil’s fertility.

Overuse of soil means using improper land, urban & industrial purposes, so these factors
decline soil’s physical, biological and chemical state.

INSTITUTIONS : HISTORICAL LEGACY

A LEGACY OF COLONIALISM, SLAVERY AND INEQUALITY

The island of Hispaniola, which is located in the Caribbean Sea, was first colonized by Spain in
the 15th century. The Spanish quickly established a system of forced labor called the
repartimiento, which required native people to work on Spanish plantations. The abundance of
resources on Hispaniola, and the island's suitability for sugar production, led the Spanish to
create institutions designed for extraction. As a result of these institutions, the native
population of Hispaniola was decimated, and the island became a source of wealth for
Spain.The legacy of colonialism, slavery and inequality continues to shape Hispaniola today. The
Dominican Republic and Haiti are two of the poorest countries in the Western Hemisphere.
They also have some of the highest rates of inequality in the world. This is due in part to the
historical institutions that were created during the colonial period. These institutions created a
system of racial and economic inequality that has persisted to this day.

There are a number of things that can be done to address the legacy of colonialism, slavery and
inequality on Hispaniola. These include:
* Investing in education and healthcare
* Promoting economic development
* Tackling corruption
* Addressing racial and ethnic discrimination

These are just some of the challenges that Hispaniola faces as it seeks to overcome the legacy of
colonialism, slavery and inequality. It is a long and difficult road, but it is one that must be taken
if the island is to achieve true prosperity and equality
.

A REPARTIMIENTO SYSTEM
The repartimiento system was a system of forced labor that was implemented by the Spanish in
their New World colonies. Under the repartimiento system, Spanish-born peninsulares
(Europeans) received land tracts and the right to use native labor. The native people were
forced to work on Spanish plantations for little or no pay.The repartimiento system was a brutal
system that caused great suffering for the native people of the New World. Natives were often
worked to death, and those who survived were often malnourished and sickly. The
repartimiento system also led to the destruction of native culture and society.The repartimiento
system was eventually abolished, but its legacy continues to be felt today. The system left a
legacy of poverty, disease, and social inequality that continues to plague many indigenous
communities in Latin America.

THE HAITIAN REVOLUTION

The Haitian colony was a major slave-holding plantation economy and was considered the
wealthiest European colony in the New World, with a majority population of slaves.A slave
revolt led to Haiti becoming an independent state in 1804, but subsequent wars continued
between Haiti and the Dominican Republic to restore slavery.Because of Haiti's revolution, there
were many deaths in this country and their wealth was also greatly damaged because their
sugar plantations, i.e. sugar mills, were all burnt down.The cruelty of slavery had ended, but the
new mulatto and black privileged class in Haiti was still being marginalized, with the French elite
becoming the reference point for their culture.

HISTORY OF THE DOMINICAN REPUBLIC

After the independence of the Dominican Republic and Haiti, they went through a
different history, that is, many things happened that became history for them, and
the United States captured both of them in the 20th century. After that, the
Dominican Republic was very good in their progress, they made a very good
progress and they worked on the infrastructure development of the country, that
is, they built schools, roads and ports etc.In contrast, if we look, Haiti did not focus
much when the United States invaded Haiti, it did not focus on these things to
further modernize its country. Due to which he took the lead in the rank seeking
opportunities due to which the country's infrastructure was being neglected.After
those 1978 elections, the Dominican Republic became more democratic because
it had made more progress, but little progress had been made in what was Haiti.
Both countries faced continuous challenges which related to poverty, inequality
and political instability. The Dominican Republic made the progress but Haitian
didn't make such progress.

Policy Effects:
The policy differences between the Dominican Republic and Haiti have played a significant role
in shaping their economic development and environmental sustainability.

A Tale of Contrasting Development Paths in the Dominican Republic (DR) and

Haiti
In the 1990s, the Dominican Republic (DR) experienced accelerated growth rates attributed to
favorable policies in education, trade, and infrastructure. Meanwhile, Haiti faced political
instability, resulting in economic damage and trade embargoes. The DR's emphasis on
diversification, investment, and environmental preservation has yielded positive outcomes,
while Haiti's focus on sugar production and inadequate environmental regulations have
hindered its development. This report analyzes the policy effects on poverty, environmental
degradation, and disaster management in both countries, highlighting the importance of
sustainable policies and international aid for Haiti's future.
Human capital

**Haiti**

* Illiteracy rate: 57.3% (2022)

* Under-5 mortality rate: 62 deaths per 1,000 live births (2020)
* HIV/AIDS prevalence rate: 2.2% (2020)

* Life expectancy: 62.9 years (2020)

**Dominican Republic**

* Illiteracy rate: 20.7% (2022)

* Under-5 mortality rate: 23 deaths per 1,000 live births (2020)

* HIV/AIDS prevalence rate: 1.8% (2020)
* Life expectancy: 74.2 years (2020)

As you can see, Haiti has significantly lower literacy rates, higher under-5 mortality rates, and
higher HIV/AIDS prevalence rates than the Dominican Republic. Haiti also has a lower life
expectancy.

These disparities are due to a number of factors, including:

* **Poverty:** Haiti is one of the poorest countries in the world, and poverty is a major
barrier to education and health care.
* **Political instability:** Haiti has a long history of political instability, which has made it
difficult to invest in education and health care.
* **Natural disasters:** Haiti has been hit by a number of natural disasters in recent years,
including the 2010 earthquake, which further damaged the country's infrastructure and made
it more difficult to provide education and health care.

The disparities between Haiti and the Dominican Republic are a major challenge to
development in Haiti. If Haiti is to improve its education and health systems, it will need to
address the root causes of these disparities, such as poverty, political instability, and natural
disasters.

There are a number of things that can be done to improve the educational and health systems
in Haiti. These include:

* **Investing in early childhood education:** Early childhood education is essential for laying
the foundation for lifelong learning. Haiti needs to invest in early childhood education
programs to ensure that all children have the opportunity to learn and develop.
* **Making primary education free and compulsory:** Primary education should be free and
compulsory for all children in Haiti. This will help to ensure that all children have access to
education, regardless of their family's income.
* **Improving the quality of teachers:** Haiti needs to improve the quality of its teachers.
This can be done by providing teachers with better training and resources.
* **Expanding access to health care:** Haiti needs to expand access to health care for all of
its citizens. This includes providing access to preventive care, as well as treatment for illnesses
and injuries.

Improving the educational and health systems in Haiti is essential for the country's
development. By addressing the root causes of these disparities, Haiti can create a more
prosperous and equitable society for all of its citizens.

Economic Development and Environmental Sustainability:

The DR's successful diversification into tourism, facilitated by a clean environment and foreign
investment in manufacturing, has contributed to its economic growth. In contrast, Haiti's poorly
managed agricultural expansion led to deforestation, loss of fertile soil, and decreased farm
productivity. Presently, the DR has significantly higher forest cover (over 25%) compared to
Haiti's meager 1%. The case of Haiti underscores the importance of prioritizing environmental
preservation as a crucial factor in the development process.

Disaster Management and Resilience:

Both countries face environmental challenges, including hurricanes and earthquakes. However,
the DR has exhibited more effective disaster management, mitigating the impact of extreme
events. Following Hurricane Jeanne in 2004, the DR experienced relatively swift recovery with
minimal casualties, while Haiti suffered significant loss of life and a deepening cycle of poverty.
The DR's governance, environmental regulations, and disaster response capacity contributed to
its ability to initiate rescue and recovery operations effectively.

Transnational Effects and Migration:

Poverty transcends national boundaries, leading to significant emigration from Haiti to the DR,
despite the challenges faced by Haitians upon arrival. Similarly, Dominicans migrate to the
United States in substantial numbers. The reported illegal logging by Haitians across the border
poses a challenge to the DR's environmental preservation efforts. In response, the DR is
investing in tree replanting along its border with Haiti, highlighting the interdependence of
poverty, migration, and environmental sustainability.

The Importance of Policy and International Aid:

The intertwined relationship between poverty, environmental degradation, and policy
underscores the need for improved economic and regulatory policies. Poverty perpetuates
environmental deterioration, hindering overall growth and development. While the DR has
made progress through better policies, addressing environmental challenges becomes a vital
step for Haiti's development. International aid with a long-term focus is necessary to support
Haiti's recovery from natural disasters and to implement sustainable environmental policies.