Odd Lots Mitu Gulati and Ugo Panizza on Haiti’s Odious Post-Colonial Debt
Aug 26, 2021
Mitu Gulati, a law professor specializing in sovereign debt, and Ugo Panizza, an economics professor at the Graduate Institute of Geneva, dive into Haiti's staggering post-colonial debt. They discuss how a colonial indemnity agreement has perpetuated poverty in Haiti for nearly 200 years. The conversation explores the concept of odious debt and its implications for economic development and social justice. They also reflect on the historical narrative of debt, advocating for reparations and debt relief as critical steps toward supporting Haiti's recovery.
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Haiti's Independence Debt
- In 1825, France demanded Haiti pay 150 million francs for recognition of its independence.
- This was ten times Haiti's annual revenue and more than the Louisiana Purchase.
Legality of Haiti's Indemnity
- Haiti's agreement to the indemnity involved complex legal questions about charging for recognition and independence.
- It's unclear if the laws of that time or modern human rights conceptions should apply.
Debt's Impact on Haiti's Economy
- Haiti's debt likely hindered its economic development, possibly reducing GDP growth by 1-2% annually.
- Calculations suggest Haiti's GDP per capita could be much higher today, similar to the Dominican Republic.