What is the basis of the economy in Haiti?
In this poorest country in the Western Hemisphere, 80% of the population lives in abject poverty, and natural disasters frequently sweep the nation. Two-thirds of all Haitians depend on the agriculture sector, which consists mainly of small-scale subsistence farming. Following legislative elections in May 2000, fraught with irregularities, international donors – including the US and EU – suspended almost all aid to Haiti. The economy grew 3.5% in 2005. Suspended aid and loan disbursements totaled more than $500 million at the start of 2003. Haiti suffers from rampant inflation, a lack of investment, and a severe trade deficit. Civil strife in 2004 combined with extensive damage from flooding in southern Haiti in May 2004 and Tropical Storm Jeanne in northwestern Haiti in September 2004 further impoverished Haiti. In early 2005 Haiti paid its arrears to the World Bank, paving the way to reengagement with the Bank. The resumption of aid flows from all donors is alleviating but not ending
