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In August 1996 European American Equity Trading was organized for the purpose of setting up a securities market in Haiti. In March 1999 the name of the company was changed to European American Capital Corporation. That same year the name was finally changed to Global Trading Group, Inc (GLTG) a New York Corporation.
The company provides services in the areas
of investment banking, securities trading, fixed income trading,
commodities trading, derivative products trading and asset management.
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The Company intends to organize
in HAITI a “Societe Anonyme†to be named SOCIETE HAITIENNE
DE VALEURS
MOBILIIERES, SA-HAITIAN STOCK EXCHANGE, HAITI STOCK MARKET ( HSE)
. HSE will endeavor to: |
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1. Develop a securities market in HAITI |
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2. Organize primary and secondary markets
for fixed income and common stocks in the Republic of Haiti- |
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3. Train recruit the personnel |
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4. create the alliances and the institutional
framework necessary to support the operation of a securities market
in Haiti |
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5. Conceive the regulatory requirements
for listing on the Haitian market and for affiliation with the Haitian
Stock Market |
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6. Securing listing on a US market,
for Haitian companies listed on the Haitian market |
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7. Maintaining close contact with GLTG
to ensure ensure that HSE operates in the spirit of the rules and
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....regulations
established in the USA and which regulates the activities of GLTG. |
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8. Market the equities traded on the
Haitian Exchange and market and also the shares of HSE |
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9 - Develop the alliances necessary
for settling, clearing and for central depository functions |
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THE PATH TO PHENOMENAL GROWTH |
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The HAITIAN STOCK EXCHANGE (HSE) is poised to be
launched. With its launch, there will be set in motion one of the
biggest business opportunities in Haiti in the last fifty years. |
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HSE‘s goals are far reaching as they vary
among other activities: |
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• From encouraging the formation of new businesses,
to the expansion of all the economic sectors. |
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• From the facilitation of the flow of capital
to Haiti, to the growth of per capita income. |
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• From the reduction of poverty, to a general
increase in the aggregate level of output, employment and wealth |
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HAITI AND ITS CARIBBEAN NEIGHBORS |
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There is empirical evidence to suggest that, within
the last three years, the rate of growth of GDP in Haiti has trailed
the rate of growth of GDP of many other countries in the Caribbean
Basin. It is often argued that the lag is due to three main factors: |
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1. A lack of financial infrastructure to attract
capital |
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2. Insufficient capital investment per worker |
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3. Inadequate and underutilization of human capital.
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QUESTION OF FINANCIAL INFRASTRUCTURE |
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The
lack of financial infrastructure is well captured in the fig (1)
It is reflected directly in the level of GDP produced in Haiti and
it is best seen when GDP in Haiti is compared to the GDP of other
countries in the Caribbean region. It is argued in most of
the development literature , Increasing GDP necessarily requires
the flow of foreign direct investment .Foreign direct investment
does not just happen. The lack of financial
infrastructure is well captured in the fig (1). |
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Fig 1 |
It
is reflected directly in the level
of GDP produced in Haiti and it is best seen when GDP in Haiti is
compared to the GDP of other countries in the Caribbean region.
It is argued in most of the development literature , Increasing
GDP necessarily requires the flow of foreign direct investment .Foreign
direct investment does not just happen. It generally goes to countries
where there exists reliable financial infrastructure.There is ample
evidence that Dominican Republic, Jamaica, Trinidad all enjoyon
an annual basis,large inflow of foreign capital. This is best reflected
in the level of national debt of the countries (Fig 2). |
COUNTY |
DEBT
(bil.) |
CREDIT
RISK |
Haiti |
1.2 |
B- / CCC (excl. Remittances) |
Dom. Rep |
7.1 |
B |
Trinidad |
2.7 |
BBB |
Jamaica |
6.2 |
B |
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Fig 2 |
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GDP GROWTH AND
ECONOMIC RESSOURCES |
In addition to financial infrastructure
and foreign direct investment, GDP growth is also a function of
how available economic resources are allocated in the production
of output. The following chart (Fig 3) portrays how Haiti measures
up when compared to other countries in the Caribbean region. |
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COUNTY |
LABOUR
(bil.) |
GDP
(bil.) |
GDP
Labour |
RES
LABOUR |
AV.
Net Profit 40% |
Literacy |
Haiti |
1.6 |
3.8 |
2375 |
1437 |
950 |
43% |
Dom. Rep |
2.3 |
18 |
7826 |
2895 |
3130 |
85% |
Trinidad |
620 |
13 |
20967 |
7757 |
8386 |
99% |
Jamaica |
1.2 |
9.5 |
6300 |
2331 |
3780 |
88% |
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Fig 3 |
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Let’s analyze the charts.
The bureau of statistics from the IMF, the World Bank and the ECONOMIST
agree that in Haiti, the population is estimated to be about 8.5
million people with a labor force of about 1.6 million and GDP for
the fiscal year 2004-2005 of about 3.8 billion, hence on average
$350.00 per capita. |
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Given a labor force estimated
at 1.6 million workers, (3.8billion/1.6million), estimated GDP per
worker is on average about $2,375.00. If we assume a standard minimal
rate of net profit of 40% per worker, the aggregate profit realized
in the Haitian economy is at a minimum of about 1.5 billion dollars.
Given the aggregate GDP of $3.8 billion in 2005 and an aggregate
profit of 1.5 billion the cost of producing the total GDP in Haiti
is about 2.5 billion dollars |
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Economic resources
per worker |
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2.3 Billion/ 1.6 Million
= 1437.50
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GDP
per worker |
GDP
per worker Economic resources per worker |
Assumes
a 39.5 % net profit |
$2,375.00 |
$1437.00 |
938/2375 = 39.5% |
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Fig 4 |
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With GDP per worker of about
$2,375.00 and resources allocated per worker of about $ 1437.00
it is evident that average capital invested per worker in Haiti
represents another crack in the ability of the country to grow.
This crack is best captured as we compare the resource per worker
in Haiti with the resources per worker in other countries of the
Caribbean region. (Fig-5) |
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Fig 5 |
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The lag in GDP growth that Haiti experiences when
compared to other countries in the Caribbean region is not a one-year
phenomenon. Let’s compare the GDP per worker (Fig 6). |
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Fig 6 |
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and GDP over the most recent
three-year period. |
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Fig 7 |
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One must realize at this point
that the lack of GDP growth in Haiti is a phenomenon that is very
recent. To realize it let’s compare the dominant sectors of
the Haitian economy to those of other Caribbean countries (Fig-8). |
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JAMAICA |
TRINIDAD |
DOMINICAN
REPUBLIC |
ST.
KITTS & NEVIS |
HAITI |
Tourism |
Tourism |
Tourism |
Tourism |
- |
Bauxite/alumina |
- |
- |
- |
- |
Agro processing |
Agro industry |
- |
- |
Coffee Bean Coco Bean |
Light Manufacturing |
Light Manufacturing |
- |
- |
- |
Rum |
- |
- |
- |
- |
Cement |
Cement |
Cement |
- |
- |
Metal |
- |
- |
- |
- |
Paper |
- |
- |
- |
- |
Chemical prod. |
Chemical prod. |
- |
- |
- |
Telecommunication |
- |
- |
- |
- |
- |
Petroleum |
- |
- |
- |
- |
Food Proc. |
- |
- |
- |
- |
Beverage |
Beverage |
Beverage |
- |
- |
Cotton/Textiles |
Textiles |
Cotton |
- |
- |
- |
Sugar Proc. |
Sugar Proc |
- |
- |
- |
Gold/ferronickel |
- |
- |
- |
- |
Tobacco |
- |
- |
- |
- |
Cigar |
Salt |
- |
- |
- |
- |
Copra |
X |
- |
- |
- |
Clothing |
X |
- |
- |
- |
Footwear |
X |
- |
- |
- |
- |
Light Assembly |
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SEISMIC SHIFTS |
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The first seismic shift the country experienced
brought about an increase in population in Port au Prince resulting
from migration from the countryside. |
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Among the many explanations for this migration
one finds: |
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1. Persistent decrease of world agricultural prices
2. The impoverishment of the peasant farmers
3. Fiscal policies unfavorable to the peasant farmers
4. Decrease investment in the agricultural sector
5. Unfavorable pricing on the local market for export crops
6. Normal urbanization process
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HAITI vs. HAITI |
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Today about 3.5 million people
live in the Greater Port au Prince area. By 2015 it is estimated
that the population in Port au Price alone will reach 4 to 4.5 million.
Pressure will be felt all across the city. The pressure will be
felt on the socio-economic relations, on the, roads, the telecommunication
system, the electricity grids, water supply, energy demand, national
security, health care, sanitation, the environment, land, real estate
etc. |
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Using Port au Prince as an
example, if nothing is done today; by 2015 Haiti current situation
will appear mild compared to what will occur. Do not forget in the
1960’s the population of the whole country was about 5 million
people. This increase population the country is experiencing will
represent as much a threat as it will represent economic opportunities.
There will be |
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• Geometric expansion of consumer market
due to the density of the population • Increase velocity
of the money supply • Expansion of labor force •
Expansion of the tax base • New sources of investment
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People will want schools for their children, cars
to drive, a steady job and retirement plan, healthcare facilities
and healthcare professionals, etc. |
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This first seismic shift will be viewed as miniscule
compared to the effect the projected increase in population in Port
au Prince will have on the country. When it can be envisioned that
Port au Prince is a microcosm of what may happen elsewhere, it become
imperative that remedial action be taken now. |
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