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Information technology anddevelopment: the Internet and themobile phone in HaitiMichel S. Laguerre aa Berkeley Center for Globalization and Information Technology ,University of California, Berkeley , Berkeley , USAPublished online: 17 Jul 2012.

To cite this article: Michel S. Laguerre (2013) Information technology and development: theInternet and the mobile phone in Haiti, Information Technology for Development, 19:2, 100-111,DOI: 10.1080/02681102.2012.690170

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Information technology and development: the Internet and the mobilephone in Haiti

Michel S. Laguerre∗

Berkeley Center for Globalization and Information Technology, University of California, Berkeley,Berkeley, USA

This paper examines the ways in which the information technology (IT) sector has contributedto the growth of the Haitian economy. It pinpoints four areas in which the impact is mostvisible: (1) the employment that the growth of the IT industry generates in both theinformal and formal sectors of the economy; (2) the sizable amount of taxes that itdisburses to the coffers of the state; (3) the crucial communication services that it providesto the business community (e.g. banking); and (4) the remittances flows that it facilitates.

Keywords: Internet; mobile phones; development; information technology; Haiti

1. Introduction

Haiti, similar in its economic growth strategy to other nations in the wider Caribbean landscape,

confronts development problems, reflected in high unemployment, information technology (IT)

policy, and regulations in disarray, foreign contents, digital divide, lack of technical expertise,

and deficient infrastructure. This paper examines how the implantation of an IT sector in a

national economy is concomitant with economic development, irrespective of the size of the

country (Baliamoune-Lutz, 2003; Sein & Harindranath, 2004). More precisely, it analyzes

ways in which the nascent telecommunication industry has had a positive impact on various

aspects of the Haitian economy. By focusing on Haiti, a half-island republic in the Caribbean

with a population of 9,801,664 inhabitants (2012), a per capita evaluated at US$1200.00

(2011), a GDP of US$12.44 billion (2011), an unemployment rate of 40.6% (2010), a literacy

rate of 52.9% (2010), a life expectancy rate of 62.51 years (2010), 50,000 landline telephones

(2010), four million cellular telephones (2010), and one million Internet users (2009), this

paper highlights the IT industry’s contributions to growth in formal and informal employment,

tax revenues, and the service sector (CIA, 2012).

More precisely, this paper delineates the interface of IT – services provided by operators and

use by civil society – and incremental development in Haiti within the Caribbean context. It posits

that technology and development coexist in specific national contexts that shape the outcome of

their embeddedness. The ecological niche that emerges out of their entanglement may reflect

improved life conditions among the targeted population. Through a qualitative analysis, this

paper seeks to track this process in an effort to better understand how such an outcome is produced.

This paper begins by providing a brief review of the literature on IT and development, in

general, and in the Caribbean context, in particular, describes the penetration of the market by

the Internet and cellular phone service providers, analyzes new forms of employment that are

introduced, discusses long-term dividends in terms of tax revenues for the state, locates IT practices

of Haiti in the larger Caribbean context, and then identifies specific features of the Haitian case.

# 2013 Commonwealth Secretariat

∗Email: mlaguerr@calmail.berkeley.eduSajda Qureshi is the accepting Editor-in-Chief for this article.

Information Technology for Development, 2013

Vol. 19, No. 2, 100–111, http://dx.doi.org/10.1080/02681102.2012.690170

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2. Background literature

IT has often been presented as an engine of growth and development for countries in the Global

South (Bourjolly, 1997; Bourjolly & Pierre, 1997; Bradshaw, Fallon, & Viterna, 2005, p. 369;

Wilson, 2004). Some view IT as having the potential, if used properly, to leapfrog the develop-

ment process from one stage to another (De Vreede, Mgaya, & Qureshi, 2003, pp. 201–219). In

this context, proponents advocate the urgent need for governments to provide access to IT, create

a digital environment for fair competition, and establish telecommunication regulations condu-

cive to economic development (Castells et al., 2007; Katz, 2008).

Other researchers have a less enthusiastic view about the correlation between IT and economic

development. As Morales-Gomez and Melesse (1998, p. 3) pointed out, “the notion of leapfrog-

ging stages of development as a result of application of new technologies is dangerously naıve and

unrealistic.” Still others see it in less categorical terms and prefer to argue that, in most developing

countries, there is “a lack of systems infrastructure and resources to invest in IT” (Kunda &

Brooks, 2000, p. 123). According to other scholars, the introduction of IT in development initiat-

ives may eventually widen the digital divide between those who have access and those who do not

(Madon et al., 2009). In their view, this negative consequence will further marginalize some

groups in rural areas and urban depressed enclaves (Moyi, 2003, p. 221).

Still, some moderate analysts move beyond the optimistic or pessimistic interpretations of

the problem to propose ways of making IT experiments and interventions among the poor suc-

cessful (Laudeman, 2005, p. 41; Shields & Servaes, 1989, p. 47). In this light, they advocate that

content and use must be relevant to local conditions and, therefore, cannot be left exclusively to

initiatives by external bodies (Dunn, 1995; Hudson, 1984; Roman & Colle, 2003, p. 85).

Additionally, some contend that organizational practices at the local level must also be appro-

priate in terms of the involvement of the local population, procedure of intervention, and

implementation strategies in order to ensure the sustainability of projects (Avgerou, 1998). Fur-

thermore, some argue that state policy is another area that needs improvement in order for IT

development practices to be effective (Cuthbert & Hoover, 1991; Wilson & Wong, 2007). In

an effort to achieve equal opportunities among a population, the need to reduce the costs of Inter-

net service provision is discussed so as to make the introduction of this technology affordable

and accessible to lower income groups, as well as provide different access points in remote

areas (Kenny, 2000, p. 25). All in all, different applications are examined to show how they

have improved people’s lives, whether through the use of cellular phones to access the

market or through the use of the Internet to sell goods online (D’Amour, 1998; Mitten, 1998;

Overa, 2008). In this light, the Internet and the cellular phone, in particular, can be singled

out as technologies of development. The phrase “technology of development” refers to online

access to practical information that can be used to enhance one’s business; to interactive com-

munication in real time used to reach clients or service providers, access credit, seek out new

patrons, and earn extra profit that IT facilitates; to the mobility that it sustains; to literacy that

it engenders; and to the expansion of one’s network that it makes possible. Each of these features

promotes development in one way or another.

The debate over IT and development in the Caribbean emphasizes processes, outcomes,

policy recommendations, regulations, and interface with local cultures and values. For

example, Dysart-Gale et al. (2011, p. 55) stressed the need to harmonize IT development

projects “with existing work practices and values.” Others decry the negative impact that a

“heavy flow of content from the North” could have on indigenous culture (Dunn, 2005). To

counter this trend, the Cuban government advocates “control of access,” “managerial

control,” and the use of electronic journals “as a vehicle for edited distribution of foreign

content to internal Cuban markets” (Seror & Arteaga, 2000).

Information Technology for Development 101

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Mandle (2000, p. 13) indicated that the lack of “sufficient human capital and physical infra-

structure” is a hindrance for “success in an information technology based economy” (see also

Bishop, 1999), while others pinpointed “inherent disadvantages of scale” (Jha, 2005; Tikasingh,

1989). Mullings (1995, pp. 163–184) encouraged export information processing as a potential

area of development for economic growth, while Henry (1993, pp. 21–28) saw information

management as critical to enhance performance of decision-makers (see also Mohammed,

2001). Still others pointed to biotechnology as a promising area for growth (Nelson, 2002) or

technical services as “part of sustainable development” and as being “necessary to compete

internationally” (Reichgelt, 2000).

Empirical studies undertaken in Jamaica, Haiti, and Trinidad have found that cellular phones

are used by the majority of these populations to contact family and friends, rather than for devel-

opment-related issues; that the majority of these populations do not own cellular phones; and that

money set aside for food and clothing is now diverted to pay for cellular phones (Barberousse

et al., 2009; Dunn, 2009; Horst & Miller, 2005).

3. Research methods

The research for this study was undertaken in 2009 with the goal of collecting and analyzing data

on the IT sector in Haiti that could serve as a base line for future investigations. Major sources

consulted were CONATEL (Conseil National des Telecommunications), the official agency

responsible for telecommunications in Haiti, various reports prepared by researchers affiliated

with foreign IT firms, lending agencies such as the World Bank and the Inter-American Bank

of Development, academic theses submitted to INAGHEI (Institut National d’Administration,

de Gestion et de Hautes Etudes Internationales), data compiled by International Telecommuni-

cations Union, and Business Monitor International (BMI). The analysis offered is based on my

own observations of the Haitian IT scene in the past 10 years. Since the state does not routinely

or annually publish statistics on telecommunications and firms are reluctant to make their stat-

istics available in order to not provide strategic advantages to competitors, one is left to conjec-

ture with estimates.

4. Cellular phone services

International firms, such as MCI-WorldCom, UTStarCom, Western Wireless, and Channel

Master, have heralded an era of modernization in the Haitian telecommunication industry, as

the competition that they generate has the immediate effect of lowering costs for consumers,

as well as making more services available to the population. Locally owned companies have

also contributed to the growth of the IT industry. For example, limited Internet or cellular

phone services have been provided to clients since 1995 by Alpha Communications Network

(ACN); since 1998 by Rectel Company (a subsidiary of Teleco; Rectel ceased to function in

2003), by GlobalSud, which utilizes spread-spectrum wireless links to provide services to

low-income communities (Peha, 1999), and by Haitel (Haiti Telecommunications International

S.A.); since 1999 by Comcel; since 2001 by Ti-telefon-2004 (another subsidiary of Teleco);

since 2005 by Voila (a subsidiary of Bellevue, Washington-based Trilogy International Part-

ners); and since 2006 by Digicel (a subsidiary of the Irish-owned Digicel Group) (Pompee &

Nau, 2006).

The cellular phone models that are most used in Haiti – produced by Motorola, Nokia,

Samsung, Qualcomm, and Touchpoint – are imported principally from the USA and South

Korea, while telecommunication spare parts are purchased from the USA, the Dominican

Republic, or Haiti (Simon, 2003).

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Mobile phone firms headquartered in Port-au-Prince have yielded significant profits by pro-

viding services to the population at competitive prices. Each has been able to carve out a market

niche for itself and, in the process, expand and prosper. This profit-maximizing strategy, within a

competitive environment, has resulted in Teleco being one among equals, rather than being the

leader of the pack. In fact, Teleco does not compete well in this free market environment; from

2005 to 2008, it trailed behind Haitel, Digicel, and Comcel. This is illustrated by the financial

contribution of each to Haiti’s Internal Revenue Service, as shown in Table 1.

Analysts attribute the poor performance of Teleco to a number of political, structural, and

organizational factors. As a state agency, it is used as a prominent site of employment for

those loyal to the government in office. In this context, workers are recruited on the basis

of political affiliation and not necessarily on that of professionalism and competence. Further-

more, corruption has been identified as a central mechanism that hinders the ability of the

agency to operate successfully in a competitive environment. The revenue that it earns is

not always accurately accounted for and, therefore, may not be used for upgrade and

expansion.

Plagued by these problems, Teleco has been, since 2001, in a financial free fall due to insti-

tutional corruption, the increase in use of prepaid calling cards and cellular phones, and cheaper

or free-of-charge Internet telephony. It is estimated that Teleco went “from US $16.8 million in

revenue from international calls in 2005 to US $1.6 million in 2008” (AP, 2010). In addition,

customers’ dissatisfaction with the agency’s inability to provide adequate services pulls

clients away from Teleco. As a result of this managerial imbroglio, Teleco has become

known in the Caribbean region as a “corruption-gutted, money hemorrhaging albatross” (AP,

2010).

In April 2010, the government of Haiti established a partnership with the Vietnam-based tel-

ecommunication company Viettel, for the restructuring and management of Teleco. In this

scheme, Viettel holds 60% of the shares of Teleco and the National Bank of Haiti owns 40%.

Viettel commits itself to building a nation-wide fiber optic backbone, repairing the submarine

cable that links Haiti to the Bahamas, and establishing a new undersea cable for telecommunica-

tion flows between Haiti and the USA through Florida.

5. Internet services

The first test of public use of the Internet in Haiti took place in 1995 when it was introduced

exclusively to the US embassy and business community by ACN (D’Amours, 1998, p. 2). For

the next few years, it was made available mostly in Port-au-Prince to the educated elite and

the business community. Access remained very limited because of the cost and sporadic

Table 1. Fiscal contributions of phone operators (2005–2008).

Fiscal years Teleco Haitel Digicel Comcel Total

2005–2006 –a 252,146,451.58 138,618,621.43 926,399,651.81 1,317,164,7252006–2007 50,630,516.89 192,332,957.82 868,322,845.90 958,323,406.66 2,069,609,7272007–2008 32,195,875.42 101,948,490.17 1,062,899,707.25 716,898,903.92 1,913,942,977Total 82,826,392.31 546,427,899.57 2,069,841,174.58 2,601,621,962.39 5,300,717,429

aNo data are available from Haiti’s Internal Revenue Service for the fiscal year 2005–2006 for Teleco. However, for thisperiod, Teleco was ranked 135th on the list of the 150 major tax contributors. The data refer to local money (40 gourdes¼ US$1).Source: Direction Generale des Impots/Haiti’s Internal Revenue Service, 2009.

Information Technology for Development 103

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availability of electricity in the residential areas and business sector. By 2003, there were already

seven firms providing Internet services in Haiti: ACN, CompaNet, HaiNet, Netaccess, Netcom,

TelecoNet, and TransNet (Simon, 2003).

Cybercafes were the first expressions of public access to the Internet and sustained long-dis-

tance telephony in Haiti. The first cybercafe, Computer World Cybercafe, was established in

Petionville in 1997. It attracted mostly the “moneyed elite and expatriate community”

(Emling, 1998; Washington Post, 1999). One learns that the manager of the operation used “a

generator and battery-powered inverter to avoid the common power outages plaguing the

country” (Emling, 1998). In this venture, electronic mail was the main service used by the

clients. By 2002, there were a total of 187 cybercafes throughout the country, with 156 in

the Port-au-Prince metropolitan area, 18 in the Department of the South, and 13 in the northern

region. Nine cybercafes were located in Cap-Haitien, while eight operated in Jacmel (RDDH/

BRIDES 2002; Vincent & Chery, 2004). They functioned as regular businesses and provided

Internet access for a fee (Table 2).

By and large, cybercafes in Haiti tend to function as multi-service centers; some even have a

visible presence online to inform incoming tourists about their existence. Among the best known

are Grafiklik (Petionville), Internet Business Club (Port-au-Prince), Delta Cybercafe (Port-au-

Prince), Labonet (Les Cayes), and Mokanet Cybercafe (Mirebalais). In addition to providing tel-

ephone and Internet services, the latter houses an IT repair office, a snack bar, and a kiosk where

one may purchase Haitian and Haitian diaspora newspapers such as Le Matin, Le Nouvelliste,

and Haiti en Marche.

While a cybercafe is a private enterprise that operates like any other business seeking to

make a profit, a telecenter is a non-profit service operation (Noel, 2004). Telecenters are

mainly sponsored by non-governmental organizations (NGOs), local churches, or the central

government. For example, in the city of Gros-Morne, there is a church-sponsored telecenter

developed in the context of a sister-church partnership with a USA-based church. This telecenter

allows villagers to access phones, computers, and the Internet. Some of these people use the

facilities to keep in contact with their family members abroad and at times to request, among

other things, financial aid. This community center has been a successful venture because of

the extra help that it receives from its sister congregation in the USA. As a matter of observation,

Table 2. Geographic distribution of cybercafes.

Internet access providers

Metropolitan area Provincial cities Total

Absolute Percentage Absolute Percentage Absolute Percentage

ACN 32 20.51 1 3.23 33 17.65CompaLink 8 5.13 0 0 8 4.27CompaNet 15 9.62 0 0 15 8.02HaiNet 8 5.13 1 3.23 9 4.81Hintelfoc 0 0 0 0 0 0Netcom 25 16.02 13 41.93 38 20.32TelecoNet 0 0 7 22.58 7 3.74TransNet 12 7.69 0 0 12 6.42Satellite 32 20.51 5 16.13 37 19.79Others 16 10.26 0 0 16 8.56Unknown 8 5.13 4 12.9 12 6.42Total 156 100 31 100 187 100

Source: RDDH/BRIDES, Etude Cap Autour des Nouvelles Technologies de l’Information en Haiti. Port-au-Prince:Reseau de Developpement Durable d’Haiti/Programme des Nations-Unies pour le Developpement, March 2002.

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one of the issues that confront the establishment of a telecenter in any rural area is that of sus-

tainability (Naivinit, 2009). Issues arise due to the lack of local technicians needed to fix soft-

ware or hardware problems when they occur, an unreliable supply of electricity to operate the

machines, and the expense to buy spare parts or new equipment. Access to all of these costs

money, and the community may not have the means to defray such expenses.

Cybercafes are not important factors that can be used to gauge either the availability of Inter-

net access or a potential solution to the digital divide because of the cost factor. Mostly elite Hai-

tians, diasporans during their visits, NGO affiliates, and seasonal tourists patronize such

enterprises. Cost and lack of electricity play a role in preventing the spread of cybercafes in

rural Haiti.

The introduction of the cybercafe and the telecenter has facilitated Internet access to a

segment of the population. Since these points of access are available mostly in cities and

some villages, these operations have not contributed in any significant way to the reduction

of the digital divide.

Table 3 reports the geographic distribution of cellular phone and Internet service providers

across the country.

In its weekly newsletter of 30 April 2009, CONATEL reported that it intended to create 142

telecenters – one in every electoral district of the Republic – and that it had already established a

telecenter effectively in each of the following localities: Carrefour Feuille (Port-au-Prince),

Jacmel, Cayes-Jacmel, Port-Salut, and Cerca Cavajal (CONATEL Hebdo, 2009). It has also

established IT laboratories in four public high schools (three in Port-au-Prince and one in

Cap-Haitien), as well as one in a Catholic school for girls in Port-au-Prince.

With the presence of the Internet and cellular phones across the country, one of the pro-

blems that obstruct the expansion of the industry is how clientele are billed for the services

delivered (Simon, 2003). In a very innovative way, the IT industry in Haiti has developed

and adopted a means to deal with this problem. Billing requires some level of literacy, an

effective postal service, and a bank account or bank access. This minimum level cannot

always be achieved in rural areas and, therefore, a more practical way of conducting the trans-

action becomes necessary. The use of prepaid services is the approach adopted to solve the

dilemma.

6. Telecommunication service penetration

Telecommunication service penetration is a crucial index that helps one to understand the evol-

ution of the system. It is so because development spurred by IT is commensurate with the extent

to which telecommunication service is made available across the country, provided that people

have the means to access and use it. Table 4, although based on estimates, gives a glimpse of the

evolution of the subscribers’ size for the period 2000–2010 for both landline and mobile

telephones.

The number of landline telephone subscribers shows a significant increase from 2000 to 2005

(from 72,500 clients to 150,000) and a significant decrease in 2007 that seems to have no bounds

(from 108,340 to 50,000 in 2010, mostly due to the earthquake). It is assumed that a good chunk

of this clientele has migrated to cellular phone use (Table 5).

In contrast to the diminished use of the fixed telephones, the cellular phone has enjoyed a

spectacular surge in popularity. The number of subscribers has continually increased from

55,000 in 2000 to 4,000,000 in 2010. In practical terms, this means that half of the population

now owns and uses a telephone.

The available data show moderate increases in Internet subscriptions from 7000 in 2000 to

100,000 in 2007. When one considers the macrostructure of the evolution of telecommunication

Information Technology for Development 105

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Table 3. Cellular phone and Internet service providers by department (2009).

DepartmentsWest (includingthe capital city) South Center Northeast Artibonite Northwest Nippes North Southeast Grand’Anse

Population 3,093,698 745,000 603,989 308,385 1,358,214 556,206 300,000 990,043 518,200 371,685Cybercafes 1000 46 14 12 125 40 63 30 11Television stations 32 (1CTV) 9 7 1 12 3 1 10 8 3Radio stations 67 47 25 4 132 38 13 36 30 20Libraries with Internet

access_ _ 0 0 0 1 0 0 2

Schools with Internetaccess

_ 2 5 2 _ 0 6 10 5 4

Providers of Internetand telephoneservices

HaiNet HuguesNet Digicel 0 AccessHaiti

DirecwayAccessmobile

0 Hainet Hainet TelevenusAccessHaiti AccessHaiti Voila

Multilink StarBandACN TelecoNet

Providers of mobilephone services

Digicel Digicel DigicelVoila

DigicelVoilaHaitel

HaitelComcel

TelecoDigicel

Digicel DigicelVoilaHaitelTeleco

TelecoHaitel

Haitel,DigicelVoila

Teleco Comcel VoilaComcel Haitel Digicel Comcel Haitel Voila

DigicelHaitel Teleco Teleco Voila TelecoHaitel

Source: This table is compiled from data included in the following field reports: CONATEL, regional field reports: West, North, Southeast, Grand’Anse, Artibonite, Center, Nippes,Northwest, Northeast, and South (2009).

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service penetration in Haiti, the cellular phone emerges as the leader of the pack, followed by the

Internet. In contrast, the landline phone is no longer the preferred means of communication as it

was prior to 2001.

7. IT as a generator of employment

Distinct particularities of each of the geographic departments of the Republic are illuminated

through the reports filed by regional field officials from CONATEL and these dossiers agree

on one thing – the introduction of IT in a region brings about the creation of ancillary jobs.

First, service providers hire clerks to process clients’ paperwork, technicians to install and

repair the equipment, and administrators or managers to coordinate work output and enhance

profit. Therefore, telecommunication companies have brought a great deal of jobs to each depart-

ment. The greater the number of IT companies is in Haiti, the more the local economy is stimu-

lated by job growth.

Table 4. Landline and cellular phone subscriptions.

YearFixed telephone

subscriptions

Fixed telephonesubscriptions per 100

inhabitantsMobile cellularsubscriptions

Mobile cellularsubscriptions per 100

inhabitants

2000 72,500 0.84 55,000 0.642001 80,000 0.91 91,500 1.042002 130,000 1.45 140,000 1.572003 140,000 1.54 320,000 3.532004 140,000 1.52 400,000 4.342005 145,000 1.55 500,200 5.352006 150,000 1.58 1,200,000 12.662007 108,340 1.13 2,500,000 26.022008 108,000 1.11 3,200,000 32.872009 107,000 1.08 3,648,000 36.982010 50,000 0.5 4,000,000 40.03

Source: CONATEL (http://www.conatel.gouv.ht/); International Telecommunication Union (www.itu.int); BMI (www.businessmonitor.com). Accessed on 12 April 2012.

Table 5. Internet subscriptions.

YearPercentage of individuals using

the InternetFixed Internetsubscriptions

Fixed Internet subscriptions per 100inhabitants

2000 0.23 7000 0.82001 0.34 10,000 0.112002 0.89 30,000 0.342003 1.65 50,000 0.552004 5.4 75,000 0.812005 6.38 – –2006 6.8 – –2007 7.2 100,000 1.042008 7.6 – –2009 8.1 – –2010 8.37 – –

Source: CONATEL (http://www.conatel.gouv.ht/); International Telecommunication Union (www.itu.int); BMI (www.businessmonitor.com). Accessed 6 April 2012.

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Second, telecommunication services create ancillary jobs for individuals who are not direct

employees. Examples include repair work for television and cellular phones; teaching outlets for

apprenticeship in the use of computers; individuals hired for the wiring of houses; part-time

employees in janitorial positions at the workplace; individuals hired on a freelance basis to

write letters and read emails to those who are illiterate; individuals hired to staff cybercafes

and call centers; itinerant sellers of prepaid telephone cards; and local entrepreneurs who estab-

lish stores for transactions in second-hand, stolen, or contraband equipment. Street vendors who

feed Internauts with a supply of junk food, the corner snack bar that receives extra clientele, and

the landlord who rents the premises to the manager of the telecommunication business may also

be considered beneficiaries of ancillary jobs created by the spread of IT services. A wide range of

people benefit because of the marginal profit that they gain from the establishment of telecom-

munication services in their communities.

These new jobs show the multiplying effect of IT adoption and the positive contributions to

the growth of the economy on a region-by-region basis. It is a means by which cash is produced,

new jobs are created, and innovation is sustained. One may use the cybercafe telephone or

Internet services to request funds from family members in the diaspora, sell goods or services,

and access useful information. Remittances from family abroad received through cyberspatial

transactions are sometimes used to develop small retail businesses and, in times of cash flow

problems, to prevent bankruptcy.

8. Conclusion

The IT revolution has contributed much to the modernization and nascent development of

certain aspects of the Haitian economy. It has helped to synchronize the country with the rest

of the world through the digitization of the banking system and the government’s administrative

services, through online transactions in the commercial sector, and through the overall access to

information afforded to the population. The free competitive environment in which the IT

business sector operates has had the beneficial impact of lowering costs and allowing a

greater number of people the opportunity to access IT services. Introduction and spread of the

mobile phone have resulted in advantageous incremental economic development of the country.

The telecommunication and development literature has identified different forms of IT

interventions and practices aimed at fostering economic growth and development similar to those

found in Haiti (Brown, 1995; Cuthbert & Hoover, 1991; Dunn, 1995; Hudson, 1984). These

range from developing infrastructures, establishing telecenters, providing computers to schools,

and crafting new telecommunication policies. Despite these early efforts, much needs to be

done in the telecommunication sector in order to make the country more competitive in this

digital age.

Despite efforts deployed by successive governments and the private sector, the level of IT

penetration and use among Haitians remains low in comparison with that in other countries.

In 2009, “Haiti’s fixed-line penetration was only 1.8 percent. Mobile density was emerging at

around 35 percent while Internet penetration remained below 1 percent” (TeleComPaper,

Wednesday 5 May 2010).

Although the Haiti example is similar to companion cases in the Caribbean and the Global

South generally, in terms of generation of employment, regulatory policy, market penetration,

state-owned telecommunication companies, Internet access, and cellular phone operators, it

also has its structural and cultural specificity. It is worth mentioning four of the variables as

they directly impact the IT sector: diaspora, illiteracy, a shrinking middle class, and emigration

of skilled IT workers. The diaspora has played a unique role in this area through the expertise

that it puts to use in the private sector. It provides IT services to the country through

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businessmen, consultants, and technicians; the television and telephone sets that they donate to

their family members; and the remittances they send that are used to pay for phone and Internet

services. The high level of illiteracy in Haiti is an impediment to Internet use by the majority of

the population. Furthermore, emigration of skilled workers to North America bleeds the middle

class, a hemorrhage that cannot be easily stopped because of the lack of employment and the low

wages earned by this technical cohort in the labor force.

All in all, this paper shows the extent to which the IT industry in Haiti has contributed to the

economic growth of the country. It pinpoints four areas in which the impact is most visible: (1)

the employment that the growth of the IT industry generates in both the informal and formal

sectors of the economy; (2) the sizeable amount of taxes that it disburses to the coffers of the

state; (3) the crucial communication services that it provides to the business community (e.g.

banking); and (4) the remittances flows that it facilitates by the use of the Internet and cellular

phones to request money from parents abroad, either for domestic consumption or for resolving

cash flow problems in the running of local businesses.

Although this paper was prepared before the 12 January 2010 earthquake in the Plaintain

Garden Enriquillo Fault that devastated the capital and other cities, it nevertheless explains

the constraining environment in which IT policy and practice in Haiti have evolved. It also

reminds us that in this post-earthquake period, one must be diligent in including an IT dimension

in the rebuilding and reengineering of the digital infrastructure of the country.

Acknowledgements

I thank Christine Bae, Preeti Shekar, Aileen Ford, Annita Lucchesi, Mariam Yousuf, Laura

Kaufmann, Stephanie Blazek, and Sochi Indomitable for research assistance in the preparation

of this paper and the three anonymous reviewers for their useful comments.

Notes on contributor

Michel S. Laguerre, Professor and Director of the Berkeley Center for Globalization and InformationTechnology, is the author of Network Governance of Global Religions: Jerusalem, Rome and Mecca,Routledge Research in Information Technology and Society Series (Routledge, 2011).

His new volume, Parliament and Diaspora in Europe (Europe in Transition: The NYU EuropeanStudies Series) is scheduled for publication in 2012 (Palgrave Macmillan Press).

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