[5] Two-fifths of all Haitians depend on the agriculture sector, mainly small-scale subsistence farming, and remain vulnerable to damage from frequent natural disasters, exacerbated by the country's widespread deforestation.

[5] Haiti suffers from a severe trade deficit, which it is working to address by moving into higher-end manufacturing and more value-added products in the agriculture sector.

According to a 2014 study, the Haitian economy stagnated due to a combination of weak state power and adverse international relations.

[19] The authors write:[19] For the newborn 'Negro republic', it was hard to become recognised as a sovereign nation state, it was difficult to form strategic alliances, to get access to foreign loans, and to safeguard trade interests, and it was overloaded with debt under threat of external violence (the French indemnity).

When opportunities for export-led growth opened up in the late 19th century, the odds were stacked against Haiti.The United States invaded and occupied Haiti from 1915 to 1934.

In the aftermath of the 1994 restoration of constitutional governance, Haitian officials have indicated their commitment to economic reform through the implementation of sound fiscal and monetary policies and the enactment of legislation mandating the modernization of state-owned enterprises.

Under President René Préval (1996–2001, 2006 – 14 May 2011), the country's economic agenda included trade and tariff liberalization, measures to control government expenditure and increase tax revenues, civil-service downsizing, financial-sector reform, the privatization of state-owned enterprises, and the provision of private sector management contracts, or joint public-private investment.

inappropriate economic policies, political instability, a shortage of good arable land, environmental deterioration, continued use of traditional technologies, under-capitalization and lack of public investment in human resources, migration of large portions of the skilled population, and a weak national savings rate.

International sanctions culminated in the May 1994 United Nations embargo of all goods entering Haiti except humanitarian supplies, such as food and medicine.

Although FY 2003 began with the rapid decline of the gourde due to rumors that U.S. dollar deposit accounts would be nationalized and due to the withdrawal of fuel subsidies, the government successfully stabilized the gourde as it took the politically difficult decisions to float fuel prices freely according to world market prices and to raise interest rates.

Much of this would be contingent on government adherence to fiscal and monetary targets and policy reforms, such as those begun under the SMP, and Haiti's payment of its World Bank arrears ($30 million at 9/30/03).

While implementation of governance reforms and peaceful resolution of the political stalemate are key to long-term growth,[citation needed] external support remains critical in avoiding economic collapse.

Overall foreign assistance levels have declined since FY 1995, the year elected government was restored to power under a United Nations mandate, when the international community provided over $600 million in aid.

Haiti's economy suffered a severe setback in January 2010 when a 7.0 magnitude earthquake destroyed much of its capital city, Port-au-Prince, and neighboring areas.

[5] US economic engagement under the Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) Act, passed in December 2006, has boosted apparel exports and investment by providing duty-free access to the US.

The government relies on formal international economic assistance for fiscal sustainability, with over half of its annual budget coming from outside sources.

The Michel Martelly administration in 2011 launched a campaign aimed at drawing foreign investment into Haiti as a means for sustainable development.

[23] Following the democratic election of Aristide in December 1990, many international creditors responded by cancelling significant amounts of Haiti's debt, bringing the total down to US$777 million in 1991.

In September 2009, Haiti met the conditions set out by the IMF and World Bank's Heavily Indebted Poor Countries program, qualifying it for cancellation of some of its external debt.

Agriculture, together with forestry and fishing, accounts for about one-quarter (28% in 2004) of Haiti's annual gross domestic product and employs about two-thirds (66% in 2004) of the labor force.

Haiti has decreased its production of sugarcane, traditionally an important cash crop, because of declining prices and fierce international competition.

[28] In 2012, it was reported that confidential agreements and negotiations had been entered into by the Haitian government granting licenses for exploration or mining of gold and associated metals such as copper for over 1,000 square miles (2,600 km2) in the mineralized zone stretching from east to west across northern Haiti.

[further explanation needed] The leading industries in Haiti produce beverages, butter, cement, detergent, edible oils, flour, refined sugar, soap, and textiles.

Additionally, the years of military rule following the presidential coup in 1991 resulted in the closure of most of Haiti's offshore assembly plants in the free zones surrounding Port-au-Prince.

[citation needed] Haiti's cheaper labor brought some textile and garment assembly work back to the island in the late 1990s.

Although these gains were undercut by international competition, the apparel sector in 2008 made up two-thirds[30] of Haiti's annual 490 million US dollars exports.

A unique institution in Haiti is the Madan Saras who are the large number of women who buy and transport agriculture produce from farm to market.

When reelected in 2000, President Aristide promised to remedy this situation but instead introduced a non-sustainable plan of "cooperatives" that guaranteed investors a 10 percent rate of return.

The United Nations and the International Monetary Fund have led efforts to diversify and expand the finance sector, making credit more available to rural populations.

The Caribbean Tourism Organization (CTO) has joined the Haitian government in an effort to restore the island's image as a tourist destination.