HAITI MONTHLY: OCTOBER, 2008

UNCLAS PORT AU PRINCE 001541

SIPDIS

STATE FOR WHA/EX AND WHA/CAR
S/CRS
SOUTHCOM ALSO FOR POLAD
STATE PASS AID FOR LAC/CAR
INR/IAA
WHA/EX PLEASE PASS USOAS

E.O. 12958: N/A
TAGS: PREL PGOV ECON HA
SUBJECT: HAITI MONTHLY: OCTOBER, 2008


1. (U) Summary: This is a monthly report on various topics
of interest which do not merit a full reporting cable. End
summary.

POLITICAL HIGHLIGHTS
--------------


2. (U) HOSPITAL STRIKE. Resident physicians in the two major
hospitals in the capital and a hospital in Cap Haitian have
been on strike for nearly three weeks demanding back pay and
better working conditions. Press reports are shedding light
on abominable conditions for patients and doctors in
hospitals.


3. (U) UPTICK IN KIDNAPPINGS. More cases are being reported
this month. Judicial Police head Franz Thermilus warned
families of victims not to negotiate with kidnappers without
reporting the crime. Otherwise, police would consider them
suspects in the case.


4. (U) BORDER SECURITY PLAN IN THE WORKS. Secretary of State
for Economy and Finance Sylvain Lafailaise convened a meeting
on October 30 to discuss a border security initiative that
the National Council for Coordination and Management of the
Border (CNCGF) will submit to President Preval at the end of
November. (Note: CNCGF is a newly formed organization that
is not yet legal. End note.) The project, funded by the
Canadian government, will integrate the management of Haiti's
borders, bolster national security, and heighten the
government's anti-drug trafficking efforts. Participating
GOH agencies include National Customs Authority, National
Airport Authority, Maritime and Navigation Service, Haitian
National Police, Ministry of Tourism, Planning and External
Coordination, and the office of the Secretary of State for
Public Security.

ECONOMIC HIGHLIGHTS
--------------


5. (U) SLIGHT REDUCTION OF THE FUEL PUMP PRICES. Following
the downward trend of the world oil prices, under rising
local discontent, fuel pump prices were reduced on October
21st. The Haitian Government announced an eleven percent
decrease on 91 octane gasoline from 5.82 USD to 5.20 USD; a
six percent decrease on diesel from 4.28 USD to 3.96 USD; and
a 10 percent decrease on kerosene from 4.20 USD to 3.73 USD.
There was no price decrease on 95 octane gasoline which
stayed at 6.18 USD.


6. (U) INFLATION. Inflation figures for September for the
Haitian National Statistical Institute show a 2.6 percent
rise in the Consumer Price Index for the month, bringing the
past 12 month inflation rate to 19.8 percent. Food/beverage
inflation for the past 12 months is 27 percent (20 percent on
local products, 37 percent on imported food/beverages),while
energy prices (mostly petroleum products) are up 38 percent
for the past year and public transport costs up 36 percent
for the same period.


7. (U) EVOLUTION OF MONEY SUPPLY. In August, the broad money
supply reached 2.3 billion USD, increased by 21.5 percent
over August 2007 and way above the 10.6 percent increase
targeted by the IMF. The main factors causing the money
supply increase were: the PetroCaribe funds (in April 2008)
which increased the amount of U.S. deposits; the Central
Bank's interventions in order to stabilize the gourde
exchange rate; and the flows of external grants.
SANDERSON