Background:
The native Arawak Amerindians - who inhabited the island of Hispaniola when it was discovered by Columbus in 1492 - were virtually annihilated by Spanish settlers within 25 years. In the early 17th century, the French established a presence on Hispaniola, and in 1697, Spain ceded to the French the western third of the island - Haiti. The French colony, based on forestry and sugar-related industries, became one of the wealthiest in the Caribbean, but only through the heavy importation of African slaves and considerable environmental degradation. In the late 18th century, Haiti's nearly half million slaves revolted under Toussaint L'OUVERTURE and after a prolonged struggle, became the first black republic to declare its independence in 1804. Haiti has been plagued by political violence for most of its history. It is the poorest country in the Western Hemisphere.

Economy - overview:
In this poorest country in the Western Hemisphere, 80% of the population lives in abject poverty. 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 shrank an estimated 1.2% in 2001 and an estimated 0.9% in 2002. Suspended aid and loan disbursements totaled more than $500 million at the start of 2003. Haiti also suffers from rampant inflation, a lack of investment, and a severe trade deficit. The resumption of aid flows from all donors will alleviate but not end the nation's bitter economic problems. Extensive civil strife in early 2004, marked by the flight of President ARISTIDE, further impoverished Haiti.

For more information please visit:
CIA World factbook