It will be necessary to rebuild textile factories like this one in Haiti, as well as build more of them. Photo: NewsHour (flickr)

For aid workers and development experts, simply restoring Haiti to its pre-quake conditions will not be enough. Even before the earthquake about half of the population did not have access to clean water and 90 percent of children suffered from water-born illnesses, reported PRI.

What will it take for conditions to improve? Many argue that a robust private sector will be a key part of the country's long-term recovery and ascent out of poverty. As New York Times columnist Nicholas Kristof opined, "Haiti desperately needs new schools and hospitals, but also new factories." The government services and infrastructure that NGOs and development agencies will help rebuild may provide the groundwork for a healthy economy, but their efforts cannot by themselves make it grow.

The country actually has several factors that amount to unusually good conditions for economic development, argued a report for the UN last year. Unlike many disaster zones, Hait's neighboring countries are stable, while its political leadership "is good by the standards of most post-conflict situations." Haiti's wealthy expatriate community in the U.S. and Canada funnel cash and investments there. (They contributed approximately $1.3 billion in 2008.) Some types of investment look particularly auspicious: Haiti's special trade agreements with the U.S. mean it can export goods there duty-free, making the country "the world’s safest production location for garments," while the labor it would provide manufacturers is the cheapest in the region. Significant barriers to economic growth remain, but Haiti has some often-overlooked advantages in the struggle to recover.

A market in Port-au-Prince, Haiti. Photo: Cassandra Nelson/Mercy Corps

Haiti’s informal economy has begun to flourish despite the destruction caused by the 7.0 magnitude earthquake that hit the country on Jan. 12, the GlobalPost reports.

[D]espite the lawlessness and absence of government, the Haitian people have started to reactivate their street economy amid the ruins, providing a vital lifeline… as the first week since the quake came to a close, Haitians pulled their few resources together to get small shops and market stalls open, rickety buses and motorbike taxis moving and local radio stations on air.

At two weeks after the disaster, many residents are still living and sleeping outdoors. These conditions have contributed to a new street culture in Port-au-Prince, where many are finding new business opportunities. The Miami Herald says barbers, impromptu phone booths and laundry services can be found at almost every street corner.

Even before the earthquake it's estimated that 80 percent of workers in Port-au-Prince operated in the informal economy, according to the Miami Herald. With the city now in ruins, the Herald suggests that many Haitians previously employed in the formal sector are looking for more informal work so they can earn a little money.

Sauveur Celestine, who was once an accountant, tells the Herald that he is now recharging cell phones using discarded car batteries to make ends meet. “This has enabled me to earn some money that is not a great amount,” says Celestine “but at least it is enough for me to buy two meals a day.”

Cassandra Nelson helps to distribute high-energy biscuits to locals at a hospital in Port-au-Prince. Mercy Corps

Yesterday the banks reopened in Haiti for the first time since the earthquake rocked the small island on January 12th.

Mercy Corps' spokeswoman Cassandra Nelson, who is on the ground in Port-au-Prince, stressed the importance of the banks reopening in her latest post on the Mercy Corps blog. "This means a lot to the aid effort, because there are a lot of people in Port-au-Prince who have some money — maybe not a lot — but they were having to live on handouts simply because they couldn't access their money." Without cash on hand, even wealthier Haitians were forced to seek handouts while the banks were closed.

As cash became more readily available throughout the day, Nelson saw the street economy reinvigorate from the rubble of damaged store fronts. Hawkers selling bananas and mangoes are helping restart the flow of food and resources within the country, allowing aid agencies to focus on those who are most in need of help.

You can keep up with the latest news about Mercy Corps' relief efforts in Haiti by clicking here.

View of impromptu tent city in the middle of Haiti's capital. Photo: United Nations Development Programme (flickr)

Haiti has just received another powerful blow. A powerful 7.0-magnitude earthquake rocked Haiti's capital on Tuesday, devastating a country that has seen more than its share of disasters both man-made and natural over the last few years. The news reports trickling in paint a bleak picture of almost unimaginable ruin.

I was privileged to witness some amazing progress in this tiny country that has long carried the dubious distinction of being the poorest nation in the western hemisphere during my annual and semi-annual trips to the island nation since the election of a new president in 2006. Paved roads and bridges had begun to appear across raging rivers that kept villages isolated. In the small community of 40,000 where most of my work took me, Engineers Without Borders drilled and installed seven clean water wells that dramatically lowered the infant mortality death rate. In a community that had once had just one Cuban-trained health worker who functioned without medicine or equipment, a small staff of doctors and nurses began to provide health care. A fragile sliver of hope had begun to take root.

This earthquake has devastated a country that does not have the resources to recover on its own. Mercy Corps’s has dispatched a response team to rush critical supplies and other urgent assistance to survivors. More staffers will arrive in the coming days.

As more aid workers arrive, they will face huge challenges. Haiti's international airport has just one runway and no taxiways, so airplanes that land there have to do a U-turn at the end of the runway and taxi back to a parking space. I can imagine that right now, that one runway and the airspace around Port au Prince is busier than a Los Angeles freeway. On the ground, the Mercy Corps team may find that accommodations are sparse or non-existent. Reports indicate that even major buildings in the capital city have been heavily damaged or destroyed. Security will also be an issue. The United Nations peacekeeping forces have provided the most reliable security in the country, but they themselves have been devastated by the death and injury of key personnel. Food and safe drinking water were never abundant, but now they will be even scarcer. Over the coming weeks and months Haitians will face tremendous obstacles to recovery.

Thankfully, the professionals at Mercy Corps have seen all of this before. They have a long history of helping earthquake survivors in other countries: Peru, China, Pakistan, and Indonesia. I have no doubts about their capacity to provide the best possible support in this situation. Several people have asked how they could best help with Mercy Corps’s effort. Really, the best way anyone could help is to make a cash donation to the Mercy Corps Haiti Earthquake Fund. As a matter of policy Mercy Corps does not use volunteers or donated materials like clothing from the general public in their relief efforts.

With a combination of generous donations and Mercy Corps' tremendous professional resources we can help Haiti survive this devastating body blow and replant the small seeds of hope that I saw grow there over the past few years.