Haiti

Legal framework

The legal framework analysis aims to provide general knowledge of the national cooperative legislation and of its main characteristics and contents, with particular regard to those aspects of regulation regarding the identity of cooperatives and its distinction from other types of business organisations, notably the for-profit shareholder corporation.

It aims to evaluate whether the national legislation in place supports or hampers the development of cooperatives, and is therefore “cooperative friendly” or not, and the degree to which it may be considered so, also in comparison to the legislation in force in other countries of the ICA region, or at the supranational level.

In addition, the research aims to provide recommendations for eventual renewal of the legal frameworks in place in order to understand what changes in the current legislation would be necessary to improve its degree of “cooperative friendliness”, which is to say, to make the legislation more favourable to cooperatives, also in consideration of their specific identity. This webpage presents a snapshot of the legal framework analysis results for Haiti.

The Law on cooperatives dates back to September 14, 1953 and related to the organization of cooperatives and established the National Council of Cooperative (CNC). This Law on cooperatives was amended by decree to three (3) repeated: by the decree of October 27, 1960, by the decree of June 18, 1974 and by the decree of April 2, 1981.

 

Cooperative Friendliness

An appropriate legal framework where financial services cooperatives (Caisses) and economic services cooperatives (agricultural, multi-purpose, production) can have their own legislation; government leadership provided by the CNC to reform the Law, review its powers and be allocated resources in relation to those responsible; promote concerted action between supervisory agencies and donors to ensure consistency in supporting cooperatives.

 

Key recommendations for improvement

  • Proposal for a new Law on the Savings and Credit Cooperative which will be much more complete, which should correct certain shortcomings of the current law of June 2002.
  • Census of cooperatives on the (10) departments of the Republic of Haiti.
  • The provision of the Cooperative sector in general and the credit unions in particular of the means necessary for the creation of a forum aimed not only at restoring the image of the sector, but at making known its benefits to all.
  • Ensure that education and information training for members and the general public are respected as provided for in (art. 5) on Cooperative Savings and Credit Laws.

 

Conclusions

The majority of cooperatives find themselves in a precarious situation which is detrimental to their development. The structural mechanisms put in place are not adequate. Legislation that includes cooperatives in general does not ensure compliance with financial standards, which must be observed by Savings and Credit Institutions, for better protection of members' savings. Certain laws relating to taxation and others of cooperatives which have been highlighted in articles, 42, 49, 58, deserve to be called into question.

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