1981 · Haitianyear only
Mexico and Venezuela cut off Haiti's concessionary oil
›Read the full entryClose
Mexico and Venezuela sold oil to Haiti below the market price, an arrangement meant to keep small importing countries in the region solvent while prices were high. In 1981 both suppliers suspended it. The Duvaliers had sold a cargo before it reached Port-au-Prince, pocketing the difference between the concessionary price they paid and the market price a third party would pay. The same trick had already been worked on a shipment resold to South Africa, where an oil embargo made buyers generous, and only Interpol had kept those profits from reaching the president's father in law. What the state lost was more than one cargo. Concessionary oil was one of the few forms of assistance that arrived as a commodity rather than as a project, which made it difficult for donors to supervise and easy for a government to turn into fuel for its own country. After 1981 Haiti bought at the full price, in a year when its foreign reserves had already been emptied.