Incentives Drive Behaviors

On my morning run to Sans Souci, an acrid smoke enveloped the valley. This is not unusual, and occurs when trash that has accumulated is being burned in open pits.

A truck arrived with supplies, and local men, eager to earn some income rapidly unloaded it, even though it was into the incorrect place. They will need to be hired again to move it and will receive additional compensation.

 

A vibrant market has sprung up in front of the hospital, and it has grown larger since my first trips 2 years ago. Just down the street is a freshly renovated building with an office supporting Haitian tourism.

Free market economies are human nature.

The dire economic condition of Haiti, compared to the West, leads many to believe that the country is completely dependent on outside support. It is easy to characterize the population as indifferent. Yet what is clear, is that people will adapt to their environment, and incentives will drive behaviors.

The truck is a classic example. Filled with supplies, it arrived unannounced at the end of the day. The first gate was near a storage facility about 400 yards from the proper site. Supplies shouldn’t be left out for fear of damage, and the truck needed to return to its base. Twenty five men appeared and began to work understanding they would receive a few dollars. The supervisor acknowledged the issue, but said that they could come back again tomorrow and move everything to its proper site. In Western terms, the amount of money is small, and other than convenience issues, there’s no huge downside. Yet for the men, eager to work, the inefficiencies led to additional resources for them and their families.

The market outside the hospital initially sprung up to provide a source of food for patients and staff. Subsequently, with expansion of bed capacity and the paving of the road from Cap, more demand has developed. My favorite fried plantain and empanada place is there, and the owner recognizes me and will cut me a deal, knowing that if the other volunteers see me eating the street food (only fried and no meat) they might try it. There are more motorcycles leading to a brisk business in oil and supplies. Buildings are being completed around the compound and this has brought additional potential customers. Perhaps due to some sense of optimism, tourism is again being encouraged.

So what does free enterprise have to do with burning trash?

There is no organized sanitation system and recycling, other than coke and beer bottles, is unheard off. It’s easy to just toss trash in the gutters or the river. In Los Angeles and other cities, trash (biomass) is a welcome commodity, as it can be burned in a controlled environment to generate electricity. What is we created the same type of demand for trash in Haiti? Those looking for income would gather waste and bring to a central facility where a market based amount is paid. The cleanly generated electricity would reduce the need for coal or diesel powered generators. The electricity would support other areas of economic development. And there were be less need to burn the plastics in open pits.

Perhaps I’ve taken too many courses on entrepreneurship and launching new businesses. Yet by looking at basic human behaviors, and evaluating the environment, great strides can be made that can yield economic, social, and environment benefit in multiple realms.