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Subject

Haiti fuel riots.

Significance

Prime Minister Jack Guy Lafontant and his cabinet resigned on July 14, after a government attempt to remove fuel price subsidies sparked deadly protests across the country. The unrest prompted the swift reversal of the policy but has left President Jovenal Moise struggling to appoint a new ministerial team and regain popular confidence.

Impacts

Maintaining fuel subsidies will reduce projected social spending, increasing frustration among the poorer sectors of society.

The new prime minister will need opposition support and may not be willing to sponsor contentious government policies.

Investor and donor concern about revived violence could delay funding for projects, weighing down GDP growth.

Rising food prices are likely to add to social unrest, triggering or at least exacerbating future riots.

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