Haitian President René Préval says that his country no longer deserves its “failed state” stigma, and he is right. Haiti’s recent progress is real and profound, but it is jeopardized by continued institutional dysfunction, including the government’s inexperience in working with Parliament. There is an urgent need to create jobs, attract investment, overhaul and expand access to basic social services, and achieve tangible signs of economic recovery. Now that the United Nations has extended its peacekeeping mandate until October 2008, the international community must seek ways to expand the Haitian state’s capacity to absorb development aid and improve the welfare of the population. The alternative could be dangerous backsliding.