Weekly Links Round-Up: Haiti’s Economic Future, MINUSTAH Poll, and More!

December 2, 2011

Invest In Haiti: The Future of the Haitian Economy

President Martelly plans to create 500,000 jobs in three years. Some of these will come from a new Marriott hotel being planned in downtown Port-au-Prince, but he intends even more to come from a new industrial park in Caracol, Haiti.

Pairs Well With: This investigation finding that the garment industry – which will take center stage in the new industrial park – has been fraught with union suppression.

Also Pairs Well With: This Haiti Grassroots Watch investigation highlighting the wage suppression, poor working conditions, and bad track record of “sweatshop-led development” in Haiti.

 

USAID begins construction at the industrial park in Caracol, Haiti.

 

MINUSTAH Poll & Doublespeak

A new poll finds that two-thirds of Haitians want the immediate withdrawal of UN forces.

Pairs Well With: The headline-making line about the UN, however, came from Nigel Fisher, deputy Special Rep of the Secretary General for Haiti. In a press conference this week, he claimed that “only media and elites” want the UN out of the country – just days after the poll’s release.

 

Quick Hits

The US government decided to lift an 18-year arms embargo, which was only intermittently observed while in place.

The World Bank approved a $255 million plan to provide housing and education in Port-au-Prince in response to the disbanding of the Interim Haiti Recovery Commission.

 


Links Round-Up: Minister Forced to Resign, Army Put on Hold, And More

November 23, 2011

Breaking News Alert

The Minister of Justice, Josué Pierre-Louis, resigned yesterday under pressure from Haitian parliament. He was charged with participating in the illegal arrest of an opposition party parliamentarian, Arnel Belizaire. Most believe the arrest was retribution for a public spat between Belizaire and the President.

 

Security

President Michel Martelly delayed the re-establishment of the Haitian army pending a ‘civilian commission’ recommendation, due on Jan. 1. Most likely this change occurred because of insufficient funds, or pressure from international actors.

Pairs Well With: The homicide rate in Haiti is not only lower than implied by the media, but is actually well below the average for Latin America and the Caribbean, according to a new study.

Also Pairs Well With: Our post urging everyone to move past the debate over lawlessness in Haiti, which is one of the main justifications for bringing back the army.

 

Economy and Trade

The Ministry of Trade seeks to attract investors, declaring: Haiti is open for business (h/t @moiracathleen).

Pairs Well With: Two articles showing how wage and union suppression have been used to deny the benefits of foreign investment to Haiti’s poor. In other words, investment is great – but only if the right regulations are in place.

The emergence of a vibrant entrepreneurial class in Haiti is one of the best defenses against predatory foreign investment. That’s why it’s exciting to hear that one of our partner groups, the What If? Foundation, is starting a club focused on developing students’ entrepreneurial skills.

Pairs Well With: Haiti’s first annual Global Entrepreneurship Day just concluded, which serves as another positive model of promoting Haitian-driven business ideas, as imposed to foreign-imposed ones.

 

Aid to Haiti

The Center for Economic and Policy Research again picks up on a story that HJA previously covered: the fact that USAID’s reliance on enormous contracts decreases the quality of its aid to Haiti.

Pairs Well With: HJA’s two pieces that focus on the effect of tied aid contracts and “indefinite quantity contracts” (IQCs), which are used because they’re administratively cheap, even though they produce terrible results.


Development Is Political

November 14, 2011

We had a wonderful series of events last week with Lavarice Gaudin, director of operations for the What If? Foundation. Lavarice braved 13 talks over 3 days, which included a panel, public speeches, and class appearances.

Although he offered unique insights each time, several common themes emerged. This post picks up one of those themes for further discussion.

Power and Politics in the US-Haiti Relationship

“The US relationship with Haiti is like somebody who breaks your legs, and then asks: why are you crippled?” – Lavarice Gaudin

Lavarice Gaudin at the University of Minnesota. Photo Credit: Paul Miller.

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Lessons From The FOIA Series

August 30, 2011

In the final installment of our Freedom of Information Act (FOIA) series, we explore different ways the US could’ve handled the relief effort.

The first post revealed that most of our money went to two forms of aid – militarized aid and “tied” food aid – both of which the US is chastised for using because they’re either ineffective or harmful. The second post showed that most of the rest of the money went to the UN – followed by private contractors – and that within the UN, it was allocated in a manner that neglected Haiti’s biggest post-quake challenge.

This time we peek under the hood of the USAID system to understand what led to those choices. This perspective is essential not only for explaining why the relief effort played out as it did, but more importantly, for pointing the way forward from here.

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How The Government Used Our Money In Haiti: Part II

August 26, 2011

Part 2 of a 3-part series of posts based on our FOIA query.

We received data on how the US government spent more than $1.1 billion in Haiti during 2010 through a Freedom of Information Act (FOIA) inquiry. In our last post, we looked at the spending breakdown by mechanism. This time, we analyze the individual recipients of aid.

Haiti experts have repeatedly criticized the US for excluding the Haitian government and Haitian companies from the reconstruction. The FOIA data proves them right: USAID and the State Department gave money to 6 US government entities and 7 UN agencies, but none to the Haitian government. Moreover, no NGOs or contractors listed in the FOIA were Haitian.

 

 

The Big Recipients: Faith in Government

The graph below shows the largest recipients of aid. Military aid was excluded from this analysis, because we covered it last time. For perspective, the average disbursement size is roughly $7 million.

Most money went to governmental or intergovernmental efforts, followed by contractors, with NGOs receiving the least.

 

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How The Government Used Our Money In Haiti: FOIA Request

August 23, 2011

Part 1 of a 3-part series of posts based on our FOIA query.

This summer, Beltway chatter about Haiti crystallized around one question: where did all that reconstruction money go?

We decided to find out. We submitted a Freedom of Information Act (FOIA) request to USAID. The goal was to learn 2 things about our post-earthquake spending in Haiti: 1) whom USAID had given money to, and 2) for what purpose.

USAID gave us information about aid from 3 government agencies: USAID, the State Department, and the Department of Defense[1]. It covered $1.1 billion of aid, all allocated in 2010 after the earthquake.

The first graph shows spending by “mechanism.” Think of the mechanism as the purpose for the aid in question.

For instance, the OFDA mechanism was for basic disaster relief: health, shelter, search and rescue, etc. The OTI mechanism was for programs focused on reconstruction (“Building Back Better”) rather than relief.

Calculated based on data provided by USAID through our FOIA Request

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Learning from Clinton’s Cancer Shelters: How We Give Aid Matters

July 24, 2011

Lab tests conducted as part of our investigation in Haiti discovered levels of [formaldehyde] in the 6th-grade Clinton Foundation classroom in Léogâne at 250 parts per billion…

Randy Maddalena, a scientist specializing in indoor pollutants at Lawrence Berkeley National Laboratory, characterized [it] as “a very high level” … in “normal” buildings, you’ll see rates 12-25 times lower than 250 parts per billion, “and even that’s considered above regulatory thresholds.”

You should get those kids outta there,” Maddalena said.

That’s from last week’s Nation report on the Clinton Foundation shelters in Haiti. To construct the shelters, Clinton contracted with Clayton Homes. Clayton is currently being sued in the US for building formaldehyde-laced trailers after Hurricane Katrina.

The Clinton Foundation deserves harsh criticism for hiring a company known to build carcinogenic shelters in disaster areas. And while this would be embarrassing for any organization, it’s particularly inexcusable for Clinton. Why? Because this project was the Clinton Foundation’s first contribution to the Interim Haiti Relief Commission, a group Clinton also co-chairs, which exists to “review all projects proposed by Haitian government ministries and donors” to make sure they “fit Haiti’s needs.”

All Aid Isn’t Created Equal

But simply jumping on the Clinton-bashing bandwagon ignores the broader problem: the way our aid system is set up makes this result inevitable.

The story begins with a practice called “tying” aid. Tied aid is aid that has to be used on goods and services from the donor country. The practice is bad for people in poor countries, but great for contractors. As Oxfam puts it, tying aid means “the value [of aid] flows right back to the US.” Unfortunately, as the graph below shows, the US ties nearly all of its aid – far more than any other country.

US "tied aid" practices compared to those of other countries. Source: Organization of Economic Cooperation and Development 2006 aid monitoring report.

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