HaitiHaiti: Relief and Reconstruction Watch is a blog that tracks multinational aid efforts in Haiti with an eye towards ensuring they are oriented towards the needs of the Haitian people, and that aid is not used to undermine Haitians' right to self-determination.

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The first of two installments looking at the New York Times in depth investigation into the Caracol industrial park. Part two will be posted shortly.

Deborah Sontag, writing in today’s New York Times, takes a detailed look at the new Caracol industrial park being built in northeastern Haiti, finding that in their rush to show reconstruction progress the plan’s backers have overlooked labor and environmental concerns. Sontag writes:

Two and a half years after the earthquake, Haiti remains mired in a humanitarian crisis, with 390,000 people languishing in tents. Yet the showcase project of the reconstruction effort is this: an industrial park that will create jobs and housing in an area undamaged by the temblor, a venture that risks benefiting foreign companies more than Haiti itself.

The park, whose main tenant Sae-A expects to generate some 20,000 jobs over the next six years, has been made possible by generous subsidies from the U.S. and Haitian governments and the Inter-American Development Bank (IDB). Sae-A officials were invited to the U.S. embassy in Seoul to meet with Secretary of State Clinton in 2010. One concern the company had at the time was “uncertainty about whether Haiti’s minimum wage for textile workers, scheduled to increase to $5 from $3.75 a day this October, would continue to rise.” Wikileaks cables later revealed that the U.S. embassy in Haiti, along with some multinational companies had “aggressively moved to block a minimum wage increase for Haitian assembly zone workers,” according to The Nation.  While the minimum wage has increased, 18 out of 20 factories monitored by the Better Work Haiti program were found to be non-compliant on the minimum wage in their most recent assessment published in April.

Despite the “obstacles,” and convinced by legislation providing tariff-free access to the U.S. market, Sae-A officials were soon heading to sign an agreement -- but not in Haiti, in Washington:

By late summer, they were flying with their investment plan to Washington for a meeting with Mrs. Clinton and other international officials in a historic treaty-signing room on the State Department’s seventh floor.

While Sae-A originally estimated the project would create 3,000-4,000 jobs, American and international officials wanted more:

“We would say, ‘We could probably do a factory with about 3,000 to 4,000 people.’ They’re like, ‘Wow. What would you need to make it bigger?’ I [Lon Garwood, senior advisor to Sae-A] said, ‘If we could get a loan for the machines, we could probably double that.’ They said, ‘What about 10,000?’ We said, ‘If we didn’t have to worry about purchasing the land, if we didn’t have to build the factory shells, then we could double it again.’ That’s where the 20,000 jobs figure came from.”

In the end, the land was provided free of charge by the Haitian government (evicting some 350 farmers in the process), the IDB agreed to provide $100 million to finance the building, while the U.S. would contribute $124 million for a power plant, housing and a port. Sae-A, which reported $1.1 billion in export business last year, only needs to invest $39.2 million. The $124 million provided by the U.S. is over a quarter of the money the U.S. earmarked for reconstruction. 

Last week, the International Organization for Migration (IOM) announced a drop in Haiti’s internally displaced persons (IDP) population to below 400,000. AP reports:

The reduction in the camp population is attributed to a combination of forced removals, rental subsidies and voluntary departures, but it is not clear where the bulk of the people have gone or if their living arrangements are better than the camp conditions.

While previous reports of IDP population decreases were held up uncritically as signs of progress, this time IOM spokesperson Leonard Doyle provided a more nuanced response. While the government-backed relocation efforts have only reached a small portion of the IDP population, Doyle notes that “As for the rest we don't know [where they ended up],” adding, “[a] lot of these people we know have pitched tents on the side of the mountains.” Indeed, a simple look at the available numbers suggests that many of those that have left the IDP camps monitored by the IOM have not found adequate shelter.

The IOM touts a 75 percent reduction in the camp population since July 2010, amounting to a decrease of over 1.1 million people. Yet as of April 2012, only 12,000 rental subsidies were given out, 13,000 houses were repaired and just fewer than 5,000 new homes were constructed. In total, these three solutions account for only about 12 percent of the reduction in IDP population. Additionally, about 108,000 transitional shelters have been built, which would account for an additional 42 percent. However this likely overstates the effects of the transitional shelter, as it is estimated that only about 40 percent of transitional shelters actually went to IDPs.

Figure I compares the number of households exiting the camps with the number of new housing solutions completed. As can be seen, the majority of the IDP population decrease occurred when shelter implementation was far too low to absorb all the people exiting the camps. This backs up previous studies which have shown that forced evictions and declining services were the primary drivers of the reduction in IDP population.

Figure I.

HousingAbsorption
Graph: CEPR, Author's Calculation Source: E-Shelter and CCCM Cluster

On June 5, Ministers of Defense and Foreign Relations from South American countries met in Asunción, Paraguay  to discuss the future of the UN Stabilization Mission in Haiti – or  MINUSTAH. Ten of the twelve countries in the regional group known as UNASUR – the Union of South American Nations - contribute troops to MINUSTAH and make up nearly 50 percent of the entire force. As we have described in other posts, there has been quite a bit of debate regarding  MINUSTAH in troop-contributing countries, especially Brazil, the largest contributor.

Since last summer, there has also been a wave of civil society opposition to the ongoing presence of foreign military troops in Haiti, as attested by separate letters addressed to Latin American presidents and the UN Secretary General and signed by prominent intellectuals and human rights defenders from throughout Latin America. This opposition has been bolstered by a string of recent sexual abuse cases, including more than one involving troops from UNASUR member country Uruguay, as well as the overwhelming evidence suggesting that MINUSTAH bears responsibility for introducing cholera into Haiti.

As the Telesur correspondent in Paraguay, Amanda Huerta explained, there were two competing positions among UNASUR countries: those that favored a rapid reduction of troops and a shift in focus to reconstruction and humanitarian activities and those who favored maintaining current troop levels until 2014. The final declaration on MINUSTAH noted the need to develop a policy of sustained cooperation which “respects the sovereignty and the self-determination of the Haitian people”. Further, ministers agreed to form a working group “for the purposes of elaborating a scheme on the strategy, form, conditions, stages, and timeline of a Plan of Reduction of Contingents of the Military Component of the Mission.” Given the large role South American countries play in MINUSTAH (an importance clearly recognized by the United States), any decision made on reducing troops would have a tremendous impact on MINUSTAH’s future in Haiti.

A piece yesterday on the Christian Science Monitor's website, written by investigative journalist Kathie Klarreich, discusses the increasing unpopularity of UN troops in Haiti in the wake of multiple sexual abuse incidents and the introduction of cholera in late 2010.  As the article explains, the negative feelings that these scandals have stirred up among Haitians are compounded by the general lack of accountability of foreign soldiers and police personnel that are part of the UN Stabilization Mission for Haiti, or MINUSTAH.

The Monitor
highlights two recent sexual abuse cases involving MINUSTAH personnel, both of which we’ve documented on the Haiti Relief and Reconstruction Watch blog: the rape of an 18 year-old boy by Uruguayan soldiers in Port Salud last year and the rape of a fourteen year-old boy by Pakistani police officers.  In both these cases, after the scandals became public, the alleged rapists have faced judicial pursuits in their countries of origin, though the Pakistani officers only received a one-year sentence, and the trial of the Uruguayan soldiers has moved forward at a snail’s pace.

But there’s no indication that other abuse incidents involving MINUSTAH have resulted in judicial pursuits of any kind.  The Monitor mentions the case of “more than 100 Sri Lankan troops expelled in 2007 on suspicion of sexual exploitation of Haitian women and girls.” But, writes Klarreich:

“no information about what happened to those Sri Lankan peacekeepers was ever made public by either the UN or Sri Lanka.  Member states are not required to divulge the outcome of their internal inquiries.”

In a report that focuses on the case of the Port Salut rape case, Haiti’s National Human Rights Defense Network, lists a number of other cases of human rights abuses allegedly committed by MINUSTAH agents since 2005 that – as far as we know – haven’t been properly investigated or prosecuted.

The Miami Herald’s Jacqueline Charles reports on the planned Caracol Industrial Park in Haiti today, noting that while the project’s funders tout it as “the most visible symbol of post-quake progress”, it remains a source of controversy. Charles writes:

Desperate for any good news after the devastating January 2010 earthquake, the Haitian government signed off on the 600-acre industrial park in this remote rural village without preparing for how the region should eventually look — or absorb the promised jobs. Only now is a zoning plan being developed, but residents and Haiti watchers wonder if it’s coming too late.

Their anxiety is fueled by Haiti’s historically weak institutions and the rush by the international community and Haiti’s leaders to show progress. It is also a reflection of the challenges of working in Haiti where there is continuous friction between need-to-spend foreign aid agencies, which are often perceived as arrogant, and a weak central government.

As a result, Haiti analysts say, projects are often haphazardly started with too little preliminary planning, lopsided consultation and inadequate environmental impact studies.

“The international community has been under immense pressure to show movement and this is the closest they’ve come to have something significantly positive to say about Haiti, investments and jobs,” said Carlo Dade, a senior fellow at the University of Ottawa’s School of International Development and Global Studies. “But on the other hand, this is really one case where there is no excuse for not getting it done right.”

A major issue is what the effect will be of an estimated influx of 300,000 people into the area, where town populations range from 1,500 to 25,000. Charles reports:

“When you look at the social problems that Cité Soleil poses today, you have to ask, did it have to be that way?” said Michèle Oriol, executive secretary of Haiti’s Inter-ministerial Commission on Territorial Planning, which has objected to the park’s location, and that of a U.S.-financed housing development just off the main commercial corridor.

Alex Dupuy, Haiti-born sociology professor at Wesleyan University, comments:

“It’s about tapping a source of cheap labor…They did the same thing in Port-au-Prince, which had people leaving the countryside because of the free-trade policies that have devastated the Haitian agriculture sector. So the fear that the region will be flooded is very real.”

Dupuy adds that the push to support the garment manufacturing industry “has absolutely nothing to do with creating a sustainable growth economy in Haiti.”

As previously mentioned, a release from the UN Office for the Coordination of Humanitarian Affairs (OCHA) this week makes an important call for renewed efforts to combat cholera as infections rise with the rainy season. But further on, the release states that “[OCHA’s Director of Operations John] Ging also visited the Champs de Mars camp for internally displaced people (IDPs), where the International Organization for Migration (IOM) is supporting voluntary return of IDPs.”

But the movement of IDPs out of such camps is often not “voluntary.” This has been the case in Champs de Mars as in many other IDP camps. Stuart Neatby wrote in an article for Canada’s Embassy magazine last month:

Port-au-Prince's Champ de Mars camp, the most visible of the hundreds of remaining camps of Haitians rendered homeless by the 2010 earthquake, saw its first set of forced evictions on April 4.

The tent camp in Haiti's capital city fills the central plaza across the street from the collapsed National Palace, a key government building that used to house the office of Haiti's president.

About 21 camp residents, including [Narcysse] Lud, woke up on March 29 to find their names on a notice warning that their makeshift shelters would be torn down. They were told they had three days to pick up all of their belongings and clear out of the camp.

The International Organization for Migration, which had maintained a census of camp residents, claimed that those to be evicted had not been within the camp during the last head count. As a result, the IOM said, the residents had no claim to stay in Champ de Mars, and the eviction was legal.

Days later, residents could only watch as local municipal workers dismantled and carted away the bits of tarp, plywood, and corrugated sheet metal that had served as their homes. Haitian National Police members, UN soldiers, and UN police officials oversaw the evictions.

While most major U.S. media attention focuses elsewhere, NGO’s and UN agencies are sounding alarm bells about rising rates of cholera infection. A release today from the UN Office for the Coordination of Humanitarian Affairs (OCHA) states

Grave concerns were expressed by aid workers that this year’s epidemic, which has already affected 13,000 people, 132 of whom have died, may escalate. Detection and response capacity are significantly reduced this year due to cuts in aid budgets. The OCHA Director stressed the urgency for new and more sustainable approaches by aid agencies and local authorities, and more commitment by donors. “It is unacceptable that lives are being  lost to cholera because last year’s capacity building in the areas of prevention and response were lost due to a lack of funding,” [OCHA’s Director of Operations John] Ging said.

An Inter Press Service article last week, titled “Funding Dries Up Even as Rains Worsen Cholera Deaths” begins

As predicted, the beginning of the rainy season in Haiti brought exponential increases in the numbers of people sickened and killed by cholera.

While the number of new cases in December was about 300 per day nationwide, this week one centre in the capital alone reported receiving 95 cases per day. And the numbers are expected to increase.

"Between the first week of April and the last week of April, the number of new patients increased by three-fold" in the capital, Gaëtan Drossart, head of mission for Doctors Without Borders or Medecins san frontières (MSF), told IPS on May 16. "In April alone, we saw over 1,600 patients at the four cholera centres MSF supports in Port-au- Prince."

Doctors Without Borders (MSF) warned on Wednesday that not enough has been done to prepare for the rainy season and the corresponding surge in cholera that is expected. The international humanitarian organization stated:

While Haiti’s Ministry of Health and Populations claims to be in control of the situation, health facilities in many regions of the country remain incapable of responding to the seasonal fluctuations of the cholera epidemic. The surveillance system, which is supposed to monitor the situation and raise the alarm, is still dysfunctional, MSF said. The number of people treated by MSF alone in the capital, Port-au-Prince, has quadrupled in less than a month, reaching 1,600 cases in April.

Data from the Ministry of Health (MSPP) backs up this increase noted by MSF. While the average daily case load reported by the MSPP was around 50 throughout March and early April, in the last two weeks of reporting (April 10-23) the average number of daily cases has increased to over 150. MSPP reports that 25 people have died due to cholera through in the first 23 days of April. While these numbers are still lower than last year, they point to an increasing caseload as the rainy season begins. Last year, just as cases were spiking, many NGOs were winding down their operations as donors pulled funding. MSF notes that the same phenomenon may be occurring this year as well:

“Too little has been done in terms of prevention to think that cholera would not surge again in 2012,” said Gaëtan Drossart, MSF head of mission in Haiti. “It is concerning that the health authorities are not better prepared and that they cling to reassuring messages that bear no resemblance to reality. There are many meetings going on between the government, the United Nations and their humanitarian partners, but there are few concrete solutions,” he said.

An MSF study in the Artibonite region, where approximately 20 percent of cholera cases have been reported, has revealed a clear reduction of cholera prevention measures since 2011. More than half of the organizations working in the region last year are now gone. Additionally, health centers are short of drugs and some staff have not been paid since January.

“Rain is just one of the risk factors for contamination. But as soon as the rains end, cholera subsides, and funding stops until the next rainy season, instead of money being channeled towards cholera prevention activities. As a consequence, people are still highly vulnerable when cholera comes back,” said Maya Allan, MSF epidemiologist.

An article by Tate Watkins in The American Interest attempts to explain some of the reasons why, as the title puts it, Haiti’s rebuilding “is…taking so long?”

Among the factors Watkins details are the often quick staff turn-overs at NGO’s and agencies, the differing priorities of foreign NGO’s and agencies versus those of Haitian organizations and the Haitian government, the disproportionately tiny number of contracts going to Haitian contractors, and bureaucratic hurdles. Watkins also focuses on what he sees as another key factor, and one that is less-often mentioned in the media (and which indeed may be much less-often noticed by foreign journalists): foreign aid workers and contractors’ disconnect from the local people where they work.

Many foreign organizations prohibit staff from traveling through certain areas of Port-au-Prince, or they’re forbidden to visit without an SUV with locked doors and windows, a local driver, and a security detail. Private security companies and insurance policies often dictate such travel guidelines. Offices and housing for foreign NGOs and aid agencies working in Haiti are concentrated in Pétion-Ville, an affluent section of the capital home to classy hotels and vibrant restaurants. But the concentration of expats also presents a cluster of targets for crime; the relatively upscale area can be just as dangerous as many other parts of the city. In March 2010, for example, two Swiss employees of the NGO Doctors Without Borders were kidnapped in Pétion-Ville after a night on the town and held for one week. The organization would not disclose whether it paid a ransom for their release.

[Sustainable Organic Integrated Livelihoods co-founder Sasha] Kramer says many of the security measures that foreign organizations take actually increase risks for aid workers, because the restrictions hinder international staff’s ability to forge relationships with locals and build community ties—further hampering their ability to work effectively and efficiently.

She describes it from locals’ point of view: “You come into my neighborhood and you’re already afraid of me? Well, that’s offensive. So I think it engenders a feeling immediately of sort of defensiveness in communities, understandably.” And aid projects suffer as well. She says that she’s sensed tremendous frustration among international employees working with large NGOs who feel disconnected from the people they’re here trying to help.

CEPR Researcher Jake Johnston wrote in the Caribbean Journal yesterday:

In the aftermath of the earthquake in Haiti, donors pledged billions of dollars for reconstruction efforts. With those dollars was a commitment to “build back better”; this time was supposed to be different from previous big aid campaigns. But so far less than half of donor pledges have been disbursed, and it has become clear that “building back better” remains nothing more than a slogan. While there clearly have been successes in Haiti since the earthquake and the hard work of thousands of aid workers shouldn’t be discounted, nearly half-a-million remain homeless and hundreds of thousands more are living in desperate conditions. With a visible lack of results and little hard data with which to assess progress, one question naturally arises: “where did the money go?” At the Center for Economic and Policy Research and together with many other organizations, we’ve been trying to track where exactly the money that did get spent, went. It hasn’t been easy. 

To be sure, aid projects shouldn’t be judged solely on what percent of an aid budget went to overhead, or how much went to American consultants or was spent on American products as opposed to Haitian consultants and products. Ideally, the effectiveness of projects should be based on their outcomes, not just on the breakdown of how funds are spent. But measuring outcomes often isn’t feasible. A nominally independent review of the U.S. government’s response in Haiti attempted to measure the quality and impact of aid, but “a disquieting lack of data on baselines against which to measure progress or even impact” prevented them from doing so.

As taxpayers, we have the right to know how our tax dollars are being used and if they are used effectively.  Specifically, this means looking at the United States Agency for International Development (USAID), which has spent well over a billion dollars in Haiti since 2010.  To their credit, it’s not difficult to obtain the first level of transparency: to which organizations USAID gave funds.  USAID factsheets reveal that close to 100 percent of humanitarian funds for Haiti were channeled through NGOs, U.N. agencies or right back to other U.S. government agencies. Included in this billion-plus dollars hundreds of millions of dollars in contracts which have gone overwhelmingly to “beltway bandits” -- firms located in D.C., Maryland or Virginia. Only 0.02% by our latest tally has gone to Haitian firms.

But this isn’t the end of the line when it comes to transparency.  Once funds are given to an organization, what are they spent on? What were they meant to achieve? How much goes back to the U.S. and how much goes to local firms? In a meeting last October in Port-au-Prince a USAID official defended the awarding of contracts to so-called “beltway bandits”, telling me that while certainly some money goes off the top for their profits, much gets spent in country or is given to local subcontractors. It was a back-of-the-envelope calculation, but he estimated that each international worker sent to Haiti could cost up to $250,000 a year.  The important part, he stressed, was that this money would be spent in Haiti on electricity, security, housing, etc. “He has to live here, eat here, dance here, whatever,” the official reasoned.
Read the rest here.

Yesterday, Vijaya Ramachandran and Julie Walz of the Center for Global Development provided a nice overview of the U.S government’s review of its Haiti earthquake response. Ramachandran and Walz found that while the review includes “some frank and enlightening assessments of USG [U.S. government] response and coordination” it contained “very little discussion of aid accountability.”

As Ramachandran and Walz point out, the authors of the review couldn’t determine the effectiveness or impact of aid because of a “disquieting lack of data.” Part of the problem seems to stem from how data collection and management is viewed by aid workers and USG employees, who made up the vast majority of sources for the review. The report states:

During the Haiti response, limitations related to information management followed two major lines. First, there were limited data available for tactical and operational decisions; and second, there were overwhelming requests for data and information from policy leaders in Washington that made systematic data collection more difficult. These demands were often driven by reports in the media.

Thankfully, the authors note that at least “some” of those they interviewed understood that the former led to the latter: limited availability of data was what generated the “overwhelming” number of requests. Others told the authors that requests for information “detracted from the on-ground response” as they were forced to “’chase down’ facts.”

Of course, data is important to the on-the-ground response as well, as the report points out:

Data collection, through surveys and assessments, is an essential component for managing a disaster response. Surveys and assessments are used to identify the needs of the affected population to direct the response. Ideally, these types of data can be used to measure the overall impact of the humanitarian response.

This guest post is cross-posted from the Center for Global Development.

By Vijaya Ramachandran and Julie Walz

Last week, USAID finally published an evaluation report on its activities in Haiti: “Independent Review of the U.S. Government Response to the Haiti Earthquake”.  The report is dated March 28, 2011. Yes, 2011. It took over a year to post the document on the USAID website.  The review was conducted by MacFadden and Associates – which operates an $80M Indefinite Quantity Contract from USAID.  There are some frank and enlightening assessments of USG response and coordination, but very little discussion of aid accountability.

Here are some impressions of the report:

Let’s start with the good.

Strengthen USAID. The report very clearly calls for a strengthening USAID: improved institutional structures, more staff and capacity, investments in new technology, and a reduction in reliance on outside contractors.  It is a call that has been made many times before, as USAID has evolved from a development implementer into an organization that manages contractors and grantees.  For example, USAID’s direct-hire workforce has decreased from around 8600 in 1962 to 2900 in 2009, despite an increase in foreign assistance. The report says that USAID’s weaknesses were especially apparent because the President appointed USAID as the lead agency in the USG Haiti response.

Nix the “whole of government” approach in disaster response. The report recommends that a “whole of government” approach should not be used in future international disaster response.  It is a concern that our colleague Todd Moss has previously discussed.  Although the idea of having all federal agencies at the table seems logical, it also creates parallel chains of command and further constrains the USG’s ability to get things done.  This is especially true in a disaster situation where rapid response is needed.  After the quake, more than 12 federal agencies sent staff to Haiti.  This created problems in terms of clear lines of authority, with specific reporting structures and delineated functions between agencies.

The Office of the Special Envoy for Haiti released updated data this week on public sector donor disbursements since the earthquake in Haiti. The Special Envoy has been instrumental in holding donors accountable for pledges they made at the March 2010 New York donor’s conference. For the period 2010-2012, 55 public sector donors pledged $5.48 billion dollars with $2.48 billion, or 45.3 percent being disbursed so far. This represents an increase of $96 million since the last update in December 2011, the smallest such increase since the Special Envoy has been tracking donor disbursements.

Overall, the $2.48 billion has been disbursed through four main channels:

-          $1.65 billion (66.6 percent) in grants to multilateral agencies, NGOs and private contractors
-          $337.2 million (13.6 percent) in budget support to the Government of Haiti
-          $295.6 million (11.9 percent) to the World Bank, IDB and UN through the Haiti Reconstruction Fund (HRF)
-          $196.9 million (7.9 percent) in loans to the Government of Haiti

The vast majority of these funds were disbursed in 2010. According to the Special Envoy (PDF), $1.61 billion was disbursed in 2010, $843.1 million in 2011 and just $27.8 million thus far in 2012.  An important qualifier is that disbursed does not mean spent. For example, of the $295.6 million that has gone to the HRF, only $55.7 million has been spent on the ground.

As can be seen in Figure 1, many of the top donors have failed to live up to their pledges (PDF).

Figure 1.

alt

"The cooperation with Venezuela is the most important in Haiti right now in terms of impact, direct impact," President Martelly told the Associated Press in December. The most important channel for this cooperation is the PetroCaribe agreement, which most Caribbean countries are currently a part of and which the government of René Préval joined in 2006. Through the agreement Venezuela finances part of Haiti’s fuel import bill, allowing for a portion to be paid up front and the remainder to be used as a loan with a long maturity and low rates. The funds made available through PetroCaribe are, as the International Monetary Fund (IMF) explains, “under the control of the central government”. This makes PetroCaribe assistance drastically different from aid provided by traditional donors, which by and large bypasses the government. In fact, traditional budget support to the Haitian state was lower last year than the year before the earthquake.

Over the duration of the agreement, which began in 2008, Venezuela has provided nearly $1.9 billion (PDF) in petroleum products, with over $800 million being paid up front. Following the earthquake, Venezuela cancelled some $400 million of PetroCaribe debt, yet with large disbursements since the earthquake Haiti still owes some $580 million. While significant resources have already been spent, Haiti maintains a balance of $350 million in PetroCaribe funds.

The government of Haiti has predictably turned to one of its only pools of un-restricted funds to finance reconstruction and development programs. The IMF notes that the GOH has “committed to only use PetroCaribe resources to finance growth-enhancing investment projects.” The spending with PetroCaribe funds represents a significant portion of capital spending undertaken by the central government. In the latest IMF review of Haiti’s economy, the IMF estimates that PetroCaribe funds will account for nearly half of domestically-financed capital spending in 2012, amounting to 4.7 percent of GDP. While foreign financed capital spending still overshadows this (it is projected to be 14.9 percent of GDP in 2012), the PetroCaribe funds are unique in that they are directly under the control of the government.

The reconstruction projects financed with PetroCaribe funds have come under scrutiny recently as allegations emerged that Martelly received some $2.5 million in kickbacks related to contracts awarded by the Haitian government. Yet it is also true that the PetroCaribe funds represent some of the largest infrastructure related investments in Haiti since the earthquake. Overall, $380 million has been awarded to firms for infrastructure-related work (PDF) and the most recent data shows that over 73 percent has already been spent. For comparison, the Government Accountability Office found in November that of $412 million in infrastructure projects approved by USAID, only 0.8 percent had been disbursed. It is no wonder then that Martelly told the AP that Venezuela aid stacked up favorably with US assistance, which often takes more time:

"Sometimes for a simple project, it might take too long for the project to happen," he said. "If you're asking me which one flows better, which one is easier, I'll tell you Venezuela."

Amazingly, despite the clear benefits of the PetroCaribe agreement for Haiti, a steady supply of oil, concessional financing, unrestricted funds, it almost never happened.

The Haiti Reconstruction Fund (HRF) was a center piece of the international community’s pledge to “build back better”, yet its latest financial report reveals that despite receiving a significant share of donor disbursements, very little has thus far been spent on the ground. Additionally, without the Interim Haiti Recovery Commission (IHRC), unallocated resources from the HRF remain unutilized, collecting interest in bank accounts.

The HRF, established in March 2010, aims to coordinate and fund priority projects for Haiti’s reconstruction. The Fund has received 18 percent of all donor disbursements as of December 2011 and describes itself as the “largest source of unprogrammed funding for the reconstruction of Haiti”. The HRF allocates funding to projects that have been approved by the now defunct IHRC.

According to its February 2012 financial report, the HRF has received $377 million from donors, allocating $274 million (73 percent) to 16 projects. When the HRF allocates money for a project, the funds are transferred to a “partner entity”; either the UN, World Bank or Inter-American Development Bank, which then carries out the project. The financial report shows that while the Fund has transferred a large amount of resources, the partner entities have disbursed very little of it on the ground.

Figure 1 (click to enlarge)

haiti-recon-fund-4-2012

Following a request from HRRW, USAID yesterday released information on the amount of relief and reconstruction funds that have gone to local partners in Haiti. The info, available here, is a positive step towards transparency and provides the only official information on the level of local contracting by USAID in Haiti. As can be seen in figure 1, about $9.5 million has gone to local organizations and firms since the earthquake. An additional $18.3 million has been awarded to Haitian-American firms, according to USAID data.

Figure I

Firm Name Sector Amount
GHESKIO
Health
 $       3,589,938
St. Damien Hospital
Health
 $       1,081,000
Hopital Adventiste d'Haiti
Health
 $         990,000
La Fondation Héritage pour Haïti (Transparency International)
Non-Profit
 $         800,000
Mérové-Pierre - Cabinet d'Experts-Comptables (MPA)
Auditing
 $         740,208
L'Hôpital de la Communauté Haïtienne
Health
 $         400,000
Hopital l'Ofatma
Health
 $         400,000
Experts Conseils & Associates
Auditing
 $         393,890
Jurimedia
Non-Profit
 $         300,000
Inter-American Institute for Cooperation on Agriculture
Non-Profit
 $         250,000
The American Chamber of Commerce in Haiti
Non-Profit
 $         238,420
PAGS Cabinet d'Experts-Comptables
Auditing
 $         145,000
ECCOMAR
Construction
 $           63,000
National Transport Service (Natrans)
Transportation
 $           60,000
TOTAL
TOTAL

 $      9,451,45

Source: USAID

Although ascertaining the total spending by USAID in Haiti since the earthquake is not an easy feat, the $9.5 million that has gone to local firms represents a small fraction of total spending by USAID. In fiscal years 2010 and 2011, USAID reported spending over $700 million on humanitarian programs (not counting funding through USAID/OTI, which is included in Figure II). Additionally, the most recent data compiled by HRRW reveals nearly $400 million in contracts that have been awarded since the earthquake. As can be seen in figure II, only 0.02 percent of these contracts have gone directly to local firms, while over 75 percent have gone to firms located in the Beltway (DC, Maryland, Virginia). The largest of these beltway contractors is Chemonics International, which has received $173.7 million from USAID since the earthquake. The company came under criticism in recent weeks regarding the temporary parliament building that was constructed under a Chemonics contract. Haitian lawmakers told GlobalPost that the building was nothing more than a “shell”, and that it would cost the government as much to finish it as USAID had spent on building it. The building remains vacant four months after it was inaugurated by USAID and Haitian officials.

The rainy season is returning to Haiti, and so is an expected increase in cholera infections. There have been as many deaths – 13 –  in the last eight reported days as there were in all of January or February this year. Yet red tape and funding shortfalls are hampering prevention and treatment efforts.

NPR health correspondent Richard Knox presented a lengthy report yesterday on a cholera vaccination program that has yet to be implemented, despite consensus from the Haitian government, the World Health Organization, the Pan American Health Organization, and the CDC that it could be effective. The program, which will provide vaccines to some 100,000 people, is now awaiting the conclusions of a national ethics committee, “which wants assurance that the vaccine is no longer considered experimental.” The organizations administering the program, Partners in Health and GHESKIO, had hoped to get it underway in January.

Knox reports:

Meanwhile, the spring rains are beginning. Cholera cases are starting to climb, because the floods spread the cholera bacterium around.

"We know it's going to rain, we know it's going to flood," says Dr. Vanessa Rouzier, "so we are afraid we are wasting precious time."

Rouzier works with GHESKIO, a Haitian medical group that is organizing the vaccination project in Port-au-Prince, Haiti's capital. The rural arm is sponsored by Partners in Health in the Artibonite River valley, where cholera first appeared.

The two groups have been planning the demonstration project for more than a year.

A new report by AP investigative reporter Martha Mendoza and Haiti correspondent Trenton Daniel sheds light on the Red Cross' plans to possibly build a hotel on the 10 acres of land near the Toussaint L’Ouverture airport that it uses for its base camp.

The article reports:

The International Federation of Red Cross and Red Crescent Societies is considering building a hotel and conference center in Haiti on part of a $10.5 million property that it bought after the 2010 earthquake.

The hope is that profits could sustain the work of Haiti's local Red Cross in the coming years, the head of the international group's Haitian delegation said Monday.

The 10-acre compound, known as the "Hilton Property," was purchased from Comme Il Faut, Haiti's local cigarette company, in the months after the quake, Eduard Tschan told The Associated Press in a telephone interview.

The charity paid in a single payment, using funds donated by national Red Cross agencies for quake recovery. At the time, Haiti's recovery was the largest operation in the organization's history, with 3,000 people working here.

Now that its work is winding down, the international Red Cross is putting together an exit strategy and as part of that process is trying to figure out what to do with this property.

In early March, social scientists Athena Kolbe and Robert Muggah released a study, backed by Canada’s International Development Research Centre and the Igarapé Institute of Brazil, showing increasing crime rates in the capital of Port-au-Prince. Based on household surveys, the authors found that “[f]or the first time since 2007, the incidence of violent crime and victimization has shown a consistent increase”. While the homicide rate in Haiti’s capital is lower than in many other Caribbean cities, the authors note the current rate in Haiti makes it one of the highest recorded rates since the post-coup period of 2004. At the same time, the authors found a reversal in citizens’ support for the Haitian National Police.

In an interview with HRRW, Kolbe, a clinical social worker affiliated with the University of Michigan, explains the social context of the current study and explores some of the causes and implications of the results. Kolbe finds that most of the victims of violence and criminal activities were residents of low-income neighborhoods where the population has experienced “social and political marginalization.” The ending of aid programs has also had a “profound impact on the people who need the services the most.” Kolbe notes that the bypassing of the Haitian government by NGOs and donor governments has created a situation where these entities and not the Haitian state “provide basic social and municipal services.” With a government that cannot guarantee its citizens access to services, Kolbe notes that “simply increasing the number of police on the street isn’t going to solve Haiti’s crime problem.” What is needed is to “focus efforts on improving the conditions in society that create the climate where crime is a viable option.”

Read more for the full interview:

Jacob Kushner and Jean Pharés Jérôme of Global Post report today on the high-profile USAID project to build a temporary building for Haiti’s parliament. Although the $1.9 million building was “inaugurated” in November 2011, Kushner and Jérôme report that:

But more than four months later, that location remains vacant. The building is scattered with woodwork trimmings and debris from a costly ongoing renovation paid for by the Haitian treasury because legislators say the United States never finished the job. And critics in Haiti charge that the unfinished work and empty building stand as a powerful metaphor for much of what is wrong with USAID’s approach to development in Haiti: that it lacks coordination with and input from the Haitians themselves about how best to undertake reconstruction projects.

The building remains nothing more than a “shell” and the Haitian government has already spent $770,000 in renovations and will have to spend much more before it is actually usable. Cholzer Chancy of Haiti’s Chamber of Deputies told Global Post, “It may cost more for us to renovate it than for them to build it in the first place.”

U.S. Embassy spokesman Jon Piechowski defended the project, saying:

“We explained to them what could be done, we consulted with them on that, and they approved the project,” he said. “We answer to the American people and we need to be good stewards of their tax money, and I think we’ve done that in this case.”

The authors continue:

But to the half a million Haitians who remain displaced to tents and shacks since the earthquake, the $2 million US aid dollars spent on an empty building and the hundreds of thousands more taken from the Haitian Treasury to renovate it seem inexcusable.

“All the time, I hear on the radio that American money is going here or there,” said Acelus Saint Louis, a 45-year-old who lives in a tent with his wife and two children. “But I don’t see it. This could lift us up, but instead it’s just wasted.”

By Mark Snyder and Ellie Happel

At two in the morning on Monday March 12th, 2012, the tents of Camp Lycèe Toussaint in downtown Port-au-Prince became engulfed in flames.  Within an hour, 96 of the approximately 120 emergency shelters, home to some of Haiti’s internally displaced, burned to the ground.  Although most of the camp residents escaped without serious injury, the families lost the few belongings they had accumulated in the two years and two months since the earthquake.  Camp residents reported that they did not have water to extinguish the fire.  For months, five Red Cross water tanks have sat empty at the entrance to the camp.

The cause of the fire remains unknown. Neither the Government of Haiti nor the International Organization for Migration (IOM), responsible for camp management, has released an official statement about the fire.

Community members reported that a twelve-year old boy died in the fire.  His brother died in the hospital.  Their mother remains in critical condition.  Many people in the camp reported suffering burns.

By Monday afternoon, camp residents reported that they had yet to receive a visit from a local or national government representative. Residents said that IOM staff came to the camp for "only some minutes" and added that they "told us nothing." 

Community organizers arrived at the site to remind the victims of the fire that they were not helpless: the Haitian Constitution and international conventions grant specific rights to the internally displaced and place a duty on the government to respect and fulfill these rights.  As the organizers spoke, a small group of residents grew larger and the conversation became more animated.  Residents decided to hold a spontaneous protest to call attention to their situation.  Within a half hour, the residents found a bullhorn and a driver willing to use his minibus and charred shelter to block the road.  They rallied their displaced neighbors to block the side street that borders the camp.

When the protestors lit a tire in the road, the Haitian National Police (PNH) arrived within minutes.  They extinguished the low flame and aggressively broke up the protest.  On two occasions officers leveled their assault rifles and shotguns on the crowd, forcing them to disperse. One of these incidences was recorded on video, just after the PNH officer rushed into the camp with his weapon drawn and chased a young boy who yelled of the injustice of the situation. The boy ran from the officer and disappeared through an opening in an earthquake-damaged building. Additional armed officers arrived and charged into the crowd with assault rifles, shotguns, and a teargas gun.

Camp residents commented that their entire camp can burn along with their children, and the Haitian Government does nothing.  But when residents burn a tire in the street, the police respond.


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