The United Nations Office of the Special Envoy for Haiti (OSE) released updated figures on the status of donor countries’ aid pledges earlier this week. The analysis reveals that just 43 percent of the $4.6 billion in pledges has been disbursed, up from 37.8 percent in June. This increase of $230 million is much larger than the observed increase in aid disbursement from March to June, when total disbursements increased by only $30 million. Also, an additional $475 million of aid money has been committed, meaning more money is now in the pipeline for Haiti. This increase is certainly a positive development, yet the overall levels of disbursement remain extremely low. The $4.6 billion in pledges was for the years 2010 and 2011, which means that donors have only a few months to fulfill their pledges. While $1.52 billion was disbursed in 2010, this year, less than 30 percent of that—$455 million—has been disbursed. The United States, which pledged over $900 million for recovery efforts in 2010 and 2011, has disbursed just 18.8 percent of this (PDF). Of countries that pledged over $100 million dollars, only Japan has achieved 100 percent disbursement. But it is important to go beyond the level of disbursements to see how much of this money has actually been spent on the ground and how it has supported both the Haitian public and private sectors. The following analysis shows that much of the money donors have disbursed has not actually been spent on the ground yet, that the Haitian government has not received the support it needs, and that Haitian firms have largely been bypassed in the contracting process. Just 10 percent of funds disbursed by the Haiti Reconstruction Fund, which received nearly 20 percent of all donor pledges, have actually been spent on the ground. The Interim Haiti Recovery Commission has approved over $3 billion in projects, yet most have not even begun. Budget support for the Haitian government is set to be lower in 2011 than it was before the earthquake in 2009. Finally, only 2.4 percent of U.S. government contracts went directly to Haitian firms, while USAID relied on beltway contractors (Maryland, Virginia and DC) for over 90 percent of their contracts. Disbursed By Donor Doesn’t Mean Spent on the Ground The international community has set up a number of institutions that aim to centralize aid flows and projects, in particular the Interim Haiti Recovery Commission (IHRC) and the Haiti Reconstruction Fund (HRF). The HRF has received roughly 20 percent of donor funds. Our analysis of the Haiti Reconstruction Fund’s annual report revealed that despite public announcements touting a 71 percent disbursal rate at the Fund, in reality, closer to 10 percent had actually been spent on the ground, much of which was on consultant fees. The HRF report notes that “The Trustee has transferred funds totaling US$197 million in respect of those approved projects and associated fees to the Partner Entities,” and an additional $40 million is set to be transferred. Together the $237 million is equal to 71 percent of the total funds raised. However, as the HRF notes, this money has not actually been spent on the ground, but simply transferred to their Partner Entities (the World Bank, UN and the Inter-American Development Bank - IDB). The disbursement of funds from those organizations is just $35 million, or about 10 percent of the total contributions received. The IDB, which has received $37 million in HRF funds, has yet to actually disburse any of this total.
The United Nations Office of the Special Envoy for Haiti (OSE) released updated figures on the status of donor countries’ aid pledges earlier this week. The analysis reveals that just 43 percent of the $4.6 billion in pledges has been disbursed, up from 37.8 percent in June. This increase of $230 million is much larger than the observed increase in aid disbursement from March to June, when total disbursements increased by only $30 million. Also, an additional $475 million of aid money has been committed, meaning more money is now in the pipeline for Haiti. This increase is certainly a positive development, yet the overall levels of disbursement remain extremely low. The $4.6 billion in pledges was for the years 2010 and 2011, which means that donors have only a few months to fulfill their pledges. While $1.52 billion was disbursed in 2010, this year, less than 30 percent of that—$455 million—has been disbursed. The United States, which pledged over $900 million for recovery efforts in 2010 and 2011, has disbursed just 18.8 percent of this (PDF). Of countries that pledged over $100 million dollars, only Japan has achieved 100 percent disbursement. But it is important to go beyond the level of disbursements to see how much of this money has actually been spent on the ground and how it has supported both the Haitian public and private sectors. The following analysis shows that much of the money donors have disbursed has not actually been spent on the ground yet, that the Haitian government has not received the support it needs, and that Haitian firms have largely been bypassed in the contracting process. Just 10 percent of funds disbursed by the Haiti Reconstruction Fund, which received nearly 20 percent of all donor pledges, have actually been spent on the ground. The Interim Haiti Recovery Commission has approved over $3 billion in projects, yet most have not even begun. Budget support for the Haitian government is set to be lower in 2011 than it was before the earthquake in 2009. Finally, only 2.4 percent of U.S. government contracts went directly to Haitian firms, while USAID relied on beltway contractors (Maryland, Virginia and DC) for over 90 percent of their contracts. Disbursed By Donor Doesn’t Mean Spent on the Ground The international community has set up a number of institutions that aim to centralize aid flows and projects, in particular the Interim Haiti Recovery Commission (IHRC) and the Haiti Reconstruction Fund (HRF). The HRF has received roughly 20 percent of donor funds. Our analysis of the Haiti Reconstruction Fund’s annual report revealed that despite public announcements touting a 71 percent disbursal rate at the Fund, in reality, closer to 10 percent had actually been spent on the ground, much of which was on consultant fees. The HRF report notes that “The Trustee has transferred funds totaling US$197 million in respect of those approved projects and associated fees to the Partner Entities,” and an additional $40 million is set to be transferred. Together the $237 million is equal to 71 percent of the total funds raised. However, as the HRF notes, this money has not actually been spent on the ground, but simply transferred to their Partner Entities (the World Bank, UN and the Inter-American Development Bank - IDB). The disbursement of funds from those organizations is just $35 million, or about 10 percent of the total contributions received. The IDB, which has received $37 million in HRF funds, has yet to actually disburse any of this total.
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