Last year, CEPR put out a short report examining the changes in part-time employment over the first six months of 2014 compared with the first six months of 2013. The point was to see whether there was evidence of the negative effects predicted by Afforda

June 2015, Cherrie Bucknor

Dean Baker
Al Jazeera America, June 23, 2015

I see that I have to disagree with Brad DeLong again. Brad wants to see the 2008 downturn as a uniquely bad event due to the overextension of credit and the ensuing financial collapse. I see it as overwhelmingly a story of a burst housing bubble and the resulting fallout in the real sector.

First off, in this piece Brad seems to want to attribute the worldwide downturn to the collapse of the housing bubble in the U.S. This seems more than a bit bizarre, since countries like Spain and Ireland arguably had bigger bubbles and bigger collapses than the U.S.

The collapse in the U.S. may have happened first and triggered the collapse in other countries, but this would only be in the sense that the U.S. collapse might have alerted lenders to the possibility that house prices can fall. Presumably the bankers would have discovered this basic economic fact at some point regardless of what happened in the United States.

Dean Baker
Truthout, June 22, 2015

In February, USAID suspended Thor Construction, one of two contractors responsible for designing and building 750 houses in Haiti’s north, in Caracol. In March, the second contractor, CEEPCO, was also suspended. As previous HRRW reporting revealed, the houses were found to be of poor quality, with numerous structural deficiencies including the use of substandard concrete. USAID is currently investigating and putting together a potential legal case against the contractors; however, they continue to downplay the problems and their own role in them.

HRRW has obtained an internal assessment of the Caracol-EKAM housing development, performed by the U.S. Army Corp of Engineers last year. The report directly contradicts USAID’s public comments on the housing development.

On its website, USAID has a “fact sheet” on the project, explaining: “To address natural disaster concerns, the 750 houses are designed to International Building Code earthquake and hurricane safety standards, and constructed with reinforced concrete masonry.” The webpage says it was updated in February 2015, nearly a year after USAID first began investigating. There is no mention of any problems with the houses in the “fact sheet.”

Turning to the Army Corp of Engineers report, it makes clear that from the very beginning, International Building Codes were ignored. The report “found no evidence that a formal internal or external review” of the housing design was conducted and further, that “the project was designed with inconsistent application of code and latest design criteria,” despite the contract mandating compliance with the International Building Code. The lack of any oversight provided at this crucial early stage is a clear indictment of USAID’s own role in the project’s failure.


Summary of Findings from US Army Corp of Engineers Technical Assessment

USAID also maintains that the houses are built with “reinforced concrete masonry” and are built to hurricane and earthquake safety standards. Not so fast, says the Army Corp of Engineers: “The project was constructed with significant variances from the contract plans and specifications. These variances could result in major damage from a hurricane or seismic event and excessive maintenance requirements if left uncorrected.”