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Wall Street

Plain Talk about Private Equity
There is clearly a role for private equity in the US economy. Successful companies too small to go public that are having difficulty raising capital for expansion  to capitalize on their success may turn to private equity for the infusion of capital they

Eileen Appelbaum / January 15, 2012

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CEPR Co-Director Mark Weisbrot Pushes for UN Accountability on Haiti, in ABC News Reports

CEPR Co-Director Mark Weisbrot continued to push for UN accountability in Haiti over the past week, for UN responsibility in introducing a cholera epidemic that has killed thousands, and for the sexual assaults that UN troops have perpetrated against Haitians.

A new ABC News article cites scientists as saying that there is “no doubt” that troops with the UN Stabilization Mission in Haiti (MINUSTAH) are responsible for bringing cholera to Haiti:

"The scientific debate on the origin of cholera in Haiti existed, but it has been resolved by the accumulation of evidence that unfortunately leave no doubt about the implication of the Nepalese contingent of the UN peacekeeping mission in Haiti," French epidemiologist Renaud Piarroux told ABC News’s Brian Ross Investigative Unit.

But the UN continues to deny the facts, and Mark Weisbrot is quoted as saying, “It's outrageous for the UN to try to deny responsibility for bringing cholera to Haiti.” Weisbrot has repeatedly pushed for the UN to own up to its responsibility in causing the epidemic, and provide compensation to victims, such as in this Guardian column and this press release.

CEPR / January 13, 2012

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Ten Things Cheryl Mills May Prefer You Not Know About Haiti Today

In the weeks prior to the 2nd anniversary of Haiti’s January 12, 2010 earthquake, an unprecedented U.S. State Department public relations offensive has unfolded. On December 28 the U.S. State Department released 11 fact sheets, celebrating the achievements of the U.S. humanitarian and development assistance in Haiti in areas ranging from shelter to food security.  To make sure the message got through to journalists, on January 6th the U.S. government partnered up with UN entities and held a joint press teleconference on Haiti to discuss the “amazing” work done removing rubble and providing clean water and shelter to those made homeless by the quake.

The effort continued with an op-ed by Cheryl Mills, Counselor and Chief of Staff to Secretary of State Hillary Clinton that appeared on January 9thin the Huffington Post.  The piece was then sent out widely by the State Department public affairs office. Finally, on the day of the anniversary, additional op-eds were published by Rajiv Shah, the head of the U.S. Agency for International Development (USAID) and Mark Feierstein, Assistant Administrator, Bureau for Latin America and the Caribbean at USAID.  Shah and Feierstein appeared to have received the same memo: their talking points were strikingly similar and the two articles had nearly the same titles “Haiti Is on the Move” and “Haiti ‘a country undeniably on the move’”.

Clearly, there is heightened concern – within the U.S. foreign policy machine – about the perception of U.S. efforts in Haiti, given the increased press scrutiny generated by the 2nd quake anniversary commemorations.  A lot of money has been spent - $2.2 billion by the US alone according to their fact sheet on funding - and it’s important to show some results after two years.  And, apparently, there are plenty of results on display, as Cheryl Mills has emphasized in her piece, which rolls out ten impressive-sounding achievements.  But are these achievements real, and – if they are – do they really represent significant steps forward?   Let’s try to go beyond the hype by taking a closer look at Cheryl Mills’ article “Haiti – Two Years Post-Earthquake: What You May Not Know,” and providing the reader with a few additional facts that Mills and the U.S. State Department may prefer you not know: 

Jake Johnston / January 12, 2012

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Two Years Later: Media Assess the State of Reconstruction in Haiti
There have been a host of assessments in the media over the past week examining the state of recovery in Haiti two years after the earthquake. All of these present a mixed review, usually noting early on, as this one from Reuters’ Kevin Gray and Joseph Gu

CEPR / January 12, 2012

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Hospital in Mirebalais, Set to Open in 2012, Stands as Example of Aid Done Right

As the two year mark approaches, many are justifiably asking, where did the money go? With billions pledged by donors, and billions more in private donations, it is a natural question. As important as the level of disbursement is the question of where that money has gone and whether it has been spent appropriately.  Independent evaluations have shown that many NGOs were responding more to their donors than to those whom they are supposedly in Haiti to help. Last year, the United Nations Special Envoy to Haiti (OSE) released a report, “Has Aid Changed? Channeling Assistance to Haiti Before and After the Earthquake,” which analyzed whether donors “have changed the way they provide their assistance in accordance with the principle of accompaniment” which “is specifically focused on guiding international partners to transfer more resources and assets directly to Haitian public and private institutions as part of their support.”

Yet the vast majority of aid projects and donor support bypassed the Haitian government. In fact, there was less direct budget support in 2011 than there was in 2009 before the earthquake. Additionally, many aid projects were undertaken outside the purview of the government. Rather than reinforcing the government’s capabilities, these types of projects have historically undermined them.  Despite this, there are examples of aid done right; the construction of a new teaching hospital in Mirebalais by Partners in Health is one such example.

Partners in Health/Zanmi Lasante (PIH) had been in Haiti for 25 years before the earthquake and has a history of working closely with the government. Dr. Paul Farmer of PIH, writing in the introduction of the OSE report referenced earlier, stresses the importance of working with, not around Haitian institutions:

We know from our shared experiences in Haiti and elsewhere that the way aid is channelled matters a great deal, and determines its impact on the lives of the Haitian people. For example, with over 99 percent of relief funding circumventing Haitian public institutions, the already challenging task of moving from relief to recovery—which requires government leadership, above all—becomes almost impossible.

We have heard from the Haitian people time and again that creating jobs and supporting the government to ensure access to basic services are essential to restoring dignity. And we have learned that in order to make progress in these two areas we need to directly invest in Haitian people and their public and private institutions. The Haitian proverb sak vide pa kanpe—“an empty sack cannot stand”—applies here. To revitalize Haitian institutions, we must channel money through them.

Jake Johnston / January 11, 2012