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Haiti: Relief and Reconstruction

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A Review of the U.S. Government’s Review of Its Haiti Quake Response Print
Tuesday, 01 May 2012 11:14

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.

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Donor Disbursements Slowing According to Latest Data from Special Envoy Print
Wednesday, 25 April 2012 13:42

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

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Haiti Using Funds from PetroCaribe to Finance Reconstruction Print
Tuesday, 17 April 2012 12:17

"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.

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Haiti Reconstruction Fund: Building Back …When? Print
Thursday, 12 April 2012 16:24

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

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USAID's Disclosure of Local Partner Info Raises Troubling Questions Print
Friday, 30 March 2012 16:27

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.

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More People at Risk Due to Red Tape, Under-funding of Emergency Relief Print
Wednesday, 28 March 2012 14:13

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.

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Will the Red Cross Put Shelter for Paying Tourists and Aid Workers Before IDP's? Print
Tuesday, 27 March 2012 16:12

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.

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Kolbe: Political and Social Marginalization Behind Increases in Crime Print
Thursday, 22 March 2012 10:08

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:

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USAID-Funded Parliament Building Still Vacant 4 Months After “Inauguration” Print
Monday, 19 March 2012 14:41

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.”
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Two Die as Fire Sweeps Through Camp Lycèe Toussaint Print
Wednesday, 14 March 2012 12:41

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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