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Haiti: Relief and Reconstruction

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Breaking Open the Black Box: Increasing Aid Transparency and Accountability in Haiti Print

Today, CEPR released a new report authored by Jake Johnston and Alex Main on USAID in Haiti. The paper looks at the effectiveness of U.S. foreign assistance, what we know about how it is being administered, to what extent it is adhering to the USAID Forward reform agenda and what steps can be taken to ensure more effective and transparent delivery of aid to Haiti. While one can see who the primary awardees are, the lack of more detailed data creates the impression that U.S. foreign assistance goes into a “black box” where it becomes nearly impossible to tell what happens afterwards.

The report notes that the few audits and evaluations of USAID’s programs in Haiti since the earthquake present a “troubling picture of the manner in which U.S. relief and reconstruction efforts have been conducted so far.” Contractors have hired far fewer Haitians than promised, Haitian businesses were largely excluded, goals were not met, there was inadequate supervision of grantees, and USAID had not conducted internal financial reviews of contractors.

The paper makes several recommendations for how to improve transparency and accountability around the $1 billion in outstanding obligated U.S. aid funds for Haiti, as well as around any additional aid funding in the future. These include making data available on subcontractors; ensuring awardee compliance with federal regulations and contract requirements; reducing reliance on large, multi-year contracts that favor traditional partners while increasing direct contracting to Haitian entities; strengthening USAID’s capacity to carry out effective monitoring and evaluation of assistance programs; making all evaluations publically available; ensuring the involvement of local populations; and making all available information on assistance programs accessible to Haitians – including via translations to Haitian Creole.

“Without transparency, not only is it impossible for U.S. taxpayers to know what is being done with their money, but the Haitian government and the Haitian people have little opportunity to ensure that U.S.-funded projects actually assist Haiti in rebuilding and dealing with ongoing urgent humanitarian needs,” paper co-author Alex Main said.

Below are a series of graphs from the report, illustrating what we do know and the limitations of the data available.

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Inter-American Commission Grants Protection to IDP Camp Facing Eviction Print

Earlier this week, the Inter-American Commission on Human Rights (IACHR) granted precautionary measures in favor of the 567 families that have been under constant threat of eviction in the Grace Village camp. Given the “imminent” threat to those in the camp, the IACHR urged the Government of Haiti:

1. To adopt the necessary measures to avoid the excessive use of force and of violence in any eviction.  In particular, to guarantee that the public authorities' actions as well as those of private parties pose no risk to the life and personal integrity of the camp residents;

2. To implement effective security measures, in particular, to ensure that there is an adequate patrol around and inside the camp and to install police stations close to the camp. To this effect, the IACHR asks the Government to provide special protection to women and children;

3. To ensure that the residents have access to the potable water required for basic needs;

4. To consult with the beneficiaries and their representatives regarding the measures that need to be taken.  In particular, ensure that the camp residents' committee as well as grassroots women's groups can fully participate in the planning and execution of the measures implemented for the benefit of residents, including measures focused on the prevention of sexual violence and other forms of violence in the camp; and

5. To inform [the public] regarding the adopted measures so as to investigate the events that justifies the adoption of precautionary measures

As we have written previously, the residents of Grace Village have faced significant and on-going harassment, which has included government complicity at both the local and national level. The alleged owner of the land is Pastor Joel Jeune, the founder of a Florida based 501(c)(3) organization, Grace International Inc. As the request for precautionary measures points out, the pastor’s close “ties to the mayor’s office and the local police force him to enlist the help of Haitian police to carry out illegal evictions. With his private security forces and the Haitian police, Pastor Joel Jeune has orchestrated and participated in violent, forced evictions of displaced families living inside Grace Village.”

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Haitian Government Hires U.S. Lobbying Firm Print

The Haitian government’s Société Nationale des Parcs Industriels (SONAPI) hired a U.S. lobbying firm in February to draft documents and arrange meetings “with Congressional Members and staff and Administration officials to seek change to trade legislation” and to help “implement” worker rights provisions, according to Foreign Agent registration documents. SONAPI is the government entity which owns the newly-opened Caracol industrial park, and is the institution responsible for locating, organizing and managing industrial parks throughout Haiti. Yesterday, a presidential decree named business owner Bernard Schettini as the new head of SONAPI, replacing George Sassine, the ex-president of the Association of Industries of Haiti and the former Executive Director of CTMO-HOPE, the commission in charge of implementing U.S. preferential trade legislation.

Lobbying disclosures show that Sorini, Samet & Associates has been hired at the rate of $5,000 a month to help SONAPI lobby congress. Andrew Samet, the co-founder and principal of the firm, was the Deputy Undersecretary of Labor under President Clinton and later worked for law firm Sandler Travis and Rosenberg which counted the industry group the American Apparel and Footwear Association as a major client (the Association in turn has supported “free trade” deals such as CAFTA and HELP legislation for Haiti). Samet was hired as a lobbyist by Colombia in 2008 when it was pushing for passage of a “free trade” agreement with the U.S. Samet was hired to provide “a strategy on labor issues directed to support favourable consideration” of the FTA with the U.S. and to assist "the government of Colombia in presenting information on labor issues with relevant U.S. stakeholders, including U.S. Congress, the administration, labor advocacy groups, trade unions and the media." The FTA with Colombia was eventually passed despite the ongoing killing of unionists in the country, which continues to this day. In June 2012 the AFL-CIO issued a report documenting how the Labor Action plan attached to the FTA was failing to prevent labor and human rights violations. For six months of work in 2008, Sorini, Samet & Associates received over $100,000, according to lobbying disclosuredocuments.

The firm has also done previous work for Sassine and the Haitian government during Sassine’s tenure at CTMO-HOPE, earning nearly $400,000 from 2008-2010 lobbying Congress for the passage of new trade legislation and the implementation of “worker rights provisions.” Industrial parks and garment manufacturing are seen as vital development tools by the Haitian government and many of its international backers. The industry is reliant on trade preferences offered by the United States which started in 2006 with the HOPE act and culminated in the “HELP” act, which was passed soon after the earthquake. According to stakeholders, the HELP legislation, which extended the length of the preferences and increased the amount of textiles that would be subject to benefits, was a key part of bringing in Sae-A Trading, the global manufacturer that recently opened a factory at the Caracol industrial park.

While Sorini, Samet & Associates was previously hired to help implement “worker rights provisions” associated with the HOPE legislation, factories in Haiti are still in violation of a significant number of provisions under the preferential trade legislation. The most recent Better Work Haiti report found that 21 of 22 factories covered in their analysis (Caracol is not covered yet) were non-compliant with minimum wage laws, for example. This past summer, the Office of the U.S. Trade Representative, in their annual compliance report, found that “there was sufficient credible evidence to conclude that three specific producers were non-compliant with one or more of the core labor standards.” This was the first time in four years that the report named specific factories. The violations included non-compliance in: sexual harassment, freedom of association and forced labor.

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UN Human Rights Expert: Haiti and International Community Should “Throw Light” on Cause of Cholera Outbreak Print

According to reports on Twitter yesterday, the United Nations independent expert on the human rights situation in Haiti, Michel Forst has resigned for “personal reasons,” even though his mandate was supposed to continue for another year. In one of his last acts, Forst’s report for the U.N. Human Rights Council was presented yesterday, recommending to Haiti and the international community that they “throw light” on the cause of the cholera outbreak and “respond to any compensation requests”. The cholera outbreak has killed at least 8,050 and sickened over 650,000 more.

In his report Forst notes that the “question of what caused the outbreak of the epidemic in Haiti remains a burning issue that has attracted significant public controversy.” Over the last few years, a number of scientific reports have identified U.N. troops as the source of cholera’s introduction. Forst’s report, which was issued before the U.N.’s denial of victims’ compensation claims, notes “that silence is the worst response.”

The U.N. broke their “silence” on the issue by rejecting the victims’ claims, yet they have continued to stonewall on the issue of responsibility. While Forst “deplores” the exploitation of the issue by “certain organizations…for political ends,” he recognizes the “need that victims or their families have expressed to know the truth and perhaps even to be given compensation.”

In addition to recommending shedding light on the cause of the outbreak, Forst also calls on the international community and Haitian government to, “Secure international assistance to combat the spread of the cholera epidemic.” The claim against the U.N., in addition to seeking damages, also asks for the U.N. to fund the needed infrastructure to eradicate cholera from Haiti. A 10 year, $2.2 billion eradication plan has been announced, but thus far the funding for it remains in doubt. The plan for the first two years notes that “The total cost for implementation of the Action Plan for 2013–2015 is estimated to be US$443,723,100.” So far, little more than half of that - $238 million - has been secured, most of it from existing funds.

On Sunday, the New York Times editorial board added their voice to those critical of the U.N.’s immunity claim, noting that the U.N.’s “handling of cholera is looking like a fiasco.” The Times adds:

While it insists that it has no legal liability for cholera victims, it must not duck its moral obligations. That means mobilizing doctors and money to save lives now, and making sure the eradication plan gets all the money and support it needs.

Its record so far is dubious. A U.N. appeal last year for $24 million for cholera programs ended the year only 32 percent financed, and in December, the U.N. said it would contribute $23.5 million to the new 10-year plan — about 1 percent of what is needed.
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Is USAID Mainly Serving U.S. Interests? Print

An op-ed in Bloomberg Businessweek yesterday lays out the case for USAID reform, highlighting the case of contractors in Haiti (and citing this blog) as an example. The piece, by Charles Kenny of the Center for Global Development, also examines the politicized nature of USAID practices. Kenny writes:

When it comes to buying friends at the United Nations, or buying crops in the Midwest, or creating jobs around the Capital Beltway, the U.S. foreign aid system is a paragon of effectiveness. Take the goal of buying friends. Eric Werker, a Harvard Business School associate professor, and Ilyana Kuziemko, now a Columbia Business School associate professor and Harvard Ph.D., estimated in a 2006 Harvard paper that countries rotating onto the UN Security Council were likely to see their U.S. aid increase by 59 percent. The aid then fell as the countries finished their terms. In a 1999 study, Illinois State University’s T.Y. Wang found that U.S. aid successfully affects UN voting patterns on issues vital to America’s national interests.

It is notable that the fifth largest USAID vendor is the government of Pakistan, currently a U.N. Security Council member. (The top four vendors – as September 30, 2012 – were the World Bank, the U.N. World Food Program, Chemonics (whose work in Haiti we have examined on this blog), and John Snow, Inc.)

Kenny also describes problems with USAID’s food assistance to developing nations:

The U.S. food aid program, for instance, purchases about $1 billion worth of American crops a year. It spends roughly an additional $1 billion transporting the crops overseas, in most cases using U.S.-flagged ships.

Economics professors Nathan Nunn of Harvard and Nancy Qian of Yale demonstrated in a 2010 paper that what determines the size of U.S. food aid shipments isn’t recipient need, but the size of the U.S. crop. And about half the funding is used on shipping. That same money could buy supplies in local markets and help farmers in developing countries.

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