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21 Jan 2012 By Bill Quigley and Amber Ramanauskas Haiti, a close neighbor of the US with over nine
million people, was devastated by earthquake on
January 12, 2010. Hundreds of thousands were killed
and many more wounded. The UN estimated international donors gave Haiti
over $1.6 billion in relief aid since the earthquake
(about $155 per Haitian) and over $2 billion in
recovery aid (about $173 per Haitian) over the last
two years. Yet Haiti looks like the earthquake happened two
months ago, not two years. Over half a million people
remain homeless in hundreds of informal camps, most of
the tons of debris from destroyed buildings still lays
where it fell, and cholera, a preventable disease, was
introduced into the country and is now an epidemic
killing thousands and sickening hundreds of thousands
more. It turns out that almost none of the money that the
general public thought was going to Haiti actually
went directly to Haiti. The international community
chose to bypass the Haitian people, Haitian
non-governmental organizations and the government of
Haiti. Funds were instead diverted to other
governments, international NGOs, and private
companies. Despite this near total lack of control of the
money by Haitians, if history is an indication, it is
quite likely that the failures will ultimately be
blamed on the Haitians themselves in a "blame the
victim" reaction. Haitians ask the same question as many around the
world "Where did the money go?" Here are seven places where the earthquake money
did and did not go. One. The largest single
recipient of US earthquake money was the US
government. The same holds true for donations by other
countries. Right after the earthquake, the US allocated $379
million in aid and sent in 5000 troops. The Associated
Press discovered that of the $379 million in initial
US money promised for Haiti, most was not really money
going directly, or in some cases even indirectly, to
Haiti. They documented in January 2010 that thirty
three cents of each of these US dollars for Haiti was
actually given directly back to the US to reimburse
ourselves for sending in our military. Forty two cents
of each dollar went to private and public
non-governmental organizations like Save the Children,
the UN World Food Program and the Pan American Health
Organization. Hardly any went directly to Haitians or
their government. The overall $1.6 billion allocated for relief by
the US was spent much the same way according to an
August 2010 report by theUS Congressional Research
Office: $655 million was reimbursed to the Department
of Defense; $220 million to Department of Health and
Human Services to provide grants to individual US
states to cover services for Haitian evacuees; $350
million to USAID disaster assistance; $150 million to
the US Department of Agriculture for emergency food
assistance; $15 million to the Department of Homeland
Security for immigration fees, and so on. International assistance followed the same pattern.
The UN Special Envoy for Haiti reported that of the
$2.4 billion in humanitarian funding, 34 percent was
provided back to the donor's own civil and military
entities for disaster response, 28 percent was given
to UN agencies and non-governmental agencies (NGOs)
for specific UN projects, 26 percent was given to
private contractors and other NGOs, 6 percent was
provided as in-kind services to recipients, 5 percent
to the international and national Red Cross societies,
1 percent was provided to the government of Haiti,
four tenths of one percent of the funds went to
Haitian NGOs. Two. Only 1 percent of the
money went to the Haitian government.
Less than a penny of each dollar of US aid went to
the government of Haiti, according to the Associated
Press. The same is true with other international
donors. The Haitian government was completely bypassed
in the relief effort by the US and the international
community. Three. Extremely little went
to Haitian companies or Haitian non-governmental
organizations. The Center for Economic and Policy Research, the
absolute best source for accurate information on this
issue, analyzed all the 1490 contracts awarded by the
US government after the January 2010 earthquake until
April 2011 and found only 23 contracts went to Haitian
companies. Overall the US had awarded $194 million to
contractors, $4.8 million to the 23 Haitian companies,
about 2.5 percent of the total. On the other hand,
contractors from the Washington DC area received $76
million or 39.4 percent of the total. As noted above,
the UN documented that only four tenths of one percent
of international aid went to Haitian NGOs. In fact Haitians had a hard time even getting into
international aid meetings. Refugees International
reported that locals were having a hard time even
getting access to the international aid operational
meetings inside the UN compound. "Haitian groups are
either unaware of the meetings, do not have proper
photo-ID passes for entry, or do not have the staff
capacity to spend long hours at the compound." Others
reported that most of these international aid
coordination meetings were not even being translated
into Creole, the language of the majority of the
people of Haiti! Four. A large percentage of
the money went to international aid agencies, and big
well connected non-governmental organizations (NGOs).
The American Red Cross received over $486 million
in donations for Haiti. It says two-thirds of the
money has been contracted to relief and recovery
efforts, though specific details are difficult to come
by. The CEO of American Red Cross has a salary of over
$500,000 per year. Look at the $8.6 million joint contract between the
US Agency for International Development (USAID) with
the private company CHF for debris removal in Port au
Prince. CHF is politically well-connected
international development company with annual budget
of over $200 million whose CEO was paid $451,813 in
2009. CHF's connection to Republicans and Democrats is
illustrated by its board secretary, Lauri Fitz-Pegado,
a partner with the Livingston Group LLC. The
Livingston Group is headed by the former Republican
Speaker-designate for the 106th Congress,
Bob Livingston, doing lobbying and government
relations. Ms. Fitz-Pegado, who apparently works the
other side of the aisle, was appointed by President
Clinton to serve in the Department of Commerce and
served as a member of the foreign policy expert
advisor team on the Obama for President Campaign. CHF
"works in Haiti out of two spacious mansions in Port
au Prince and maintains a fleet of brand new vehicles"
according to Rolling Stone. Rolling Stone, in an excellent article by Janet
Reitman, reported on another earthquake contract, a
$1.5 million contract to the NY based consulting firm
Dalberg Global Development Advisors. The article found
Dalberg's team "had never lived overseas, didn't have
any disaster experience or background in urban
planning… never carried out any program activities on
the ground…" and only one of them spoke French. USAID
reviewed their work and found that "it became clear
that these people may not have even gotten out of
their SUVs." Presidents George W. Bush and Bill Clinton
announced a fundraising venture for Haiti on January
16, 2010. As of October 2011, the fund had received
$54 million in donations. It has partnered with
several Haitian and international organizations.
Though most of its work appears to be admirable, it
has donated $2 million to the construction of a
Haitian $29 million for-profit luxury hotel. "The NGOs still have something to respond to about
their accountability, because there is a lot of cash
out there," according to Nigel Fisher, the UN's chief
humanitarian officer in Haiti. "What about the $1.5 to
$2 billion that the Red Cross and NGOs got from
ordinary people, and matched by governments? What's
happened to that? And that's where it's very difficult
to trace those funds." Five. Some money went to for
profit companies whose business is disasters.
Less than a month after the quake hit, the US
Ambassador Kenneth Merten sent a cable titled "THE
GOLD RUSH IS ON" as part of his situation report to
Washington. In this February 1, 2010 document, made
public by The Nation, Haiti Liberte and Wikileaks,
Ambassador Merten reported the President of Haiti met
with former General Wesley Clark for a sales
presentation for a Miami-based company that builds
foam core houses. Capitalizing on the disaster, Lewis Lucke, a high
ranking USAID relief coordinator, met twice in his
USAID capacity with the Haitian Prime Minister
immediately after the quake. He then quit the agency
and was hired for $30,000 a month by a Florida
corporation Ashbritt (known already for its big no bid
Katrina grants) and a prosperous Haitian partner to
lobby for disaster contracts. Locke said "it became
clear to us that if it was handled correctly the
earthquake represented as much an opportunity as it
did a calamity…" Ashbritt and its Haitian partner were
soon granted a $10 million no bid contract. Lucke said
he was instrumental in securing another $10 million
contract from the World Bank and another smaller one
from CHF International before their relationship
ended. Six. A fair amount of the
pledged money has never been actually put up.
The international community decided it was not
going to allow the Haiti government to direct the
relief and recovery funds and insisted that two
institutions be set up to approve plans and spending
for the reconstruction funds going to Haiti. The first
was the Interim Haiti Recovery Commission (IHRC) and
the second is the Haiti Reconstruction Fund (HRF). In March 2010, UN countries pledged $5.3 billion
over two years and a total of $9.9 billion over three
years in a conference March 2010. The money was to be
deposited with the World Bank and distributed by the
IHRC. The IHRC was co-chaired by Bill Clinton and the
Haitian Prime Minister. By July 2010, Bill Clinton
reported only 10 percent of the pledges had been given
to the IHRC. Seven. A lot of the money
which was put up has not yet been spent.
Nearly two years after the quake, less than 1
percent of the $412 million in US funds specifically
allocated for infrastructure reconstruction activities
in Haiti had been spent by USAID and the US State
Department and only 12 percent has even been obligated
according to a November 2011 report by the US
Government Accountability Office (GAO). The performance of the two international
commissions, the IHRC and the HRF has also been poor.
The Miami Herald noted that as of July 2011, the $3.2
billion in projects approved by the IHRC only five had
been completed for a total of $84 million. The Interim
Haiti Recovery Commission (IHRC), which was severely
criticized by Haitians and others from its beginning,
has been effectively suspended since its mandate ended
at the end of October 2011. The Haiti Reconstruction
Fund was set up to work in tandem with the IHRC, so
while its partner is suspended, it is not clear how it
can move forward. What to do The effort so far has not been based a respectful
partnership between Haitians and the international
community. The actions of the donor countries and the
NGOs and international agencies have not been
transparent so that Haitians or others can track the
money and see how it has been spent. Without
transparency and a respectful partnership the Haitian
people cannot hold anyone accountable for what has
happened in their country. That has to change. The UN Special Envoy to Haiti suggests the generous
instincts of people around the world must be channeled
by international actors and institutions in a way that
assists in the creation of a "robust public sector and
a healthy private sector." Instead of giving the money
to intermediaries, funds should be directed as much as
possible to Haitian public and private institutions. A
"Haiti First" policy could strengthen public systems,
promote accountability, and create jobs and build
skills among the Haitian people. Respect, transparency and accountability are the
building blocks for human rights. Haitians deserve to
know where the money has gone, what the plans are for
the money still left, and to be partners in the
decision-making for what is to come. After all, these are the people who will be solving
the problems when the post-earthquake relief money is
gone. |