Haiti: Two years after the earthquake, where did the money go?

Chapter One: A fractured path from donors’ purses to actual rebuilding efforts — and back again.

Donovan Webster  January 10th, 2012.  Find Full Article Here:-

PORT-AU-PRINCE — TO SEE WHERE the enormous sums of humanitarian aid directed to Haiti after its catastrophic earthquake in 2010 went, a good place to start is the ocean harbor. That’s where the island’s shore meets the rest of the world. And the best place for that is here at the seaport in the nation’s capital: Port-au-Prince, near the earthquake’s epicenter.

There, at this moment, a gigantic “supermaritime” cargo ship called the Sarine is off-loading more than five metric tons of rice that has just arrived from Miami.

If you think of the rice as post-earthquake assistance money — the individual grains as donated dollars — you might get some idea about what’s happened since the earthquake of Jan. 12, 2010. Not to mention a sense of where the individual rice grains (or the dollars) have gone.

And, like the grains of rice aboard, the dollars mount into the hundreds of millions; even billions. According to some reports, the United States government, American individuals, families and humanitarian groups donated approximately $3 billion. That’s just from America with a total of something like $12 billion coming from all donor nations for funds to be disbursed.

Still, somehow, no one seems quite sure precisely how many grains — or dollars — we’re talking about. The accounting seems to have a sliding scale that can move hundreds of millions of dollars one way or another. At the time of publication, President Bill Clinton, the UN Special Envoy to Haiti and the co-chair of overseeing the nation’s re-construction for the last two years, hasn’t responded to repeated requests by GlobalPost regarding specific aid and cash donation figures.

“If you read the reports, you’ll see that actual Haitians got less than 1 percent of all the American money pledged.”

~Robert Fatton, Jr., University of Virginia professor

Where those billions went following the 7.0-magnitude earthquake that left a government-estimated figure of 220,000 people dead — and at least 1.6 million more homeless — remains a confounding mystery. Inside of the recovery effort, however, are unquestionable successes along with the failures. And, to be fair, because the money came in so quickly and in such great volume, much of it has been wasted or lost like so much rice spilling on the docks. Or stolen, like the sacks of rice from here which will end up in Haiti’s black market for food.

The situation grows complicated … fast. And the metaphor here of this crane off-loading rice by the metric ton packs a still larger and more complex metaphor, according to aid experts, about this country’s history along a still-active fault line of aid, politics and blame in the aftermath of the quake.

As for this specific ship, the Sarine, it has a double-steel hull and is roughly 330 feet long. And now, pulled up to the quay in Port-au-Prince, the “grabbing box” from a huge off-load crane reaches down into the vessel’s hold, and, like the hand of God, lifts another half-ton or so of rice out — hundreds of thousands of individual grains of rice. Then the loose rice is dumped into a white, V-shaped steel hopper whose nozzle sits inside a small hut on the Port-au-Prince waterfront.

Using gravity, the hopper directs the rice into 25-kg (55-pound) white plastic bags, with blue stars on their fronts and the words “AMERICAN RICE” written on their sides. After that — using a sewing machine — the top of each bag is sealed.

As I watch, over and over — bag after bag after bag — a man running the V-shaped hopper turns to me. He rubs his belly.

“I’m hungry,” he says in French.

“Well,” I respond, “why don’t you take some rice for yourself? There’s a lot.”

The man flashes a grin back, and shrugs. “Yes,” he says, “that’s possible. But I’m not that kind of hungry.”

The rice bags move from the factory along an assembly line to waiting trucks which will travel deeper into Haiti to feed a nation still suffering from hunger on a vast scale.

But the economy of rice in Haiti says everything about the condition the country is in. The US government subsidizes and “donates” ton after ton of rice in Haiti and in so doing has through the last several decades completely undercut Haitian rice farmers and left them destitute and migrating into cities where they live in hovels that were destroyed by the quake.

As recently as the early 1980s, Haiti was producing just about all of its own rice. Now more than 60 percent is imported from the US, making it the fourth largest recipient of American rice exports in the world. That was before the quake and now with donated rice coming in as well, Haiti is even more awash in rice while American agribusiness makes billions of dollars every year through generous government subsidies.

There is perhaps some bitter irony here that the subsidies were promoted in large part by President Clinton to help his home state of Arkansas, the largest rice producing state in the US, thereby crippling a sector of the economy in Haiti where Clinton has worked so tirelessly to help with the recovery.

“You might say it is a perfect metaphor for what is wrong with aid to Haiti,” says Marc Cohen, a senior researcher for Oxfam, one of the largest non-government organizations (NGOs) in the world, which raised approximately $106 million for a three-year response in Haiti and finds itself struggling to deliver the aid effectively.

“Instead of bringing subsidized rice in on ships from Miami, we could be helping Haiti grow rice in its own fields,” adds Cohen, who worked for many years in Haiti with the International Food Policy Research Institute and studied the broad economic impact of US rice subsidies, or “Miami rice,” as it is known here.

Cohen was part of a team at Oxfam America that this week delivered a scathing report on how reconstruction in Haiti was proceeding at a “snail’s pace,” leaving half a million Haitians still homeless two years after the quake. It urged the Haitian government and donor countries to accelerate the delivery of funds for reconstruction. It applauded the initial emergency relief effort, but said the Haitian government and donor countries have failed to come up with a coordinated strategy to rebuild the country and house the more than 500,000 people still living in tents and under tarpaulins without access to running water, a toilet or a doctor.

According to recently published reports by Oxfam, the UN, the US Government Accountability Office and international aid experts interviewed by GlobalPost, billions of dollars of aid were pledged to Haiti’s reconstruction, but promises of funding have not translated into money on the ground. According to the UN report, as of the end of September 2011, donors had disbursed just 43 percent of the total $4.6 billion pledged for reconstruction in 2010 and 2011.

Officials heading up USAID’s efforts in Haiti say they are frustrated by the political and practical realities that slow the pace of reconstruction. They point to costly and painful failures such as the lack of preparedness for the cholera outbreak which still looms over Haiti. But they also point to hard-fought successes particularly in agriculture, where the average salary of a farmer has risen from $600 a year to $1,100 a year through improved irrigation and infrastructure which have resulted in higher yields.

Elizabeth Hogan, Director of Haiti Task Team for USAID, told GlobalPost, “Fixing Haiti is not something that can be done in the short term. It requires Haitians to take ownership of fixing their own country and their own problems with the support of the international community and increasingly private investment.”

This is part of Chapter One of a four-chapter GlobalPost Special Report titled “Fault Line: Aid, Politics and Blame in Post-Quake Haiti.” Read Chapter Two, Chapter Three and Chapter Four.