Haiti: Where Will All the Money Go?

Posted by ralph on January 15, 2010

SHARON THEIMER writes on the AP via Yahoo News:

How difficult will it be for the United States and other donors to track the millions of dollars in earthquake aid headed to Haiti? U.S. government auditors pulled out of the country years ago after concerns over kidnappings and other crimes scuttled their efforts to monitor Haiti’s spending of $45 million in U.S. aid after storms there killed thousands.

Corruption, theft, violence and other security problems and Haiti’s sheer shortage of fundamentals — reliable roads, telephone and power lines and a sound financial system — will add to the challenges of making sure aid is spent properly as foreign governments and charities try not only to help Haiti recover from this week’s devastating earthquake but to pull itself out of abject poverty.

Past efforts haven’t been easy. The Government Accountability Office, the investigative arm of Congress, faced problems on a smaller scale in 2005 and 2006 as auditors tried to review the use of roughly $45 million in aid the U.S. provided after Tropical Storm Jeanne struck Haiti in September 2004, killing more than 2,000 people, injuring more than 2,600 and affecting an estimated 300,000 others.

The inspectors wanted to visit projects funded with the money to measure progress. But after an initial fact-finding trip to Haiti, it was considered too dangerous for them to go back. They could visit only projects deemed safe as destinations. In summer 2005, many employees of the Agency for International Development — which is coordinating the current U.S. response to the earthquake — were temporarily pulled out of Haiti, according to government reports.

Haiti is one of the poorest places on Earth. Most basic public services are lacking, people typically live on less than $2 a day, nearly half the population is illiterate and the government has a history of instability. The public has little opportunity to be sure that aid to the government is used honestly and well. Nor is following the money easy for donors, including the United States, 700 miles away and one of the country’s biggest helpers.

Read More on the AP via Yahoo News