Development, Haiti: Bill, Hillary and the Haiti Debacle

Mary Anastasia O’Grady, Wall Street Journal, May 18, 2014

The news website Tout Haiti reported last month that two prominent lawyers have petitioned Haiti’s Superior Court of Auditors and Administrative Disputes, demanding an audit of Bill Clinton’s management of the Interim Haiti Recovery Commission (IHRC). There are powerful interests that won’t want to see the petition succeed and it may go nowhere. But the sentiment it expresses is spreading fast. {snip}

Four years after a magnitude 7.0 earthquake toppled the capital city of Port-au-Prince and heavily damaged other parts of the country, hundreds of millions of dollars from the State Department’s U.S. Agency for International Development (USAID), allocated to the IHRC, are gone. Hundreds of millions more to the IHRC from international donors have also been spent. Left behind is a mishmash of low quality, poorly thought-out development experiments and half-finished projects.

Haitians are angry, frustrated and increasingly suspicious of the motives of the IHRC and of its top official, Mr. Clinton. Americans might feel the same way if they knew more about this colossal failure. One former Haitian official puts it this way: “I really cannot understand how you could raise so much money, put a former U.S. president in charge, and get this outcome.”

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The Clinton crowd has a lot of experience in Haiti. After President Clinton used the U.S. military to return Jean Bertrand Aristide to power in 1994, assorted Friends of Bill went into business to milk Haiti’s state-owned telephone monopoly. Telecom revenues were one of the few sources of hard currency for the country so the scheme hurt Haitians. (See Americas columns Oct. 27, 2008, and March 12, 2012.)

Haitian filmmaker Raoul Peck sheds light on Mr. Clinton’s most recent Haiti adventures in the 2013 documentary “Fatal Assistance.” Mr. Peck uses footage from an IHRC meeting in December 2010, when 12 Haitian commissioners confronted co-chairmen Mr. Clinton and Haitian Prime Minister Jean Max Bellerive, complaining that the commissioners had been marginalized.

The full letter they read from that day includes the charge that “the staffing and consultant selection” excluded Haitian board members. “No documentation on hiring criteria or candidate selection was sent to inform board members. The same is true for selected consultants; the Haitian board members don’t even know the names of the consultants who work for the IHRC nor their respective tasks.”

Obviously the Haitians didn’t understand. That was the job of the Clinton machine, which controlled the bankroll and could award the lucrative contracts.

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The “Fatal Assistance” film features shoddy housing projects plopped down where there is poor infrastructure and few job prospects. The GAO report cites other housing snafus. USAID underestimated funding requirements. Its budget went up by 65%, and the number of houses to be built came down by 80%. “Inappropriate cost comparisons were used”; and Haitians, it turns out, prefer flush toilets.

Foreign aid is notoriously wasteful and often counterproductive. Even when the money is not going directly to Swiss bank accounts it is rarely allocated to its highest use because the process is fundamentally political. Contractors with all the wrong training and incentives but the right connections have the best chance of winning jobs. No surprise, the GAO says that USAID’s Haiti reports have been incomplete and not timely.

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