Has Aid Changed ? by Office of the Special Envoy of Haiti - June 2011

8/6/2019 Has Aid Changed ? by Office of the Special Envoy of Haiti - June 2011

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Channelling assistance to Haitibefore and after the earthquake

June 2011

Has aidCHanged?


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HAS AID CHANGED?Channelling assistance to Haiti be ore

and a ter the earthquakeJune 2011

www.haitispecialenvoy.org

United Nations O ce o the Special Envoy or HaitiOne United Nations Plaza, 7th oor, New York, NY 10017, USA


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THE ROLE OF THE SPECIAL ENVOY FOR HAITI The O ce o the Special Envoy or Haiti (OSE) was created in May 2009 bythe Secretary-General o the United Nations. President William J. Clintonwas appointed Special Envoy and Dr. Paul Farmer was appointed DeputySpecial Envoy.

The mandate o the OSE is to assist the Haitian government and peoplein implementing their vision and priorities through engagement with theinternational community, government donors, UN agencies, and other non-state stakeholders.

Following the January 2010 earthquake, the OSE began to monitor theinternational communitys nancial commitments to recovery eforts, andassess the efectiveness o this new category o aid to Haiti.

For urther in ormation on the role and work o the OSE, visitwww.haitispecialenvoy.org .

ACKNOWLEDGEMENTS The OSE is grate ul to the donors and other stakeholders who provided dataand perspectives during the preparation o this report. Post-earthquake aiddata in this report is based on in ormation received rom donors as o mid-June 2011.


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TABLE OF CONTENTSFOREWORD .......................................... .............................................. ......................................... 2

INTRODUCTION ........................................... ............................................. .................................. 3

SUMMARY ............................................. .............................................. ......................................... 4

1 AID TO HAITI BEFORE THE EARTHQUAKE ............................................................ 6

Overview o all ows ........................................................................................................................6

Aid architecture ..................................................................................................................................8

Aid by modality ..................................................................................................................................8

Aid by recipient ..................................................................................................................................10

Aid and accountability.....................................................................................................................11

2 AID TO HAITI AFTER THE EARTHQUAKE .............................................................. 12

Overview o all ows ........................................................................................................................12

Relie aid architecture ......................................................................................................................13

Relie aid by modality ......................................................................................................................13

Relie aid by recipient ......................................................................................................................16

Recovery aid architecture ...............................................................................................................17

Recovery aid by modality ...............................................................................................................18

Recovery aid by recipient ...............................................................................................................19

Aid and accountability.....................................................................................................................20

3 BEYOND 2010: AID AND ACCOMPANIMENT IN HAITI ......................................... 21

Can donors help to create a more robust public sector by changingmodalities and recipients? .............................................................................................................22

Can donors improve the impact o aid or Haitian citizens by changing modalitiesand recipients? ...................................................................................................................................23

ANNEX 1: RECOVERY AID MODALITIES........................................................ ........................... 24

REFERENCES ........................................ .............................................. .......................................... 29

ACRONYMS AND ABBREVIATIONS ......................................... ............................................. .... 34


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FOREWORD The destruction caused by the earthquake that shook Haiti on 12 January 2010 was unprecedented.Equally unprecedented was the subsequent generosity o citizens and governments the world over.I was deeply moved by this solidarity, and saw a new willingness in the international community toaccompany the government and people o Haiti as they con ront the devastation o the earthquakeas well as the obstacles their country has aced or more than 200 years.

Trans orming this willingness into action is itsel an incredible challenge. It requires donors to take onmore than they have in the past, and to adopt new approaches to implementation.

A ter the earthquake, the international community pledged signi cant nancial resources or boththe relie and recovery eforts. Yet many o us have been rustrated with the transition between thetwo phases. Over the past year, donors have disbursed over $1.74 billion or recovery activities, butover hal $2.84 billiono what was pledged or 2010 and 2011 remains in donors hands.

And yet disbursing unds is only part o the aid picture. We know rom our shared experiences in Haitiand elsewhere that the way aid is channelled matters a great deal, and determines its impact on thelives o the Haitian people. For example, with over 99 percent o relie unding circumventing Haitianpublic institutions, the already challenging task o moving rom relie to recoverywhich requiresgovernment leadership, above allbecomes almost impossible.

This report is a small contribution to understanding how aid has been channelled to Haiti be ore anda ter the earthquake. The data is dense but important, and I encourage everyone with an interest inHaitiparticularly donorsto read it, and to think hard about the how o existing aid provision.

We have heard rom the Haitian people time and again that creating jobs and supporting thegovernment to ensure access to basic services are essential to restoring dignity. And we have learnedthat in order to make progress in these two areas we need to directly invest in Haitian people andtheir public and private institutions. The Haitian proverb sak vide pa kanpe an empty sack cannotstandapplies here. To revitalize Haitian institutions, we must channel money through them.

This is the best way to ensure the strengthening o public systems, improved management o resources, increased accountability between the government and its citizens, and greater collectiveimpact o our eforts. Perhaps most important, it will create jobs and build skills or the Haitian people.

As this report makes clear, the international community can invest a much greater proportion o its resources directly in the Haitian public and private sectors. This will require close partnershipsbetween donors and Haitian institutions, based on open discussions. As outlined at the end o thisreport, the O ce o the Special Envoy will also continue to explore innovative ways that donors canchannel assistance to Haiti so that we truly accompany the Haitian government and its citizens in

their eforts to build back better.

Paul FarmerDeputy Special Envoy or Haiti


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INTRODUCTIONHaitians are hardworking. We have seen it overseas, everywhere. Haitians learn to becomesuccess ul. In Haiti they are not because they are not o ered opportunities. This is what we need to bring to them, and I hope that everyone will accompany them to reach these results. 1

Michel Martelly , President-elect of Haiti, April 2011

Aid modalities chosen today will have direct e ects on the governance, capacity and accountability o Haiti or years to come. 2

Angel Gurra , OECD Secretary-General, April 2010

Where has the money gone? is a question requently asked about the international response to theearthquake in Haiti. As the Haitian government, the Interim Haiti Recovery Commission (IHRC) and partnerscompile and veri y vast quantities o data on the results achieved through aid, we must ask an even more

undamental question: How was the money given? This question is based on increasing recognition by theinternational community that the way aid is provided determines its efectivenessthe degree to which itmakes a lasting, positive impact on the lives o people in the communities it aims to serve.

Over the past decade donors have committed to aid efectiveness principles; moved orward with stepsto improve their aid based on these principles; and participated in mechanisms designed to hold themaccountable to these principles. 3 Donors have also increasingly responded to those calling or a humanrights-based approach to aid. 4 From its inception, the O ce o the Special Envoy or Haiti (OSE) hasadvocated or better aid based on accompaniment. Accompaniment complements aid efectiveness andhuman rights principles in a number o ways. It stresses the importance o the Haitian government andits citizens being in the drivers seat. It also calls or aid to ocus on the creation o a robust public sectorand a healthy private sector that provide meaning ul opportunities or citizens. In addition, with its strongemphasis on implementation, accompaniment is speci cally ocused on guiding international partners to

trans er more resources and assets directly to Haitian public and private institutions as part o their support.

This report is part o the ongoing efort o the OSE to hold donors accountable or their nancial pledgesand their commitment to improving the impact o their investments. At the International DonorsCon erence Towards a New Future or Haiti, held on 31 March 2011, donors pledged over US $5.6 billion,to be disbursed over two years, to Haitis recovery. 5 They also agreed to work in partnership with the Haitiangovernment to adhere to the principles o aid efectiveness and good humanitarian donorship and tobuild on lessons learned. 6 Now is a use ul time to compare aid be ore and a ter the earthquakeandto assess whether donors have changed the way they provide their assistance in accordance with theprinciple o accompaniment.

This report does not provide speci c project-level in ormation, 7 nor does it provide, or seek to replace,a technical assessment o the efectiveness o aid to Haiti. 8 This report does not describe progressmade by, or the limitations o , the government with respect to key re orm initiatives that are describedelsewhere. 9 Instead, it is a call to action to all stakeholdersgovernments, oundations, non-governmentorganizations (NGOs), academics and interested citizensto re ect on how we channel resources andaccompany the government and people o Haiti. It seeks to answer basic, big picture questions abouthow aid is channelled. Questions like: How much aid did donors provide? Who received unding romdonors? Through what modalities did donors channel their unding? Were donors accountable to theircommitments? Was aid channelled any diferently a ter the earthquake? By exploring these questionsthe report aims to provide the basis or more in-depth discussion o how aid can best accompany thegovernment and people o Haiti.


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Has Aid Changed?

SUMMARY OF KEY DATAThis report presents the available evidence o how donors channelled aid to Haiti

prior to the earthquake (Section 1) and in support o the subsequent relie andrecovery e orts (Section 2). The key trends in aid to Haiti are set out below.

VOLUME OF AID

Aid to Haiti tripled between 2009 and 2010, increasing rom $1.12 billion($142.1 million in relie and $977.6 million in development unding) to anestimated $3.27 billion ($1.55 billion in relie and $1.73 billion in recovery

and development unding).10

Aid rom bilateral and multilateral donors remains a much greater

resource than the Haitian governments own revenue, at approximately130 percent o government internal revenue in 2009 and an estimated400 percent o government internal revenue in 2010. 11

RECIPIENTS OF DONOR FUNDING

Approximately 99 percent o post-earthquake relie aid was disbursedto bilateral and multilateral humanitarian agencies, the Red Crossmovement and international non-state service providers, including NGOsand private contractors.

Approximately 55 percent o recovery aid was channelled directly tomultilateral agencies, international non-state service providers, andnon-speci ed recipients; and 12 percent was channelled directly to thegovernment using national systems. An additional 33 percent o recoveryaid was provided in support o the public sector, although the OSE doesnot have speci c in ormation on the recipients o the unding. (Recipientsmay include the government, project implementation units and non-stateservice providers.)

This donor behaviour is largely consistent with pre-earthquake trends,although multilateral donors channelled increased unding to thegovernment using national systems a ter the earthquake (rising rom14 to 23 percent).


8/38Channelling Assistance to Haiti Before and After the Earthquake 5

MODALITIES OF AID

Prior to the earthquake, most aid to Haiti was in the orm o direct grantsand technical cooperation.

A ter the earthquake, over 60 percent o relie and recovery aid rombilateral and multilateral donors was provided in the orm o direct grantsto various recipients. An additional 13 percent o recovery aid is beingchannelled to grants through the Haiti Reconstruction Fund.

Budget support contributions have increased rom $93.6 million in the2009 scal year to $225 million in the 2010 scal year, although they

appear to be decreasing in the 2011 scal year, with only $48.8 milliondisbursed to date.

DONOR ACCOUNTABILITY

Donors disbursed almost 70 percent o the unds pledged or 2010. 12 Over60 percent o unds pledged or the combined 2010 and 2011 time rameremain undisbursed.

The timing o aid fows, including budget support, remains unpredictable.

Thus, ollowing the earthquake there was a signi cant increase in aid and tentativeimprovements in donor accountability to their pledges and willingness to providebudget support. However, the available data suggests that there have not yetbeen major changes in who receives unding and how aid is channelled since theearthquake. Based on this analysis, Section 3 o the report o ers modest proposals

or discussions with the government, IHRC and donors about the way orwardbased on the principle o accompaniment. These proposals explore whetherdonors can contribute to stronger public and private sectors, thereby creatingmore opportunities or Haitian citizens, by beginning to change modalities andrecipients o aid.


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Has Aid Changed?

Overview o all aid fowsEven be ore the 12 January 2010 earthquake, Haitians had limited access to jobs and basicservices such as health and education. 13 The appositive the poorest country in the Westernhemisphere accompanies most mentions o Haiti in the international press; indeed, Haitiranks 145th o 168 countries in the United Nations Human Development Index and ischaracterized as a least developed country. 14

As shown in Figure 1, aid ows to Haiti have varied along with political events andhumanitarian crises over the last twenty years. 15 Beginning in 2002, aid steadily increased,most noticeably a ter the establishment o the UN Stabilization Mission in Haiti (MINUSTAH)in 2004. Between 2004 and 2009 net o cial development assistance (ODA) increased rom$298.6 million to $1.12 billion. 16 This included an increase in humanitarian assistance rom$70 million in 2004 to $142.1 million in 2009. 17

With this increase, net ODA has remained greater than the internal revenue available to thegovernment or use in its annual budget. Net ODA was approximately 113 and 130 percento the governments total internal revenue or its budget in the 2005 and 2009 scal years,respectively. 18

1 AID TO HAITI BEFORE THE EARTHQUAKE

Development (net ODA receipts)

Source: OECD data (refer footnote 17)

Humanitarian

Figure 1: ODA to Haiti (1989-2009) in current USD millions

1200

1000

800

600

400

200

0

1 9 8 9

1 9 9 1

1 9 9 3

1 9 9 5

1 9 9 7

1 9 9 9

2 0 0 1

2 0 0 3

2 0 0 5

2 0 0 7

2 0 0 9



In comparison, net ODA to Haiti on a per capita basis was less than aid to Rwanda, A ghanistan andIraq in 2008, but greater than aid to Guinea, Malawi and Sierra Leone, as outlined in Table 1.

Separate rom ODA to Haiti, donors also increased their contributions or peacekeeping operationsrom $377 million in 2004 to $575 million in 2008. 19 Approximately one in every three dollars that

the international community provided in 2008 or humanitarian, development or peacekeepingoperations in Haiti was channelled to peacekeeping. 20

Net ODA per capita

to Haiti in 2008$92.30

Table 1: ODA per capita to select fragile states in 2008 (current USD millions)

Country Net ODAper capita

GDP per capita In ant mortalityrate

Population

Guinea 32.4 384.2 90.2 9,833,055

Malawi 61.5 287.8 71.4 14,846,182

Sierra Leone 66.0 351.6 125.5 5,559,853

Guinea-Bissau 83.5 537.7 116.6 1,575,446

Haiti 92.3 648.8 65.4 9,876,402

Rwanda 116.9 458.5 73.8 9,720,694

A ghanistan 167.6 405.1 135.2 29,021,099

Iraq 321.7 2,817.3 35.7 30,711,152

* deaths per 1,000 live births Source: World Bank


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Has Aid Changed?

Aid architectureBetween 2004 and 2009 donors provided greater support to the Government o Haiti to

prepare multi-year development policies that could guide assistance.21

Immediately prior to theearthquake, aid was coordinated by the Group o 11 (G11) donors (which included Canada,the European Union, France, the Inter-American Development Bank (IDB), the InternationalMonetary Fund (IMF), Japan, Spain, the United Nations, the United States, the World Bank and arepresentative o Argentina, Brazil and Chile). At the sector level, donor coordination mechanismswere established (including donor-led ora called sector groups and government-led oracalled sector tables). Despite these mechanisms, limited substantive coordinated programmingtook place at the sector level. This is apparent rom the absence o ormal sector ramework agreements and coordinated nancing mechanisms (such as pooled unds or sector budgetsupport), discussed below.

Aid by modalityPrior to the earthquake, aid modalities (the various channels that donors use to provide aid)included both nancial assistance to the government (concessional loans and grants to budgetsupport or projects), non- nancial assistance to the government and non-governmental entitiesand the private sector (technical assistance, procurement o goods and services), as well as debtrelie . These modalities are described in Annex 1.

Between 2004 and 2009 two key changes were made with respect to the modalities adopted inHaiti. First, the IDB, the World Bank and bilateral donors converted their ODA to Haiti rom loans togrants and cancelled most o the countrys debt. 22 The IMF and some bilateral donors still provide

loans. 23 Second, donors re-established budget support as a modality and consistently providedgeneral budget support to the government rom 2004 to 2009, averaging approximately$60.5 million per year, including $93.6 million in the 2009 scal year. 24

3%Portion o bilateral aid to

Haiti that went to budgetsupport in 2007



Outside o budget support, there is limited accurate in ormation about how donors channelledunding to the public sector in support o the national and sector plans. The Organization or

Economic Cooperation and Developments (OECD) most recent review o aid efectiveness inHaiti, which is based on assistance totalling $683 million (excluding approximately $26 millionin loans) 25 provided in 2007 by the top 12 donors, 26 provides some overview o the broadtrends. 27 The data is summarized in Figure 2.

O this $683 million in aid, 54 percent ($367 million) was disbursed by bilateral donors and46 percent ($316 million) by multilateral donors. Bilateral donors disbursed the $367 millionas ollows:

68 percent ($249 million) in technical cooperation;

29 percent ($105 million) as grants 28 in support o speci c projects; and

3 percent ($13 million) in budget support. 29

Multilateral donors disbursed the $316 million as ollows:

76 percent ($239 million) as grants 30 in support o speci c projects;

16 percent ($51 million) in budget support; and

8 percent ($26 million) in technical cooperation. 31

8%

76%

16%3%

68%

29%

Budget support

Bilateral donors

Source: OECD Technical cooperation Grants

Figure 2: ODA to Haiti from bilateral and multilateral donors in 2007 by modality

Multilateral donors


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Has Aid Changed?

Aid by recipientAlthough there is no detailed in ormation about who received unding, the OECD report indicatesbroad trends about the recipients o the $683 million disbursed in 2007. These trends are shown inFigure 3.

O the $683 million, 55 percent ($375 million) aimed to strengthen the public sector (throughunding to the government, multilateral agencies, and non-state service providers (including

NGOs and private business). 32 The amounts allocated to the public sector varied betweenbilateral and multilateral donors:

27 percent ($100 million o $367 million) was disbursed by bilateral donors in support o the public sector; and

87 percent ($275 million o $316 million) was disbursed by multilateral donorsin support o the public sector.

O the $100 million disbursed by bilateral donors in support o the public sector: 23 percent ($23 million) was provided to the government to manage through its own

public nancial management systems; 33 and

77 percent ($77 million) was provided as grants or technical cooperation managed bythe government, project implementation units (PIUs, aid management structures createdoutside o the existing management and sta ng o national implementation agencies), 34 multilateral institutions, or other non-state service providers including international NGOsand private contractors.

Portion o undspledged to theGovernment o Haitis

2004-2007 development plan thatwere disbursed by September 2007

<



O the $275 million disbursed by multilateral donors in support o the public sector:

20 percent ($55 million) was provided to the government to manage through its own

public nancial management systems; and 80 percent ($220 million) was provided as grants or technical cooperation managed

by the government, PIUs or other non-state service providers, including NGOs andprivate contractors. 35

Aside rom the aid to the public sector, the remaining 45 percent ($307 million) aimed to support non-public sector entities, including the private sector and civil society, and thus was received by NGOs orprivate companies.

The OSE was unable to nd more speci c in ormation on unding provided directly to Haitian civilsociety and private sector organizations in 2007.

Aid and accountabilityAccording to the World Bank, o the unding pledged in support o the governments developmentplan or 2004-2007, 47.5 percent had been disbursed by September 2007. 36 More recently, o undingpledged in response to the 2008 hurricanes in Haiti, 12 percent had been disbursed by December2009. 37 A report by the OECD in 2008 ound that the predictability o worldwide aid ows remained aproblem, with just over one-third o pledged aid disbursed on schedule. 38

70%

17% 13%6%

73%

21%

Multilateral agencies, international non-governmental organizations (NGOs)and private contractors, not in support of the public sector

Bilateral donors Multilateral donors

Source: OECD and donors

Government, multilateral agencies, international NGOs and private contractors in support of thepublic sector, but national systems not used

Government, national systems used

Figure 3: ODA to Haiti (public sector and non-public sector) in 2007 by recipient


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Has Aid Changed?

Overview o all fows This section details the assistance that donors provided to the relie and recovery eforts in2010 and the rst hal o 2011 based on in ormation gathered by the OSE in support o theHaitian government and the IHRC, and in collaboration with donors. 39 The OSE gures or post-earthquake aid should be considered uno cial estimates; o cial gures will be released bythe OECD.

A ter the earthquake, Haiti received pledges o unprecedented support rom around the globe.Bilateral and multilateral donors pledged over $5.6 billion or recovery eforts in 2010 and 2011.Individuals and private companies gave at least an additional $3.10 billion in private donationsto NGOs responding to the disaster. 40

Since the earthquake, bilateral and multilateral donors have disbursed41

approximately$1.69 billion in relie aid ($1.55 billion in 2010 and $140.0 million in 2011 to date) and$2.12 billion in recovery aid ($1.73 billion in 2010 and $392.6 million in 2011 to date).

Thus donors disbursed $1.55 billion (approximately $155 per Haitian) or the relie efortsand $1.73 billion (approximately $173 per Haitian) or longer-term recovery eforts in 2010only. These gures do not include donor contributions to peacekeeping operations or privatedonations to NGOs in 2010. Alone, these ows o relie and recovery aid signi cantly exceedbymore than a actor o ourthe governments internal revenue (approximately $753.8 million)available to support its 2010 annual budget. 42 These sources o unding are compared in Figure 4.

2 AID TO HAITI AFTER THE EARTHQUAKE

Internal revenue available for thegovernments FY 2010 budget

Donor humanitarian funding(earthquake + cholera)

Donor recovery funding

Private funding to NGOs

5 0 0

1 , 0 0

0

1 , 5 0

0

2 , 0 0

0 0

Government treasury Projects in support of government Other

Source: Office of the Special Envoy for Haiti

Figure 4: Aid disbursement by source and recipient in 2010, in USD millions



While in practice it may be di cult to distinguish between activities in Haiti that exclusively supporteither the relie or recovery eforts, there are diferent unding pools and associated regulations thatdetermine how donors provide aid to each. In addition, donors also adopt diferent approaches tomeet immediate needssuch as ood, shelter, water and sanitationthan or recovery and long-termdevelopment. This report distinguishes between relie and recovery activities based on the undingpools that were used to support them.

Relie aid architectureMembers o the international community activated their emergency response mechanisms on the dayo the earthquake in response to the extensive devastation in Port-au-Prince and surrounding areas,and the needs o those displaced. The Government o Haiti was severely afected by the earthquake,and in this context no Haitian-led, overarching plan or coordination mechanism or relie wasestablished. Donors, as well as the UN, the Red Cross movement and international NGOs, conductedtheir own assessments, prepared their own plans, and issued their own appeals or unding.

Coordination eforts ell into two main categories. First, ad hoc mechanisms were established by theinternational community in the immediate relie phase to promote coordination between militaryactors (including MINUSTAH and donor countries own military orces mobilized as part o the relie eforts) and traditional humanitarian actors (including UN agencies and international NGOs). 43 Theestablishment o these mechanisms was in part due to the signi cant resources that were channelledthrough the civilian or military agencies o donor governments tasked with administering li e-savinggoods and services.

Second, the UN-managed cluster system, a global humanitarian response ramework, was alsoactivated in Haiti immediately a ter the earthquake 44 and continues to operate, including as part o thecholera response. The cluster system provides a basic coordination ramework or UN agencies andmajor international NGOs or assessment, planning and undraising, with individual cluster membersresponsible or implementation and results tracking. 45 The post-earthquake per ormance o the clustersystem was independently evaluated 46 and the results achieved by the various cluster partners in 2010were compiled by the UN. 47

As part o the cluster system, the UN O ce or the Coordination o Humanitarian Afairs (OCHA) issuedunding appeals based on the needs identi ed by UN agencies and NGOs working in the clusters. The

appeal is a mechanism to coordinate the provision o unding or speci c projects rom donors directlyto cluster partners ( unding is not channelled through OCHA), although donors also have the option tocontribute through pooled unding mechanisms managed by OCHA. 48

Relie aid by modalityAn estimated 111 bilateral and multilateral donors 49 disbursed approximately $1.69 billion inhumanitarian unding in response to the earthquake and the subsequent cholera outbreak in2010 and the rst hal o 2011. An additional $740.6 million has been committed. 50


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Has Aid Changed?

O the total $2.43 billion committed or disbursed, approximately 92 percent ($2.23 billion) wasprovided by bilateral donors and 8 percent ($189.8 million) was provided by multilateral agencies.O the total $2.4 billion committed or disbursed in humanitarian unding:

40 percent ($975.8 million) was provided as in-kind donation o goods and services; and

60 percent ($1.45 billion) was provided as grants, as shown in Figure 5.

Almost hal o the grant unding ($674.9 million) was channelled to projects listed in the UNappeals. In 2010, OCHA managed an appeal totalling $1.50 billion, which was 75 percent unded(with $1.12 billion) at the end o 2010 by bilateral and multilateral donors, as well as privateindividuals and companies. 51 In late 2010, OCHA released a 2011 appeal, which included undingneeds or the UNs cholera response plan, totalling $910.8 million, o which 22 percent($168.6 million) has been unded to date.

60%

40%

Figure 5: Relief aid to Haiti in 2010 by modality (January 2010 March 2011)

In-kind goods and servicesSource: Office of the Special Envoy for Haiti

Grants

Portion o disbursed Haiti

relie aid received by thecountrys government1%



Relie aid by recipientRelie aid or Haiti by recipient is shown in Figure 6. O the $2.43 billion committed or disbursed inhumanitarian unding:

34 percent ($824.7 million) was provided to donors own civil and military entities ordisaster response;

28 percent ($674.9 million) was provided to UN agencies and international NGOs orprojects listed in the UN appeal;

26 percent ($632.5 million) was provided to other international NGOs and privatecontractors;

6 percent ($151.1 million) was provided (in-kind) to unspeci ed recipients; and

5 percent ($119.9 million) was provided to the International Federation o the Red Crossand national Red Cross societies

1 percent ($25.0 million) was provided to the Government o Haiti.

The OSE was unable to nd more speci c in ormation on the overall unding provided directly toHaitian civil society and private sector organizations. O the unding provided to projects in the UNappeal ($674.9 million), none was provided by bilateral or multilateral donor directly to Haitian civilsociety organizations. The UN appeals did not include the unding needs o the government andprovided limited opportunities or Haitian organizations to seek unding. The initial appeal documentincluded the unding needs o UN agencies and international NGOs only; no Haitian NGOs wereincluded in the rst version o the appeal. Approximately 10 Haitian NGOs were included in laterversions o the appeal, requesting a total o $5.4 million (0.4 percent o the $1.50 billion requested).

Figure 6: Relief aid to Haiti by recipient (January 2010 March 2011)

28%

26%

6%5%

1%

34%

Donors civil and military entities with a mandateto respond to disasters

UN agencies and international NGOs as part of the UN ash appeal

Other non-state service providers(NGOs and private contractors)

International Federation of the Red Cross andnational Red Cross societies

Source: Office of the Special Envoy for Haiti

Recipient of in-kind goods and servicesnot identied

Government of Haiti


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Has Aid Changed?

Two Haitian organizations received unding or projects listed in the appeal (but not directly romdonors) in the orm o two contributions totalling $0.8 million (15 percent o the unds requested byHaitian NGOs)one rom OCHAs pooled und or Haiti ($0.3 million) and one rom its internationalpartner agency ($0.5 million). 52

Recovery aid architectureIn contrast to the relie eforts, the government and the international community have togetherestablished a common plan and coordination structure or the recovery eforts. The Haitiangovernment success ully presented its Action Plan or National Recovery and Development to donorsat the March 31 International Donors Con erence Towards a New Future or Haiti. 53 The actionplan, which was in ormed by a post-disaster needs assessment (PDNA), set out the governmentsimmediate and longer-term priorities. Despite limitations in both the PDNA and the action plandue to their creation in a very protracted time rame, they did set out a general ramework and costestimates that were the basis or decision-making at the time. 54 The Government o Haiti requested atotal o $3.86 billion in unding to support the recovery eforts or 2010 and 2011 through the actionplan, against which 55 donors pledged $5.60 billion or those years.

The action plan also described the governments intention, later ormalized by presidential decree on22 April 2010, to establish the Interim Haiti Recovery Commission (IHRC). The IHRC was establishedto conduct strategic planning and coordinate donor resources over a period o 18 months, withtransparency and accountability as major goals. 55 It is not a unding body or an operational agency,but a mechanism to promote coordinated and efective action through the work o its boardmembers. The IHRC board, which at the time o writing has met six times, is comprised o voting and

non-voting members. 56 Voting members include representatives o the Haitian executive, legislatureand judiciary; representatives o the Haitian trade unions and the private sector; and donors whohave committed to provide at least $100 million over two years. 57 Representatives o local andinternational NGOs, the Haitian diaspora, and the Organization o American States are non-votingmembers.

One o the key roles o the IHRC to date has been to provide a high-level orum or donorcoordination, which is complemented by the existing donor coordination meetings chaired by theUN with the Group o 12 donors (G12, ormerly the G11). 58 To advance coordination and progress o

Number o Haitian NGOs

included in the rst post-earthquake fash appeal0



the recovery eforts, the IHRC presented a strategy or the remainder o its mandate at the December2010 board meeting. The strategy sets out programme and unding targets or the internationalcommunity to support the implementation o the governments action plan in eight key recoveryareas through to the end o the IHRC mandate. 59

The IHRC has also supported key line ministries to begin to re-establish government-led sectorcoordination mechanisms, which are designed to acilitate coordinated planning and programming. These coordination eforts are crucial given that the 12 main donors to Haiti are each providing grantsacross an average o 10 sectors o the action plan. 60 In ormation gathered through the IHRCs projectreview process will also be used to guide these coordination eforts. The IHRCs project review processalso provides the initial entry point or partner entities seeking unding rom the Haiti ReconstructionFund (HRF). (See Annex 1 or urther explanation o the HRF.) To date, the IHRC has approved 87projects with a total value o $3.26 billion, o which $1.8 billion is secured. The IHRC also established aper ormance and accountability o ce to conduct in-depth monitoring o approved projects.

Recovery aid by modalityDonors have disbursed 61 $2.12 billion in support o the recovery and development eforts. O this$2.12 billion, $1.74 billion is rom the pledges made at the New York con erence in support o theaction plan (excluding debt relie ) 62 and $389.3 million rom other pools o unding or recovery anddevelopment eforts in Haiti. 63 An additional $1.94 billion has been committed, including $1.61 billion

rom the pledges made at the New York con erence and $330.7 million rom other pools o unding.

The modalities used to channel these unds are shown in Figure 7 and are explained urther inAnnex 1. O the $2.12 billion disbursed, 64 percent ($1.35 billion) was disbursed by bilateral donorsand 36 percent ($774.2 million) was disbursed by multilateral donors.

O the $1.35 billion disbursed by bilateral donors in recovery and development unding:

72 percent ($969.1 million) was through project grants;

21 percent ($280.9 million) was through the HRF;

6 percent ($90.3 million) was as budget support; and

1 percent ($10.0 million) was through loans or other modalities.

O the $774.2 million disbursed by multilateral donors in recovery and development unding:

59 percent ($456.4 million) was through project grants;

23 percent ($174.8 million) was as budget support; and

18 percent ($143.0 million) was through loans or other modalities. 64

Since the earthquake a total o $204.1 million has been disbursed as budget support directly tothe national treasury and $61.0 million has been disbursed through the HRF. According to the IMF,the volume o budget support is likely to decrease rom $225 million in the 2010 scal year, to$170 million in the 2011 scal year (although only $48.8 million has been disbursed by donors inthe 2011 scal year to date).


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Has Aid Changed?

In accordance with an IHRC ramework, projects that were initiated a ter 17 June 2010 should besubmitted to the IHRC or review and approval. O the unding disbursed to project grants, includingdirect projects and projects unded by the IHRC:

53 percent has been channelled to projects that started prior to the earthquake; and

47 percent has been channelled to projects that started a ter the earthquake.

O the unding disbursed to projects that started a ter the earthquake:

64 percent has been channelled to projects that have not been approved by the IHRC; and

36 percent has been channelled to IHRC-approved projects. 65

Recovery aid by recipientRecovery aid by recipient is shown in Figure 8. O the $1.35 billion disbursed by bilateral donors inrecovery unding:

43 percent ($582.3 million) was disbursed to multilateral agencies (including via the HRF);

25 percent ($339.5 million) was disbursed to international non-state service providers(including NGOs and private contractors);

59%

18%23%

1%

21%

6%

72%

Budget support

Bilateral donors

Source: Office of the Special Envoy for Haiti data

Haiti Reconstruction Fund Project grants Loans and other

Figure 7: Recovery aid by modalities from bilateral and multilateral donors(2010 March 2011)

Multilateral donors



18 percent ($239.7 million) was disbursed as grants in support o the government(although the OSE does not have speci c in ormation on the recipients o the unding,which may include the government, PIUs and non-state service providers);

7 percent ($90.3 million) was disbursed to the government using national systems; and

7 percent ($98.5 million) was disbursed to unspeci ed recipients.

O the $774.2 million disbursed by multilateral donors in recovery unding:

60 percent ($463.8 million) was disbursed as grants and other unding in support o the government (although, as with bilateral donors, the OSE does not have speci cin ormation on the recipients o the unding, which may include government, PIUs andnon-state service providers);

23 percent ($174.8 million) was disbursed to the government using national systems;

15 percent ($116.3 million) was disbursed to international non-state service providers;

1 percent ($11.8 million) was disbursed to multilateral agencies; and

1 percent ($7.6 million) was disbursed to unspeci ed recipients.

60%

1%

1%

15%23%

7%

18%

7%

43%

25%

Government of Haiti (treasury)

Bilateral donors

Source: Office of the Special Envoy for Haiti data

Grants in support of the government Multilateral agencies

Not speciedOther international non-state service providers(NGOs and private contractors)

Figure 8: Recovery aid by recipient from bilateral and multilateral donors(January 2010 March 2011)

Multilateral donors


23/3820

Has Aid Changed?

Aid and accountabilityWith respect to relie unding or the earthquake response, 111 donors allocated 66 $2.32 billionin aid ollowing the earthquake, o which 68 percent ($1.57 billion) has been disbursed. Anadditional $695.3 million is committed. With respect to relie unding or the cholera response,$161.6 million was allocated, o which 71 percent ($114.7 million) has been disbursed. Anadditional $45.3 million is committed.

With respect to recovery unding, 67 bilateral and multilateral donors who attended the New York con erence pledged $5.6 billion in aid or Haiti in 2010 and 2011. Donors were asked to makepledges by year, with re erence to their planned disbursements, and donors are encouraged toamend their pledges should planned disbursements change.

For 2010, donors pledged approximately $2.09 billion or programmes (excluding debt relie inthe amount o $985.2 million), 68 o which 67.9 percent ($1.42 billion) was disbursed in 2010. For 2010and 2011, donors pledged $4.58 billion or programmes (excluding debt relie in the amount o $1.01 billion), 69 o which 37.8 percent ($1.74 billion) had been reported as disbursed as o June 2011.An additional $1.61 billion has been committed. 70

The timeliness o contributions to budget support has the greatest impact on the governmentsplanning. Over 50 percent o the budget support disbursed a ter the earthquake arrived in the lasttwo months (August and September 2010) o the Haitian scal year, more than eight months a terthe earthquake. According to the IMF, only 29 percent o the budget support pledged or the 2011

scal year has been disbursed by donors, although over hal o these unds remain in the HRF and

have not yet reached the government. The delayed disbursements to budget support negativelyimpacted the governments ability to efectively plan activities. 71

Timing o contributions to the HRF is also crucial so that the government and the IHRC are able toset the priorities or use o unding. The HRF, established in April 2010, received over 50 percento contributions or 2010 in the last quarter o the calendar year. In efect key allocations to debrisremoval and housing were approved in December 2010, with unding reaching the lead agency inthe rst quarter o 2011.

Factor by which bilateral

and multilateral aidto Haiti exceeded the

governments internal revenue in 20104X



Has aid to Haiti changed since the earthquake? A comparison o the data in Sections 1 and2 identi es three tentative changes in aid during 2010. First, aid to Haiti tripled between2009 and 2010 in support o the relie and recovery eforts, but it is likely to decrease in2011 due to a reduction in humanitarian disbursements. Second, donors ul lled mucho their promises, disbursing over 67 percent o pledged unds or 2010; however over60 percent o unds pledged or the combined 2010 and 2011 time rame remainundisbursed. Third, donors doubled their contributions to budget support between the2009 and 2010 scal years; yet with only three months le t in the 2011 scal year paidbudget support contributions stand at hal o the 2009 total.

Overall, examining the broad trends, to date there have been limited changes in whoreceives aid and how it is channelled to Haiti. Most aid is still channelled in the orm o grants directly to international multilateral agencies, and non-state service providers(NGOs and private contractors). For example, bilateral donors provided approximately99 percent o relie aid and at least 75 percent o bilateral recovery aid through multilateralagencies and non-state service providers.

This section poses some key questions or consideration by the international communityabout how aid to Haiti is channelled based on accompaniment, the concept that theOSE has used to advocate or more efective aid. An analogy commonly used to illustratethe concept is that o health pro essionals interacting with and providing continuouscare to an individual patient over time as he or she moves toward better health. As anaid principle, accompaniment stresses the importance o the Haitian government and itscitizens being in the drivers seat, with the international community listening to Haitianpriorities, as a vital precondition or long-term positive change.

Accompaniment draws on and complements other principles, including the aidefectiveness and human rights agendas, in calling or donors and implementers o aid toHaiti to ocus on creating a robust public sector and a healthy private sector that betweenthem provide meaning ul opportunities or Haitian citizens. As an implementationstrategy, accompaniment recommends the trans er o more resources and assets directlyto Haitian public and private institutions. This will strengthen their systems; improve theirmanagement o resources; promote accountability between the government and itscitizens; and increase the collective impact o our eforts. It will also create jobs and buildskills or the Haitian people.

Donors can do much to increase the proportion o unds channelled through the Haitianpublic and private sectors as part o recovery eforts. To explore these possibilities, the OSEplans to work with the Haitian government, the IHRC and donors to discuss the questionsoutlined below. This work will draw on donors best, most innovative practices in Haiti, aswell as efective aid eforts in similar contexts.

3 BEYOND 2010: AID ANDACCOMPANIMENT IN HAITI


25/3822

Has Aid Changed?

Can donors help to create a more robust public sector bychanging aid modalities and recipients?Strengthening the Haitian public sector to oversee the delivery o key services such as

health, housing, education, and water and sanitation requires action on the parts o boththe government and donors, and will take time. Evidence rom Haiti and other contexts, aswell as aid efectiveness and human rights principles, suggest that aid is most efective atstrengthening public institutions when it is channelled through them. 72

As noted in Section 1, prior to the earthquake donors were providing signi cant undingwith the aim o strengthening Haitian public institutions; signi cant volumes o this aidwere nonetheless channelled outside national systems and institutions. Both Sections 1 and2 highlight the need or greater understanding o project grants made in support o thepublic sector and the volume o resources that are, in act, received by the government. Thisin ormation will enable urther consideration o how additional resources could be channelleddirectly to Haitian public institutions when exploring the ollowing questions:

What are the necessary steps to providing increased unding to key line ministries? These may include steps that the government and donors need to take separatelyor together, such as a strategic division o labour, strengthened sector coordinationmechanisms, and ormalized sector programming to promote closer partnerships.It may also involve enhanced understanding o the limitations and exibility inregulations about how donors provide aid to governments.

What is the potential impact o increased aid provision to key line ministries versusnon-state service providers? The impact may vary according to the modality used;that is, whether the government receives budget support, project grants or aid

through other channels. What can donors do to ensure that non-state service providers whom they und

with the aim o strengthening Haitian public institutions do, in act, work alongsidethe government? This may include steps by donors to ensure that non-state serviceproviders work within government registration, coordination and monitoring

rameworks; work in support o relevant line ministries; and trans er skills andresources to the government and/or Haitian organizations.



Can donors improve the bene ts o aid or Haitiancitizens by changing modalities and recipients?As noted above, signi cant unding continues to ow to multilateral agencies, and international

NGOs and private companies. Limited evidence exists on the secondary impact on economicgrowth and job creation o aid provided through these channels, as well as alternative localrecipients such as Haitian private companies (through local procurement) and citizens (throughcash trans ers). Such evidence may provide strong rationale or providing increased aid throughalternative channels. In addition to aid, donors also provide unding to MINUSTAH and theirown diplomatic operations in Haiti; more o these unds, when used or procurement, could bespent with Haitian private companies.

There is signi cant donor interest in maximizing this second, and potentially more important,dividend o their investments. In collaboration with key partners, the OSE will address localspending by international actors by exploring the ollowing questions:

What are the necessary steps or donors and international non-state service providersto increase local procurement? This may include increasing understanding amonglocal actors o the limitations and exibility in donor procurement regulations, andthe development o concrete strategies to help them garner contracts. It may alsoinvolve exploring limitations aced by local suppliers in working with members o theinternational community.

What would be the economic impact o a Haiti First policy 73, by which donorsand international non-state service providers give equal consideration to Haitiancompanies in procurement processes? This may involve developing evidence o the economic impact o local procurement on economic growth in Haiti, as well as

understanding the existing capacities in key industries. What are donors and government experiences with cash trans ers in Haiti and

elsewhere? This may involve considering the pros and cons o diferent models o cash trans er and salary support in Haiti and elsewhere, as well as other approaches,such as micro nance.


27/3824

Has Aid Changed?

ANNEX 1: RECOVERY AID MODALITIESAid modality is a term used to re er to the channel through which aid is disbursed. Modalities andtheir sub-modalities include:

FINANCIAL

TECHNICAL ASSISTANCE

IN KIND RESOURCES

NON-FINANCIAL

DEBT RELIEF

FINANCIAL

Budget Support HaitiReconstruction Fund

Project-based

Sector

Line Item

Via HaitiReconstruction Fund

General

CONCESSIONAL LOANS

GRANTS



The OSE tracks nancial resources available to support the recovery eforts includingcontributions to budget support, the HRF, and project-based grants that are outlined below. This data is available at www.haitispecialenvoy.org.

Budget support is support to the national budget through a trans er o money to the Haitian

treasury. The unds are managed in accordance with Haitian budgetary procedures. Fundstrans erred to the Haitian treasury that are managed in accordance with procedures other thanthe Haitian budgetary procedures, including donor procedures, are not considered budgetsupport, but project-based grants (see below). 74

The Haitian governments budget support needs are related to budget gapsthe diferencebetween total budgeted expenditures and available existing resources (both internal andexternal). 75 Budget support contributions are ungible, mixed with existing resources managedby the Haitian treasury that are used to nance both recurrent spending, including civil servantsalaries, and investment spending.

Types o budget support to Haiti include general budget supporta contribution to the Haitiangovernments overall annual budgetand sector budget support, which is earmarked or aspeci c sector (with any conditionality relating to these sectors). A third type o budget supportis line item support, provided in support o a particular item in the governments budget.

Since the earthquake, donors can provide budget support directly to the Haitian treasury,or indirectly through the Haiti Reconstruction Fund (HRF). Budget support that is providedthrough the HRF is rst trans erred to the World Bank, which acts as trustee o the HRF; then,on approval rom the HRF steering committee, to the relevant partner entity 76 (the World Bank or the IDB); and nally, to the Haitian treasury. The partner entities do not charge ees i thecontribution can be combined with their existing budget support operations.

Budget support is coupled with donor involvement in policy dialogue aimed at settingconditions or the provision o support, as well as technical assistance aimed at increasing thecapacity o key ministries to achieve policy re orm. General budget support contributions areusually associated with dialogue on public nancial management practices, whereas sectorbudget support contributions are associated with re orm or per ormance targets in that sector(e.g., the number o teachers trained in the education sector).

The Haitian government reports on its budget expenditures on the website o the Ministry o Finance on a quarterly basis. 77 The government is also accountable to donors or meeting theconditions on which they provided budget support. The International Monetary Fund, in itsmost recent report to its board on Haiti, indicated that the country had met the conditions setin the 2006-2010 IMF programme. 78


29/3826

Has Aid Changed?

Post-earthquake budget support Donors have disbursed $265.1 million in budget support, including 97 percent ($258.0 million)as part o the pledges made at the New York con erence and 3 percent ($7.1 million) romother unding.

Approximately $249.7 million in budget support was disbursed by donors in 2010 and$15.4 million was disbursed in the rst quarter o (calendar year) 2011. 79

O the total, 77 percent ($204.1 million) was channelled directly to the Haitian treasury, and23 percent ($61.0 million) through the HRF. O the $61.0 million channelled through the HRF,41 percent ($25 million) has been received by the government and 8 percent ($5 million) hasbeen disbursed to the IDB or trans er to the government as part o a sector-speci c project.

O the budget support total, 86 percent ($228.3 million) was channelled as general budgetsupport; 5 percent ($14.0 million) as sector budget support; and 9 percent ($23.9 million) asline item budget support.

General budget support provided directly to the Haitian treasury was the Haitiangovernments pre erred modality or aid provided in response to the earthquake. 80 Followingthe earthquake the Haitian government appealed or increased budget support as it had lostrevenue as a result o the disaster and needed to restart the critical unctions o the state. 81

In May 2010, the Budget Support Working Group, consisting o representatives o the Haitiangovernment and key donors, adopted per ormance targets or the continued provision o general budget support in the 2010 and 2011 scal years. These per ormance targets relateto six key public nancial management issues: budget execution, revenue collection, nancial

management, civil service re orm, auditing, and transparency and accountability.82

The Haiti Reconstruction Fund (HRF) is a partnership between donors and the Haitiangovernment to help nance post-earthquake recovery priority projects. It was established inApril 2010 by the World Bank upon request by the Haitian government. The HRF is a pooled und,o ten re erred to as a multi-donor trust und, a single account to which donors contribute money. The World Banks International Development Association acts as trustee o the HRF account.

The HRF steering committee is chaired by Haitis minister o nance, and includes representativeso the Haitian government and those donors that have contributed over $30 million to the HRF(currently Brazil, Canada, France, Japan, Norway, Spain and the US). Non-voting members o thesteering committee include the our partner entities o the HRF (currently the IDB, the UN, WorldBank, and the International Finance Corporation) and the trustee o the HRF (the World Bank, givingthe bank two representatives on the steering committee). 83 Representatives o Haitian civil society,the Haitian private sector, and international NGOs are observers on the steering committee.



The main role o the steering committee is to approve allocations rom the HRF account to speci cprojects that support the implementation o the governments action plan. Be ore reaching thesteering committee, project proposals are submitted to the IHRC project review process and approvedby the IHRC. The IHRC also selects projects or consideration or HRF unding. The steering committeethen reviews and approves a project proposal on an in-principle basis with resources set asidepending submission o the complete project document. 84

For a project proposal to be approved by the steering committee, it must involve at least one HRFpartner entity. (HRF partner entities are agencies that have met the World Banks procurementstandards.) The partner entities work with implementing agencies including the Haitian government,international NGOs and Haitian civil society organizations on speci c projects.

Once a project proposal is approved by the steering committee, the partner entity submits a ullproject document or approval by the steering committee and the IHRC on a no-objection basis. The trustee (the World Bank) enters into a contractual agreement with the relevant partner entityand disburses unding to it. The partner entity is responsible or overseeing implementation o the

project, and is accountable to the HRF trustee or nancial reporting and to the steering committeeor achieving the programmatic results set out in the project document.

Funding from the Haiti Reconstruction FundDonors have disbursed $280.9 million to the HRF or grants (in addition to $61.0 million orbudget support). All contributions to the HRF count toward ul lment o pledges made at theNew York con erence.

O the $280.9 million received, a total o 10.5 percent ($29.5 million) was disbursed by the HRFor projects in 2010; 51 percent ($143.0 million) was disbursed or projects in the rst hal o

2011. 85 $1.7 million has been disbursed to the HRF secretariat or operating costs.

O the unding disbursed or set aside by the HRF or projects,18 percent ($36.5 million) wasprovided to the IDB, 49 percent ($96.0 million) to the UN, and 33 percent ($65 million) to theWorld Banks International Development Association.

The steering committee has met six times, each session ollowing an IHRC meeting. InDecember 2010, the government and the IHRC called upon donors to provide an additional$500 million to the HRF to help achieve the IHRC priority targets.

Project-based grants include unds provided in support o the Haitian public and private sectors,as well as civil society organizations, based on speci c activities with limited objectives, budgetsand time rames to achieve results. Project-based grants may be received by the Haitian government,project implementation units (PIUs), 86 multilateral agencies, international and Haitian NGOs, andprivate contractors.


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Has Aid Changed?

The recipient o a project-based grant maintains a direct relationship with the donor, ormalized bycontract. The recipient must account or the unds in accordance with the donors procedures or, i the recipient has an existing ormal or in ormal partnership with the donor, its own procedures. Inboth scenarios the recipient is accountable to the donor or achieving the agreed results. When therecipient is not the Haitian government, the relevant government authority should nonetheless beinvolved in project planning and monitoring.

With respect to project unding to the government, project-based aid is distinguished rom budgetsupport in two scenarios: when it is not provided to the Haitian treasury, or when money provided tothe treasury is not subject to Haitian budgetary procedures. Project-based aid to the public sector maybe received by the government (ministries or departments), PIUs or other service providers.

Other service providers include multilateral agencies, international non-governmental and privateorganizations, and Haitian civil society and private organizations that manage project-based grants.Each o these service providers maintains programme and nancial management systems. Under theHaitian governments aid recovery architecture, each o these actors is responsible or submitting new

projects to the IHRC or review and approval. Some organizations are also responsible or registeringwith and reporting to the Ministry o Planning and External Cooperation, 87 and in some cases, therelevant line ministry. 88

Funding to project grants post-earthquakeDonors have disbursed $1.42 billion in project grants; $116.8 million in loans or which thedebt has been cancelled; 89 and $36.2 million in loans.

O the $1.42 billion in project grants, 39 percent ($550.5 million) was disbursed to projectsin support o the government; 22 percent ($313.2 million) was managed by multilateralagencies; 39 percent ($560.4 million) was disbursed to international NGOs and privatecontractors and other service providers. The OSE does not have speci c in ormation on therecipients o the grants made in support o the government; these recipients may includegovernment, PIUs and non-state service providers.



REFERENCES1 Michel Martelly, President-elect o Haiti, statement

at the National Press Club, Washington, D.C.,21 April 2011.

2 Angel Gurria, Secretary-General o the Organizationo Economic Cooperation and Development,Haiti: Are we on course to build back better?,statement at the OECD, Paris, 14 April 2010.Available rom www.oecd.org/document/20/0,3746,en_21571361_44315115_44988564_1_1_1_1,00.html.

3 Such mechanisms include: (a) the ramework established by the Paris Declaration on AidEfectiveness, reviews o implementation o theParis Declaration, and the High-Level Forum on

Aid Efectiveness coordinated by the OECD; (b) theInternational Aid Transparency Initiative coordinatedby donors, multilateral agencies and academia; and(c) donor peer reviews conducted by the OECDsDevelopment Assistance Committee (DAC).

4 OECD DAC, Action-oriented policy paper on humanrights and development (DAC, Paris, 2007). Available

rom www.oecd.org/dataoecd/50/7/39350774.pd . Foran example o national legislation on human rightsand development, see Canadas O cial Development Assistance Accountability Act 2008 , section 4, whichrequires ministerial con rmation that all aid is

consistent with international human rights standards.See also the European Consensus on Development and the Humanitarian Consensus which guide the EuropeanCommissions aid, highlighting the importance o human rights to efective and equitable development.

5 All gures are in US dollars unless otherwise indicated.

6 Brazil, Canada, France, Haiti, Spain, United Nationsand United States, Final Communiqu, statement atthe International Donors Con erence: Towards a NewFuture or Haiti, New York, 31 March 2010. Available

rom www.haiticon erence.org/communique.html

7 The Haitian Ministry o Planning and ExternalCooperation (MPCE), with support rom UNDP, hassaid that it will soon launch an aid managementin ormation system, which will ll this gap and providemicro-level in ormation on projects. The MPCE willalso take over responsibility or tracking donoraccountability to their pledges.

8 OECD DAC,Survey on Monitoring the Paris Declaration (Paris, 2007), Chapter 20. Available romwww.oecd.org/dataoecd/62/9/42543794.pd . Notethat the next round o surveys is currently beingconducted in 2011 in preparation or the Fourth High-Level Forum on Aid Efectiveness, 29 November1December. See also: OECD DAC, Monitoring thePrinciples or Good International Engagement in FragileContexts and States (Paris, 2010), Chapter 4. Available

rom www.oecd.org/dataoecd/15/49/45600837.pd .

9 The World Bank and IMF, Republic o Haiti, Annual Progress Report o the Poverty Reduction Strategy Paper , (Washington D.C, June 2009). Available romwww.web.worldbank.org/external/de ault/main?pagePK=51187349&piPK=51189435&theSitePK=338165&menuPK=64187510&searchMenuPK=4962178&theSitePK=338165&entityID=000334955_20090619061535&searchMenuPK=4962178&theSitePK=338165. Seealso the World Bank, Public Expenditure Management and Financial Accountability Review (WashingtonD.C., 2008).

10 While in practice it may be di cult to distinguishbetween activities in Haiti that exclusively supporteither the relie or recovery eforts, there arediferent unding pools and associated regulationsthat determine how donors provide aid to each. Inaddition, donors also adopt diferent approaches tomeet immediate needssuch as ood, shelter, waterand sanitationthan or recovery and long-termdevelopment. This report distinguishes between relie and recovery activities based on the unding poolsthat were used to support them.

11 These comparisons do not include private unding toNGOs or public unding to MINUSTAH.

12 It is likely that this is the rst time donors havedisbursed such a high proportion o unds pledgedbut data is only available since 2004.

13 UNDP, Human Development Report (New York, 2010).Available rom www.hdrstats.undp.org/en/countries/pro les/HTI.html

14 Ibid .


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Has Aid Changed?

15 Op. cit . 8. See also Terry Buss, Haiti in the Balance: Why Foreign Aid has Failed and What We Can do About It ,(Washington D.C., Brookings Institution, 2008); and KeithCrane, James Dobbins and others, Building a more resilient Haitian state (Santa Monica, RAND Corporation, 2010).

16 OECD DAC, International DevelopmentStatistics Online. Available romwww.oecd.org/dataoecd/50/17/5037721.htm.(In current USD.)

17 OECD DAC, Aid to Fragile States: Focus on Haiti (Paris, 2009). Available romwww.oecd.org/document/10/0,3746,en_21571361_44315115_44454474_1_1_1_1,00.html

18 Republic o Haiti, Decret Etablissant le Budget Rectifcati de Lexercice 2009 - 2010(Ministere de Leconomie etdes Finances, Port-au-Prince, 2010); and Republic o

Haiti, Rapport de Verifcation Des Comptes Generaux de ladministration Centrale, Exercice 2004-2005 (Cour Superieure des Comptes et du ContentieuxAdministrati , Port-au-Prince, 2006). In the scal year2004-2005 approximately $376.4 million in internalrevenue was recorded by the government and in thecalendar year 2005 net ODA was $425.6 million (incurrent USD millions). In the scal year 2008-2009approximately $806.1 million in internal revenue wasrecorded by the government and in the calendar year2009 net ODA was $1.1 billion (in current USD millions).

19 Op. cit . 17. These gures include all contributions,

including troop contributions, to peacekeepingoperations.

20 Op. cit . 17. In 2008 net ODA amounted to $912 millionand peacekeeping unding amounted to $575 million(in current USD millions).

21 These plans include the Interim Cooperation Framework (2004 2006); the Interim Poverty Reduction StrategyPaper (2006-2007); the Growth and Poverty ReductionStrategy Paper (2008 2010); and the EconomicReconstruction and Recovery Programme (2009 2011).

22 The World Bank stopped making new loans to theGovernment o Haiti in January 2005 in accordance witha change in policy or assisting the least developingcountries. The IDB did not provide new loans to theGovernment o Haiti between 2007 and 2009. Duringthis time Haiti received grants rom the IDB Grant Facility(GRF), which was established in 2007 to make grantsto countries in special circumstances. (Haiti is the onlycountry to receive unding rom the GRF to date.)

23 The Government o Venezuela and the InternationalMonetary Fund (IMF) still provide loans to Haiti. TheGovernment o Venezuela and the IMF have recentlycancelled existing debt on loans to the Governmento Haiti.

24 International Monetary Fund, Haiti budget support data2004 onwards, email to author, 11 November 2010.

25 Op. cit . 16.

26 Op. cit . 8. Donors that responded to the OECDs 2008survey on monitoring the implementation o theParis Declaration in Haiti include: Canada; EuropeanCommission; France; the Global Fund to Fight AIDS, Tuberculosis and Malaria; IDB; International Fund orAgriculture Development; IMF; Japan; Spain; UnitedStates; United Nations; and the World Bank.

27

Op. cit . 8. Note that the gure used in the report or aidprovided by these donors in 2007 is $682 million. TheOSE has used the gure o $683 million as it is the sumo the donor contributions listed in the report.

28 This gure is an assumption. The OECD survey does notinclude an indicator or grants, but the OSE has assumedthat the remaining balance o ODA has been providedthrough grants.

29 Op. cit . 8.

30 Op. cit . 28.

31

Op. cit . 8.32 Ibid .

33 There is no available breakdown between generaland sector budget support available in the report,but based on overall trends it is assumed that most

unding was channeled as general budget support.A proportion o these unds were directed towardsdebt service repayments.

34 For more in ormation about PIUs, see OECD DAC,2011 Survey on Monitoring the Paris Declaration:Survey Guidance (Paris, 2011), p.28. Available romwww.oecd.org/dataoecd/24/28/46138662.pd .As described by the OECD, a parallel PIUs are aidmanagement structures created outside the existingmanagement and sta ng o national implementationagencies. They maintain separate accounts and/oradminister unds with procedures that difer rom theexisting Haitian budgetary procedures. Parallel PIUsalso maintain accountability directly to donors andhave separate structures rom the line ministries withwhich they are working.



35 Op. cit . 8. Note: This analysis is diferent rom thegures provided by the OECD in the report based

on its knowledge o donor programming andcorrespondence with donors.

36 The World Bank, Op. cit. 9, p. 16.

37 OSE, Status o pledges made at the Washington D.Cdonors con erence, New York, 2010. Available romwww.haitispecialenvoy.org.

38 OECD DAC,Survey on Monitoring the ParisDeclaration (Paris, 2008). Available romwww.oecd.org/dataoecd/58/41/41202121.pd .

39 As many real time data collection eforts, the OSE datagathering and analysis is at best a re ection o trendsand progress. Other established databases will providemore de nitive sources once compiled.

40 OSE, Overall Financing: Key Facts, New York, 2011.Available rom www.haitispecialenvoy.org.

41 The OSE uses the ollowing de nition: disbursedunds are those that have been trans erred to an

implementing partner (e.g., the Government o Haiti,an NGO or other non-state service provider).

42 Op. cit . 18.

43 Alan Butter eld, Robert Dolan and Ronaldo Reario,The United Nations Humanitarian CivilMilitaryCoordination response to the Haiti earthquake,

Humanitarian Exchange Magazine , Issue 48, October2010. Available rom www.odihpn.org/report.asp?id=3133

44 The cluster system was managed by the UN in 2008 inresponse to Hurricane Gustav.

45 The cluster system divides responsibility by clustersor sectors: agriculture, camp coordination andmanagement, early recovery, education, emergencytelecommunications, ood, health, logistics, nutritious,protection, shelter and WASH (water, sanitation andhygiene). More in ormation about the cluster system

in Haiti is available rom www.oneresponse.in o/Coordination/ClusterApproach/Pages/Cluster%20Approach.aspx

46 Francois Grunewald, Andrea Binder and Yvio Georges,Interagency real time evaluation in Haiti: threemonths a ter the earthquake , United Nations Inter-Agency Standing Committee (Paris, 2010). Available

rom www.gppi.net/ leadmin/media/pub/2010/binder_2010_haiti-RTE.pd .

47 United Nations, Report o the United Nations in Haiti in2010 (MINUSTAH, Port-au-Prince, 2010). Available romwww.un.org/en/peacekeeping/missions/minustah/documents/un_report_haiti_2010_en.pd .

48 These include the Emergency Response Relie Fund or

Haiti (ERRF), a speci c pooled und or Haiti, and theCentral Emergency Response Fund, a humanitarianglobal pooled und used to provide initial undingto cluster partners in emergencies. Both unds aremanaged by OCHA.

49 Some donors (such as the Ireland, IDB, Japan,Switzerland and World Bank) have supportedhumanitarian activities rom their New York recoverypledges. The OSE has included this unding in theanalysis o recovery expenditure.

50 The OSE uses the ollowing de nition: committed

unds are those or which projects have beenapproved or agreements/contracts have been signedor are in the process o being trans erred/disbursed.Committed unds are exclusive o disbursed unds.

51 OCHA, Financial Tracking Service. Available rom www.ochaonline.un.org/humanitarianappeal/webpage.asp?Page=1841. The appeal was initially launched

or $575 million to cover six months o relie activity.One month later, the ash appeal was more than ully

unded. The appeal was amended in mid-February2010 to $1.4 billion and again in mid-July to $1.5billion. There is no cumulative in ormation available

on the expenditure o unding or projects in the ashappeal although some UN and other implementingagencies reported the status as part o publiclyavailable in their 2010 annual reports.

52 Op. cit . 48. This analysis was conducted by reviewingall agencies that recorded contributions to projectslisted in the ash appeal. The agencies were codedas international and Haitian based on the location o their headquarters veri ed through an online search. The two Haitian organizations that recorded undingin support o their projects listed in the UN appealwere $0.48 million rom Adventist Development and

Relie Agency (ADRA) International to ADRA Haiti and$0.31 million rom the ERRF to Perspectives pour laSante et le Dveloppement (Prospects or Healthand Development).

53 Haiti, Action Plan or National Recovery andDevelopment (Port-au-Prince, 2010). Available romwww.haiticon erence.org/Haiti_Action_Plan_ENG.pd

54 Crane, Dobbins and others, op. cit . 15.


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55 Haiti, presidential decree to establish the Interim HaitiRecovery Commission, Le Moniteur (Port-au-Prince, No.30, 30 April 2010). Article 9.

56 Ibid ., Article 4.

57

Under the IHRC presidential decree, donors quali y asboard members i they pledge to contribute at least$100 million or the reconstruction o Haiti as a gi tover a period o two consecutive years or at least $200million in debt relie . Donors who are ull voting IHRCboard members include: Brazil, Canada, EuropeanUnion, France, IDB, the International Federation o the Red Cross, Japan, Norway, Spain, United States,the World Bank and Venezuela. The IMF acts as anobserver.

58 The G11 included the ollowing donors: Canada,European Union, France, the IDB, the IMF, Japan, Spain,

United Nations, United States Agency or InternationalDevelopment, World Bank and a representative o Argentina, Brazil or Chile. The group now includesNorway and is now re erred to as the G12.

59 These areas include debris management, energy,education, health, housing, job creation, waterand sanitation, and capacity development. Furtherin ormation is available romwww.cirh.ht/sites/ihrc/en/Goals/Pages/de ault.aspx.

60 OSE, International Assistance Tracker. Available romwww.haitispecialenvoy.org.

61 Op. cit. 41.

62 The OSE has excluded debt relie execution rom theanalysis o disbursement o the pledges made at theNew York con erence because it is aiming to providean accurate overview o the unding that is available

or humanitarian and recovery activities in 2010 and2011. While debt relie obviously plays an importantrole in putting the Government o Haiti back on asustainable scal path in the longer term, it does notequate to new unds available or recovery activitiesin the short term (2010 and 2011). For debt relie granted on loans that were provided within the sameperiod, the OSE treats the unding as other unding.Re er to ootnote 64.

63 Other unding includes resources available throughongoing multi-year development programmes thatwere established be ore or a ter the earthquake.

64 Op. cit . 22. Other unding includes $116.8 million (SDR73 million) provided by the IMF as a new loan to Haitipost-earthquake. The debt on this loan was cancelledas part o the debt relie (totaling $279 million orSDR 178 million) executed in November 2010. Theseresources will be used in support o the Governmento Haitis economic recovery in 2011 and over utureyears. Approximately $68.4 million has been allocatedto the Haitian budget or the scal year beginning1 October 2010.

65 Op. cit . 60. All projects unded by the HRF have beenapproved by the IHRC.

66 In this context allocated means the total availableunding or the earthquake relie eforts.

67 With respect to relie unding, donors madeannouncements o intended unding both

immediately a ter the earthquake and through 2010.68 Op. cit. 62. More in ormation on debt relie is available

rom www.haitispecialenvoy.org.

69 Ibid .

70 The combined total amount disbursed and committedin 2010 is greater than the amount pledged to 2010as donors have committed unds that they plan todisburse in 2011.

71 See IMF, Sta Report or the 2010 Article IV Consultationand Request or a Three-Year Arrangement Under theExtended Credit Facility (Washington D.C., 2010).

72 Op. cit . 8. See also OECD DAC, Transition Financing:Building a Better Response (Paris, 2010). Available

rom www.oecd.org/document/2/0,3746,en_2649_33693550_45347394_1_1_1_1,00.html.

73 The Haiti First Policy is promoted by Peace Dividend Trust. See www.peacedividendtrust.org.

74 Op. cit. 34. The OECD de nes direct budget supportas: Direct budget support including generaland sector budget support is de ned as a

method o nancing a partner countrys budgetthrough a trans er o resources rom a donor to thepartner governments national treasury. For morein ormation on budget support, see: Tim Williamsonand Catherine Dom, Making sector budget supportwork or service delivery: an overview, OverseasDevelopment Institute Project Brie ng No 36, London,2010. Available rom www.odi.org.uk/resources/download/4609-english.pd .



75 Haiti is unique in that it does not have mandatedceilings that would otherwise place a cap on its totalbudget. This means that there are no internationalrestrictions on the total amount o internal andexternal resources including budget support made available to its budget.

76 A partner entity is the organization that receivesunding directly rom the Haiti Reconstruction Fund.

In order to quali y as a partner entity an agency mustmeet the nancial and procurement standards met bythe trustee (the World Bank).

77 Op. cit . 71. Available romwww.me haiti.gouv.ht/index.htm.

78 Ibid .

79 According to the IMF the government o Haiti received

$225 million in the scal year 2010 (including pre-earthquake contributions) and has received $48.8million in the scal year 2011.

80 Op. cit . 53.

81 Op. cit . 53 pp. 50-51. See also Haiti, Press releaseollowing Budget Support Working Group mission ,

(Port-au-Prince, 17 May 2010). Available romwww.me haiti.gouv.ht/publication.htm. For the 2010

scal year (October - September), the governmentsaction plan appealed or $350 million in budgetsupport or 2010; based on increased revenueprojections, the Ministry o Finance subsequentlyamended its budget support request to $250 million.For the 2011 scal year, donors pledged $170.3 million,o which $48.8 million has been disbursed.

82 Haiti, Press release ollowing Budget Support WorkingGroup mission (Port-au-Prince, 17 May 2010. Available

rom www.me haiti.gouv.ht/publication.htm.

83 For more in ormation, seewww.haitireconstruction und.org/hr /.

84 Haiti Reconstruction Fund (Secretariat), Rebuilding Together: Six Month Progress Report, Port-au-Prince,

2010. Available rom www.haitireconstruction und.org/hr /sites/haitireconstruction und.org/ les/lores_eng_rpt_spreads.pd .

85 The rst unding provided rom the HRF was a $25million contribution or general budget supportapproved on 15 June 2010 and trans erred to theGovernment o Haiti in mid-August. Two grantswere approved on 18 August 2010 and disbursedin December: $12.5 million to the IDB to co- undand establish a partial credit guarantee und, and$17 million to the UN or debris management. Threeprojects totaling $30 million were approved on 7October 2010 and disbursed in the rst quartero 2011. Four projects totaling $102 million wereapproved on 15 December, and disbursed in the rsthal o 2011, including $65 million to the World Bank

or housing. Two projects totaling $35 million wereapproved on 1 March 2011 and one was disbursed inthe second quarter o 2011 ($25 million or housingremains undisbursed). One project totaling$1 million was approved electronically and has been

disbursed. More in ormation is available romwww.haitispecialenvoy.org.

86 Op. cit . 34.

87 This includes international non-governmentorganizations (NGOs) that are required to register withthe NGO Coordination Unit in the Ministry o Planningand External Cooperation.

88 This includes international NGOs and privatecompanies who are providing medical or educationservices and are required to register with the ministrieso health and education respectively.

89 Op. cit . 64.


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Documents

Has Aid Changed ? by Office of the Special Envoy of Haiti - June 2011