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Outsourcing Haiti by Jake Johnston

In business, economy, ethics, infrastructure, North America, politics on January 26, 2014 at 00:05

From: Outsourcing Haiti: How disaster relief became a disaster of its own by Jake Johnston, Boston Review, http://www.bostonreview.net

Across the country from Port-au-Prince, Haiti’s capital, miles of decrepit pot-holed streets give way to a smooth roadway leading up to the gates of the Caracol Industrial Park, but no further. The fishing hamlet of Caracol, from which the park gets its name, lies around the bend down a bumpy dirt road. Four years after the earthquake that destroyed the country on January 12, 2010, the Caracol Industrial Park is the flagship reconstruction project of the international community in Haiti. Signs adorn nearby roads, mostly in English, declaring the region “Open for Business.” In a dusty field, hundreds of empty, brightly colored houses are under construction in neat rows. If all goes as hoped for by the enthusiastic backers of the industrial park, this area could be home to as many as 300,000 additional residents over the next decade.

The plan for the Caracol Industrial Park project actually predates the 2010 earthquake. In 2009, Oxford University economist Paul Collier released a U.N.–sponsored report outlining a vision for Haiti’s economic future; it encouraged garment manufacturing as the way forward, noting U.S. legislation that gave Haitian textiles duty-free access to the U.S. market as well as “labour costs that are fully competitive with China . . . [due to] its poverty and relatively unregulated labour market.”

Now, only 750 homes have been built near Caracol, and the only major tenant remains Sae-A. New ports and infrastructure have been delayed and plagued by cost overruns. Concerns over labor rights and low wages have muted the celebration of the 2,500 new jobs created. For those who watched pledges from international donors roll in after the earthquake, reaching a total of $10 billion, rebuilding Haiti seemed realistic. But nearly four years later, there is very little to show for all of the aid money that has been spent. Representative Edward Royce (R-CA), the chair of the House Foreign Affairs Committee, bluntly commented in October that “while much has been promised, little has been effectively delivered.”

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Reposted with permission from: Boston Review

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