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Thursday, January 12, 2012

Where did the money go that went to Haiti to rebuild after the earthquake?

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.
At the Port-au-Prince dock we see a ship unloading rice to feed the hungry people of Haiti but ...
But the economy of rice in Haiti says everything about the condition the country is in. The U.S. 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.
The answer to where the money went:
But, really, over the last two years, the effort to assist post-earthquake Haiti has mostly benefited — or at least subsidized — the aid and relief institutions and private corporations that nominated themselves to help Haiti in its 2010-based time of need.
And Land Cruisers for the NGOs.
And if you really want to see the face of humanitarian spending post-earthquake in Haiti — the financial clout of the NGOs — there’s only one place to go: the Toyota dealership in Port-au-Prince.

As with any cataclysm or war zone, a white Toyota Land Cruiser is perhaps the ultimate symbol of international interventional power. And in and around Port-au-Prince, the vehicles are omnipresent. At the dealership, a modern and well-tended building on the city’s airport road (with mirrored-glass windows from floor to ceiling and a perfectly buffed showroom floor).

Inside the dealership, we finally run into nice woman in some sort of managerial position, (don’t use my name, she asks). We ask her how sales have been.

“Oh,” she says. “We buy a lot of Land Cruisers for sale to the NGOs. But, you know what? A lot come from Gibraltar, too. Loaded off cargo ships that the NGOs bring for themselves. You can tell those, they say Gibraltar on the back, sort of near the license plate. I’d say — here?— the numbers are probably 50 percent from us and 50 percent from Gibraltar.”

But business is good?

The woman is leaning against a desk in the sales office. “I’d say that, for us, 95 percent go to the NGOs, some go to rental agencies, which then rents them to the NGOs and others. But, you know, for all of the Land Cruisers in Haiti now, we also do the maintenance and repairs, if they get in accidents we fix them.”

How much does one cost?

“Each one, with taxes, is $61,100,” she says. “If you have tax-free status, you can get them for less, but then you have to take them with you or give them away here. If you pay the taxes, you can just sell the car.”

And how many do you sell a year?

The woman holds up her hand, right index finger pointed to the ceiling. “One second,” she says.

She disappears into an outlying office, then returns a minute later. Smiling. “This year, we sold 250 of this model. But, you know, right after the earthquake, for several months, we were probably selling that many Land Cruisers every month. Maybe twice that many.”

I start doing the math in my head. Let’s see: 250 Land Cruisers at $61,000 each is, like, upward of $15 million dollars. So even if they sold only a few more Land Cruisers in 2010 after the first few months (and you have to assume they did) plus the 2011 sales numbers so far (it is December as we’re reporting this), well, conservatively speaking that’s a gross cash influx in the neighborhood of $100 million in the last two years (though of course, some will have to go to taxes). Add to that the repair and maintenance fees, and you’re looking at maybe $110 million. Maybe $150 million. And that’s a conservative estimate.
"Helping" people is very lucrative err .. rewarding.