Haitian sea cucumbers, the Chinese New Year, and reforming foreign aid

My latest piece for GOOD is up on their website: “What A Box of Sea Cucumbers Teaches Us About Foreign Aid.” It’s a feature that tries to weave together a story about a Haitian sea cucumber exporter, an NGO that’s working to get more aid money spent locally in places like Haiti instead of in places like Washington D.C., and USAID’s reform agenda that’s largely aimed at spending more money locally. Here’s an excerpt:
[Ernst] Charles, a Haitian-American who grew up in Boston, moved to Haiti in 2005 to build cell phone towers for a telecom company. Once he finished his two-year contract, he decided to stay in his parents’ native country and start Sonac Agricole, a lobster exporting business. He later branched out into cocoa bean exports, and, eventually, sea cucumbers.
He credits Building Markets, an organization that connects local businesses to regional and global supply chains, with much of his export success. The NGO’s database of verified Haitian businesses gave Sonac Agricole essential credibility with Hong Kong importers.
But Charles’ business is an outlier—most of Building Markets’ (formerly known as Peace Dividend Trust) work involves helping Haitian firms apply for contracts from organizations like USAID and the United Nations.
In Haiti, USAID awarded only 0.02 percent of contracts for fiscal years 2010 and 2011 to local firms, according to the Center for Economic and Policy Research. By contrast, nearly 80 percent of such contracts went to government contractors in Washington, D.C., Virginia, and Maryland. Chemonics and Development Alternatives, Inc., two of USAID’s top six vendors for fiscal year 2011, combined to receive more than $1 billion of the Agency’s $15 billion in global program funding for the year.
Read the entire piece here, which provides more detail about why Asians are so into sea cucumbers.
There were a few things I didn’t have space to delve into in the piece, like recent opposition to USAID’s proposed reforms by some American contractors and large NGOs.
