To the tune of hundreds of millions of dollars - from RUTHFULLY YOURS:
The original article is at the Wall Street Journal but is locked behind a stupid paywall.
Hillary’s Half-Baked Haiti Project: Mary A. O’Grady
On the fifth anniversary of the 7.0 magnitude earthquake in Port-au-Prince, Haiti remains a poster child for waste, fraud and corruption in the handling of aid. Nowhere is the bureaucratic ineptitude and greed harder to accept than at the 607-acre Caracol Industrial Park, a project launched by former Secretary of State Hillary Clinton with U.S. taxpayer money, under the supervision of her husband Bill and his Clinton Foundation.
Between the State Department and the Inter-American Development Bank (IDB), which hands out grants to very poor countries thanks to U.S. generosity, hundreds of millions of dollars have been spent on this park in an attempt to attract apparel manufacturers. But the park is falling far short of the promises made to provide investors with necessary infrastructure. If things continue this way, frustrated investors will look for greener pastures.
Successful industrial parks are built by people who know the business and who demand accountability. This park was put in the hands of State, the IDB and Bill Clinton. The results have been predictable.
I had been warned about Caracol going to the dogs by sources on the ground in Haiti. So last month I traveled east by truck from Cap Haitien, across the poor rural north of the country to see if the alarm was justified. I found a project in trouble. It can be saved, but only if it is handed over to professionals with skin in the game.
On paper Caracol makes sense. Thanks to special trade legislation passed by the U.S. Congress in Dec. 2006, Haitian-sewn apparel enters the U.S. duty free and the manufacturers can use fabric purchased from anywhere in the world. This gives Haiti a big advantage over apparel exporters to the U.S. who have to source the fabric in the U.S. even if they sew overseas. With lower wages than in many Asian markets and proximity to North America, Haitian-based producers have comparative advantages that might offset the country’s low productivity.
The State Department initially promised that the park would be able to support 65,000 direct jobs by 2020. The Clinton Foundation has made similar statements. That means constructing 40 10,000 square-meter buildings for garment assembly. It won’t happen at the current pace.
Another perfect example of big government getting in the way of progress. The Haitians want the work, the Korean company has the jobs, they just need the buildings. The government is piddling the development money away and not building.
Another day in paradise...
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