Contact PDT Haiti
haiti@pdtglobal.org
http://haiti.buildingmarkets.org/
“Haiti First” Policy
Spending the Development Dollar Twice
Problem Statement
1. Billions of USD in aid will soon be spent on Haiti.
2. Experience and evidence demonstrates that only a small percentage of this aid
money will likely enter the local economy, as most will be spent on imported goods
and services.
3. This will result in a massive lost opportunity to support economic recovery and
stability in Haiti through local procurement.
Recommendation: Adopting the “Haiti First” Approach
1. In Afghanistan donors have endorsed an “Afghan First” policy which requests that
aid agencies procure goods and services locally wherever possible. This policy helps
ensure that aid money spent on Afghanistan is spent in Afghanistan by using
capable local suppliers wherever possible to carry out project work. This precedent
can be adopted by donors in Haiti.
2. A Haiti First approach can help turn a tragedy into an opportunity by driving millions
if not billions of new investment into the Haitian economy.
Local Procurement is Key
1. It contributes to peace and stability by sustaining and inducing jobs, building
marketplaces and generating tax revenue;
2. It presents an opportunity to spend the development dollar twice. For example, a
donor can spend $1m to build a hospital with imported goods and services and leave
a hospital behind. Or they can use local suppliers to build a hospital and
simultaneously restore livelihoods, generate tax revenue and build the local
marketplace;
3. It is often faster, more efficient, and has greater value than other aid mechanisms for
private sector development;
4. Research shows that there is a direct link between increased local spending and
increased GDP in post-conflict/crisis economies;
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5. Research has also shown that increased local spending only distorts the local
economy in isolated ways, and that the economic benefits far outweigh the pitfalls.
6. It is an important and valuable “hearts and minds” approach;
7. It increases the capacity of national actors and businesses while contributing to the
diversification of supply chains.
Early Action Is Key
1. Systems, policies and general approach vis-à-vis reconstruction in Haiti will be set in
the first six months, which will establish the ways and means that the international
community will operate in Haiti for many years to come.
2. Consequently, “Haiti First” is necessary now, not later, so as to seize this opportunity
to support economic recovery at the earliest stages of the development process.
Washington Post 14 Jan 2010 Op-Ed by Bill Clinton: “As we clear the rubble, we will
create better tomorrows by building Haiti back better: with stronger buildings, better
schools and health care; with more manufacturing and less deforestation; with more
sustainable agriculture and clean energy.”
Who has endorsed this approach?
1. Paris Declaration on Aid Effectiveness
2. United Nations Department of Peacekeeping Operations (UNMIT & UNAMA)
3. UK Dept for International Development and Ministry of Defence
4. AusAID
5. Pentagon and State Department
6. NATO
7. Nobel Peace Prize Laureate, and President of Timor-Leste, Jose Ramos-Horta
Conclusion
1. Donors should endorse a “Haiti First” policy which will help spend the development
dollar twice;
2. It is MORE than private sector development – it is a new way of supporting peace
building;
3. It is measurable;
4. It is a positive cost / benefit ratio;
5. It is highly popular with the host Nation.
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