#4594: Re: #4589: half-billion dollars in foreign aid? (fwd)

[Robert Corbett <bcorbett@netcom.com>]

From:PPARYSKI@aol.com

Most of the assistance funding held back by the donors are soft loans by the 
World Bank and the Inter-American Development Bank (IDB).  These loans 
require approval by parliament.  Even if parliament eventually approves these 
loans, interest will be due from the time the funds were originally 
allocated, making the loans more costly.  I imagine that some of the funding 
has already been reallocated to other countries.  World Bank and IDB loans 
are generally used for large investments in infrastructure such as roads or 
irrigation systems.  Some funding from the European Union may also be 
blocked.  The funds from bi-lateral donors, such as USAID, tend to be more to 
be more linked to political agendas.

In actual fact, Haiti has benefitted from an enourmous amount of fundinng 
from the donor community, perhaps more per capita than any country except 
Israel.  Unfortunately, a percentage, but not a majority, of the funding 
always goes back to the donor due to spending regulations, such as requiring 
the donor to purchase equipment in the donor country or to use donor 
nationals as consultants or project managers.  Also unfortunate is the fact 
that most donor funding in Haiti has been badly used or in some cases 
personally profitted those in postions of power.  It is considered shameful 
to be a minister and not have a magnificent road leading to one's properties 
or house(s).

Paul Paryski