[News] How USAID Undermines Democracy In Haiti

Anti-Imperialist News news at freedomarchives.org
Thu Nov 10 20:52:43 EST 2011


HOW USAID UNDERMINES DEMOCRACY IN HAITI by Leslie Mullin

The US Agency for International Development 
(USAID) is an arm of the US State Department. 
Founded in 1961, USAID serves as a "velvet glove" 
for US foreign policy. The political bias of its 
operations in Haiti goes back decades. Here are 
ten things to know about USAID in Haiti:

USAID PAID MILLIONS TO HAITI'S RUTHLESS DICTATOR, 
FRANCOIS "PAPA DOC" DUVALIER, aimed at shoring up 
US influence in the region after the Cuban 
revolution. Thirty to fifty thousand people were 
killed under Duvalier’s regime while aid funds 
were siphoned into the private coffers of the 
Duvalier family.  Under Duvalier, assembly 
production for American corporations became the 
blueprint for Haiti’s economic dependence on the 
US. The formula, essentially unchanged to this 
day, backs Haiti’s ruling elite while turning 
Haiti into a low-wage export-focused economy that 
creates profitable business opportunities for 
foreign investors. Haitians call it “the death plan.”
USAID BACKED DUVALIER'S SON, JEAN-CLAUDE "BABY 
DOC," when he took over in 1971, with plans to 
promote Haiti as the “Taiwan of the Caribbean.” 
American taxpayers provided millions to build an 
infrastructure to lure US manufacturers to open 
assembly plants, taking advantage of Haiti’s high 
unemployment, political repression, and wages of 
14 cents an hour. The consequences were profits 
for US business and the Haitian superrich.  By 
the time of Duvalier’s fall, Haiti was the 
world’s ninth largest assembler of goods for US 
consumption, and the largest producer of baseballs.

USAID SABOTAGED HAITI'S DOMESTIC FOOD 
PRODUCTION.  USAID has a major impact on Haiti’s 
economy, both directly and as an agent for big 
financial institutions like the IMF. Nowhere is 
this more clearly demonstrated than Haiti’s food 
system. As recently as 30 years ago, Haiti 
<http://www.chrgj.org/projects/docs/sakvidpakanpe.pdf>produced 
most of its own food. Then, in the early 1980s, 
<http://www.hartford-hwp.com/archives/43a/210.html>USAID 
undertook a plan to redirect Haiti’s domestic 
food production towards export crops.  The idea, 
tied to Ronald Reagan’s Caribbean Basin 
Initiative, was to integrate Haiti into the world 
market via agro-industry and export manufacturing.

With full awareness of its dire impact on Haitian 
peasants, USAID experts set about to shift 30% of 
Haiti’s cultivated land from food produced for 
local consumption to export crops.  As Haiti's 
rural economy unravelled, impoverished peasants 
fled to the capital city. Competition from cheap 
imports and the absence of policies to promote 
production led to a rapid decline in Haiti’s food 
production. By 2008, local food production 
amounted to 42% of Haiti’s food consumption, 
compared to 80% in 1986. At the same time the 
value of US agricultural exports to Haiti began 
to increase - from $44 million (1986) to $95 
million (1989). Recently, USAID was helping 
agriculture officials boost Haiti's production of 
mangoes -- for export to the United States.

USAID ENFORCED TRADE LIBERALIZATION POLICIES THAT 
UNDERCUT HAITI'S RICE INDUSTRY WHILE PROMOTING 
AMERICAN 
RICE. 
<http://www.counterpunch.org/quigley04212008.html>In 
1986, USAID conditioned aid to the ruling 
military junta on lowering rice tariffs, while 
advising  the government to remove the little 
assistance it gave to Haitian farmers. Haiti 
slashed its rice tariff from 
<http://jbs.sagepub.com/content/40/5/974.full.pdf>35% 
to 3.5% (1986) and to 1.5% (1995). Not only were 
Haitian farmers hurt, but American producers and 
grain sellers profited. Cheap, heavily subsidized 
“Miami” US rice flooded Haitian markets, and 
Haitian rice production began to drop. Until the 
early 1980s, Haiti produced the majority of its 
own rice, but Haiti is now the fourth largest importer of American rice.

One beneficiary was the 
<http://www.hartford-hwp.com/archives/43a/210.html>Rice 
Corporation of Haiti (RCH), owned by Erly 
Industries - a massive US agribusiness and the 
largest marketer of American rice. In 1992, RCH 
secured a 9-year contract to import rice from 
Haiti’s illegal coup government – a military 
junta responsible for the deaths of thousands of 
Haitians. RCH was managed at the time by the 
former director of the Caribbean Basin Initiative 
(1982-1988), with powerful friends in Washington 
like Senate Foreign Relations Committee Chairman Jesse Helms (R-NC).

Erly Industries gained another foothold in Haiti 
after the 2010 earthquake when USAID awarded an 
Erly subsidiary, CHEMONICS, the contract to 
implement the 2009 USAID “WINNER” 
program.<http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/haitian-companies-bypassed-in-favor-of-dc-area-contractors-with-poor-track-records> 
CHEMONICS is an international consulting firm 
that 
<http://projects.publicintegrity.org/wow/bio.aspx?act=pro&ddlC=8>relies 
on USAID for 90% of its business. WINNER is 
another example of USAID’s reckless assault on 
Haitian agriculture. After the 2010 Haiti 
earthquake, 
<http://haitijustice.wordpress.com/2011/06/21/winner-bad-for-haiti/>WINNER 
championed the introduction of Monsanto hybrid 
seeds at cheap prices to Haitian farmers, despite 
the recommendation of the International Center 
for Tropical Agriculture to halt all seed 
donations as both unnecessary and harmful. WINNER 
undermines Haitian seed distribution networks, 
and will leave Haitian farmers dependent on 
Monsanto seeds when the program expires in 2015.

USAID "FOOD AID" IS GOOD FOR US AGRIBUSINESS, NOT 
FOR HAITIAN FARMERS.  Haiti’s domestic rice 
production was undermined even more by the vast 
amounts of “free” American rice that 
<http://www.bbc.co.uk/news/world-latin-america-11472874>USAID 
dumps on Haiti every year in the form of 
“<http://www.chrgj.org/projects/docs/sakvidpakanpe.pdf>food 
aid.” A recent report, 
<http://www.chrgj.org/projects/docs/sakvidpakanpe.pdf>Sak 
Vid Pa Kanpe: The Impact of US Food Aid on Human 
Rights in Haiti, explains how food aid is given 
to the poor as direct food assistance or sold by 
NGOs to support their overhead and operating 
costs (a process known as “monetization”).  The 
report examines how US food aid benefits the 
American companies who provide and 
<http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/barriers-to-reform-the-big-business-of-shipping-food-aid>transport 
it, but has a negative impact on local Haitian 
economies which would benefit instead from 
agricultural assistance or cash to boost local 
production.  In its most recent budget request, 
USAID proposed spending $1.2 billion globally on 
helping poor farmers grow more food, while asking 
Congress for $4.2 billion for food aid, almost 
all of which will be spent on purchases from American farmers.

USAID DESTROYED THE HAITIAN CREOLE PIG. The 1982 
swine flu outbreak in the Dominican Republic 
provided the justification for USAID to condemn 
Haiti’s 1.3 million pig population, promising to 
replace them with “better” pigs.  Over a period 
of 13 months, enforced by Duvalier militia, the 
Creole pig was wiped out. A Haitian woman 
<http://www.huffingtonpost.com/laura-flynn/not-even-the-past_b_813172.html>recalls 
the era:  “When the armed forces of Jean-Claude 
Duvalier's regime set about exterminating Haiti's 
Creole pigs, they would come to Haiti's rural 
villages, seize all of the pigs, pile them up, 
one on top of the other, in large pits and set 
fire to them, burning them alive.” In monetary 
terms Haitian peasants lost $600 million dollars. 
Haiti’s former President Jean-Bertrand Aristide 
analyzed the outcome in his book, Eyes of the 
Heart, explaining the small, black, Creole pig 
was at the heart of the peasant economy and 
constituted the primary savings bank of the 
peasant population. Pigs were sold to pay for 
emergencies, special occasions and to pay school 
fees and buy books for the children.  What 
followed was a 30% drop in enrollment in rural 
schools, a dramatic decline in protein 
consumption in rural Haiti, and a negative impact 
on the soil and agricultural productivity.  When 
“better pigs” arrived from Iowa two years later, 
they could not survive Haiti’s rural life, 
requiring clean drinking water (unavailable to 
80% of the Haitian people), imported feed 
(costing $90 a year when the per capita income 
was about $130), and special roofed pigpens.

USAID HAS CONSISTENTLY OPPOSED MINIMUM WAGE 
INCREASES IN HAITI.  In 1991, USAID used US tax 
dollars to oppose a minimum wage increase from 
$.33 to $.50 per hour proposed by the Aristide 
government, claiming it was bad for business. The 
agency also countered a plan for temporary price 
controls on basic food so people could afford to 
eat. According to 
<http://www.thenation.com/article/161057/wikileaks-haiti-let-them-live-3-day>secret 
State Department cables, after the 2010 
earthquake, the U.S. Embassy in Haiti worked 
closely with factory owners contracted by Levi's, 
Hanes, and Fruit of the Loom to block a small 
minimum wage increase for Haitian assembly zone 
workers, the lowest paid in the hemisphere. The 
factory owners, with backing of USAID and the US 
Embassy, refused to pay 62 cents an hour, or $5 
per eight hour day, a measure unanimously passed 
by the Haitian parliament in June 2009.

USAID PROMOTED AND FUNDED THE 2004 OVERTHROW OF 
DEMOCRATICALLY-ELECTED PRESIDENT ARISTIDE. While 
millions of American dollars have propped up 
Haiti’s dictators, aid shifted abruptly away from 
the democratically elected government of 
President Jean-Bertrand Aristide. Under the guise 
of 
“<http://rt.com/usa/news/democracy-promotion-usa-regime/>democracy 
promotion,” USAID and USAID-funded organizations 
like the National Endowment for Democracy and the 
<http://motherjones.com/politics/2004/11/coup-connection>International 
Republican Institute, funneled millions to 
organize political opposition to Aristide and 
build conservative alternatives aligned with US 
interests.  After the 2004 coup, USAID funded the 
integration of former death squad forces into the 
Haitian National Police to quell resistance among 
Haitians to the illegitimate coup government. 
<http://www.cepr.net/index.php/press-releases/press-releases/cepr-criticizes-us-funding-for-elections-in-haiti>USAID 
paid millions to fund the 
<http://www.guardian.co.uk/commentisfree/cifamerica/2011/jan/10/haiti-oas-election-runoff>fraudulent 
Nov 2010 and March 2011 elections that excluded 
Haiti’s largest political party, Fanmi Lavalas, 
the party of President Aristide.

USAID EXTENDS ITS FAR-REACHING INFLUENCE IN HAITI 
BY FUNDING NGOs (non-governmental organizations) 
which receive 
<http://www.counterpunch.org/2010/02/24/haiti-and-the-aid-racket/>70% 
of their budgets from the agency. Over 10,000 
NGOs operate in Haiti with authorization to 
bypass the elected government and serve as a 
permanent form of “soft” invasion. As far back as 
1995, Clinton’s Deputy Secretary of State Strobe 
Talbott reassured members of the Senate Foreign 
Affairs Committee that, 
“<http://www.chomsky.info/articles/199809--.htm>even 
after our (military) exit in February 1996 we 
will remain in charge by means of the USAID and the private sector.”

USAID BOASTS THAT 84 CENTS OF EVERY DOLLAR OF ITS 
FUNDING IN HAITI RETURNS TO THE US  in the form 
of salaries, supplies, consulting fees, and 
services.  As the lead US agency for Haiti 
reconstruction, just 
<http://www.thenation.com/article/161469/wikileaks-haiti-post-quake-gold-rush-reconstruction-contracts>2.5% 
of USAID’s $200 million in post-earthquake relief 
and reconstruction contracts had gone to Haitian 
firms by April 2010. 
<http://www.huffingtonpost.com/2010/03/05/hait-relief-money-critic_n_487976.html>USAID 
paid at least $160 million of its total 
Haiti-related expenditures to the Defense 
Department, the Federal Emergency Management 
Agency, two US search and rescue teams and, in at 
least two instances, itself.  US Ambassador 
Merten reported to Washington that the post-quake 
“gold rush” was on, according to a secret cable 
that described disaster capitalists flocking to 
Haiti for contracts to rebuild the country.

Sources:
Aristide, Jean-Bertrand (2000). Eyes of the 
Heart: Seeking a Path for the Poor in the Age of 
Globalization. Common Courage Press, pp 13-14.

Center for Economic and Policy Research (Dec 13 
2010). Haitian companies bypassed in favor of DC 
area contractors with poor track records. 
Available at: 
<http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/haitian-companies-bypassed-in-favor-of-dc-area-contractors-with-poor-track-records>http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/haitian-companies-bypassed-in-favor-of-dc-area-contractors-with-poor-track-records 
(Accessed Nov 10, 2011)

Center for Public Integrity, Windfalls of War: 
Chemonics, International. Available at: 
<http://projects.publicintegrity.org/wow/bio.aspx?act=pro&ddlC=8>http://projects.publicintegrity.org/wow/bio.aspx?act=pro&ddlC=8 
(Accessed Nov 10, 2011)

Center for Human Rights and Global Justice, 
Partners in Health, RFK Center for Justice & 
Human Rights (December 2010). Sak Vid Pa Kanpe: 
The Impact of US Food Aid on Human Rights in 
Haiti. Available at 
<http://www.chrgj.org/projects/docs/sakvidpakanpe.pdf>http://www.chrgj.org/projects/docs/sakvidpakanpe.pdf 
(Accessed Nov 10, 2011)

Coughlin, Dan and Ives, Kim (2011). “Wikileaks 
Haiti: Let them live on $3 day.” The Nation, June 
1, 2011. Available at: 
<http://projects.publicintegrity.org/wow/bio.aspx?act=pro&ddlC=8>http://projects.publicintegrity.org/wow/bio.aspx?act=pro&ddlC=8 
(Accessed Nov 10, 2011)

DeWind Josh and Kinley David H (1994). U.S. Aid 
Programs and the Haitian Political Economy: 
Export-Led Development. IN The Haiti Files, 
Ridgeway J (ed). Essential Books/Azul Editions. Washington, DC. P125

Diederich, Bernard and Burt, Al (2009). Papa Doc 
and the Tonton Macoutes, 3rd edition. Markus Wiener Publishers, Princeton, NJ.

Doyle, Mark (Oct 2010) US urged to stop Rice 
Subsidies. BBC news, Latin America & the 
Caribbean. Available at: 
<http://www.bbc.co.uk/news/world-latin-america-11472874>http://www.bbc.co.uk/news/world-latin-america-11472874 
(Accessed Nov 10, 2011)

Farmer, Paul (2006). The Uses of Haiti, 3rd edition. Common Courage Press.

Flynn, Laura (Jan 2011). In Haiti, Reliving 
Duvalier, Waiting for Aristide. Huffington Post. 
Available at: 
<http://www.huffingtonpost.com/laura-flynn/not-even-the-past_b_813172.html>http://www.huffingtonpost.com/laura-flynn/not-even-the-past_b_813172.html 
(Accessed Nov 10, 2011)
Gros, Jean-Germaine. Indigestible Recipe: Rice, 
Chicken Wings, and International Financial 
Institutions: or Hunger Politics in Haiti. 
Journal of Black Studies 2010 40: 974 originally 
published online 29 September 2008. Available at: 
<http://jbs.sagepub.com/content/40/5/974.full.pdf>http://jbs.sagepub.com/content/40/5/974.full.pdf 
(Accessed Nov 10, 2011)

Haiti Info (Sept 1995) Vol 3, #24. Neoliberalism 
in Haiti: The case of rice. Available at: 
<http://www.afaceaface.org/blog/2010/09/neoliberalism-in-haiti-the-case-of-rice/>http://www.afaceaface.org/blog/2010/09/neoliberalism-in-haiti-the-case-of-rice/ 
(Accessed Nov 10, 2011)

Hallward, Peter (2007). Damming the Flood. New York: Verso.

Herz, Ansel and Ives, Kim (June 16, 2011). 
Wikileaks Haiti: The Post Quake Gold Rush for 
Reconstruction Contracts. The Nation. Available 
at: 
<http://www.thenation.com/article/161469/wikileaks-haiti-post-quake-gold-rush-reconstruction-contracts>http://www.thenation.com/article/161469/wikileaks-haiti-post-quake-gold-rush-reconstruction-contracts 
(Accessed Nov 10, 2011)
Katz, Jonathan (March 2010). Haiti Relief Money: 
Criticism of Nonprofits Abounds. Huffington Post. 
Available at: 
<http://www.huffingtonpost.com/2010/03/05/haiti-relief-money-critic_n_487976.html>http://www.huffingtonpost.com/2010/03/05/haiti-relief-money-critic_n_487976.html 
(Accessed Nov 10, 2011)

Kurklantzick, Joshua. (Dec/Nov 2004). The Coup 
Connection. Mother Jones. Available at: 
<http://motherjones.com/politics/2004/11/coup-connection>http://motherjones.com/politics/2004/11/coup-connection 
(Accessed Nov 10, 2011)

McGowan, Lisa (January 1997). Democracy 
Undermined , Economic Justice Denied: Structural 
Adjustment and the Aid Juggernaut in Haiti. The 
Development Group for Alternative Policies, Inc. 
Available at: 
<http://www.developmentgap.org/foriegn_aid/Democracy_Undermined_Economic_Justice_Denied_Structural_Adjustment_%26_Aid_Juggernaut_in_Haiti.html>http://www.developmentgap.org/foriegn_aid/Democracy_Undermined_Economic_Justice_Denied_Structural_Adjustment_%26_Aid_Juggernaut_in_Haiti.html 
(Accessed Nov 10, 2011)

NACLA (1995). Haiti: Dangerous Crossroads. South 
End Press, Boston, MA. Chapter 19, p. 190
Quigley, Bill (April 2008). Thirty years ago 
Haiti Grew All the Rice It Needed. What Happened? 
Counterpunch. Available at: 
<http://www.counterpunch.org/2008/04/21/the-u-s-role-in-haiti-s-food-riots/>http://www.counterpunch.org/2008/04/21/the-u-s-role-in-haiti-s-food-riots/ 
(Accessed Nov 10, 2011)

Smith, Ashley (24 Feb 2010). Haiti and the AID 
Racket. Counterpunch. Available at: 
<http://www.counterpunch.org/2010/02/24/haiti-and-the-aid-racket/>http://www.counterpunch.org/2010/02/24/haiti-and-the-aid-racket/ 
(Accessed Nov 10, 2011)

Weisbrot, Mark (14 Oct 2010). CEPR Co-Director 
Criticizes US Funding of Flawed “Elections” in 
Haiti. Press Release. Available at: 
<http://www.cepr.net/index.php/press-releases/press-releases/cepr-criticizes-us-funding-for-elections-in-haiti>http://www.cepr.net/index.php/press-releases/press-releases/cepr-criticizes-us-funding-for-elections-in-haiti 
(Accessed Nov 10, 2011)

Weisbrot, Mark (10 Jan 2011). Haiti's Election: A 
Travesty of Democracy. The Guardian. Available 
at: 
<http://www.guardian.co.uk/commentisfree/cifamerica/2011/jan/10/haiti-oas-election-runoff>http://www.guardian.co.uk/commentisfree/cifamerica/2011/jan/10/haiti-oas-election-runoff 
(Accessed Nov 10, 2011)

Yaffe, Nathan. (June 2011) USAID's Assault on 
Haitian Agriculture. Haiti Justice Alliance. 
Available at: 
<http://haitijustice.wordpress.com/2011/06/21/winner-bad-for-haiti/>http://haitijustice.wordpress.com/2011/06/21/winner-bad-for-haiti/ 
(Accessed Nov 10, 2011)

*************
Haiti Action Committee
<http://www.haitisolidarity.net/>www.haitisolidarity.net and on FACEBOOK



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