Ideas to Action:

Independent research for global prosperity

Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

Three Questions about Honduras's New Charter City

This is a joint post with Milan Vaishnav.

One of the biggest experiments in development economics is about to begin on Honduras's Northern Coast. Honduras has altered its constitution to open the way to ceding a large tract of land to build a new "Special Economic Zone", modeled on NYU economist Paul Romer's idea of charter cities -- new cities, built up from scratch, where first-world institutions and third-world immigrants can meet and do business.

Local Procurement Is Key to Rebuilding the Private Sector in Haiti

This is a joint post with Julie Walz.

In a recent blog post, we discussed the phenomenon of Haiti as a “Republic of NGOs” where the government and the private sector were crowded out by large international organizations that provided most services. Just as international donors have sidestepped the Haitian government, reconstruction contracts have also bypassed Haitian firms in favor of Beltway contractors. The Center for Economic and Policy Research analyzed the 1,490 contracts (worth $194.5 million) awarded between January 2010 and April 2011. Only 23 contracts--for a total of $4.8 million or 2.5 percent of the total—were awarded to Haitian companies. In comparison, contractors based in the Washington DC area received $76 million – almost 40 percent of the total.