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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.