Can More Aid Stay in Haiti and other Fragile SettingS? How Local Investment can trengthen Governments and Economies

The UN Office of the Special Envoy for Haiti (OSE), established in 2009, played a central role in coordinating international aid and investment for Haiti, especially after the 2010 earthquake. The OSE tracked donor commitments and advocated for more aid to be channeled through Haitian government systems and local institutions, rather than bypassing them in favor of international organizations. Despite over $6 billion in humanitarian and recovery funding from 2010 to 2012, less than 10% reached the Haitian government directly, and less than 0.6% went to Haitian organizations and businesses. This pattern, common in other fragile settings, often undermines local capacity and accountability. The report argues that investing directly in local public and private institutions is crucial for sustainable development, improved service delivery, and economic growth. It recommends developing mechanisms for local funding, strengthening accountability, improving data collection, and gathering more evidence on effective aid policies, emphasizing that building strong local institutions is essential for long-term recovery and resilience in fragile contexts like Haiti.

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