Friday, January 29, 2010

$end And $pend

President Obama announced an initial $100 million for Haiti earthquake relief, but government spending on the disaster has nearly quadrupled to $379 million - that's about $1.25 each from everyone in the United States. But how does that actually break down?

Each American dollar spends like this: 42 cents for disaster assistance, 33 cents for U.S. military aid, nine cents for food, nine cents to transport the food, five cents for paying Haitian survivors for recovery efforts, just under one cent to the Haitian government, and about half a cent to the Dominican Republic. Because they're neighbors.

Relief experts say it would be a mistake to send too much direct cash to the Haitian government, which is in disarray and has a history of failure and corruption. And I agree. Look at how much little they've done with foreign money so far. A review of federal budget spreadsheets, procurement reports and contract databases shows the vast majority of U.S. funds going to established and tested providers including the U.N. World Food Program, the Pan American Health Organization and nonprofit groups such as Save The Children, which have sent in everything from the $3.4 million barge that cleared the port for aid deliveries to pinto beans at 40 cents a pound.

The U.S. is providing the largest slice of a global response that totals more than $1 billion in government pledges. The European Union's 27 nations are contributing $575 million. The U.S. also has long been the largest donor of ongoing foreign aid that Haiti depends on for up to 40% of its budget, with more than $260 million in U.S. money last year aimed at promoting stability, prosperity and democracy. Private money also is flowing into Haiti — U.S. charities have raised $470 million for disaster relief, and total international giving has topped $2 billion.

And when you think about it, it's probably better that the government is administering the dispersion of funds rather than, say,
Amy Fisher.

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