Aid Failures in Haiti: Not A Big Surprise

On a somewhat different subject, but relevant for South Florida–

The procurement procedures of the international organizations (the UN System) and multilateral development banks (World Bank, Inter-American Development Bank) and bilateral aid agencies (USAID, EU) have deeply ingrained historical procedures that involve strict control and supervision of the project design, execution format and competitive multi-stage procurement procedures that allow for extensive frequent and detailed challenges by the losers during the competitive bidding process.   This slows down the implementation of projects and may delay them by years.  (The procurement procedures of the City of Coral Gables may be considered light weight and efficient by international standards).   International procedures and the culture of control that exists in multilateral and bilateral institutions will make the process of reconstruction in Haiti very difficult indeed.

As co-chairs of the Interim Haiti Reconstruction Commission, [President] Clinton and [Prime Minister] Bellerive have been expressing frustrations with not just donors, but also the World Bank — the trustee in charge of managing a multidonor trust fund dedicated to the reconstruction.

The source of the friction is what the World Bank’s role should be and the projected costs for small projects. Both Clinton and Bellerive say that the fees charged by the bank for administering the reconstruction trust funds are too high for small-scale projects.

The procedures, the commission complains, are too bureaucratic and further threaten to slow down the rebuilding by adding months to the approval process with “redundant technical reviews.” The commission would like uniform vetting procedures.

via Leaders look to end dispute over Haiti earthquake aid – Haiti – MiamiHerald.com.

Coral Gables Budget: Automotive Department

The Automotive Department has made up about 5% of the city’s budget in recent years.  The staff numbers have been reduced  from 30 to 23 in two years.  Two mechanics and one (higher cost) supervisor positions are being dropped this year.  Personal services costs are estimated to decline from $2.7 million to $2.3 million.  Operating expenses remain constant and capital expenditures fall from $1.4 million to $1.1 million.  Equipment purchases and leasing together are about a constant $1.4 million over two years.  Motor fuel outlays are about the same $1.7 million estimated compared to the previous year of $1.8 million.

The overall costs automotive services, while down from last year’s budget, are relatively unchanged from the 2007 to the present time.  There is very little flexibility in reducing these costs over the long haul.

Coral Gables Budget: Public Service Department

Do you know what this Department does?  I was never sure.  It has two big jobs–waste collection and landscape services.  Waste collection includes “residential garbage collection twice weekly and trash collection from the street once a week”.  The landscape services cover “landscape maintenance programs for City properties, including street, sawle areas, selected parks, parkways, and parking lots”.  This also includes forestry management.

Public Service staff have been reduced from 40 to 29 in 2008-2009 and 2009-2010 and from 29 to an estimated 24 in 2009-2010 to 2010-2011.  In two years the number of staff have been reduced 40%  for mainly the lowest paid staff.  Salaries and benefits are being reduced by 28% in two years and services contracted from outside of the Department increased by 24% in the two years.

Hence the total budget of the Public Service Department declined a modest 14% in two years, but much more than the overall city operating budget that declined just 6% over a two year period.