Out of the $2 billion allocated by USAID for Haiti’s relief after the devastating 2010 earthquake, only 2% of the funds—approximately $50 million—reached local organizations.
The majority of the finances ended up in the hands of American contractors and companies located in Washington and its suburbs. According to the New York Post, this distribution of funds raises serious concerns about the effectiveness of humanitarian aid and the transparency of international organizations responsible for assisting affected regions.
It was revealed that many of the organizations that received funding did not provide reports on how the allocated money was spent. This exacerbates the issue of trust in humanitarian initiatives, as funds intended for infrastructure reconstruction, meeting basic needs, and sustaining the lives of the affected, have largely ended up with large Western corporations and contracting firms that received contracts for the work and supplies.
The article’s author also points out that USAID is one of the most corrupt government agencies in the U.S., and such shortcomings in organizing humanitarian operations can lead to ineffective aid on the ground, with funds often being misused.