USAID takes step toward greater transparency, reveals low levels of local procurement

In a positive step towards greater transparency of U.S. aid programs in Haiti and worldwide USAID has released new data on its use of local country systems. However, the content of the data itself also raises questions about USAID’s commitment to greater local procurement in Haiti and the speed at which the agency is achieving its goals.

In 2010, USAID launched USAID Forward, an ambitious reform agenda which called for increasing the use of “partner country systems” in order to strengthen local capacity and to raise the “percentage of total dollars through direct contracts with local private businesses.” In Haiti, however, previous CEPR research has shown that an extremely low percentage of funds have gone to local institutions since the earthquake: less than 1 percent out of the $1.3 billion obligated. Despite this, in September 2012, USAID Administrator Rajiv Shah told the Miami Herald that the goal is to have 30 percent of USAID funds going to local Haitian organizations by 2015.