African American

The Clinton family’s charitable work in Haiti has been a mix of success, disappointment and controversy. As our Washington Post colleagues reported, some Clinton-backed projects didn’t come through, such as a $2 million housing expo for thousands of new housing units. The Government Accountability Office found poor planning and unsustainable outcomes for taxpayer-funded projects through USAID, such as a $170 million power plant and port for the Caracol Industrial Park, which the Clinton Foundation promoted.

Among the litany of complaints being laid at their feet: Fewer than half the jobs promised at the industrial park, built after 366 farmers were evicted from their lands, have materialized. Many millions of dollars earmarked for relief efforts have yet to be spent. Mrs. Clinton’s brother Tony Rodham has turned up in business ventures on the island, setting off speculation about insider deals.

On the fifth anniversary of the 7.0 magnitude earthquake in Port-au-Prince, Haiti remains a poster child for waste, fraud and corruption in the handling of aid. Nowhere is the bureaucratic ineptitude and greed harder to accept than at the 607-acre Caracol Industrial Park, a project launched by former Secretary of State Hillary Clinton with U.S. taxpayer money, under the supervision of her husband Bill and his Clinton Foundation.

Between the State Department and the Inter-American Development Bank (IDB), which hands out grants to very poor countries thanks to U.S. generosity, hundreds of millions of dollars have been spent on this park in an attempt to attract apparel manufacturers. But the park is falling far short of the promises made to provide investors with necessary infrastructure. If things continue this way, frustrated investors will look for greener pastures.

On paper Caracol makes sense. Thanks to special trade legislation passed by the U.S. Congress in Dec. 2006, Haitian-sewn apparel enters the U.S. duty free and the manufacturers can use fabric purchased from anywhere in the world. This gives Haiti a big advantage over apparel exporters to the U.S. who have to source the fabric in the U.S. even if they sew overseas. With lower wages than in many Asian markets and proximity to North America, Haitian-based producers have comparative advantages that might offset the country’s low productivity.


The State Department initially promised that the park would be able to support 65,000 direct jobs by 2020. The Clinton Foundation has made similar statements. That means constructing 40 10,000 square-meter buildings for garment assembly. It won’t happen at the current pace.