Donors Avoid Latin America in Giving Aid

LOS ANGELES -- When Hispanic groups across the country ask for donations for victims of Hurricanes Wilma and Stan, they often promise contributors one thing: The governments of Mexico, Guatemala and El Salvador will not get their hands on the money.

Many Hispanics in the U.S. are afraid corrupt officials in Latin America will skim donations, and they hesitate to contribute, some volunteers say.

The two storms that slammed Central America last month brought into sharp focus a trend among U.S.-based development organizations and Hispanic community groups — when disaster strikes, many groups send money directly to community organizations in the affected countries.

"If we were to mention the Guatemalan consulate, our people wouldn't donate anything," said Marta Barrera, a Guatemalan immigrant who is both sending cash and leading collection efforts at St. Elizabeth Catholic parish in Oakland. Barrera's church is sending $5,000 directly to its private-sector counterparts in the Central American nation.

The approach gained popularity after Hurricane Mitch, the 1998 storm that killed at least 9,000 Central Americans and led to widespread allegations of government corruption and misuse of international aid.

During reconstruction in El Salvador, donors criticized the governing party for distributing clothes with party logos to victims. In Guatemala, developers hired by the government allegedly failed to do the work, leaving thousands homeless.

Officials in those countries have repeatedly denied allegations of corrupt handling of international aid.

Philanthropy experts say changing donation practices involving Latin America are part of a worldwide trend, as scandals like the U.N. oil-for-food debacle in Iraq and problems with food donations to Africa have made donors more skeptical of governments.

A friend of mine in the Cayman Islands was telling me about how they did a service project after a hurricane hit Honduras --they filled a boat with food, clothes and stuff. When the boat got to Honduras the whole cargo was confiscated by Honduran protectionists demanding import duties on everything.

Some people say Latin American governments are notorious, others say they're no worse than most.

"Hmmmm - they don't trust their native governments but yet do everything in their power to set up "little hispanic" ethnic areas just like the place they left behind. And feel the US local, state and federal governments should give in to all their demands..."

This is like blaming blacks in general for what Jesse Jackson or the Sharpton guy say. Surely you know that the liberal whiny victim view is the one that gets the press.

""During reconstruction in El Salvador, donors criticized the governing party for distributing clothes with party logos to victims. In Guatemala, developers hired by the government allegedly failed to do the work, leaving thousands homeless.""

This sounds true, government contracts where the work simply isn't done have been the norm in my central american experience. One of my favorite (TRUE) anecdotes about the difference between public works in the US and a certain central american country is:

1. US wants to build a new roadway - roadway gets finished, but costs 50%+ more than originally budgeted, and that is if it is federal. Local projects presumably are as bad or worse.
2. Central American country X - project ends up being substantially reduced in scope, for original cost, i.e. overpass overruns half the streets it was intended to.

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