The Second Looting of New Orleans

By Jordan Flaherty, AlterNet. Posted January 18, 2007.

A year and a half after New Orleans became an international symbol of governmental neglect and racism, the city remains in crisis. Students are still without books, healthcare is less available to poor people than ever, public housing is still closed, and infrastructure is still in desperate need of repair. In an open letter to funders and national nonprofits, a diverse array of New Orleanians declared, "From the perspective of the poorest and least powerful, it appears that the work of national allies on our behalf has either not happened, or if it has happened it has been a failure."

In a recent conversations with scores of New Orleans residents, including organizers, advocates, health care providers, educators, artists and media makers, I heard countless stories of diverted funding and unmet needs. While many stressed that they have had important positive experiences with national allies, few have received anything close to the funding, resources, or staff they need for their work, and in fact most are working unsustainable hours while living in a still-devastated city.

Research backs up the anecdotal reports. A January 2006 article in The Chronicle of Philanthropy argued that the amount given to post-Katrina New Orleans was "small-potato giving for America's foundations, which collectively have $500-billion in assets." The article also asserted, "just as deplorable as the small sums poured into the region are the choices foundations have made about where the money should go." In other words, very little of the money had gone to organizations directed by or accountable to New Orleanians. One prominent New Orleans-born advocate and lobbyist called this phenomenon the "Halliburtization of the nonprofit sector."

A February report from New York City's Foundation Center points out that the Red Cross, which raised perhaps two billion dollars for Katrina relief despite widespread accusations of racism and mismanagement, "ranked as by far the largest named recipient of contributions from foundation and corporate donors in response to hurricanes Katrina and Rita," receiving almost 35 percent of all aid. At the time of the report, another 35 percent of the money the foundations designated had not been spent. The Bush-Clinton Katrina Fund, Salvation Army and United Way together made up another 13 percent. The rest was generally spread between other national relief organizations.

Community Responses

After nearly fifteen months of shuttered storefronts, a block of Black-owned businesses in New Orleans celebrated a rebirth this week. The street, on Bayou Road in the seventh ward neighborhood of New Orleans, is a hopeful sign in a city where 60 percent of the population remains displaced and many businesses are shutting down or moving. As recently as August, most of the area remained shuttered and empty. Now, almost every shop is open. The Community Book Center, a vital neighborhood gathering spot in the middle of the block, reopened this week, despite still having no front windows and a floor in major need of work. "Step carefully," Vera Warren-Williams, the owner, warned guests as they entered the store during the reopening celebration.

Neighborhood spaces like the Community Book Center have long been a vital part of New Orleans organizing, serving as a gathering place for people and ideas. The revitalization of Bayou Road is just one example community pulling together -- friends and strangers coming by to help gut houses, clear debris, cook food. Anything to help, as the people of New Orleans struggle together against incredible odds in a city that was already devastated by poverty and privatization and neglect pre-Katrina.

Although Community Book Center is a crucial resource, spaces like these have received little outside support.

Foundations, according to the Chronicle article, "seem to have been preoccupied with the issue of accountability. Many foundations wondered how they could be certain that grants to local groups would be well spent and, therefore, publicly accountable."

While those are reasonable concerns, many in New Orleans see a double standard in this view. The Chronicle writer goes on to state, "the question of accountability didn't seem to bother the large foundations that gave so generously to the Red Cross, which had a questionable record of competence to begin with and attracted even more criticism in the aftermath of Katrina over its unwise use of funds, high administrative costs, and lack of outreach to minorities."

Many feel that the message from major funders has been that New Orleanians cannot handle the money appropriately. "Twenty seven years running a business, and they don't trust us with money," Jennifer Turner of the Community Book Center, comments, when asked about her feeling towards national funders. "They think we're all stupid or corrupt."

In the aftermath of Katrina, the people of New Orleans were depicted in the media as "looters" and violent criminals, or as helplessly poor and ignorant. In other words, as anything but a trustable partner in the rebuilding of their city. Even today, many news stories about New Orleans post-Katrina focus on FEMA payments that were misused or obtained through fraud, rather than the bigger story of corporate fraud.

See more stories tagged with: new orleans, foundations, nonprofits

Jordan Flaherty is a union organizer and an editor of Left Turn Magazine.

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