After the famine: food aid policy and management issues in sub-Saharan Africa

The large amount of food aid that was required to meet Africa's emergency food situation resulted in the postponement of some fundamental decisions that were being taken about food aid use in sub-Saharan Africa. Now the donor community and recipient governments are again giving priority to integrating food aid with other available resources in order to meet longer-term food policy and wider development objectives. This paper looks at some of the policy and management issues which need to be addressed if the effectiveness of food aid assistance is to be improved in the current African context. Shortages of locally qualified personnel to administer project food aid have proven to be a major bottleneck in most sub-Saharan countries. Most sub-Saharan states receive food aid from a variety of sources: multilateral, bilateral and a few private-voluntary organizations. As a result, countervailing priorities are set by the donors themselves and give rise to conflicts. The recent drought and famine conditions have compounded an image problem in which food aid is narrowly identified by recipient governments as a project resource to be used primarily for nutrition interventions and for the rural sector. The image problem often limits project selection and overlooks innovative uses of food aid. Many sub-Saharan countries are starting to acquire considerable amounts of counterpart funds from program food aid. However, their use is not coherently integrated with the total aid flow. Multi-year programming has emerged as a management issue which has unnecessarily divided the food aid donor community. The fundamental issue is flexibility in programming, not multi-year programming. The major policy objective now facing the food aid donor community and recipient countries is how to lower emergency allocations while simultaneously increasing project and program aid. Most nonfood-aid donor agencies and their constituent bodies do not treat food aid as a valid economic resource, thereby undermining its effectiveness. The eventual success of food aid use in Africa may be a function of the recipient governments and other major donor and financial organizations.     

Who gets the goods? A general equilibrium perspective on food aid in Mozambique

We employ a computable general equilibrium approach to examine the effects of alternative food aid distribution schemes for drought-response food aid to Mozambique. Alternative schemes have very distinct impacts on household welfare and prices. Compared with monetization of food aid by government, direct distribution to households (by population shares) strongly benefits rural households. Even assuming that government cannot target food aid strictly at drought-stricken rural people, our results indicate that, when improving household welfare is the primary goal of the food aid, direct distribution of food aid to households is preferred.     

Does food aid have disincentive effects on local production? A general equilibrium perspective on food aid in Ethiopia

This paper examined impacts of food aid on domestic food production employing a computable general equilibrium modelling technique and using data from Ethiopia. The simulation experiments have shown that food aid has unambiguous disincentive effects on domestic food production. The removal of food aid caused a modest increase in food prices but this stimulated food production. Employment and income generation effects of the latter outweighed the adverse effect of the former. Consequently, the removal of food aid led to improvements in aggregate household welfare. Contrary to some concerns in the food aid literature that any reduction in food aid would hurt the poor, the simulation experiments suggested that actually poor rural households and urban wage earners are the ones who benefit most in absence of food aid but entrepreneurs are more likely to encounter a marginal welfare decline. We have distinguished between in-kind food aid and cash equivalent transfers in order to isolate the disincentives that in-kind transfers would make to domestic production from those that are related to household purchasing power problem. The expansionary effect of removing food aid becomes significantly larger when it is accompanied by cash equivalent payments because the latter would provide demand side stimulus to agriculture while the removal of in-kind transfers would stimulate supply side, with the supply and demand side effects reinforcing each other. In our modelling framework, the only adverse effect would be a modest deterioration in the external current account, because the expansionary effects of food aid would cause imports to rise but exports to fall.     

Food aid,domestic policy and food security: Contrasting experiences from South Asia and sub-Saharan Africa

Food aid, both for short-term emergency relief and as program food aid that helps address medium-term food “deficits”, is often a major component of food security strategies in developing countries. This study reviews the experience with food aid of four major recipients of food aid (India, Bangladesh, Ethiopia and Zambia) regarding food production, trade, markets, consumption and safety nets, as well as the policy responses to food emergencies. The widely varying experiences of the study countries suggest that food aid that supports building of production and market enhancing infrastructure, is timed to avoid adverse price effects on producers, and is targeted to food insecure households can play a positive role in enhancing food security. However, food aid is not the only, or in many cases, the most efficient means of addressing food insecurity. In many cases private markets can more effectively address shortfalls in food availability and cash transfers may be a viable alternative to food transfers in-kind.     

Assessing the components of prospective food aid requirements

When assessing food aid requirements, it is important to differentiate between the three main categories of food aid needs, ie non-project, project and emergency food aid. Using an approach based on effective demand, this article presents estimates of food aid requirements for the mid-1980s. The results point to a substantial increase in food aid needs, although it is important to remember the methodological problems inherent in this approach. Another aspect arising from the study is the limitations in absorptive capacity of the recipients.     

The domestic determinants of US food aid policy

This study presents empirical analysis of US food aid flows as evidence of the strong and stable relationship between commodity producer interests and policy-makers during a 35 yr period. Whereas most foreign aid research centers on the distribution of aid among recipient countries, this study focuses on the determinants of the supply of food aid made available by the donor country. I conduct time series regression analysis of total US food aid shipments, as well as separate analyses of two key commodities, wheat and rice. Several key findings emerge: (1) There is a consistent relationship between commodity producer interests and US food aid policy. (2) There is a strong relationship between commodity stocks and food aid shipments, especially during the years when stocks were the greatest. (3) US food aid policy-making is highly incremental. These findings, taken together with the lack of a strong relationship between grain production in poor countries and US food aid shipments, belie official rhetoric emphasizing the growing humanitarian objectives of the program over time. In the case of rice, I find a strong relationship between aid flows and US involvement in the Vietnam War.     

Women and food aid: a developmental perspective

The unique aspect of food aid projects is that food, rather than money, is used for achieving developmental objectives. As food is usually controlled by women, they benefit most from considering it to be of economic value. Poor women seem to be short of resources--time and money--which can be supplemented by food aid. Through its income-transfer effect, food aid can enable women to work fewer hours/day and thus have more discretionary time. It can also provide, directly or indirectly, the cash necessary for women to use skills they already possess to set themselves up in small businesses. Food aid projects achieve their developmental objectives through: the nutritional content of the distributed commodity; the income transfer effect; cooperatives or associations; specific activities associated with the project; community improvement aspects resulting from the project; and provision of budgetary support to release resources for additional developmental activities. There are a number of ways through which food aid exerts its effect on women from a developmental perspective. Consumption of the food aid commodity provides women with an improved diet. Food aid as an income transfer can enable women to have more discretionary time. Providing women with opportunities for income-generating activities is an important aspect of development. Women's cooperatives or associations funded by food aid commodities can provide women with income. Current food aid projects, if properly planned, can be beneficial to women without the incorporation of specific activities or skills training. One way that food aid helps women gain more time is by freeing them from wage employment. Another way is to use the income transfer for the purchasing of consumer goods that reduce their labor.     

Food aid targeting in Ethiopia: A study of who needs it and who gets it

The need for systematic, empirical analysis of food aid targeting and impacts is overwhelming, especially given the large numbers of people concerned and volume of funds allocated to the problem of feeding Ethiopia's food insecure. This research examines the efficiency of food aid targeting in rural Ethiopia based on empirical evidence from a nationally representative survey of 4166 farm households.A key finding of the study is that there is no significant association between household food insecurity (vulnerability) and food aid receipts—a result of high errors of exclusion and inclusion at both the wereda and household levels. Four factors are identified as causes of the high level of targeting error: (1) the primary beneficiaries of food aid programs are found to be households at the extremes in terms of food availability: those with the least and those with the most food available; (2) a disproportionate number of female and aged heads of households received food aid, irrespective of their food needs; (3) an inability of the food aid system to reach households outside of the historically deficit areas; and (4) a disproportionate concentration of food aid in the region of Tigray.     

Egypt: Food security and food aid

This article examines the multifaceted notions of food security and food aid through a case-study of a rather exceptional country in political terms - Egypt. Egypt has achieved a high degree of food security with lessened reliance on domestic production and has become one of the largest recipients of cereal food aid. The analysis considers significant questions about the interdependence of food security and food aid, the maintainability of an externally dependent food system, its implicit resource costs and its internal distribution and equity impact.     

From `food aid' to `aid for food': into the 21st century

Food aid deserves much credit for having pioneered in the 1950/60s the transfer of large quantities of resources to the poorest nations and people inflicted with poverty and hunger. In recent years, the magnitude of this aid has drastically diminished. Fortunately, many of the programs that used to receive food aid are now funded by financial aid. The paper argues that it may have become counter-productive to plead for `food aid', because it distracts attention from the fact that many food shortages can be alleviated as well, or even better, with financial aid. It might be more effective to solicit `aid for food' and to assure an adequate allocation of overseas development assistance for the purpose, irrespective of the supply of food aid.The policies, of which food aid was a by-product and which have led to the accumulation of large food surpluses in the industrial countries and the inhibition of the efficient functioning of food markets in the developing countries, have by now become thoroughly discredited. Is it in parallel, not also high time to question the appropriateness of the public distribution of food to nations and people, short on food?     

Sri Lanka: Food aid as a resource transfer

Sri Lanka is used as a case study to consider: the significance of food aid in the long run as a resource transfer; the extent to which food transfers have substituted for or been additional to commercial imports; the significance of donor programming for recipient country food policy. The article finds evidence that food aid has represented an important resource but is now of diminished significance; it has largely provided balance-of-payments support rather than additional cereals imports; but unresponsive programming by donors seriously reduced the effectiveness of food aid as a transfer and food security mechanism.     

Food aid: pitfalls and potential

This article poses the question of whether it is possible to use food aid to meet short-run needs while supporting and not undermining the achievement of long-term goals of self-reliance at the household and national levels. Often either some degree of self-reliance is sacrificed or people will suffer malnutrition. Food aid may be used to generate employment for low income families (food-for-work schemes), to reduce food prices during shortages by increasing the supply, and it can be delivered to target groups as a direct entitlement. What happens to food after delivery is important: often it goes to family members not targeted. Other factors (e.g. measles) affect nutritional status. Food aid must often continue for long periods to avoid nutritional regression. The stage in distribution at which food is used is important; e.g. a measles epidemic might affect the consumption but not the supply of food, or poor targeting might benefit families who do not need it. Complementary actions may improve conditions; for example, if food is sold, increasing income improves the situation. A problem with provision of food is depression of local prices, reducing incentives to produce food locally. Most food aid does not increase demand, and in fact if the effect is to change tastes away from local products demand may be reduced. The effect on demand depends on the type of aid scheme, the timing and duration, and the locality of the project. Most objectives are better achieved by the use of cash aid, which promotes rather than weakens local food producers' incentives, reduces transport and storage, redistributes food, does not affect taste, and adds income by contributing to local decentralized transport. Food aid is a good temporary intervention, but cash aid should be used in the long term.     

Food aid and household food security in a conflict situation: Empirical evidence from Northern Uganda

It is well-established that armed political conflict has a detrimental effect on food security and household welfare: conflict induces food insecurity by reducing own food production, access to food through the market, and various other resources to sustain healthy and productive lives. One way of mitigating these adverse effects is to provide food aid. In this study we evaluate the impact of a World Food Programme intervention on household food security and asset protection among conflict-affected households in Northern Uganda. We employ propensity score matching to estimate the average treatment effect on food expenditure, food consumption and preservation of assets using a sample of 1265 observations from a 2008 survey. Our results reveal that the operation’s system of targeting beneficiaries was effective and in accordance with programme objectives. Food aid considerably reduced food expenditure of households, suggesting that recipients were net buyers of food, and that the food aid received was effectively consumed within the household. A corresponding positive effect on non-food expenditure was not found. Our results also indicate that food aid was effective in increasing meals consumed and in avoiding distress destocking of low value assets, but, surprisingly, only for male headed households.     

How effectively does multilateral food aid respond to fluctuating needs?

This paper tests the targeting efficacy of multilateral food aid at the level of nation states, exploring whether it stabilizes food availability in recipient economies, flows most to those with the greatest need, or both. We find that, unlike bilateral flows from the United States under PL 480, multilateral food aid distribution by the World Food Programme flows countercyclically, thereby stabilizing food availability in recipient economies. WFP flows also exhibit significant progressivity at the regional level, helping to resolve international inequalities in food availability per capita.     

Food aid and food policy in Bangladesh

Bangladesh has now replaced India as the most publicized large scale recipient of food aid, importing 1.67 million tons of food grains, four fifths of which were on concessional terms, in 1977/78 (July to June). Some analysts, extrapolating from the poor performance of the agricultural sector up to the mid 1970s, also project that Bangladesh will be one of the largest importers of foodgrains in a decade's time merely in order to maintain current pitifully inadequate levels of nutrition.¹ Yet so far there has been no open debate or systematic attempt to analyse the impact of food aid on the Bangladesh economy, compared with the controversy and intensive analysis of food aid to India. This article² is intended to demonstrate the seriousness of this gap in the literature. It includes a review of provisional evidence on the role of food aid in the Bangladesh economy during the first quinquennium of ‘planned’ development, 1972/3–1977/8.     

Food aid for supplementary feeding programmes : An analysis

Supplementary feeding projects to selected population groups are one outlet for the food aid which is sent to developing nations. The author discusses the costs and benefits, both nutritional and non-nutritional, of supplementary feeding projects, with two questions in mind. He asks: are supplementary feeding programmes an effective nutrition intervention; and should such programmes be supported by food aid or would their purpose be better achieved with local food?     

US food aid to South-east Asia, 1975–1983

According to food aid policy analysts, President Ford emphasized fiscal restraint, President Carter stressed ‘food for development’ and President Reagan used food as a ‘weapon’. However, a political bias has characterized food aid to South-east Asia, cutting across administrations. Public Law 480 supported American efforts in Indochina, boistered ‘friendly’ Indonesian and Phillippine regimes and helped secure geopolitical objectives. Humanitarian and developmental goals played the weakest role in shaping programmes. When conflict occurred, foreign policy aims overrode budgetary and commodity objectives.     

Feeding the famine? American food aid and the GMO debate in Southern Africa

The inclusion of genetically modified maize in food aid shipments to Southern Africa during the 2002 food crisis rekindled debates over agricultural biotechnology. As the region edged ever closer to famine – putting the lives to some 14 million Africans at risk – corporate pundits, government officials and biotech’s critics debated the health and environmental dangers posed by the new technology.By situating the decision to send genetically modified maize to Southern Africa in the context of US–European debates over agricultural biotechnology, it becomes clear that the promotion of biotechnology has nothing to do with ending hunger in the region. Indeed, American food aid shipments to Southern Africa have little to do with the famine at all. Instead, I argue that US food aid policy following the 2002 crisis was intended to promote the adoption of biotech crops in Southern Africa, expanding the market access and control of transnational corporations and undermining local smallholder production thereby fostering greater food insecurity on the Continent.     

Ethiopia: Food for work or food for relief

This article examines the aims, context and experience of food aid projects in Ethiopia. The major focus is a case study of an Ethiopian food-for-work project — the largest in sub-Saharan Africa — and favourable conclusions are drawn. Factors are identified which have made for this apparent success. Since one factor is local food shortage, consideration is also given to the proposition that the concept of ‘relief aid’ needs a wider definition than heretofore.     

Improving bid efficiency for humanitarian food aid procurement

The competitive bid process used by the US Department of Agriculture (USDA) to procure food supplies and transportation services for humanitarian food aid is subject to bidder gaming that can increase prices and deter competition. Additionally, suppliers and carriers are matched after bid submission, preventing synergies from coordinated planning. Given these concerns, we determine the optimal auction mechanism to minimize gaming then justify pre-bid planning between suppliers and carriers using properties of the cost distribution functions. We operationalize these changes with a uniform price auction. The improved mechanism should deter gaming, enhance bid participation, and increase delivered food aid volumes.