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ABOUT IATP ABOUT THIS PUBLICATION
4HE )NSTITUTE FOR !GRICULTURE AND 4RADE 0OLICY 53 &OOD !ID 4IME TO 'ET )T 2IGHT
PROMOTES RESILIENT FAMILY FARMS RURAL COMMUNITIES
AND ECOSYSTEMS AROUND THE WORLD THROUGH RESEARCH AND 7RITTEN BY
EDUCATION SCIENCE AND TECHNOLOGY AND ADVOCACY 3OPHIA -URPHY AND +ATHY -C!FEE
&IRST !VENUE 3OUTH 0UBLISHED *ULY
-INNEAPOLIS -INNESOTA USA
4EL
&AX
ABOUT THE AUTHORS
IATP IATPORG 3OPHIA -URPHY IS THE DIRECTOR
IATPORG OF )!40S 4RADE 0ROGRAM
TRADEOBSERVATORYORG
+ATHLEEN -C!FEE IS
-ARK 2ITCHIE 0RESIDENT A 6ISITING 3CHOLAR IN 'EOGRAPHY AT
THE 5NIVERSITY OF #ALIFORNIA AT "ERKELEY
Ú IATP !LL RIGHTS RESERVED
53 &OOD !ID
4IME TO 'ET )T 2IGHT
4A B L E O F C O N TE N T S
!CKNOWLEDGEMENTS IV
!BSTRACT VII
)NTRODUCTION
4HE /RIGINS OF &OOD !ID IN THE 5NITED 3TATES
&OOD !ID AND &OOD 3ECURITY
&OOD !ID 7HAT IS )T 7HO 'IVES )T 4O 7HOM
4HREE +INDS OF &OOD !ID 0ROGRAM 0ROJECT AND %MERGENCY
4HREE 3OURCES OF &OOD !ID $IRECT 4RIANGULAR AND ,OCAL
3UMMARY OF 53 &OOD !ID 0ROGRAMS
-ULTILATERAL #HANNELS AND !GREEMENTS
&OOD !ID IN 3UB 3AHARAN !FRICA
&OOD !ID -YTHS
7HO "ENElTS FROM 53 &OOD !ID
2ECOMMENDATIONS FOR #HANGE
2EFERENCES
"IBLIOGRAPHY
53 &OOD !ID III
!# + . /7 , % $ ' % - % . 4 3
4HE AUTHORS ARE ENTIRELY RESPONSIBLE FOR THE CONTENT OF THIS PAPER 4HEY WOULD LIKE TO THANK
'EORGE !ELION #HARLES !BUGRE 4HOMAS "ARASA #HRIS "ARRETT 3TUART #LARK -AGDALENA
+ROPIWNICKA *AMIE -ORRISON +ATHLEEN 3ELVAGGIO 'EORGE 3IMON 3TEVE 3UPPAN AND
0ATRICK 7EBB FOR TAKING THE TIME TO COMMENT ON THE WORK IN PROGRESS 4HANK YOU TOO TO
"EN ,ILLISTON FOR EDITING AND -ATTHEW &OSTER FOR LAYOUT AND DESIGN
IV IATPORG
h4RUE
GENEROSITY CONSISTS PRECISELY IN lGHTING TO DESTROY THE
CAUSES WHICH NOURISH FALSE CHARITY &ALSE CHARITY CONSTRAINS
THE FEARFUL AND SUBDUED THE @REJECTS OF LIFE TO EXTEND THEIR
TREMBLING HANDS 4RUE GENEROSITY LIES IN STRIVING SO THESE
HANDSWHETHER OF INDIVIDUALS OR ENTIRE PEOPLENEED
BE EXTENDED LESS AND LESS IN SUPPLICATION SO THAT MORE AND
MORE THEY BECOME HUMAN HANDS WHICH WORK AND WORKING
TRANSFORM THE WORLDv
0AULO &REIRE 0EDAGOGY OF THE /PPRESSED
VI IATPORG
!" 34 2 !# 4
4HE PAPER lRST CONSIDERS FOOD SECURITY SETTING THE CONTEXT IN WHICH FOOD AID SHOULD OPER
ATE 4HE PAPER NEXT BRIEmY REVIEWS THE MECHANICS OF FOOD AID WHO GIVES WHAT FOOD IN
WHAT WAYS TO WHOM LOOKING PRIMARILY AT THE 53 BUT USING OTHER DONOR STATES AND MUL
TILATERAL INSTITUTIONS FOR COMPARISON 4HE PAPER THEN LOOKS AT SUB 3AHARAN !FRICA WHERE
FOOD DElCITS AND FOOD RELATED CRISES ARE MOST HEAVILY CONCENTRATED TO UNDERSTAND HOW
FOOD AID INTERACTS WITH THE WIDER CONTEXT OF FOOD SECURITY AND AGRICULTURAL DEVELOPMENT
4HE PAPER THEN REVIEWS SOME OF THE MAIN CRITICISMS OF 53 FOOD AID RELATED SPECIlCALLY TO
THE DOMINANCE OF DOMESTIC INTERESTSESPECIALLY COMMERCIAL SHIPPING AND FOOD PROCESSING
lRMS BUT ALSO THE ROLE OF 06/SIN DEFENDING THE CURRENT DESIGN AND IMPLEMENTATION OF
FOOD AID 4HE PAPER ALSO CONSIDERS THE INTERNATIONAL AND LOCAL MARKET PROBLEMS THAT POORLY
PLANNED AND IMPLEMENTED FOOD AID PROGRAMS CAUSE 4HE PAPER CONCLUDES WITH RECOMMEN
DATIONS FOR FUNDAMENTAL CHANGES TO 53 FOOD AID PRACTICES AND FOR A STRONGER RULES BASED
APPROACH TO FOOD AID IN THE MULTILATERAL SYSTEM
53 &OOD !ID VII
VIII IATPORG
;=
) . 4 2 / $5# 4 ) / .
(
UNGER IS NOT INEVITABLE -ALNUTRITION IS NOT A CONSEQUENCE OF FOOD SCARCITY BUT A RESULT OF
THE WAY ECONOMIES ARE ORGANIZED AND OF POLITICAL CHOICES TO ADDRESSOR IGNORETHE CAUSES
OF HUNGER )N THE ST CENTURY WE HAVE THE MEANS TO DEFEAT HUNGER WE GROW ENOUGH FOOD
WE KNOW ENOUGH ABOUT REDISTRIBUTIVE ECONOMICS WE HAVE THE POLITICAL TOOLS TO ENSURE INCLU
SIVE DECISION
MAKING AND WE CAN AFFORD TO PROVIDE THE BASIC NEEDS THAT PROTECT EVERY PERSONS ENTITLEMENT TO
AN ADEQUATE NUTRITIOUS DIET )T IS IMPORTANT TO ASSERT THIS FACT BECAUSE SO MANY FOOD
RELATED INTERVENTIONS
SEEM PREMISED ON THE ASSUMPTION THAT HUNGER IS AN ETERNAL FACT AND THEREFORE CHARITY TO ASSUAGE ITS MOST
PERNICIOUS EFFECTS WILL ALWAYS BE NECESSARY 4HIS CLOUDS OUR THINKING 7E HAVE THE KNOWLEDGE AND THE TOOLS
TO ADDRESS THE ROOT CAUSES OF HUNGER IF WE ACT STRATEGICALLY AND EMPOWER COMMUNITIES FACING HUNGER AND
COUNTRIES WITH FOOD DElCITS TO FEED THEMSELVES AGAIN
7E CAN INCREASE THE LIKELIHOOD THAT YEARS FROM NOW WE WILL HAVE REACHED THE -ILLENNIUM $EVELOPMENT
'OAL OF HALVING HUNGER 7E CAN ALSO ENSURE THAT YEARS FROM NOW AID AGENCIES WILL NOT BE FEEDING YET AN
OTHER HUNGRY GENERATION 7E CAN FOSTER SOUND FOOD AND DEVELOPMENT POLICIES TO HELP ESTABLISH INDEPENDENT
AND SELF
RELIANT COUNTRIES AND COMMUNITIES WHERE TODAY THERE IS DESPERATE NEED AND DEPENDENCE
4HIS PAPER TAKES A CRITICAL LOOK AT FOOD AID PARTICULARLY 53 FOOD AID 7E TREAD CAREFULLY EVEN POORLY
DESIGNED AND BADLY MANAGED FOOD AID SAVES LIVES AT LEAST IN THE SHORT TERM &OOD AID LEVELS HAVE FALLEN
DRAMATICALLY IN RECENT YEARS WHILE NEED HAS INCREASED )T IS INCUMBENT ON US TO BE CAUTIOUS IN CRITICIZING THE
EXISTING mAWED FOOD AID SYSTEM BECAUSE IN THE CURRENT 53 POLITICAL CLIMATE IT WILL BE EASIER TO CUT OVERSEAS
AID IN WHATEVER FORM THAN TO GENERATE ADDITIONAL RESOURCES TO MEET THE URGENT NEEDS OF THE HUNDREDS OF
MILLIONS WHO CANNOT NOW SECURE ENOUGH FOOD TO SURVIVE
.ONETHELESS MUCH 53 FOOD AID ESPECIALLY NON EMERGENCY FOOD AID IS NOT NEARLY AS EFFECTIVE AS IT COULD
BE !ND SOME OF IT PARTICULARLY PROGRAM AID IS SIMPLY UNACCEPTABLE 53 IN KIND FOOD AIDTHE TRANSFER OF
FOOD GROWN IN THE 53 FOR DISTRIBUTION OR SALE ABROAD THAT MAKES UP THE BULK OF 53 FOOD AIDIS A GROSSLY
INEFlCIENT RESOURCE TRANSFER &OOD AID ANALYSTS #HRIS "ARRETT AND $AN -AXWELL ESTIMATE THAT IT COSTS MORE
THAN TWO DOLLARS OF TAXPAYER MONEY TO GENERATE ONE DOLLAR OF DISTRIBUTED FOOD PROCURED AS IN KIND FOOD
AID )N THE NAME OF THE POOR OVERSEAS VERY LARGE SUMS OF MONEY ARE NOW PAID TO PROP UP 53 SHIPPING
lRMS AND TO BUY FOOD AT HIGHER THAN MARKET PRICES FROM 53 BASED FOOD PROCESSORS AND OTHER AGRIBUSI
NESSES -EANWHILE 53 PRIVATE VOLUNTARY ORGANIZATIONS 06/S GENERATE MILLIONS OF DOLLARS OF REVENUE FOR
THEIR OPERATING COSTS AND FOR DEVELOPMENT AID BY SELLING 53 COMMODITIES IN LOCAL MARKETS IN DEVELOPING
COUNTRIES
&ORTUNATELY THERE ARE PRACTICAL WAYS TO IMPROVE FOOD AID INCLUDING INCREASING THE SHARE OF DISTRIBUTED FOOD
THAT IS PURCHASED IN OR NEAR REGIONS OF HUNGER AND CHANNELING FOOD AID THROUGH EXPERIENCED AND REPUTABLE
INTERNATIONAL AGENCIES /THER COUNTRIES HAVE ALREADY SHIFTED THEIR FOOD AID PROGRAM IN THIS DIRECTION AL
THOUGH MOST STILL NEED TO MAKE FURTHER REFORMS
"UT THE 53 LOBBY ADVOCATING THE STATUS QUO IS ORGANIZED AND WELL
ENTRENCHED )T WILL TAKE AN EQUALLY
STRONG AND CLEAR ARTICULATION OF THE PROBLEMS IN THE EXISTING SYSTEM TO BRING ABOUT THE NEEDED CHANGES
4HE 53 MUST CONTINUE TO PROVIDE GENEROUS ASSISTANCE TO lGHT HUNGER INCLUDING THROUGH FOOD AID WHEN
53 &OOD !ID
APPROPRIATE "UT FOOD AID MUST BE FREED FROM THE TIES TO A RELATIVELY SMALL NUMBER OF 53 INTERESTS THAT
MAKE TODAYS FOOD AID A DOMESTIC BOONDOGGLE )T IS MISTAKEN TO BELIEVE FOOD AID HELPS 53 FARMERS 4HE
53 MUST END SELF
INTERESTED AND POLITICIZED FORMS OF FOOD AID
! FOOD AID PROGRAM THAT MAKES A REAL CONTRIBUTION TO DEVELOPMENT MUST HAVE A TWO
FOLD OBJECTIVE TO
MEET EMERGENCY NEEDS PREVENTING DEATHS TODAY AND TO HELP BUILD SUSTAINABLE AND SELF
RELIANT FOOD SYSTEMS
ACROSS THE WORLD FOR TOMORROW 4HE SUMS OF MONEY INVOLVED NEED BE NO GREATER BUT THE RESULTS PROMISE TO
BE FAR BETTER THAN THOSE WE HAVE NOW
IATPORG
; =
4 ( % / 2 ) ' ) . 3 / & & // $ ! ) $
) . 4 ( % 5. ) 4% $ 34!4%3
)
T IS YEARS SINCE THE US lRST INTRODUCED REGULAR FOOD AID PROGRAMS )N THAT TIME OUR
UNDERSTANDING OF THE CAUSES OF HUNGER THE BEST WAYS TO PROTECT FOOD SECURITY AND THE STRENGTHS AND
WEAKNESSES OF FOOD AID HAS EVOLVED ENORMOUSLY 53 FOOD AID IS THE PARTICULAR FOCUS OF THIS PAPER
4HE 53 IS THE LARGEST FOOD AID DONOR IN THE WORLD IN THE 53 FUNDED PERCENT OF GLOBAL
FOOD AID DELIVERIES 4HE 53 IS ALSO VIRTUALLY THE ONLY FOOD AID DONOR THAT SELLS PART OF ITS FOOD AID !LL
OTHERS APART FROM 3OUTH +OREA DONATE ALL THEIR FOOD AID CONTRIBUTIONS
4HE 53 ATTEMPTED TO TACKLE A NUMBER OF OBJECTIVES SIMULTANEOUSLY WITH THE ESTABLISHMENT OF FOOD AID
PROGRAMS IN &IRST THE #OLD 7AR WAS IN FULL SWING AND A NUMBER OF DEVELOPING COUNTRIES WERE
COOPERATING WITH THE 3OCIALIST BLOC 4HE 53 GOVERNMENT SAW FOOD AID SHIPMENTS AS A WAY TO SECURE THE
GOODWILL OF THE NEWLY EMERGING STATES
3ECOND THE 53 GOVERNMENT MAINTAINED THAT FOOD AID WOULD PROVIDE USEFUL RESOURCES TO DEVELOPING COUN
TRIES TO HELP WITH THEIR DEVELOPMENT 0RESIDENT (ARRY 4RUMAN IN HIS INAUGURAL ADDRESS CHARACTERIZED
THE FORMERLY COLONIZED REGIONS OF THE WORLD AS hUNDERDEVELOPEDv AND THEREFORE IN NEED OF 53 SCIENCE
INVESTMENT AND AID TO OVERCOME THEIR POVERTY
! THIRD OBJECTIVE WAS TO lND NEW OUTLETS FOR SURPLUS PRODUCTION 4HE 53 HAD SPENT DECADES INVESTING IN
THE COUNTRYS AGRICULTURAL PRODUCTIVE CAPACITY FUNDING PUBLIC RESEARCH BUILDING INFRASTRUCTURE AND PROVID
ING OUTREACH SERVICES TO PROPAGATE THE USE OF NEW TECHNOLOGIES AND TECHNIQUES 4HE MECHANIZATION OF
AGRICULTURE AND OF TRANSPORTATION MORE GENERALLY RELEASED LAND THAT HAD BEEN USED TO GROW FEED FOR DRAFT
ANIMALS AS MUCH AS ONE THIRD OF ARABLE LAND WAS USED FOR FEED UNTIL TRACTORS REPLACED PLOUGHS AND CARS
REPLACED HORSES -OREOVER PRODUCTION THAT HAD BEEN SUSPENDED DURING 7ORLD 7AR )) RESUMED ENDING
SHORTAGES IN %UROPE *APAN AND ELSEWHERE 4HIS LEFT THE 53 AND #ANADIAN GOVERNMENTS FACING SIGNIlCANT
UNSOLD PRODUCTION IN THE S &OOD AID SEEMED A GREAT WAY TO EMPTY THE BURSTING SILOS )N #ANADA
STARTED TO SEND FOOD AID TO 3OUTH !SIA UNDER THE #OLOMBO 0LAN
4HE FOURTH OBJECTIVE WAS LINKED TO THE THIRD TO BUILD FUTURE EXPORT MARKETS 3UBSIDIZED SALES OF FOOD AS
FOOD AID WERE SEEN AS A WAY TO ENCOURAGE DEPENDENCE ON IMPORTS THAT COULD REPLACE TRADITIONAL FOODS IN
DEVELOPING COUNTRIES 4HE IDEA WAS TO DEVELOP A TASTE FOR A WHEAT
AND
MEAT
CENTERED DIET !S AGRICULTURAL
SOCIOLOGIST (ARRIET &RIEDMANN EXPLAINS h53 EXPORT DOMINANCE FAR FROM BEING A NATURAL RESULT OF RE
SOURCES OR EFlCIENCY WAS BASED ON ITS UNIQUE CAPACITY TO USE TAX REVENUES TO BUY VAST QUANTITIES OF DOMESTIC
WHEAT AND ACCEPT PAYMENT FOR EXPORTING IT IN FOR EXAMPLE PESOS OR RUPEESv &RIEDMANN GOES ON TO ASSERT
THAT MOST DEVELOPING COUNTRIES HAD THE LAND LABOR AND SKILLS TO FEED THEIR POPULATIONS AND EXPORT FOOD
BESIDES 4HE DEVELOPING COUNTRY GOVERNMENTS THAT ACCEPTED 53 FOOD AID PROGRAMS SACRIlCED THEIR OWN
AGRICULTURAL SECTORS AND THEIR PEASANTRY IN EXCHANGE FOR SUBSIDIZED FOOD IMPORTS THAT GENERATED REVENUE
THROUGH RESALE OF PROGRAM FOOD AID ON DOMESTIC MARKETS AND DEVELOPED NEW TASTES AMONG THE LARGELY
URBAN CONSUMERS IN PARTICULAR FOR WHEAT
)N *ULY THE 53 #ONGRESS PASSED 0UBLIC ,AW 4HE LAW AUTHORIZED CONCESSIONAL SALES AND DONA
53 &OOD !ID
TIONS OF FOOD COMMODITIES TO DEVELOPING COUNTRIES WITH THE EXPLICIT INTENTION OF DEVELOPING FUTURE COM
MERCIAL MARKETS IN THOSE COUNTRIES 0, ESTABLISHED THE 53 AS THE WORLDS PRIMARY SOURCE OF FOOD AID
A STATUS IT RETAINS TODAY
.OT SURPRISINGLY THE MIX OF OBJECTIVES THAT LED TO THE ESTABLISHMENT OF 53 FOOD AID PROGRAMS HAS UNDER
MINED THEIR EFFECTIVENESS 3OME OF THESE OBJECTIVES ARE NOW OUT
DATED ALTHOUGH THE lGHT AGAINST COMMU
NISM HAS TURNED INTO THE USE OF SOME FOOD AID PROGRAMS TO SUPPORT THE hEXPANSION OF PRIVATE ENTERPRISEv
/THER OBJECTIVES HAVE PROVEN UNOBTAINABLE &OR INSTANCE THERE IS NO EVIDENCE TO SUPPORT THE CONTENTION
THAT 53 FOOD AID CONTRIBUTES TO FUTURE EXPORT MARKETS
4HE 53 GOVERNMENT NO LONGER HOLDS LARGE FARM SURPLUSES AND MUST BUY THE COMMODITIES IT WISHES TO SHIP
AS FOOD AID 4HIS HAS LED SOME ADVOCATES OF THE CURRENT FOOD AID SYSTEM TO CLAIM 53 FOOD AID IS NO LONGER
ABOUT DISPOSING OF SURPLUSES (OWEVER THE SHIFT AWAY FROM PUBLIC STOCK KEEPING IN DOMESTIC AGRICULTURAL
POLICY HAS JUST PUT THE PROBLEM AT ONE REMOVE FOOD AID REMAINS A TEMPTING PRESSURE RELEASE VALVE WHEN
SUPPLY STARTS TO CLIMB AND PRICES TO FALL !LTHOUGH THE EVIDENCE INDICATES THAT FOOD AID PURCHASES ARE TOO
SMALL TO HAVE AN EFFECT ON THE MARKET PRICE OF THE COMMODITIES INVOLVED #ONGRESS CONTINUES TO SEE RAISING
FOOD AID ALLOCATIONS AS AN APPROPRIATE RESPONSE TO INDUSTRY AND FARMER DEMANDS FOR SUPPORT IN YEARS OF LARGE
CROPS AND LOW PRICES
/NE OF THE ARENAS IN WHICH FOOD AID HAS COME TO THE FORE MOST RECENTLY IS THE 7ORLD 4RADE /RGANIZATION
74/ !GAIN IT IS THE 53 APPROACH THAT IS AT ISSUE FOR TWO REASONS /NE THE 53 PRACTICE OF MONETIZ
ING FOOD AIDTHAT IS ALLOWING 06/S TO SELL FOOD AID IN RECIPIENT COUNTRY MARKETS TO GENERATE FUNDS FOR
THEIR DEVELOPMENT PROJECTS 4WO THE 53 USE OF PUBLICLY FUNDED EXPORT CREDITS TO FACILITATE ITS CONCESSIONAL
SALES OF PROGRAM FOOD AID TO DEVELOPING COUNTRY GOVERNMENTS "OTH MONETIZATION AND THE SALE OF FOOD AID
DISPLACE COMMERCIAL FOOD SALES FOR LOCAL PRODUCERS AS WELL AS RIVAL EXPORTERS /THER FOOD AID PROCUREMENT
AND DELIVERY MECHANISMS ACHIEVE MUCH BETTER HUMANITARIAN RESULTS WITHOUT DISTORTING MARKETS AS SERI
OUSLY
&IFTY YEARS ON THERE IS A LOT TO BE REMEDIED IN 53 FOOD AID 4HIS PAPER PUTS 53 FOOD AID INTO CONTEXT AND
MAKES SOME RECOMMENDATIONS FOR ITS REFORM
IATPORG
; =
&// $ ! ) $ !. $ & // $ 3 %# 5 2 ) 4 9
h(UNGER RELATES NOT ONLY TO FOOD PRODUCTION AND AGRICULTURAL
EXPANSION BUT ALSO TO THE FUNCTIONING OF THE ENTIRE ECONOMY ANDEVEN MORE
BROADLYTHE OPERATION OF THE POLITICAL AND SOCIAL ARRANGEMENTS THAT CAN
DIRECTLY OR INDIRECTLY INmUENCE PEOPLES ABILITY TO ACQUIRE FOOD AND TO ACHIEVE
HEALTH AND NOURISHMENTv
!MARTYA 3EN CH P $EVELOPMENT AS &REEDOM
'
OVERNMENTS HAVE ACKNOWLEDGED THE UNIVERSAL HUMAN RIGHT TO FOOD IN THE UN
$ECLARATION ON (UMAN 2IGHTS AND THE #OVENANT ON %CONOMIC 3OCIAL AND #ULTURAL 2IGHTS
&OOD SECURITY IS DElNED BY THE &OOD AND !GRICULTURE /RGANIZATION &!/ COMMITTEE ON
7ORLD &OOD 3ECURITY AS WHEN hALL PEOPLE AT ALL TIMES HAVE BOTH PHYSICAL AND ECONOMIC ACCESS
TO THE BASIC FOOD THEY NEEDv !DDITIONALLY MANY FOOD SECURITY ADVOCATES INSIST THAT FOOD SECURITY AND THE
REALIZATION OF THE RIGHT TO FOOD REQUIRE COUNTRIES AND COMMUNITIES TO HAVE CONTROL OF THEIR FOOD SUPPLIES
TO HAVE A SAY IN WHAT IS PRODUCED UNDER WHAT CONDITIONS AND WHAT IS IMPORTED AND EXPORTED !T THE LOCAL
LEVEL THIS OFTEN ENTAILS THE RIGHTS OF RURAL COMMUNITIES TO REMAIN ON THE LAND AND TO CONTINUE PRODUCING
FOOD FOR THEMSELVES AND FOR DOMESTIC MARKETS IF THEY CHOOSE TO 3OME ANALYSTS REFER TO THIS AS hFOOD SOVER
EIGNTYv
&OOD SOVEREIGNTY IS NOT THE SAME CONCEPT AS FOOD SELF
SUFlCIENCY SELF
SUFlCIENCY IMPLIES EACH COUNTRY
SEEKS TO PRODUCE ALL THE FOOD IT CONSUMES DOMESTICALLY 2ATHER FOOD SOVEREIGNTY UNDERLINES THE IMPORTANCE
OF POLITICAL CHOICES IN MEETING FOOD SECURITY NEEDS 4HE 53 GOVERNMENT AND SOME FOOD SECURITY EXPERTS
DElNE FOOD SECURITY AS THE ABILITY TO PURCHASE FOOD IN A GLOBAL MARKET UNIMPEDED BY TRADE BARRIERS SUCH
AS TARIFFS IMPORT QUOTAS PREFERENTIAL TRADE ARRANGEMENTS OR PRODUCTION AND EXPORT SUBSIDIES &OOD SOVER
EIGNTY ADVOCATES MAINTAIN THAT IN A HIGHLY UNEQUAL WORLD FOOD SECURITY IS NOT POSSIBLE IF COUNTRIES ARE NOT
FREE TO CHOOSE HOW AND TO WHAT EXTENT THEY ENGAGE IN TRADE TO MEET THEIR DOMESTIC FOOD NEEDS AND HOW AND
IN WHAT WAYS TO SUPPORT DOMESTIC FOOD PRODUCTION
4HE DEBATE ON FOOD SECURITY HELPS EXPLAIN WHY FOOD AID IS CONTENTIOUS &OR SOME CRITICS THE EVALUATION
OF FOOD AID IS NOT JUST A QUESTION OF WHETHER FOOD AID MEETS ITS STATED OBJECTIVES SUCH AS IMPROVING THE
NUTRITIONAL STATUS OF A TARGET POPULATION OR CONTRIBUTING TO A WIDER DEVELOPMENT INITIATIVE TO IMPROVE SCHOOL
ATTENDANCE OR MATERNAL HEALTH &OR THESE CRITICS AN EVALUATION ALSO REQUIRES CONSIDERATION OF WHETHER FOOD
AID IS CONTRIBUTING TO THE EMERGENCE OF COUNTRIES THAT ARE INDEPENDENT IN THEIR FOOD SECURITY CHOICES AND
ABLE TO ENGAGE IN A GLOBAL SYSTEM OF EXCHANGE AS EQUALS RATHER THAN AS DEPENDENTS
&OOD INSECURITY DOES NOT NECESSARILY MEAN RAPID DEATH FROM STARVATION 2EPEATED EXPOSURE TO PERIODS OF
INADEQUATE NUTRITION UNDERMINES HUMAN HEALTH (UNGER COMPROMISES THE BODYS ABILITY TO lGHT DISEASE
CREATES HEALTH PROBLEMS FOR PREGNANT WOMEN AND THE BABIES THEY CARRY AND STUNTS PHYSICAL AND MENTAL DE
VELOPMENT IN CHILDREN )N TURN THESE PROBLEMS REDUCE CAPACITY TO EARN A LIVING 0ERSISTENT UNCERTAINTY ABOUT
WHERE AND HOW TO GET ENOUGH FOOD DIVERTS ENERGY AND RESOURCES FROM LONGER
TERM INVESTMENTS THAT COULD
IMPROVE ECONOMIC WELLBEING &OOD INSECURITY ENCOURAGES RISK
AVERSE CHOICES THAT PROTECT PEOPLES ACCESS TO
FOOD NOW AT THE EXPENSE OF LESS CERTAIN INVESTMENTS THAT COULD ACHIEVE GREATER LONG
TERM RETURNS
53 &OOD !ID
&OOD SECURITY MUST CONSIDER SUPPLY DISTRIBUTION ACCESS AND NUTRITIONAL ISSUES 3UPPLY IS CLEARLY A NECESSARY
ELEMENT IN FOOD SECURITY )T IS DEEPLY TROUBLING THAT WHILE THE WORLD HAS SEEN A CONTINUING INCREASE IN FOOD
PRODUCTION LEVELS FOOD DEPENDENCY IN MANY DEVELOPING COUNTRIES HAS GROWN 0ARTS OF ,ATIN !MERICA AND
MUCH OF SUB
3AHARAN !FRICA BOTH HISTORICALLY NET FOOD EXPORTERS ARE NOW NET FOOD IMPORTERS &OOD PRO
DUCTION PER CAPITA IN !FRICA IS NOW PERCENT LESS THAN IT WAS IN )N !SIA IT IS PERCENT MORE AND IN
,ATIN !MERICA PERCENT MORE )N AN )NTERNATIONAL &OOD 0OLICY 2ESEARCH )NSTITUTE )&02) REPORT
ON TRENDS IN WORLD FOOD NEEDS PREDICTED THAT hx THE PERCENT INCREASE FORECAST ;IN FOOD IMPORTS= FOR
SUB
3AHARAN !FRICA WILL BE DRIVEN PRIMARILY BY ITS CONTINUED POOR PERFORMANCE IN FOOD PRODUCTIONv
-OST COUNTRIES IN SUB 3AHARAN !FRICA AND MANY OTHERS IN THE DEVELOPING WORLD NEED TO INCREASE THEIR
DOMESTIC FOOD PRODUCTION ! NUMBER WILL NEED TO IMPORT MORE FOOD TO MEET THE DEMANDS OF AN INCREAS
ING POPULATION 3OME OF THEM WILL PAY FOR THAT FOOD AND OTHER ESSENTIAL IMPORTS BY CONTINUING TO EXPORT
AGRICULTURAL COMMODITIES )N TURN THIS MEANS THE INTERNATIONAL COMMUNITY HAS TO FOCUS ON IMPROVING THE
TERMS OF TRADE FOR AGRICULTURAL COMMODITIES SO AS TO IMPROVE THE RETURN FOR COMMODITY GROWERS ON THEIR
PRODUCTION .ATIONAL AND INTERNATIONAL MECHANISMS THAT CONSIDER SUPPLY MANAGEMENT QUALITY CONTROL AND
INVESTMENT IN MORE SUSTAINABLE PRODUCTION METHODS ARE ESSENTIAL 0ROGRAMS TO INCREASE DOMESTIC VALUE
ADDED IN AGRICULTURE MANUFACTURING AND SERVICES ARE ALSO VITAL TO !FRICAS FUTURE FOOD SECURITY
4OGETHER WITH SUPPLY DISTRIBUTION IS VITAL 4HE BUSINESS OF STORING PROCESSING AND MOVING FOOD AROUND THE
GLOBE IS CAPITAL INTENSIVE AND COMPLICATED )N PRACTICE THE lELD IS RESTRICTED TO A SMALL NUMBER OF MOSTLY
TRANSNATIONAL lRMS &OR WELL OVER YEARS A HANDFUL OF COMPANIES AND THE FAMILIES THAT OWN THEM HAVE
DOMINATED THE GRAIN TRADE INCLUDING #ARGILL ,OUIS $REYFUS #ONTINENTAL AND "UNGE #ARGILLS ANNUAL
SALES ARE IN THE RANGE OF 53 BILLION AND IT OPERATES IN OVER COUNTRIES WORLDWIDE FROM ITS GLOBAL
HEADQUARTERS IN -INNESOTA #ARGILL IS A DOMINANT WORLD COMPANY NOT JUST IN GRAINS BUT ALSO IN MILLING
POULTRY CATTLE SALT FERTILIZER COTTON SUGAR AND MORE &OR DEVELOPING COUNTRY lRMS THE BARRIERS TO ENTRY
ON THIS GLOBAL MARKET ARE FORMIDABLE
4HE DISBANDING OF MOST GOVERNMENT
RUN AGRICULTURAL COMMODITY MARKETING BOARDS OVER THE PAST YEARS
OR SO UNDER PRESSURE FROM THE 7ORLD "ANK AND )NTERNATIONAL -ONETARY &UND )-& HAS FURTHER COM
PLICATED DISTRIBUTION IN !FRICA ! GREAT MANY DEVELOPING COUNTRIES OPERATED STATE
RUN AGENCIES IN THEIR
AGRICULTURAL SECTORS 3OME WERE MARKETING BOARDS WHICH BOUGHT ALL THE COUNTRYS PRODUCTION AND WERE
RESPONSIBLE FOR THE SUBSEQUENT DISTRIBUTION OF THE COMMODITY AROUND THE COUNTRY AND FOR HANDLING ANY EX
PORT SALES 3OME ALSO PROVIDED CREDIT AND EXTENSION SERVICES TO FARMERS /FTEN THE BOARDS WERE ESTABLISHED
FOR THE PRINCIPLE EXPORT CROPSCOTTON COCOA COFFEEBUT SOMETIMES BOARDS ALSO HANDLED FOOD STAPLES
SUCH AS WHITE MAIZE 4HE BOARDS WERE OFTEN INEFlCIENT CORRUPT AND SOMETIMES OPPRESSIVE (OWEVER THEY
ALSO SERVICED THE COUNTRY AS A WHOLE INCLUDING REMOTE REGIONS WITH LIMITED STORAGE FACILITIES AND LITTLE AC
CESS TO TRANSPORTATION
7ITH THE BOARDS MOSTLY GONE PRODUCERS IN REMOTE REGIONS NOW lND THEMSELVES WITH MUCH SMALLER POTEN
TIAL MARKETS UNABLE TO AFFORD THE COST OF SHIPPING THEIR PRODUCE TO THE URBAN CENTERS AND UNABLE TO INTEREST
A PRIVATE SECTOR INTERMEDIARY TO HELP 5NDER STRONG ADVISEMENT FROM INTERNATIONAL lNANCIAL INSTITUTIONS AND
BILATERAL AID DONORS MANY COUNTRIES HAVE ALSO REDUCED OR SOLD OFF THEIR PUBLICLY ACCESSIBLE DOMESTIC FOOD
STOCKS WHICH WERE EXPENSIVE TO MAINTAIN BUT PLAYED A VITAL ROLE DURING UNCERTAIN HARVESTS !CCORDING TO
5. #ONFERENCE ON 4RADE AND $EVELOPMENT 5.#4!$ IN SOME CASES A mURRY OF PRIVATE SECTOR ACTION
IN THE YEARS FOLLOWING THE DISBANDING OF THE STATE ENTERPRISE GAVE WAY TO DOMINANCE BY ONE OR MORE TRANS
NATIONAL lRMS )N OTHER CASES DISTRIBUTION SERVICES ARE SIMPLY NO LONGER AVAILABLE 4HESE ARE IMPORTANT
IATPORG
'RAPH 7HO THE HUNGRY ARE PUBLIC POLICY OBSTACLES TO REALIZING FOOD SECURITY
3MALLHOLDER FARMERS THAT NEED URGENT ATTENTION
4HE HEART OF FOOD SECURITY IS ACCESS 4HERE IS ENOUGH
FOOD IN MOST MARKETS BUT NOT EVERYONE CAN AFFORD
TO BUY IT OR THEY CANNOT BUY ENOUGH TO MEET THEIR
FAMILYS NEEDS 4HIS WAS NOT ALWAYS TRUE !T DIF
FERENT PERIODS IN HUMAN HISTORY COMMUNITIES HAVE
2URAL LANDLESS 5RBAN POOR
SUFFERED ABSOLUTE SCARCITY OF FOOD NOT JUST UNEQUAL
ACCESS TO THE FOOD AVAILABLE BECAUSE OF DIFFERENT
LEVELS OF INCOME "UT THE REVOLUTION IN AGRICULTURAL
PRODUCTIVITY OVER THE PAST YEARS HAS TURNED THAT
0ASTORALISTS FISHERS AROUND LEAVING THE WORLD WITH MORE FOOD PER CAPITA
FOREST
DEPENDENT
TODAY GLOBALLY THAN WE HAD WHEN THE EARTH SUP
&!/ 3TATE OF &OOD )NSECURITY P PORTED A SIXTH THE NUMBER OF PEOPLE
4HE GRAPH ABOVE ILLUSTRATES THE NATURE OF ST CENTURY HUNGER HALF OF THOSE LIVING WITH HUNGER AROUND THE
WORLD ARE FARMERS ANOTHER PERCENT ARE RURAL LABORERS MOSTLY IN AGRICULTURE WHILE A FURTHER PERCENT
LIVE AS GATHERERS IN THE FOREST lSH OR RAISE LIVESTOCK /NLY PERCENT OF THOSE LIVING IN HUNGER TODAY LIVE
IN URBAN AREAS THOUGH THIS POPULATION IS GROWING AND IT IS IN THE NAME OF THIS POPULATION THAT MANY OF THE
LESS TARGETED FOOD AID INTERVENTIONS SUCH AS THE 53 PROGRAM FOOD AID ARE JUSTIlED
-ANY OF THE HUNGRY SMALLHOLDER FARMERS ARE NET CONSUMERS OF FOOD -ANY DO NOT GROW ENOUGH FOOD TO MEET
THEIR OWN NEEDS OR ARE OBLIGED TO SELL WHAT THEY GROW FOR CASH INCOME AND SO MUST BUY FOOD IN THE MARKET
.ONETHELESS THIS GROUP ALSO DEPENDS ON GOOD PRICES FOR THEIR COMMODITIES AND FOOD CROPS TO SURVIVETHAT
IS THEIR PRIMARY SOURCE OF INCOME AS IT IS FOR THE LANDLESS RURAL WORKERS WHO LIVE ALONGSIDE THEM
%CONOMIST !MARTYA 3EN ONE OF THE FOREMOST CONTRIBUTORS TO OUR UNDERSTANDING OF FOOD SECURITY DESCRIBES
ACCESS TO FOOD AS DEPENDENT ON AN INTERCONNECTED hBUNDLEv OF FACTORS 4HE CONCEPT IS SIMILAR TO THE CONCEPT
OF hINDIVISIBILITYv IN HUMAN RIGHTS DISCOURSE WHERE THE PROTECTION OF ANY INDIVIDUAL HUMAN RIGHT IS UNDER
STOOD TO REQUIRE THE PROTECTION OF THEM ALL %MPLOYMENT AND WAGE LEVELS ESPECIALLY RELATIVE WAGE LEVELS
HEALTH CARE LAND POLICY THE AVAILABILITY OF CREDIT ON REASONABLE TERMS EACH OF THESE FACTORS IS CENTRAL TO
ENSURING THAT A PERSON IS FOOD SECURE
/NE OF THE POINTS THAT 3ENS BUNDLE APPROACH UNDERLINES IS THE IMPORTANCE OF TACKLING HUNGER AND FOOD
INSECURITY HOLISTICALLY !CCESS TO CLEAN WATER AND PRIMARY HEALTH CARE CAN BE MORE IMPORTANT IN SOME SITUA
TIONS THAN ACCESS TO CALORIES FOR PROTECTING NUTRITIONAL STATUS #ASH FOR NON
FOOD NEEDS SUCH AS HEALTH CARE
MAY BE MORE IMPORTANT IN THESE CASES THAN PROVIDING FOOD -ANY OF THE MOST SUCCESSFUL PROGRAM FOOD
AID INTERVENTIONS USE FOOD AS A WAY TO INCREASE THE INCOME OF WOMAN
HEADED HOUSEHOLDS OR TO ENCOURAGE
CHILDREN TO ATTEND SCHOOL REmECTING AN UNDERSTANDING THE FOOD IS ONLY ONE ELEMENT IF AN INTERVENTION IS TO
END HUNGER IN THE LONG TERM
53 &OOD !ID
; =
&// $ ! ) $
7 ( !4 ) 3 ) 4 7 ( / ' ) 6 %3 ) 4 4/ 7 ( / -
4
HREE CRITERIA DISTINGUISH FOOD AID 'RAPH "REAKDOWN OF FOOD AID
FROM NON
AID TRANSFERS OF FOOD AND FROM DELIVERIES BY CHANNEL
NON
FOOD DEVELOPMENT AID -ULTILATERIAL
&OOD AID MUST CROSS AT LEAST ONE
INTERNATIONAL BORDER &OOD ASSISTANCE BY A GOV
ERNMENT OR PRIVATE AGENCY TO LOCAL CITIZENS SUCH
AS THE FOOD STAMP PROGRAM IN THE 53 DOES NOT
COUNT AS FOOD AID
&OOD AID MUST BE hCONCESSIONALv IT MUST BE "ILATERAL .'/S06/S
EITHER FREE OR PROVIDED TO THE RECIPIENT AT A COST
LOWER THAN THE COMMERCIAL PRICE OF THE FOOD
INVOLVED
3OURCE 7&0).4%2&!)3 -AY
&OOD AID MUST EITHER BE IN THE FORM OF ACTUAL FOODKNOWN AS DIRECT TRANSFERSOR IN THE FORM
OF FUNDS OR GOODS TO BE EXCHANGED FOR FOOD
4O PUT THINGS IN PERSPECTIVE FOOD AID CONSTITUTES LESS THAN PERCENT OF ALL FOOD TRADED INTERNATIONALLY )T IS
A TINY PROPORTION OF WORLD FOOD PRODUCTION ABOUT PERCENT 4HE )-& CALCULATES THAT FOOD AID PROVIDES
ONLY KG OF EVERY METRIC TON OF FOOD SHORTFALL IN POOR COUNTRIES 4OTAL GLOBAL FOOD AID DELIVERIES IN
WERE MILLION METRIC TONS DOWN FROM MILLION METRIC TONS IN 4HE DROUGHT
RELATED CRISIS IN
3OUTHERN !FRICA MADE A HIGHER THAN NORMAL YEAR FOR FOOD AID CONTRIBUTIONS
4HE GRAPH ABOVE SHOWS A ROUGH BREAKDOWN OF WHO DELIVERS FOOD AID GLOBALLY .OTE THAT .'/S ARE ALSO
CONTRACTED BY MULTILATERAL AGENCIES TO DELIVER FOOD AID THEY DELIVER PERCENT OF GLOBAL FOOD AID THEM
SELVES AND ALSO A PERCENTAGE OF THE FOOD AID
'RAPH 'LOBAL FOOD AID BY DONOR HANDLED BY MULTILATERAL AGENCIES SUCH AS THE
7ORLD &OOD 0ROGRAMME
%UROPEAN 5NION )N THE MAIN RECIPIENTS OF FOOD AID WERE
%THIOPIA WITH MILLION TONS PERCENT
OF ALL FOOD AID THAT YEAR THE $EMOCRATIC
5NITED 3TATES
0EOPLES 2EPUBLIC OF +OREA .ORTH +OREA
*APAN
WITH MILLION METRIC TONS AND 3UDAN
2EP OF +OREA
"ANGLADESH AND %RITREA )N %THIOPIA
#ANADA RECEIVED MILLION METRIC TONS )RAQ OVER
!USTRALIA MILLION METRIC TONS AND .ORTH +OREA
#HINA MILLION METRIC TONS
/THERS
IATPORG
; =
4 ( 2 % % + ) . $3 / & & // $ ! ) $
02/ ' 2 ! - 02/ * %# 4 !. $ % - % 2' % . #9
5
NDER THE BROAD HEADING OF FOOD AID THE WORLD FOOD PROGRAMME RECOGNIZES THREE
CATEGORIES OF AID BASED ON THE DIFFERENT WAYS IN WHICH THE AID IS MEANT TO CONTRIBUTE TO FOOD
SECURITY 4HESE THREE ARE PROGRAM PROJECT AND EMERGENCY FOOD AID !LTHOUGH THE LINE BETWEEN
THESE THREE CATEGORIES IS NOT ALWAYS CLEAR PROGRAM PROJECT AND EMERGENCY FOOD AID ARE DIS
TINGUISHED BY THE DIFFERENT PURPOSES THEY SERVE BUDGETARY SUPPORT SUPPORT FOR DEVELOPMENT AND NUTRITION
PROGRAMS AND EMERGENCY FEEDING
0ROGRAM &OOD !ID
0ROGRAM FOOD AID INVOLVES THE TRANSFER OF FOOD FROM ONE GOVERNMENT TO ANOTHER AS A FORM OF ECONOMIC
SUPPORT 3OME PROGRAM FOOD AID IS DONATED TO RECIPIENTS WHILE THE REST IS SOLD ON CONCESSIONAL TERMS
/FTEN THE DONOR WILL lNANCE THE SALE OF FOOD BY A PRIVATE lRM TO THE RECIPIENT GOVERNMENT BY EXTENDING AN
EXPORT CREDIT THAT THE RECIPIENT GOVERNMENT THEN PAYS BACK ON MORE FAVORABLE THAN COMMERCIAL TERMS )N
THE S MOST FOOD AID WAS OF THIS NATURE
'RAPH &OOD AID DELIVERIES BY CATEGORY
BUT PROGRAM FOOD AID HAS BEEN DECLINING AS
IN MILLIONS OF METRIC TONS A PROPORTION OF TOTAL FOOD AID )N THE S
%MERGENCY 0ROJECT 0ROGRAMME PROGRAM FOOD AID ACCOUNTED FOR AN AVER
AGE OF PERCENT OF ALL FOOD AID )N
IT DROPPED TO PERCENT OF THE TOTAL AND IN
IT FELL TO LESS THAN PERCENT
0ROGRAM FOOD AID WAS DESIGNED AND USED
TO DISPOSE OF COMMODITY SURPLUSES IN DONOR
COUNTRIES THAT COULD NOT lND A COMMERCIAL
MARKET &OR THIS REASON BECAUSE SUCH SUR
PLUSES VARY ENORMOUSLY FROM YEAR TO YEAR
PROGRAM FOOD IS THE MOST VOLATILE CATEGORY
OF FOOD AID AS 'RAPH LEFT REmECTS
3OURCE &!/ ).4%2&!)3 -AY P
0ROJECT &OOD !ID
0ROJECT FOOD AID IS PROVIDED ON A GRANT BASIS FOR HUNGER
RELATED DEVELOPMENT DISASTER RELIEF OR NUTRITION
PROGRAMS -OST PROJECT FOOD AID IS CHANNELED THROUGH MULTILATERAL AGENCIES MAINLY THE 7&0 OR THROUGH
NON
GOVERNMENT ORGANIZATIONS .'/S )N ACCORDING TO 7&0 CRITERIA THE VOLUME OF PROJECT FOOD
AID WAS MILLION TONS OR PERCENT OF TOTAL FOOD AID
5NLIKE PROGRAM FOOD AID PROJECT FOOD AID WAS ORIGINALLY FOCUSED ON DIRECT DISTRIBUTION TO PEOPLE LIVING
53 &OOD !ID
WITH HUNGER %XAMPLES OF PROJECT FOOD AID INCLUDE FOOD FOR WORK AND SCHOOL LUNCH PROGRAMS 3INCE
THE 53 HAS ALLOWED AN INCREASING SHARE OF ITS PROJECT FOOD AID TO BE SOLD TO GENERATE FUNDS FOR DEVELOPMENT
PROJECTS A PROCESS CALLED MONETIZATION 7E RETURN TO THE QUESTION OF MONETIZATION LATER IN THE PAPER
%MERGENCY &OOD !ID
%MERGENCY FOOD AID IS INTENDED FOR DIRECT FREE DISTRIBUTION TO PEOPLE FACING FAMINE OR AN ACUTE FOOD
SHORTAGE AS A RESULT OF NATURAL OR HUMAN
MADE DISASTERS )N 7&0 EXPECTS TO NEED BILLION FOR
EMERGENCY OPERATIONS AS WELL AS ANOTHER BILLION FOR PROTRACTED RELIEF AND RECOVERY OPERATIONS !S NOTED
ABOVE WHILE OVERALL FOOD AID VOLUMES HAVE DECLINED OVER THE PAST YEARS EMERGENCY FOOD AID HAS BEEN
INCREASING AS A PROPORTION OF TOTAL FOOD AID 'RAPH %MERGENCY AID ACCOUNTED FOR NEARLY PERCENT OF ALL
FOOD AID IN AND AN UNPRECEDENTED PERCENT OF FOOD AID IN BOOSTED BY DONOR RESPONSE TO FOOD
SHORTFALLS IN 3OUTHERN !FRICA )T DROPPED BACK TO PERCENT OF THE TOTAL IN
IATPORG
; =
4 ( 2 % % 3/5 2 # %3 / & & // $ ! ) $
$ ) 2 %# 4 4 2 ) !. '5, ! 2 !. $ ,/ #!,
&
OOD AID IS ALSO CATEGORIZED BY THE WAY THE FOOD IS SOURCED 4HERE ARE AGAIN THREE WAYS
THIS HAPPENS
$IRECT TRANSFERS
$IRECT TRANSFERS ARE FOOD AID DONATIONS THAT ORIGINATE IN THE DONOR COUNTRY 4HIS MODE OF SUPPLY
ACCOUNTED FOR PERCENT OF ALL FOOD AID DELIVERIES AND PERCENT OF FOOD AID PROVIDED BY THE 53 IN
!LL DIRECT FOOD AID TRANSFERS ARE A FORM OF hTIED AIDv IN THE SENSE THAT THEY ARE LIMITED BY DElNITION
TO FOOD SOURCED IN THE DONOR COUNTRY )N ADDITION A LOT OF DIRECTLY TRANSFERRED FOOD AID IS TIED TO ADDITIONAL
REQUIREMENTS SUCH AS THE USE OF DONOR
COUNTRY CONTRACTORS )N PARTICULAR THE 53 REQUIRES THAT AT LEAST
PERCENT OF THE PROCUREMENT PROCESSING INCLUDING FORTIlCATION WITH NUTRIENTS BAGGING AND SHIPPING BE
HANDLED IN THE 53 BY 53 lRMS #ANADA TIES PERCENT OF ITS FOOD AID BUDGET TO THE COSTS OF PROCURING
AND HANDLING #ANADIAN COMMODITIES
4RIANGULAR TRANSACTIONS
4RIANGULAR PURCHASES DESCRIBE FOOD AID PURCHASED IN ONE COUNTRY NOT THE DONORS FOR USE AS FOOD AID IN
ANOTHER COUNTRY 3UCH TRANSACTIONS PROVIDED PERCENT OF ALL FOOD AID IN DOWN FROM PERCENT IN
/F THIS FOOD PERCENT WAS PURCHASED IN DEVELOPING COUNTRIES 4RIANGULAR PURCHASES ARE USUALLY
lNANCED BY A CASH CONTRIBUTION FROM THE DONOR FOR THE INITIAL PURCHASE OF THE FOOD #OMMODITY SWAPS A
FORM OF TRIANGULAR TRANSACTION SOMETIMES USED BY THE 53 INVOLVE THE DELIVERY OF A FOOD COMMODITY TO ONE
COUNTRY WHERE IT IS SOLD TO BUY A FOOD COMMODITY THAT GETS SHIPPED TO A THIRD COUNTRY FOR USE AS AID
4RIANGULAR TRANSACTIONS ACCOUNT FOR LESS THAN PERCENT OF TOTAL 53 FOOD AID BUT BECAUSE THE 53 IS SUCH A
LARGE FOOD AID DONOR AND TRIANGULAR PURCHASES A RELATIVELY SMALL SHARE OF GLOBAL FOOD AID THE 53 PROVIDES
PERCENT OF THE GLOBAL TOTAL OF TRIANGULAR PURCHASES 4HE OTHER MAIN BILATERAL CONTRIBUTORS TO TRIANGULAR
PURCHASES INCLUDE THE %# PERCENT THE 5+ PERCENT *APAN PERCENT 'ERMANY PERCENT AND
.ORWAY PERCENT
,OCAL 0URCHASES
,OCAL PURCHASES REFER TO THE PROCUREMENT OF FOOD IN THE RECIPIENT COUNTRY !BOUT PERCENT OF FOOD AID
WAS LOCALLY PURCHASED IN UP FROM PERCENT IN 4HIS IS ONE OF THE MOST COST
EFFECTIVE WAYS TO
SOURCE FOOD AID ALTHOUGH IT IS STILL ONLY A SMALL PART OF TOTAL FOOD AID CONTRIBUTIONS
/F THE MILLION METRIC TONS OF FOOD AID DONATED THROUGH THE %UROPEAN #OMMISSION IN PERCENT
WAS TRANSFERRED DIRECTLY FROM %5 COUNTRIES PERCENT WAS ACQUIRED IN TRIANGULAR TRANSACTIONS AND
53 &OOD !ID
PERCENT WAS PURCHASED LOCALLY /F THE %5 MEMBER STATES THAT PROVIDED FOOD AID BILATERALLY THE 5+ AND
'ERMANY WERE NOTABLE FOR THE LARGE SHARE OF LOCAL PURCHASES IN THEIR TOTAL FOOD AID CONTRIBUTION AND
PERCENT RESPECTIVELY )N THE SAME YEAR THE 53 DONATED OR PROVIDED LOANS FOR MILLION TONS OF FOOD AID
OF WHICH PERCENT WAS A DIRECT TRANSFER FROM THE 53 PERCENT WAS FROM TRIANGULAR PURCHASES AND
BARELY MORE THAN HALF OF ONE PERCENT WAS PURCHASED LOCALLY 4HE "USH !DMINISTRATION RECENTLY PROPOSED
SHIFTING MILLION FROM ITS PROJECT FOOD AID BUDGET TO INCREASE THE BUDGET OF THE 53 !GENCY FOR )N
TERNATIONAL $EVELOPMENT 53!)$ FOR LOCAL AND TRIANGULAR FOOD AID PURCHASES #ONGRESS HAS REJECTED THIS
PROPOSAL
7HERE FOOD FOR FOOD AID IS OBTAINED CAN BE VERY IMPORTANT TO THE IMMEDIATE EFlCACY OF FOOD AID AND TO
ITS LONGER
TERMS EFFECTS ON FOOD SECURITY -OST AID POLICY ANALYSTS AGREE THAT LOCAL PURCHASES OR TRIANGULAR
PURCHASES FROM NEARBY COUNTRIES ARE GENERALLY PREFERABLE TO FOOD DIRECT TRANSFERS 4HIS IS BECAUSE FOOD CAN
BE PURCHASED FROM LESS COSTLY SOURCES BECAUSE SHIPPING COSTS ARE OFTEN LOWER IF FOOD TRAVELS FOR SHORTER
DISTANCES AND BECAUSE WHEN PROPERLY MANAGED FOOD PURCHASED LOCALLY OR FROM NEARBY DEVELOPING COUNTRIES
CAN STIMULATE AGRICULTURE AND OTHER ECONOMIC ACTIVITIES IN HUNGER
PRONE REGIONS
,OCAL PURCHASES ARE NOT ALWAYS THE MOST APPROPRIATE USE OF FOOD AID RESOURCES "EFORE DECIDING TO BUY FOOD
LOCALLY IT IS IMPORTANT TO ASSESS IF ENOUGH FOOD IS AVAILABLE IN THE MARKET AND WHETHER LOCAL PURCHASING WILL
CAUSE A PRICE SPIKE THAT MIGHT PERVERSELY INCREASE HUNGER BY CUTTING PEOPLES ACCESS TO FOOD 3OME OF THE
OTHER CONSTRAINTS ON LOCAL PURCHASING SUCH AS INADEQUATE STORAGE FACILITIES OR TRANSPORTATION NETWORKS ARE
PROBLEMS THAT MUST BE ADDRESSED FOR LONG
TERM DEVELOPMENT AS WELL )F LOCAL PURCHASES CAN STIMULATE AN
IMPROVEMENT IN THE INFRASTRUCTURE FOR AGRICULTURE THEN THE PROGRAMS WILL ADDRESS THE IMPORTANT STRATEGIC
GOAL OF SUPPORTING LOCAL FOOD PRODUCTION IN ADDITION TO ANSWERING THE IMMEDIATE PROBLEM OF GETTING FOOD
TO HUNGRY PEOPLE
IATPORG
; =
35 - - ! 29 / & 5 3 & // $ ! ) $ 02 / ' 2 ! - 3
4
HERE ARE SIX ACTIVE US FOOD AID PROGRAMS 4HE PROGRAMS ARE SUMMARIZED IN THE TABLE
BELOW FOR REFERENCE 4ITLE ))) OF 0, IS NOT INCLUDED AS IT HAS NOT BEEN FUNDED FOR A NUMBER
OF YEARS
0ROGRAM 0, 4ITLE ) 0, 4ITLE )) "ILL %MERSON &OOD FOR &OOD FOR 3ECTION
PROGRAM EMERGENCY (UMANITARIAN 0ROGRESS %DUCATION B
AND PROJECT 4RUST PROJECT AND #HILD !GRICULTURAL
EMERGENCY .UTRITION !CT OF
PROJECT PROJECT
-ANAGING 53$! 53!)$ 53$! 53$! 53$! 53$!
AGENCY
0ROGRAM #ONCESSIONAL $ONATIONS OF 0RIVATE lRMS $ONATION OF $ONATION OF $ONATIONS OF
STRUCTURE SALES OF AGRI COMMODITIES ARE PAID TO COMMODITIES COMMODITIES ### SURPLUS
CULTURAL COM FOR EMERGENCY STORE 53 COM FROM 0, lNANCIAL COMMODITIES
MODITIES SOLD AND NON EMER MODITIES IN THE 4ITLE ) B AND TECHNICAL FOR PURPOSES OF
BY RECIPIENT GENCY NEEDS 53 AGAINST OR ### STOCKS ASSISTANCE FOR 0, 4ITLE ))
GOVERNMENTS MAY BE SOLD POSSIBLE TO ELIGIBLE EDUCATIONAL AND ))) OR &OOD
FOR BUDGETARY IN RECIPIENT EMERGENCY DEVELOPING AND NUTRITIONAL FOR 0ROGRES
SUPPORT ETC COUNTRY FOR SHORTFALLS IN COUNTRIES OBJECTIVES IN 0ROGRAMS
DEVELOPMENT DEVELOPING POOR COUNTRIES
PURPOSES COUNTRIES
/PERATING 'OVERNMENTS 'OVERNMENTS 'OVERNMENTS 'OVERNMENTS 'OVERNMENTS 'OVERNMENTS
AGENCIES AND PRIVATE COOPERATIVES COOPERATIVES COOPERATIVES PRIVATE ENTI COOPERATIVES
ENTITIES .'/S PUBLIC OR .'/S PUBLIC .'/S PUBLIC TIES INTERGOV .'/S PUBLIC
PRIVATE ENTITIES OR PRIVATE OR PRIVATE ERNMENTAL OR PRIVATE
INTER GOVERN ENTITIES INTER ENTITIES INTER ORGANIZATIONS ENTITIES INTER
MENTAL ORGANI GOVERNMENTAL GOVERNMENTAL GOVERNMENTAL
ZATIONS MAINLY ORGANIZATIONS ORGANIZATIONS ORGANIZATIONS
7ORLD &OOD
0ROGRAMME
3OURCE -ODIlED FROM /%#$#LAY P AND 53 'ENERAL !CCOUNTING /FlCE
53 FOOD AID SUFFERS FROM ADMINISTRATIVE CONFUSION 4WO DEPARTMENTS53!)$ AND THE 53 $EPARTMENT
OF !GRICULTURE OR 53$!OVERSEE SIX SEPARATE PROGRAMS 4HERE IS ALSO THE &OOD !SSISTANCE 0OLICY #OUNCIL
&!0# AN INTER
AGENCY BODY CHARGED WITH THE COORDINATION OF FOOD AID POLICY 4HE &!0# IS CHAIRED BY
THE 53$! AND INCLUDES THE $EPARTMENTS OF 3TATE $EFENSE AND 4RANSPORTATION AS WELL AS 53!)$ THE
/FlCE OF -ANAGEMENT AND "UDGET AND THE .ATIONAL 3ECURITY #OUNCIL
53 &OOD !ID
; =
- 5,4 ) , !4% 2 !, # ( !. . % , 3
!. $ !' 2 % % - % . 4 3
!
BOUT HALF OF ALL FOOD AID WAS MANAGED BY MULTILATERAL AGENCIES IN 4HE MUL
TILATERAL SHARE OF THE TOTAL HAS BEEN GROWING STEADILY OVER THE PAST TWO DECADES 4HE DOMINANT
GLOBAL FOOD AGENCY IS THE 5NITED .ATIONS 7ORLD &OOD 0ROGRAMME 7&0 ESTABLISHED IN
WHICH HANDLES ABOUT PERCENT OF MULTILATERAL FOOD AID /THER MULTILATERAL AND INTERNA
TIONAL ORGANIZATIONS INVOLVED IN FOOD AID INCLUDE THE )NTERNATIONAL #OMMITTEE OF THE 2ED #ROSS )#2#
THE )NTERNATIONAL /FlCE FOR -IGRATION )/- 5.)#%& AND THE 5. OFlCE OF THE (IGH #OMMISSIONER
FOR 2EFUGEES 5.(#2
)N THE 7&0 HANDLED ABOUT MILLION METRIC TONS OF FOOD AID 4HE 7&0 IS ASKING FOR MILLION
METRIC TONS FOR ITS OPERATIONS IN IN PART BECAUSE OF ENORMOUS NEED IN THE WAKE OF THE $ECEMBER
TSUNAMI DISASTER
4HE 53 IS THE LARGEST DONOR BY FAR TO THE 7&0 .EARLY ALL THE 53 CONTRIBUTION IS IN THE FORM OF FOOD
RATHER THAN CASH 4HE 7&0 PREFERS TO RECEIVE CASH TO HAVE SOME mEXIBILITY TO SOURCE FOOD AID SUPPLIES WHERE
IT MAKES MOST SENSE AS NEEDS EVOLVE #ANADA AND SOME %UROPEAN COUNTRIES PROVIDE THEIR 7&0 CONTRIBU
TIONS AS CASH
-ORE THAN A QUARTER OF THE FOOD DISTRIBUTED BY THE 7&0 SINCE HAS BEEN PURCHASED FROM A FOOD
SUR
PLUS REGION IN THE RECIPIENT COUNTRY OR FROM A COUNTRY OTHER THAN THE AID DONOR )N 7&0 DELIVERIES
ACCOUNTED FOR PERCENT OF ALL TRIANGULAR FOOD
AID PURCHASES AND PERCENT OF ALL LOCAL FOOD
AID FOOD
PURCHASES .'/S ARE IMPORTANT PARTNERS OF 7&0 IN SOME CASES PROVIDING FOOD AND CASH DONATIONS AND
IN OTHERS SERVING AS IMPLEMENTING AGENCIES FOR 7&0 PROJECTS
)N ADDITION TO THE 7&0 THERE ARE SEVERAL MULTILATERAL AGREEMENTS AND INSTITUTIONS THAT GUIDE MONITOR AND
TRACK FOOD AID NOTABLY THE &!/ #ONSULTATIVE 3UB #OMMITTEE ON 3URPLUS $ISPOSALS #33$ AND THE &OOD
!ID #ONVENTION &!#
4HE &!/ #ONSULTATIVE 3UB
#OMMITTEE ON 3URPLUS $ISPOSALS #33$
)N UNDER THE AUSPICES OF THE &!/ BUT IN 7ASHINGTON $# RATHER THAN 2OME THE #33$ WAS ESTAB
LISHED TO MONITOR THE DISPOSAL OF AGRICULTURAL SURPLUSES AS FOOD AID 4HE CHOICE OF $# REmECTED THE INTEREST
OF FOOD AID DONORS IN THE COMMITTEES CREATION ALTHOUGH BOTH DONORS AND FOOD AID RECIPIENTS MAKE UP ITS
MEMBERS 4HE #33$ ASSESSES FOOD AID CONTRIBUTIONS AGAINST RECIPIENT COUNTRIES hUSUAL MARKETING REQUIRE
MENTv OR 5-2 4HIS IS MEASURED BY USING AN AVERAGE OF THE PAST lVE YEARS COMMERCIAL IMPORTS OF THE
COMMODITY IN QUESTION &OOD AID IS SUPPOSED TO BE ADDITIONAL TO THE 5-2 RESPONDING TO AN UNEXPECTED
NEED FOR ADDITIONAL IMPORTS "Y PROXY THE 5-2 MEASURE IS ALSO SUPPOSED TO HELP MONITOR IMPACT ON LOCAL
PRODUCTION 5NDERSTANDABLY AND IMPORTANTLY THE #33$ FOOD AID RULES SEEK TO AVOID POSSIBLE DAMAGE TO
THE LONG
TERM FOOD SELF
RELIANCE OF THE RECIPIENT COUNTRY
IATPORG
!LL #33$ MEMBERS ARE REQUIRED TO REPORT SHIPMENTS OF FOOD AID TO THE #33$S 2EGISTER OF 4RANSACTIONS
6ERY SMALL TRANSACTIONS AND THOSE MADE IN RESPONSE TO EMERGENCIES WHERE THE RECIPIENT COUNTRY IS IN CRISIS
DO NOT HAVE TO BE REPORTED (OWEVER THIS REPORTING REQUIREMENT HAS LAPSED ALMOST COMPLETELY SINCE
)N PERCENT OF ALL TRANSACTIONS WERE REPORTED BY LESS THAN PERCENT OF TRANSACTIONS WERE 4HIS
COLLAPSE IS THE RESULT OF CHANGES IN THE NATURE OF FOOD AIDABOVE ALL THE SHIFT IN PRIORITY FROM PROGRAM
TO EMERGENCY FOOD AID 4HIS MEANS THE MAJORITY OF FOOD AID TRANSACTIONS ARE NOW EXEMPT FROM THE 5-2
RESTRICTION 4HE COLLAPSE ALSO SUGGESTS THAT MEMBERS HAVE LOST CONlDENCE IN THE #33$S USEFULNESS
%CONOMISTS HAVE SHOWN THAT NO FOOD AID CONTRIBUTION CAN AVOID CAUSING AT LEAST SOME DISRUPTION TO THE
COMMERCIAL MARKET 4HIS IS BECAUSE FOOD AID PROVIDES OR FREES UP RESOURCES THAT WILL NOT ALL BE SPENT ON
FOOD AS INCOMES OR GOVERNMENT REVENUES RISE THE SHARE SPENT ON FOOD DIMINISHES &OOD AID HAS WIDELY
VARYING DEGREES OF IMPACT ON COMMERCIAL SALES FROM SIGNIlCANT IN THE CASE OF POORLY TARGETED FOOD AID AS
UNDER PROGRAM FOOD AID SALES AND MONETIZED PROJECT FOOD AID TO MINOR IN THE CASE OF EMERGENCY ASSISTANCE
WHERE THERE MAY WELL BE NO MARKET TO DISRUPT OR THE DIFFERENCE IN CONSUMPTION IS TOO MINUTE TO COMPUTE
4HE #33$ HAS STEADILY LOST RELEVANCE AND INmUENCE AS FOOD AID HAS EVOLVED
4HE &OOD !ID #ONVENTION
4HE &OOD !ID #ONVENTION &!# IS A SET OF VOLUNTARY GUIDELINES FOR FOOD AID lRST AGREED TO IN AND
MOST RECENTLY RENEWED IN /NLY DONOR COUNTRIES CAN JOIN 4HERE ARE MEMBERS !RGENTINA !US
TRALIA #ANADA THE %UROPEAN #OMMUNITY AND ITS MEMBER 3TATES AT THE TIME THE &!# WAS RENEWED
*APAN .ORWAY 3WITZERLAND AND THE 53
4HE CONVENTION WAS ESTABLISHED TO CREATE A PREDICTABLE mOW OF FOOD AID $ONORS COMMIT TO A MINIMUM
ANNUAL LEVEL OF FOOD AID FOR THE DURATION OF THE &!# USUALLY THREE YEARS REGARDLESS OF CHANGES IN PRICE OR
SUPPLY 4HE CONVENTION SPELLS OUT SOME USEFUL GOALS FOR FOOD AID INCLUDING THE IMPORTANCE OF GIVING PRIOR
ITY TO COUNTRIES WITH THE GREATEST NEED NOT A HIGH PRIORITY IN MANY BILATERAL FOOD AID PROGRAMS 3IGNATORIES
COMMIT THEMSELVES TO ONLY USE FOOD AID WHERE IT IS THE hMOST EFFECTIVE AND APPROPRIATEv INTERVENTION )N
THE &!# ADJUSTED ITS RULES TO ALLOW DONORS TO MEET THEIR OBLIGATIONS THROUGH CASH FOR LOCAL OR TRIAN
GULAR PURCHASES AS WELL AS THROUGH THE MORE USUAL IN
KIND DONATIONS
4HE &!# WAS DUE FOR FURTHER RENEWAL IN BUT GOVERNMENTS PUT THE NEGOTIATIONS ON HOLD PENDING THE
OUTCOME OF CURRENT 74/ NEGOTIATIONS WHICH 74/ -EMBERS DO NOT EXPECT TO COMPLETE BEFORE AT THE
EARLIEST 4HE FACT THAT SOME GOVERNMENTS HAVE SUCCESSFULLY HELD UP RENEWAL OF THE &!# UNTIL COMPLETION OF
74/ NEGOTIATIONS IS INDICATIVE OF HOW WEAK THE &!# IS 4HE 74/ IS ONLY PERIPHERALLY CONCERNED WITH FOOD
AID NEGOTIATORS THERE ARE FOCUSED ON ONE OR TWO SPECIlC PRACTICES THAT ARE MOST DISRUPTIVE OF NORMAL TRADE
-OST DONORS COMMIT MUCH LESS THAN THEIR USUAL FOOD AID CONTRIBUTION UNDER THE &!# EXCEPTIONALLY
#ANADA COMMITS MOST OF ITS FOOD AID THROUGH THE &!# AND HAS RECENTLY HAD DIFlCULTY MEETING ITS OBLIGA
TION -EMBERS THAT FAIL TO MEET THEIR MINIMUM CONTRIBUTION ARE OBLIGED TO MAKE UP THE SHORTFALL THE
FOLLOWING YEAR /VERALL THE &!# IS A WEAK DOCUMENT )TS STRICTURES APPLY ONLY TO THE FOOD AID COMMITTED
UNDER &!# RATHER THAN TO A DONORS ENTIRE FOOD AID CONTRIBUTION 4HE &!# DOES NOT EVEN FORBID SALES OF
FOOD AID ALTHOUGH IT DOES LIMIT THE AMOUNT OF &!#
COMMITTED FOOD AID THAT CAN BE SOLD TO PERCENT OF A
DONORS TOTAL CONTRIBUTION .ONETHELESS THE CONVENTION DOES SET SOME IMPORTANT STANDARDS THAT ENCOURAGE
DONORS TO STRIVE FOR BETTER PRACTICE IN DEVELOPMENT TERMS
53 &OOD !ID
4HE 7ORLD 4RADE /RGANIZATION
4HE HISTORY OF FOOD AID AS A SURPLUS DISPOSAL MECHANISM AND VEHICLE TO PROMOTE FUTURE EXPORT SALES HAS
DRAWN THE 74/ INTO THE FOOD AID FRAY 4HE %5 IN PARTICULAR HAS CHAMPIONED FOOD AID REFORMS AT THE
74/ AS PART OF ITS ATTEMPT TO BALANCE ITS COMMITMENT TO ELIMINATE AGRICULTURAL EXPORT SUBSIDIES WITH
DEMANDS FOR CHANGES TO OTHER COUNTRIES VARIOUS SUPPORTS TO AGRICULTURAL EXPORTS ! NUMBER OF ADVOCATES
SEEKING REFORMS OF 53 FOOD AID INCLUDING /XFAM !MERICA SEE A USEFUL ROLE FOR THE 74/ IN IMPROV
ING FOOD AID PRACTICE /THERS LIKE )!40 ARE MORE SKEPTICAL THAT THE 74/ HAS THE COMPETENCE OR EVEN
INCLINATION TO ACT AS AN ARBITER ON FOOD AID
.ONETHELESS EFFECTIVE IMPLEMENTATION OF THE RIGHT INTERNATIONAL TRADE RULES FOR AGRICULTURE COULD DO A LOT TO
CLEAN UP FOOD AID PRACTICE 3UCH RULES WOULD ADDRESS THE CHRONIC OVER
SUPPLY OF MOST COMMODITIES IN WORLD
MARKETS BY ENDING THE FOOD DUMPING SALES AT PRICES LOWER THAN THE COSTS OF PRODUCTION THAT HAS ADDED TO
THE GLOBAL PROBLEM OF DEPRESSED FOOD PRICES 3UCH RULES WOULD PERMIT MULTILATERAL MECHANISMS FOR COM
MODITY SUPPLY MANAGEMENT AND EMERGENCY FOOD RESERVES AND WOULD ALLOW COUNTRIES SCOPE FOR POLICIES TO
SUPPORT AND PROTECT THEIR DOMESTIC PRODUCTION OF STAPLE FOODS !LONG WITH INCREASED AID AND INVESTMENT FOR
AGRICULTURE THIS WOULD GREATLY IMPROVE FOOD SECURITY AROUND THE WORLD AND REDUCE THE NEED FOR FOOD AID AS
A STOPGAP SOLUTION
!S EXPLAINED IN THE SECTION ON THE #33$ ABOVE FOOD AID DOES DISPLACE COMMERCIAL SALES OF FOODWHETHER
FOR LOCAL PRODUCERS OR COMMERCIAL EXPORTERS 4HE IDEA OF 5SUAL -ARKETING 2EQUIREMENTS 5-2S AND THE
ATTEMPT TO MAINTAIN NORMAL COMMERCIAL IMPORTS DESPITE THE ARRIVAL OF FOOD AID MAKES NO ECONOMIC SENSE
NOR MUCH PRACTICAL SENSE 4HE POINT OF FOOD AID IS TO MEET UNMET DEMAND FOR THOSE TOO POOR TO BUY FOOD
OR FOR PEOPLE WHOSE FOOD SUPPLY HAS BEEN DISRUPTED OR DESTROYED 4HE 74/ -EMBERSHIP CONTINUES TO USE
TERMS SUCH AS hFULL ADDITIONALITYv THAT IS FOOD AID SHOULD BE ENTIRELY ADDITIONAL TO NORMAL CONSUMPTION
WHICH CREATES A STANDARD THAT CANNOT BE MET AND THEREBY RISKS IRRELEVANCE 7HAT GOOD FOOD AID DOES ACHIEVE
IS TO KEEP THE COMMERCIAL DISPLACEMENT TRIVIAL BY SUCCESSFULLY TARGETING THOSE MOST IN NEED OF FOOD
&OOD AID WAS MENTIONED IN !RTICLE OF THE 5RUGUAY 2OUND !GREEMENT ON !GRICULTURE 4HE LANGUAGE
WAS TIMID AND THE INJUNCTIONSRESPECT THE #33$ AND ITS PRINCIPLES AND MAKE FOOD AID hTO THE EXTENT POS
SIBLEv AVAILABLE IN GRANT FORMHAD NO IMPACT ON 74/ -EMBERS FOOD AID PRACTICES &OOD AID WAS ALSO
INTEGRAL TO THE -ARRAKECH -INISTERIAL $ECISION ON .ET
&OOD
)MPORTING $EVELOPING #OUNTRIES .&)$#S
AND ,EAST $EVELOPED #OUNTRIES ,$#S 4HIS WAS A DECISION TAKEN TO TRY TO SWEETEN THE 5RUGUAY 2OUND
52 PACKAGE FOR !FRICA IN PARTICULAR THE WORLDS POOREST CONTINENT AND THE ONLY CONTINENT THAT WAS PRE
DICTED TO LOSE OUT UNDER THE LIBERALIZATION OF AGRICULTURE PUT IN PLACE BY THE 52 AGREEMENTS 4HE DECISION
REmECTED THE RECOGNITION OF 74/ -EMBERS THAT THE IMPLEMENTATION OF THE !GREEMENT ON !GRICULTURE
WAS EXPECTED TO DECREASE THE SUPPLY OF FOOD AVAILABLE ON CONCESSIONAL TERMS THROUGH FOOD AID OR EXPORT
SUBSIDIES AND THEREFORE INCREASE THE COST OF FOOD IMPORTS FOR THOSE COUNTRIES THAT MOST DEPENDED ON THESE
SOURCES OF FOOD ,$#S AND .&)$#S 74/ -EMBERS UNDERTOOK TO PROVIDE lNANCIAL ASSISTANCE IF THE
SITUATION FOLLOWING IMPLEMENTATION WARRANTED SUCH HELP AND AGREED TO ENSURE THE ADEQUACY OF MINIMUM
FOOD AID COMMITMENTS MADE UNDER THE &!# WERE ADEQUATE
"Y THE END OF &!/ CONCLUDED h4HE FOOD SECURITY SITUATION IN BOTH THE ,$#S AND THE .&)$#S
REMAINS PRECARIOUSxv 4HE COST OF FOOD IMPORTS FOR FOOD INSECURE COUNTRIES ROSE DRAMATICALLY IN
AND AND STAYED HIGHER THAN PRE 5RUGUAY 2OUND LEVELS EVEN WHEN GRAIN PRICES FELL AGAIN 9ET THE
)NTERNATIONAL -ONETARY &UND )-& ARGUED THAT THE LIBERALIZATION UNDER THE 52 WAS NOT RESPONSIBLE FOR
THE FOOD DElCIT FACING ,$#S AND .&)$#S 4HE )-& THEREFORE RECOMMENDED TO THE 74/ #OMMITTEE
IATPORG
ON !GRICULTURE THAT NOTHING BE DONE TO HELP THESE COUNTRIES PAY FOR THE ADDITIONAL COMMERCIAL FOOD IMPORTS
THEY NEEDED 74/ -EMBERS OBLIGED OVER THE PROTESTS OF THE ,$#S AND .&)$#S WHO CONTINUE TO lGHT
FOR THE IMPLEMENTATION OF THE -ARRAKECH $ECISION
4HE STORY IS IMPORTANT BECAUSE IT SHOWS THAT THE 74/ DOES NOT SEE ITSELF AS AN INSTITUTION WITH RESPONSIBIL
ITY FOR DEVELOPMENT 4HIS HAS BEEN STARKLY EVIDENT IN THE FAILURE OF DEVELOPED COUNTRY 74/ MEMBERS TO
DEAL WITH ANYEVEN ONEOF THE DEVELOPMENT CONCERNS RAISED BY DEVELOPING COUNTRY MEMBERS IN LIGHT OF
THEIR PROBLEMS IMPLEMENTING THE 52 AGREEMENTS ,$# AND .&)$# MEMBERS HAVE NO CONlDENCE THAT
OTHER 74/ -EMBERS ARE INTERESTED IN PROTECTING THEIR ADEQUATE ACCESS TO FOOD TODAY WHILE THE PROMISED
REFORMS ARE SCHEDULED TO TAKE A DECADE OR MORE
4HAT SAID THE FOOD AID THAT IS WORST FROM THE 74/S PERSPECTIVE IS ALSO BAD FOR DEVELOPMENT 4HE COIN
CIDENCE MAY HAVE SOME VALUE IN THE PUSH TO REFORM FOOD AID ! RECENT POLICY BRIElNG PUBLISHED BY &!/
SUGGESTS THREE QUESTIONS WHOSE ANSWERS TOGETHER GENERATE A lLTER TO DETERMINE WHICH FOOD AID TRANSACTIONS
ARE PROBLEMATICAL FROM A TRADE STANDPOINT 4HESE ARE
4O WHAT DEGREE DOES THE FOOD AID INCREASE OVERALL CONSUMPTION $OES IT DISPLACE FOOD THAT
WOULD OTHERWISE HAVE BEEN BOUGHT
4O WHAT DEGREE IS THE FOOD AID TIED -UST IT BE SOURCED IN THE DONORS MARKET !RE THERE
RESTRICTIONS ON HOW IT CAN BE SHIPPED PROCESSED ETC
)S THE FOOD AID REALLY NEEDED BY THE RECIPIENT COUNTRY )N &!/S LANGUAGE IS IT LEGITIMATE
4HE %5 HAS PROPOSED USING THE REVIEW OF THE !GREEMENT ON !GRICULTURE TO PASS NEW RULES THAT ALL FOOD
AID BE CASH
BASED NOT IN
KIND AND UNTIED FROM REQUIREMENTS TO SOURCE COMMODITIES IN THE DONOR COUNTRY
4HE IMPLICATIONS FOR 53 FOOD AID WOULD BE ENORMOUS WERE SUCH RULES TO BE ACCEPTED 4HAT IS EXTREMELY
UNLIKELY HOWEVERNOT ONLY THE 53 BUT ALSO MANY OF ITS FOOD AID RECIPIENTS WOULD NOT ADVOCATE SUCH A
NARROWING OF THE DElNITION OF FOOD AID AT THIS TIME AND IN THIS FORUM 7HAT IS MOST ALARMING ABOUT THE
PROPOSAL IS THE ATTEMPT TO MAKE THE 74/ THE SOURCE OF RULES FOR WHAT IS BASICALLY A HUMANITARIAN INTERVEN
TION WHERE THE 74/ HAS NO COMPETENCE OR MANDATE TO ACT
53 FOOD AID POSES TWO BIG PROBLEMS FOR RIVAL EXPORTING INTERESTS THE USE OF EXPORT CREDITS SOME WITH
REPAYMENT PERIODS OF UP TO YEARS TO SELL PROGRAM FOOD AID AND THE INCREASING PREVALENCE OF MONETIZA
TION OF PROJECT FOOD AID DESCRIBED IN GREATER DETAIL BELOWBASICALLY THE SALE OF FOOD AID ON OPEN MARKETS
IN RECIPIENT COUNTRIES TO GENERATE FUNDS FOR DEVELOPMENT PROJECTS 4IGHTER DISCIPLINES ON THESE PRACTICES IN
THE MULTILATERAL TRADE SYSTEM COULD MAKE A POSITIVE DIFFERENCE /THER KINDS OF REFORM TO FOOD AID NEED TO BE
DISCUSSED IN A MULTILATERAL FORUM WHERE TRADE OFFS FOR MARKET ACCESS DO NOT DOMINATE THE AGENDA
53 &OOD !ID
; =
&// $ ! ) $ ) . 35 "
3!( ! 2 !. !& 2 ) #!
%
VEN AS TOTAL WORLD FOOD AID HAS
!FRICA &OOD !ID &ACTS
DECLINED A RISING PROPORTION OF FOOD AID HAS
GONE TO SUB
3AHARAN !FRICA 33! THE ONLY )N COUNTRIES IN SUB
3AHARAN !FRICA
MAJOR WORLD REGION WHERE FOOD PRODUCTION
33! TOGETHER RECEIVED PERCENT OF WORLD
INCREASES HAVE LAGGED BEHIND POPULATION GROWTH 4HE
SHARE OF FOOD AID RECEIVED BY COUNTRIES IN 33! IN THE FOOD AID OR MILLION TONS 4HE MAIN DONORS
YEARS SINCE HAS GONE FROM ONE
lFTH TO ONE
HALF OF
OF lNANCES OR FOOD TO 33! THAT YEAR WERE THE
THE TOTAL
53 PERCENT THE %UROPEAN #OMMISSION
"ETWEEN AND EMERGENCY FOOD AID TO 33! ROSE
AFTER A SERIES OF mOODS AND DROUGHTS IN 3OUTHERN !FRICA AND INDIVIDUAL %UROPEAN 5NION MEMBER STATES
AND CONTINUING FOOD SHORTAGES IN THE HORN OF !FRICA PERCENT *APAN PERCENT AND #ANADA
#ONmICTS IN !NGOLA "URUNDI #ONGO #¯TE D)VOIRE
'UINEA ,IBERIA 3IERRA ,EONE THE $EMOCRATIC 2EPUBLIC PERCENT
OF THE #ONGO 3UDAN AND 5GANDA ALSO CONTRIBUTED TO THE
SUB
CONTINENTS FOOD SHORTAGES )N ACCORDING TO THE
70& MILLION !FRICANS FACED SERIOUS FOOD SHORTAGES /F THAT AMOUNT PERCENT WAS CATEGORIZED AS
TRIGGERED OR WORSENED BY ERRATIC RAINFALL CIVIL AND ARMED
EMERGENCY AID PERCENT AS PROJECT FOOD AID
CONmICTS AND LAND DISPUTES
AND PERCENT AS PROGRAM FOOD AID /F THAT AID
PERCENT WAS CHANNELED THROUGH MULTILATERAL
(UNGER IN !FRICA AGENCIES MAINLY THE 7ORLD &OOD 0ROGRAMME
IS CHRONIC AND SEVERE
7&0 WHILE .'/S AND GOVERNMENTS WERE
h!LTHOUGH INTERNATIONAL MEDIA PORTRAY FOOD
INSECURITY IN !FRICA MAINLY AS THE RESULT OF THE DIRECT SOURCE OF AND PERCENT
DISCONNECTED CRISES REQUIRING IMMEDIATE FOOD AID TO
RESPECTIVELY $ONOR COUNTRIES PROVIDED ALL OF
AVERT STARVATION THE HUNGER CRISES SEEN IN !FRICA ARE
PRIMARILY A MANIFESTATION OF MUCH BROADER CHRONIC THAT FOOD AID IN THE FORM OF EITHER lNANCIAL
FOOD INSECURITYv
CONTRIBUTIONS OR GRANTS OF FOOD COMMODITIES
4ODD "ENSON h!FRICAS &OOD AND .UTRITION NOT CONCESSIONAL SALES )N ANOTHER SMALL BUT
3ECURITY 3ITUATION )&02)
SIGNIlCANT IMPROVEMENT PERCENT OF FOOD
(UNGER IN !FRICA IS SEVERE IN SOME REGIONS AND GETTING
DELIVERED TO 33! WAS PROCURED THROUGH EITHER
WORSE OVERALL -ORE THAN MILLION PEOPLE IN !FRICA
ARE UNDERNOURISHED AND OF THOSE ABOUT MILLION IN LOCAL PURCHASES OR TRIANGULAR TRANSACTIONS FROM
ANY ONE YEAR FACE ACUTE HUNGER !LTHOUGH THE PROPORTION
COUNTRIES OTHER THAN THE AID DONOR AN INCREASE
OF HUNGRY PEOPLE IN !FRICA HAS DROPPED SLIGHTLY THERE
ARE ABOUT PERCENT MORE MALNOURISHED !FRICANS TODAY FROM PERCENT IN
THAN YEARS AGO 0OPULATION GROWTH IS A FACTOR BUT THE
IATPORG
MORE IMPORTANT UNDERLYING CAUSES ARE NEGLECT OF AGRICULTURE BY GOVERNMENTS AND LENDING AGENCIES AND
ECONOMIC POLICIES THAT HAVE LEFT MANY !FRICAN COUNTRIES MORE DEPENDENT ON FOOD IMPORTS BUT WITH LESS
RESOURCES TO PAY FOR THEM 4HE &!/ REPORTS THAT ONE IN THREE SUB
3AHARAN !FRICANS LACKS ACCESS TO ENOUGH
FOOD TO MEET HIS OR HER CALORIC NEEDS !N ESTIMATED PERCENT OF ALL DEATHS IN !FRICANEARLY MILLION
DEATHS EVERY YEARARE LINKED TO UNDER
NUTRITION
/NLY PERCENT OF TOTAL FOOD AID TO 33! IN
4HE PICTURE OF !FRICAN MALNUTRITION VARIES FROM PLACE TO
WAS SOLD ON LOCAL MARKETS MONETIZED SO THAT PLACE AND BY POPULATION GROUP BUT INCLUDES INSUFlCIENT
INTAKE OF CALORIES OFTEN SPECIlCALLY INADEQUATE PROTEIN
ACCORDING TO THE REPORTING AGENCIES PERCENT
CONSUMPTION AND A LACK OF MICRONUTRIENTS ESPECIALLY
WAS DISTRIBUTED IN THE FORM OF FOOD INTENDED FOR VITAMIN ! IODINE ZINC AND IRON 3OMEWHERE BETWEEN
AND !FRICAN WOMEN DIE EACH YEAR AS A
CONSUMPTION BY THE RECIPIENTS
RESULT OF SEVERE IRON
DElCIENCY ANEMIA $ATA FROM THE
7ORLD (EALTH /RGANIZATION INDICATE THAT PERCENT
OF !FRICAN CHILDREN MILLION IN ALLSUFFER FROM
/F THE AID DELIVERED TO 33! IN THE FORM OF IN
KIND
STUNTED GROWTH CAUSED BY MALNUTRITION 4HIS STUNTING
FOOD COMMODITIES PERCENT WAS GRAIN !BOUT IS COMMONLY ACCOMPANIED BY PHYSICAL AND MENTAL IM
HALF THAT GRAIN WAS WHEAT OR WHEAT mOUR AND
PAIRMENTS THAT FOLLOW THESE CHILDREN THROUGH LIFE
PERCENT WAS COARSE GRAINS INCLUDING THE &OR THOSE WHO RELY ON 7ESTERN MEDIA FOR THEIR ANALYSIS
OF !FRICA THIS PICTURE OF HUNGER AND NEED DOMINATES
CONTROVERSIAL SHIPMENTS CONTAINING GENETICALLY
THE CONTINENT SEEMS TO BE PERMANENTLY CURSED BY VIO
ENGINEERED 53 MAIZE 4HE REMAINDER INCLUDED LENCE CORRUPTION DROUGHT AND DISEASE -ANY COUNTRIES
IN 33! DO NOT GROW ENOUGH FOOD TO FEED THEMSELVES
RICE BLENDED ANDOR FORTIlED GRAIN PRODUCTS
AND THEY CANNOT AFFORD SUFlCIENT COMMERCIAL IMPORTS TO
PERCENT OILS AND FATS PULSES AND SMALL MAKE UP THE SHORTFALL 3UCH AN !FRICA SEEMS INEVITABLY
DEPENDENT ON THE CHARITY OF OTHERS INCLUDING FOOD AID
AMOUNTS OF DAIRY MEAT AND lSH
(OWEVER THIS PICTURE OBSCURES CRUCIAL FACTS ABOUT SUB
3AHARAN !FRICA THAT ARE ESSENTIAL TO ANY STRATEGY TO ELIM
INATE HUNGER AND FOSTER SUSTAINABLE DEVELOPMENT THERE
)N PERCENT OF FOOD AID TO 33!
!FRICAN COUNTRIES PRODUCED MORE OF THEIR OWN FOOD IN
PERCENT OF WORLD FOOD AIDWENT TO ONE COUNTRY THE PAST AND COULD GROW MUCH MORE OF THEIR OWN FOOD IN
THE NEAR FUTURE THE CENTRAL OBJECTIVE SHOULD BE TO BUILD
%THIOPIA !NOTHER PERCENT OF 33!S TOTAL
DOMESTIC CAPACITY
WENT TO %RITREA !NGOLA :IMBABWE AND 3UDAN
-ORE THAN TONS EACH WERE DELIVERED TO
-OZAMBIQUE 5GANDA +ENYA :AMBIA -ALAWI !FRICAS !DVANTAGES
!FRICA HAS A STRONG NATURAL RESOURCE BASE &OR THE MOST
AND 4ANZANIA /THER COUNTRIES THAT ARE HOME
PART !FRICA FEEDS ITSELF !S THE 2OCKEFELLER &OUNDATIONS
TO MILLIONS OF HUNGRY PEOPLE INCLUDING THE 'ARY 4OENNIESSEN AND *OSEPH DE6RIES POINT OUT !FRICAN
FARMERS PRODUCE ABOUT PERCENT OF WHAT !FRICANS EAT
#ONGO AND .IGERIA RECEIVED ONLY SMALL FOOD
SO THAT hOVERALL FOOD SECURITY IN !FRICA REMAINS SOLIDLY
AID CONTRIBUTIONS AND TONS DEPENDENT UPON LOCAL AGRICULTURAL PRODUCTIONv !N AD
DITIONAL SHARE OF !FRICAS FOOD COMES FROM COMMERCIAL
RESPECTIVELY
53 &OOD !ID
IMPORTS FOOD AID ACCOUNTS FOR A VERY SMALL PROPORTION OF 33!S FOOD SUPPLY &OR SOME OF THE !FRICANS WHO
RECEIVE DISTRIBUTED FOOD ESPECIALLY REFUGEES AND MEMBERS OF HOUSEHOLDS DECIMATED BY ()6!)$3 FOOD
AID IS ESSENTIAL TO THEIR SURVIVAL &OR OTHERS FOOD RECEIVED THROUGH AID AND DEVELOPMENT PROGRAMSFOOD
THAT THE RECIPIENTS MAY CONSUME TRADE OR SELL DEPENDING ON THEIR CIRCUMSTANCESIS ONLY ONE STRATEGY FOR
COPING WITH POVERTY
4WO THIRDS OF ALL !FRICANS LIVE IN RURAL AREAS /F ALL CONTINENTS !FRICA HAS THE HIGHEST PERCENTAGE OF ITS
POPULATION ENGAGED IN AGRICULTURE AND THE SECOND LARGEST AREA OF CULTIVABLE LAND 3UB 3AHARAN !FRICAS
YIELDS OF GRAIN PER UNIT OF LANDA MEASURE OFTEN USED AS A PROXY IN JUDGING EFlCIENCY AND SUCCESS IN AGRI
CULTUREARE SUBSTANTIALLY LOWER ON AVERAGE THAN THOSE OF OTHER REGIONS "UT IT WOULD BE WRONG TO CONCLUDE
THAT !FRICAN FARMING IS INHERENTLY INFERIOR OR hBACKWARDv
'RAIN PRODUCTION PER LAND UNIT IS A LIMITED MEASURE OF FARM PRODUCTIVITY ESPECIALLY WHEN LARGE
SCALE
INDUSTRIAL AGRICULTURE IS COMPARED TO PEASANT PRODUCTION -ANY SYSTEMS OF SMALLHOLDER FARMING IN !FRICA
AND ELSEWHERE INCLUDE MULTIPLE CROPS OR INTERCROPPING OF GRAINS ROOT CROPS PULSES AND OTHER FOODS OFTEN
ALONG WITH ANIMAL HUSBANDRY 7HERE LIVESTOCK ARE MORE IMPORTANT THAN CROP CULTIVATION FOR INSTANCE IN
THE 3AHEL !FRICAN HERDERS ARE SOPHISTICATED LIVESTOCK BREEDERS AND EFlCIENT PRODUCERS OF ANIMAL PROTEIN
!FRICAN AGRICULTURE IS PRIMARILY RAIN FED WITH GROWING CONDITIONS THAT ARE VARIED AND OFTEN CHALLENGING
!FRICAN FARMERS HAVE THEREFORE HAD TO BE CAPABLE INNOVATORS AND SELECTORS OF SEED ADAPTING THEIR TRADITIONAL
CROPS AND IN THIS CENTURY NEWER CROPS SUCH AS MAIZE AND CASSAVA TO !FRICAN AGRO ECOSYSTEMS #LIMATE
CHANGE COULD LEAD TO UNMANAGEABLE DROUGHTS IN THE FUTURE 3EVERE ENVIRONMENTAL DEGRADATION HAS ALREADY
DESTROYED SOME OF THE SUB CONTINENTS ARABLE LAND (OWEVER MANY INNOVATIVE SOLUTIONS TO THESE PROBLEMS
ARE EVIDENT ON THE GROUND AROUND THE CONTINENT AND MANY COMMUNITIES HAVE RISEN TO THE NEW CHALLENGES
h/VERPOPULATIONv IS ALSO NOT A USEFUL CONCEPT FOR UNDERSTANDING !FRICAS CHALLENGES 0OPULATION DENSITIES
AND POPULATION GROWTH IN SOME REGIONS MAKE AGRICULTURAL SELF
SUFlCIENCY DIFlCULT OR IMPOSSIBLE WITH PRES
ENT TECHNOLOGIES AND UNDER CURRENT FARM FOOD AND TRADE POLICIES "UT IN MANY PARTS OF !FRICA UNDER
POPU
LATION LIMITS FOOD PRODUCTION -ILLIONS OF ABLE
BODIED YOUNG !FRICAN MEN AND WOMEN ARE COMPELLED TO
MIGRATE SEASONALLY OR PERMANENTLY IN SEARCH OF WORK OFTEN LEAVING MOTHERS AND OLDER ADULTS WITH THE ENTIRE
FARMING BURDEN #ONSEQUENTLY MANY FARMING COMMUNITIES HAVE TOO FEW PEOPLE TO PLANT OR TO HARVEST AS
MUCH FARMLAND AS THEY NEED TO SUPPORT THEMSELVES AND TO CARRY OUT LAND
CONSERVING CULTIVATION TASKS 4HE
LOSS OF ADULTS IN THEIR PRIME TO !)$3 ADDS TO THE UNDER
POPULATION PROBLEM
/BSTACLES TO 'REATER &OOD 3ELF
SUFlCIENCY
4O FULLY UNDERSTAND THE BARRIERS TO !FRICAN AGRICULTURE AND TO ENSURE THAT DEVELOPMENT INTERVENTIONS ARE
MAKING A STRATEGIC DIFFERENCE THAT IS BUILDING TOWARDS A SELF
RELIANT FUTURE IT IS ESSENTIAL TO ALSO CONSIDER
THE HISTORICAL AND POLITICAL BLOCKS THAT HAVE BEEN CREATED
%UROPEAN COLONIALISM UNDERMINED !FRICAN PROSPERITY AND SELF
RELIANCE AND PUT IN PLACE POLITICAL BORDERS
AND ECONOMIC PATTERNS THAT CONTINUE TO UNDERMINE FOOD SECURITY IN THE CONTINENT TODAY !FRICAS VIGOROUS
INTRA
CONTINENTAL AND EXTERNAL TRADE AND ITS SYSTEMS OF GOVERNANCE AND EDUCATION WERE DISRUPTED AND SUP
PRESSED BY %UROPEAN COLONIAL POWERS IN THE TH CENTURY )NDUSTRIES SUCH AS METALLURGY AND TEXTILES WERE
LARGELY DESTROYED 4HE TH CENTURY SAW LAND TAKEOVERS BY %UROPEAN SETTLERS LAWS AGAINST !FRICAN PROPERTY
OWNERSHIP AND ENTREPRENEURIAL ACTIVITIES RULES FOR FARMS PATTERNED ON %UROPEAN MODELS THAT DID NOT SUIT
IATPORG
!FRICAS ECOLOGY OR SOCIAL HISTORY AND LABOR AND TAX POLICIES THAT FORCED !FRICANS TO CULTIVATE CROPS AND RAW
MATERIALS FOR THE COLONIAL STATES NOT FOOD AND lBER FOR THEMSELVES
4HESE PROFOUND TRANSFORMATIONS ARE NOT JUST MEMORIES THEY ARE BUILT INTO THE POLITICAL SYSTEMS AND THE SO
CIAL AND PHYSICAL INFRASTRUCTURE OF !FRICA TODAY 2OADS AND RAILWAYS FOLLOW THE COLONIAL PATTERN ESTABLISHED
TO EXTRACT RESOURCES RUNNING FROM THE FOREST PLANTATION OR MINE TO COASTAL PORTS !S A RESULT WHEN FOOD
SHORTAGES OCCUR IN ONE REGION THERE IS NO EASY WAY TO TRANSPORT SURPLUS FROM OTHER PARTS OF THE SAME COUNTRY
OR FROM NEIGHBORING COUNTRIES
#OLONIAL RESTRUCTURING OF AGRICULTURE IS ALSO STILL EVIDENT IN THE WIDESPREAD MONOCULTURE OF CROPS IMPORTED
FROM THE !MERICAS INCLUDING COTTON TOBACCO MAIZE WHICH GROWS FAST BUT NEEDS RAIN AND CASSAVA WHICH
IS DROUGHT TOLERANT BUT LESS NUTRITIOUS THAN INDIGENOUS !FRICAN STAPLES -UCH OF THE CONTINENTS MOST FERTILE
LAND AND FARM LABOR ARE DEDICATED TO CROPS FOR EXPORT RATHER THAN TO GROWING FOOD FOR DOMESTIC CONSUMP
TION -OST !FRICAN COUNTRIES STILL DEPEND ON EXPORTS OF PRIMARY COMMODITIESMINERALS AND UNPROCESSED
FOREST AND AGRICULTURAL PRODUCTSTO EARN FOREIGN EXCHANGE FOR THE PURCHASE OF ESSENTIAL IMPORTS AS WELL AS
LUXURY GOODS "UT THE TERMS OF TRADE FOR MOST OF THESE PRODUCTS HAVE BEEN IN STEADY DECLINE FOR DECADES
4HE IMPACT OF TRADE LIBERALIZATION
4HE ECONOMIC LIBERALIZATION POLICIES REQUIRED OF !FRICAN COUNTRIES BY THE )-& AND BY BILATERAL AND MUL
TILATERAL DEVELOPMENT AGENCIES WERE INTENDED TO CREATE CONDITIONS FOR EXPORT
LED ECONOMIC GROWTH !FRICA
HAS GENERALLY COMPLIED WITH THESE STRUCTURAL ADJUSTMENT CONDITIONALITIES IN THE (ERITAGE &OUNDATION
RATED !FRICA AS THE REGION THAT HAS MADE THE GREATEST hSTRIDES IN ECONOMIC FREEDOMv "UT LITTLE NEW INVEST
MENT HAS BEEN FORTHCOMING AND GROWTH HAS BEEN MODEST MUCH OF IT LINKED TO COMMODITY
PRICE SPIKES AND
#HINAS DEMAND FOR MINERALS
7HILE COUNTRIES IN 33! HAVE QUALIlED FOR PARTIAL DEBT RELIEF UNDER THE )-&7ORLD "ANK ()0# INITIA
TIVE FOR (IGHLY
)NDEBTED 0OOR #OUNTRIES AND NINE MORE YET QUALIFY DEBT SERVICE REMAINS A GREAT BURDEN FOR
MANY OF THEM ! REPORT BY #HRISTIAN !ID POINTED OUT h4HE 7ORLD &OOD 0ROGRAMME APPEALED FOR
53 MILLION FOR SOUTHERN !FRICA FOR *ULY TO -ARCH -EANWHILE -OZAMBIQUE -ALAWI AND
:AMBIA ALONE WILL HAVE PAID BACK 53 MILLION IN TOTAL DEBT SERVICE TO MULTILATERAL AND BILATERAL DONORS
IN AND EVEN AFTER SO
CALLED ()0# DEBT RELIEFv
0ER CAPITAL '$0 HAS NOT GROWN IN 33! AND AS THE %CONOMIC #OMMISSION ON !FRICA NOTES hGROWTH HAS
SO FAR NOT BEEN TRANSLATED TO EMPLOYMENT CREATION OR POVERTY REDUCTIONv %VEN IN COUNTRIES WHERE GROWTH
HAS EXCEEDED THE REGIONS AVERAGE SMALL SCALE PRODUCERS HAVE RARELY BENElTED !ND AS WE HAVE SEEN HUNGER
IS NOT ALWAYS REDUCED WITH ECONOMIC GROWTH h4HE PREVALENCE OF STUNTED CHILDREN IN -ALI HAS INCREASED
EVEN AS THE -ALIAN ECONOMY HAS GROWNv
$EVELOPMENT STRATEGIES CENTERED AROUND EXPORTS OF PRIMARY AGRICULTURAL COMMODITIES HAVE RARELY SUCCEEDED
ONLY COUNTRIES WITH STRONG LINKS BETWEEN DOMESTIC INDUSTRY AND AGRICULTURE AND RELATIVELY MORE PROTECTION
IST TRADE POLICIES HAVE MANAGED TO TURN AGRICULTURAL LAND AND NATURAL RESOURCES INTO SUSTAINED hCOMPARATIVE
ADVANTAGESv IN INTERNATIONAL TRADE 7ITH DOZENS OF WOULD
BE DEVELOPING COUNTRIES COMPETING TO SELL THE
SAME LOW
VALUE
ADDED COMMODITIES PRICES FOR THOSE EXPORTS CONTINUE TO FALL #OUNTRIES WITH LITTLE ECO
NOMIC BARGAINING POWER WEAK SUPPORTING INFRASTRUCTURE AND RELATIVELY SMALL
SCALE ECONOMIES CANNOT TURN
SUCH EXPORTS INTO SUSTAINABLE ECONOMIC GROWTH 4HIS IS ONE REASON WHY GREATER MARKET ACCESS FOR !FRICAN
53 &OOD !ID
EXPORTS HOWEVER DESIRABLE SHOULD NOT BE THE CENTERPIECE
OF POLICY CAMPAIGNS TO FOSTER !FRICAN DEVELOPMENT
'ENETICALLY %NGINEERED
&OOD !ID
-OST IMPORTANT TO THE ISSUE OF HUNGER IS THE DAMAGE
TO !FRICAS DOMESTIC AGRICULTURE CAUSED BY ECONOMIC
4HE !FRICAN @#RISIS
DEREGULATION AND THE EXPORT
LED DEVELOPMENT MODEL 4HE CONTROVERSY OVER FOOD AID CONTAINING GENETI
0UBLIC SPENDING FOR AGRICULTURAL RESEARCH AND EXTENSION CALLY ENGINEERED GRAIN ILLUSTRATES HOW FOOD AID
HAS BEEN SLASHED ! RECENT STUDY BY 4ODD "ENSON FOR
CAN BE USED TO ADVANCE THE AGENDAS OF PARTICU
THE )NTERNATIONAL &OOD 0OLICY 2ESEARCH )NSTITUTE SAYS
LAR COUNTRIES AND TRANSNATIONAL AGRIBUSINESSES
4HE SHARE OF AGRICULTURE IN TOTAL GOVERNMENT SPENDING IN
)N THE 7ORLD &OOD 0ROGRAMME CALLED FOR
3UB
3AHARAN !FRICA DECLINED FROM PERCENT IN
TO PERCENT IN &!/ )N MOST COUNTRIES EMERGENCY AID PREFERABLY IN THE FORM OF FUNDS IN
IN !FRICA FOOD CROP PRODUCTION RELATIVE TO CASH CROPS IS RESPONSE TO SEVERE LOCAL FOOD SHORTAGES IN 3OUTH
FREQUENTLY THE MOST DISADVANTAGED BY GOVERNMENT POLI
ERN !FRICA )NSTEAD OF PROVIDING ONLY FUNDS AS
CIES AND SPENDING DECISIONS
MOST OTHER DONOR COUNTRIES DID THE 53 SHIPPED
TONS OF WHOLE GRAIN MAIZE UNDER THE
53 %MERSON 4RUST PROGRAM FOR DISTRIBUTION BY
!NTI AGRICULTURAL POLICIES
2EMOVAL OF GOVERNMENT SUBSIDIES FOR FARM CREDIT FERTIL THE 7&0 AND .'/S "ECAUSE APPROXIMATELY
IZERS TOOLS AND SEEDS HAS CONTRIBUTED TO DECLINING OR HALF OF ALL 53 MAIZE IS GENETICALLY ENGINEERED
STAGNANT FOOD PRODUCTION 3O HAS THE DRAMATIC REDUC
AND BECAUSE THE 53 UNLIKE #ANADA DOES NOT
TION IN DEVELOPMENT ASSISTANCE FOR AGRICULTURE 2EFORMS
SEGREGATE TRANSGENIC '-/ CROPS FROM CONVEN
IN -OZAMBIQUE :AMBIA -ALAWI AND :IMBABWE HAVE
LEFT IN THEIR WAKE A COLLAPSE IN STAPLE FOOD MARKETS !N
TIONAL CROPS THIS 53 FOOD AID CONTAINED A SIGNIl
OTHER LIBERAL REFORM THAT HAS CONTRIBUTED TO HUNGER HAS CANT PROPORTION OF '-/ CORN
BEEN THE REDUCTION OF STATE CAPACITY TO MAINTAIN GRAIN
RESERVES 4HE GOVERNMENTS OF :AMBIA -OZAMBIQUE ,E
SOTHO :IMBABWE AND LATER !NGOLA OBJECTED 4HE
/NE CENTRAL PROBLEM ANALYZED BY THE 5.#4!$ AND
OTHERS HAS BEEN THE LENDER
ENFORCED DISMANTLING OF GOVERNMENTS BASED THEIR CONCERNS ON THE STILL
MANY STATE
LED MARKET INSTITUTIONS SUCH AS MARKETING UNKNOWN HEALTH EFFECTS OF TRANSGENIC MAIZE ON
BOARDS 4HESE BOARDS WERE FAR FROM PERFECT BUT DID PRO
PEOPLE FOR WHOM MAIZE IS A DIETARY STAPLE MOST
VIDE IMPORTANT SERVICES TO RURAL AREAS AND TO PRODUCERS
SPECIlCALLY THAT HAVE NOT BEEN REPLACED SINCE THEY WERE '-/ MAIZE IS USED AS ANIMAL FEED OR IN FOODS
DISMANTLED 'OVERNMENTS HAVE CLOSED PUBLIC FOOD STOR
THAT ARE A MINOR PART OF HUMAN DIETS IN THE 53
AGE FACILITIES 0RIVATE TRADERS DO NOT HAVE THE CAPITAL OR !NOTHER WORRY WAS THAT WHOLE
KERNEL RATHER THAN
KNOW
HOW TO lLL THE RESULTING GAP IN SERVICES -OST
MILLED CORN WAS LIKELY TO BE PLANTED BY SOME
COUNTRIES IN 33! FACE REAL CONSTRAINTS ON INVESTMENT
THAT REQUIRES MORE MANAGEMENT THAN AN OPEN MARKET FARMERS POSING POSSIBLE RISKS OF CONTAMINATION
CAN PROVIDE 4HERE IS A NEED FOR STATE
LED INTERVENTION TO LOCALLY ADAPTED MAIZE VARIETIES -OZAMBIQUE
TO PROVIDE THE NECESSARY STABILITY TO ENCOURAGE ENTREPRE
,ESOTHO AND :IMBABWE ACCEPTED THE GRAIN ON
NEURSHIP TO STRENGTHEN MARKETING STORAGE AND TRANS
THE CONDITION THAT IT BE MILLED BEFORE BEING DIS
PORT INFRASTRUCTURE AND TO FOSTER ECONOMIC ACTIVITIES THAT
ADD VALUE TO DOMESTIC FARM PRODUCTS TRIBUTED -ALAWI ALSO JOINED THE GOVERNMENTS
IATPORG
WHO OBJECTED INSISTING THAT THE MAIZE BE MILLED $ESPITE THE MOUNTING EVIDENCE THAT FOOD SECURITY FOR
33! CANNOT BE ACHIEVED WITHOUT SIGNIlCANT NEW INVEST
AND THAT MONITORING ACCOMPANY THE FOOD AID TO
MENT IN LOCAL PRODUCTION 53!)$ AND THE 53 $EPART
ENSURE IT WAS NOT PLANTED :AMBIA STILL REJECTS MENTS OF 3TATE !GRICULTURE AND #OMMERCE CONTINUE
TRANSGENIC FOOD AID BUT ACCEPTS MAIZE AND OTHER TO CONTEND THAT !FRICAN AND OTHER LOW
INCOME REGIONS
OUGHT TO CONCENTRATE ON EXPORTS AND RELY ON INTERNATIONAL
FOOD AID FROM NON
'-/ SOURCES
MARKETS RATHER THAN DOMESTIC PRODUCTION TO ACHIEVE FOOD
4HE !FRICAN STANCE PROVIDED THE 53 WITH AN SECURITY 4HE APPROACH IS DEEPLY DAMAGING TO 33!S RIGHT
TO SELF
RELIANT DEVELOPMENT AND FOOD SECURITY STRATEGIES
OPPORTUNITY TO STEP UP ITS CAMPAIGN THEN BEING
VIGOROUSLY PURSUED BY 53 !)$ 53$! AND THE
7HITE (OUSE FOR THE WORLDWIDE ACCEPTANCE OF
&OOD AID IS STILL NEEDED IN !FRICAx
TRANSGENIC CROPS !LTHOUGH NOT A PARTY TO THE
4HE TOLL THAT HUNGER DISEASE AND ECONOMIC NEED TAKE ON
#ONVENTION ON "IOLOGICAL $IVERSITY THE 53 MILLIONS OF PEOPLE IN SUB 3AHARAN !FRICA IS UNDENIABLE
ACTIVELY OPPOSES THE #ARTAGENA 0ROTOCOL ON &OOD AID CAN PLAY A ROLE IN ADDRESSING THESE PROBLEMS
ESPECIALLY IF IT IS PROGRAMMED WITH THE LARGER PICTURE
"IOSAFETY AN AGREEMENT UNDER THE CONVENTION
THAT OF !FRICAS POTENTIAL AND ACTUAL CAPACITY TO GROW ITS
WHICH GIVES MEMBER STATES THE RIGHT TO CHOOSE OWN FOODCLEARLY IN VIEW
NOT TO ACCEPT '-/ IMPORTS UNDER CERTAIN CON
DITIONS !T THE TIME OF THE FOOD AID SHIPMENTS
THE 53 WAS ALSO PREPARING TO LODGE A DISPUTE AT
THE 74/ AGAINST THE %5 FOR ITS MORATORIUM ON
IMPORTS AND COMMERCIAL PLANTING OF TRANSGENIC
CROPS 4HE %UROPEANS AT LEAST TACITLY ENDORSED
THE !FRICAN POSITION
7HATEVER ONES VIEWS ON THE RISKS AND POTENTIAL
BENElTS OF TRANSGENIC CROPS OR OF THE MOTIVES OF
THE %UROPEAN AND !FRICAN GOVERNMENTS IT IS CLEAR
THAT THIS '-/ hCRISISv WAS MANUFACTURED )T COULD
HAVE BEEN AVOIDED IF THE 53 HAD ANSWERED THE
7&0 REQUEST FOR FUNDS RATHER THAN FOOD TO MEET
THE EMERGENCY !S IT WAS THE hCRISISv GAVE THE
"USH ADMINISTRATION A PLATFORM FOR PROMOTING
EXPORTS OF 53 AGRICULTURAL TECHNOLOGY AND FOR
BROADCASTING SIMPLISTIC MESSAGES THAT A TECH
NOLOGICAL QUICK lX CAN RESOLVE THE DEEP ROOTED
PROBLEMS OF FOOD INSECURITY IN !FRICA
53 &OOD !ID
&OOD !ID -YTHS
&OOD AID FROM WEALTHY COUNTRIES IS NECESSARY TO 4ODAYS FOOD AID RECIPIENT IS TOMORROWS PAYING
FEED HUNGRY PEOPLE IN DEVELOPING COUNTRIES CUSTOMER
&OOD SECURITY REQUIRES MUCH MORE THAN JUST ENSUR
!LTHOUGH MANY COUNTRIES THAT ONCE RECEIVED FOOD AID
ING ADEQUATE SUPPLY &OR MANY PEOPLE FACING HUNGER NOW BUY COMMERCIAL IMPORTS OR PRODUCE ENOUGH FOOD
DISTRIBUTION AND ACCESS ARE MUCH MORE IMPORTANT DOMESTICALLY MANY OTHER LONG
TIME FOOD AID RECIPIENTS
THERE IS FOOD AVAILABLE IN THE COUNTRY BUT THEY CANNOT CONTINUE TO NEED FOOD AID &OOD AID IS RARELY PART OF A
AFFORD IT OR IT DOES NOT REACH THEIR LOCAL MARKET &OOD TRANSITION STRATEGY TO FOOD SELF
RELIANCE INCLUDING THE ABILITY
THAT IS EXPORTED AT PRICES BELOW THE COST OF PRODUCTION TO PAY FOR IMPORTS ON WORLD MARKETS IF DESIRED )F SOME OF
AND SOLD ON LOCAL MARKETS IN DEVELOPING COUNTRIES CAN YESTERDAYS FOOD AID RECIPIENTS ARE TODAYS PAYING CUSTOM
COMPETE WITH LOCAL PRODUCTION AND TRADE )N TURN THIS ERS IT IS BECAUSE IMPROVED INCOME LEVELS AMONG SOME
CAN WORSEN LONG
TERM HUNGER ESPECIALLY IN RURAL AREAS SECTORS OF THE POPULATION HAVE INCREASED THE COUNTRYS
WHERE MOST OF THE HUNGRY RESIDES #HEAP OR FREE IN
ABILITY TO PAY FOR IMPORTS 4HE COMMERCIAL COMMODITY
KIND FOOD AID SOMETIMES HAS THIS EFFECT ALTHOUGH THE TRADERS AND FOOD PROCESSORS THAT CLAIM FOOD AID BUILDS
VOLUME AND THEREFORE IMPACT OF SUBSIDIZED COMMER
FUTURE MARKETS ARE ACTUALLY TRYING TO DEFEND THE CONTINUED
CIAL FOOD EXPORTS AT BELOW THE COST OF PRODUCTION IS FAR ROLE OF THE 53 GOVERNMENTUSING TAXPAYER DOLLARSAS
GREATER 7HERE FOOD IS THE BEST RESOURCE TO MEET THE TODAYS CUSTOMER 4HE 53 GOVERNMENT IS A PARTICULARLY
DEMANDS OF A GIVEN SITUATION THAT FOOD IS ALMOST ALWAYS GOOD CUSTOMER BECAUSE IT PAYS A SIGNIlCANT PREMIUM OVER
BEST SOURCED LOCALLY OR IN THE REGION WHERE THE PEOPLE COMMERCIAL PRICES WHEN IT BUYS FOOD AID TO DONATE OR SELL
FACING HUNGER LIVE
53 FARMERS NEED THE HELP
&OOD AID SOLVES THE PROBLEM OF OVER
PRODUCTION &OOD AID CONTRIBUTIONS ARE SIMPLY TOO SMALL TO MAKE
IN THE 5NITED 3TATES A DIFFERENCE TO THE PRICE A FARMER RECEIVES &ARMERS DO
4HE 53 HAS MORE FOOD THAN IT KNOWS WHAT TO DO NOT SELL FOOD AID TO THE GOVERNMENT GRAIN lRMS DO !ND
WITHENOUGH TO MAINTAIN CURRENT EXPORT LEVELS AND STILL WHILE THOSE CONTRACTS CAN BE LUCRATIVE FOR THE lRMS IN
GIVE EACH !MERICAN TWICE THEIR RECOMMENDED DAILY LEVEL VOLVED THERE IS NO EVIDENCE THAT THE ABOVE
MARKET PRICE
OF CALORIES !MIDST THIS PLENTY MILLIONS OF !MERICANS THE GOVERNMENT PAYS TO THE GRAIN AND PROCESSING lRMS
LIVE WITH HUNGER PROVING THAT ADEQUATE SUPPLY IS NOT THE FOR FOOD AID MAKES ANY DIFFERENCE TO THE PRICE THESE lRMS
ONLY BARRIER TO FOOD SECURITY 4HE 53 SHOULD CONFRONT PAY TO FARMERS WHEN THEY BUY THE GRAIN 4HERE ARE A FEW
THE PROBLEM OF OVER
SUPPLY AT ITS SOURCE EXCESSIVE EXCEPTIONS TO THIS FOR INSTANCE DRIED PEAS LENTILS AND
PRODUCTION 4HE LONG
TERM HARM THAT RESULTS FROM THE RAISINS FOR WHICH THE FARMERS ARE ORGANIZED INTO COOP
LACK OF 53 CONTROLS ON COMMODITY PRODUCTION IS ONE OF ERATIVES THAT HANDLE THE MARKETING OF THE CROP AND THESE
THE REASONS THAT WORLD MARKETS IN MANY COMMODITIES COOPERATIVES HAVE FOCUSED ON 53 FOOD AID PROGRAMS
ARE DEPRESSED $EPRESSED WORLD COMMODITY MARKETS AS THEIR PREFERRED CUSTOMER )N THESE EXCEPTIONAL CASES
WORSEN CONDITIONS FOR THOSE THAT ARE MOST VULNERABLE FOOD AID IS A PRIMARY MARKETING CHANNEL 4HE STRATEGY
TO HUNGER SMALLHOLDER FARMERS AND LANDLESS AGRICULTURAL HAS WORKED FOR THE FEW PRODUCERS INVOLVED BUT HARDLY
LABORERS 53 FOOD AID IS NOW PART OF THE EDIlCE USED TO QUALIlES AS HELPING NEEDY FARMERS &OR THE REST ALTHOUGH
JUSTIFY CONTINUING THE POLICY OF UNMANAGED AGRICULTURAL FARMERS TEND TO BELIEVE THAT FOOD AID IS AN IMPORTANT MAR
PRODUCTION IN THE 53 &OOD AID SHOULD NOT DEPEND ON KET FOR THEIR CROPS IN FACT IT IS STATISTICALLY INSIGNIlCANT
THE 53 ALLOWING UNMANAGED AGRICULTURAL PRODUCTION )F WE WANT TO HELP 53 FARMERS THERE ARE MANY POLICY
CHANGES THAT COULD AND SHOULD BE ADOPTED AND URGENTLY
(OWEVER USING A PROGRAM OSTENSIBLY TO STEM THE HUMAN
CATASTROPHE OF HUNGER IS NOT THE PLACE TO START
IATPORG
&OOD AID BUYS THE 53 GOODWILL IN THE WORLD &OOD AID IS ALWAYS BAD FOR LOCAL PRODUCERS
&OOD AID HAS SIGNIlCANT DIPLOMATIC COSTS )T ANTAGO
4HERE ARE CLEAR PROVEN INSTANCES WHEN IN
KIND
NIZES OTHER EXPORTING COUNTRIES WHICH SEE THE FOOD AID AS FOOD AID SHIPMENTS HAVE HURT PRODUCERS IN RECIPIENT OR
AN EXPORT SUBSIDY &OOD AID CAN SPARK POWERFUL HOSTILE RE
NEARBY COUNTRIES 0ROGRAM FOOD AID HAS CONSISTENTLY
ACTIONS WHEN DONORS USE FOOD FOR POLITICAL REASONS TO PRES
BEEN SHOWN TO BE THE WORST OFFENDER 4HERE ARE MANY
SURE OR TO REWARD RECIPIENT GOVERNMENTS 4HE RECENT FRACAS MORE CASES WHERE THERE IS NO EVIDENCE ONE WAY OR THE
OVER FOOD AID TO .ORTH +OREA IS AN EXAMPLE 7HETHER THE OTHER ON HOW INDIVIDUAL FARM HOUSEHOLDS OR EVEN WHOLE
WITHDRAWAL OF 53 FOOD AID COMMITMENTS TO .ORTH +OREA COMMUNITIES HAVE BEEN AFFECTED BY FOOD AID 3OME OF
IN -AY WAS BECAUSE .ORTH +OREA IS NOT COOPERATING THE LARGEST FORMER RECIPIENTS OF FOOD AID INCLUDING )NDIA
WITH 53 OBJECTIVES TO LIMIT ITS NUCLEAR PROGRAM ORAS )NDONESIA AND 6IET .AM ARE NOW SELF
SUFlCIENT IN FOOD
53 GOVERNMENT OFlCIALS INSISTBECAUSE OF PROBLEMS EN
OR EVEN EXPORT SOME FOODALTHOUGH FOOD AID WAS NOT A
SURING THAT FOOD AID REACHES THE PEOPLE THAT NEED IT THERE DECISIVE FACTOR IN THIS DEVELOPMENT 4HE EVIDENCE SUG
IS UNQUESTIONABLY A STRONG APPEARANCE OF USING FOOD AS A GESTS MOST OF THE COMMERCIAL SALES DISPLACED BY FOOD
POLITICAL WEAPON 4HE RESULT CAN BE EXACTLY THE OPPOSITE OF AID HURT RIVAL EXPORTERS RATHER THAN LOCAL PRODUCERS !T
THE GOODWILL THAT THE 53 GOVERNMENT WANTS ITS BEST FOOD AID CAN MAKE A POSITIVE CONTRIBUTION TO
THE LONG
TERM OUTLOOK FOR LOCAL AGRICULTURE WHICH IN TURN
&OOD AID IS hCLEANERv THAN CASH HELPS THE WIDER ECONOMY 0OTENTIAL BENElTS INCLUDE
*UST AS FOOD BANKS AND FOOD STAMPS SEEM TO AP
THE RELEASE OF INCOME FOR NON
FOOD PURCHASES AND THE
PEAL MORE TO TAXPAYERS IN THE 53 THAN AN ABOVE POV
PROVISION OF A SAFETY NET AGAINST HUNGER
RELATED DISEASE
ERTY
LEVEL MINIMUM WAGE OR WELFARE SYSTEM SO IN
KIND 4O ACHIEVE THESE BENElCIAL OUTCOMES FOOD AID MUST
FOOD AID SEEMS TO APPEAL TO THE PUBLIC CONSCIENCE AS BE PROPERLY MANAGED SO THAT IT REACHES THOSE WHO GEN
SOMEHOW BETTER THAN A lNANCIAL CONTRIBUTION 4HE SENSE UINELY NEED IT WITH MINIMAL hLEAKAGEv TO OTHERS -OST
IS THAT CASH IS MORE EASILY STOLEN OR MISAPPROPRIATED IMPORTANTLY THE BENElTS IN NO WAY DEPEND ON IN
KIND
PARTICULARLY GIVEN THE HIGH LEVELS OF CORRUPTION IN SOME DONATIONS OR MONETIZED FOOD AIDQUITE THE OPPOSITE
RECIPIENT STATES AND THE LAWLESSNESS OF SOME OTHERS ,OCAL OR TRIANGULAR PURCHASES OF FOOD AID GRANTS OFFER THE
4HERE IS SOME TRUTH TO THIS (OWEVER FOOD CAN ALSO BE SAME BENElTS WITHOUT THE DISADVANTAGES
MISAPPROPRIATED AS THE MISUSE OF FOOD AID BY WARRING
PARTIES IN THE 3UDAN ILLUSTRATES -OREOVER CASH HAS !LL FOOD AID IS PROCYCLICAL LESS IS SENT WHEN MORE
IMPORTANT ADVANTAGES INCLUDING ITS VERSATILITY 7HILE ALL IS NEEDED
CASH FOR ONLY LOCAL FOOD PURCHASES WOULD BE IMPRACTI
3OME FOOD AID IS UNDOUBTEDLY PROCYCLICAL MORE
CAL AND PROBABLY BAD IN A NUMBER OF CASES SINCE FOOD IS AVAILABLE WHEN WORLD PRICES ARE DEPRESSED AND DE
SCARCITY IS PART OF THE PROBLEM FOOD AID IS DESIGNED TO VELOPING COUNTRIES LEAST NEED THE HELP 3OME DONORS
ADDRESS A LOT MORE CASH FOR A MUCH HIGHER PERCENTAGE PARTICULARLY THE 53 DO PROVIDE MORE FOOD AID WHEN
OF BOTH LOCAL AND TRIANGULAR FOOD AID PURCHASES WOULD BE COMMERCIAL PRICES ARE DEPRESSED 0ROGRAM FOOD AID IS
A MUCH MORE STRATEGIC INVESTMENT OF FOOD AID RESOURCES PARTICULARLY VULNERABLE TO THIS TENDENCY (OWEVER SOME
THAN THE CURRENT RELIANCE ON TIED IN
KIND AID ,IKE ANY FOOD AID IS COUNTER
CYCLICAL PARTICULARLY THAT OF THE 7&0
PUBLIC OR COMMERCIAL TRANSACTION ALL FOOD AIDIN
KIND !SSESSMENTS NEED TO SEPARATE OUT THE 53 CONTRIBUTION
OR CASHNEEDS TO BE MONITORED TO AVOID CORRUPTION AND FROM THE GLOBAL TOTAL 53 FOOD AID IS MUCH MORE VOLATILE
MISUSE "UT PROPERLY MANAGED AND RAPIDLY DISPENSED THAN THAT OF THE %5 AND ITS MEMBERS STATES WHICH
CASH IS A MUCH MORE EFFECTIVE TOOL TO DELIVER FOOD TO COLLECTIVELY ARE THE NEXT
BIGGEST FOOD AID CONTRIBUTOR
PEOPLE IN NEED THAN IN
KIND FOOD AID 4ABLE 3 SHOWS THE FOOD AID mOWS FROM THE %5 AND THE
53 OVER YEARS "OTH 53 AND %5 CONTRIBUTIONS
4HERE ARE ALSO A FEW MYTHS ABOUT THE PROBLEMS CAUSED FELL MARKEDLY IN AND YEARS OF UNUSUALLY HIGH
BY FOOD AID THAT NEED TO BE CORRECTED GRAIN PRICES BUT THE 53 CONTRIBUTION FELL MUCH MORE
53 &OOD !ID
0ART OF THE NEGATIVE PRO
CYCLICAL EFFECT EXISTS BECAUSE RESOURCES ARE PROVIDED IN CASH AND MOST OF THE FOOD THE
WHEN FOOD PRICES ARE HIGHER BUDGET ALLOCATIONS FOR FOOD 7&0 BUYS IS BOUGHT IN DEVELOPING COUNTRIES A PRACTICE
AID BUY LESS FOOD CREATING A LINK BETWEEN HIGHER WORLD THAT REALIZES CONSIDERABLE SAVINGS BY AVOIDING TRANSCON
PRICES AND LOWER FOOD AID VOLUMES 7&0 PURCHASES ARE TINENTAL SHIPPING OF BULK COMMODITIES
SOMEWHAT PROTECTED FROM THIS EFFECT BECAUSE HALF THEIR
'RAPH #OMPARISON OF %5 AND 53 FOOD AID mOWS
53! %5
3OURCE 70& ).4%2&!)3 7ORLD &OOD -ONITOR -AY 3ECTION
P
IATPORG
; =
7 ( / " % . % & ) 43 & 2 / - 5 3 & // $ ! ) $
4
O UNDERSTAND THE POLITICS OF US FOOD AID PARTICULARLY THE GOVERNMENTS RELUCTANCE
TO REFORM FOOD AID IN LINE WITH INTERNATIONALLY RECOGNIZED BEST PRACTICES IT IS ESSENTIAL TO UNDER
STAND WHO BENElTS FROM THE EXISTING SYSTEM 4HREE INTEREST GROUPS SUPPORT THE STATUS QUO ON
53 FOOD AID AGRIBUSINESS lRMS ESPECIALLY FOOD PROCESSORS BUT ALSO SOME FARMER COOPERATIVES
MARITIME COMPANIES AND A SMALL BUT POWERFUL GROUP OF NON
GOVERNMENTAL ORGANIZATIONS OR PRIVATE VOLUNTARY
ORGANIZATIONS 06/S AS THEY ARE MORE COMMONLY KNOWN IN THE 53 3OME FOOD
AID ANALYSTS REFER TO THIS
GROUP AS THE hIRON TRIANGLEv BECAUSE OF THEIR STRANGLEHOLD ON FOOD AID PRACTICE 7HILE THEIR GOALS AND ACTIVITIES
DIFFER GREATLY THESE THREE INTEREST GROUPS COOPERATE TO PERPETUATE FOOD AID PROGRAMS IN THEIR CURRENT FORM !LL
THREE USE THE SAME MYTHS TO RATIONALIZE FOOD AID
!GRIBUSINESS
!GRIBUSINESS COMPANIES BID ON FOOD AID CONTRACTS OFFERED BY THE 53$! &ARM 3ERVICE !GENCY &3! 53
LAW REQUIRES THAT A MINIMUM OF PERCENT OF 53 FOOD AID BE SOURCED FORTIlED PROCESSED AND BAGGED IN
THE 53 /NLY A LIMITED NUMBER OF lRMS ARE QUALIlED TO BID ON THE PROCUREMENT CONTRACTS AND A FEW LARGE
CORPORATIONS DOMINANT )N JUST TWO lRMS #ARGILL AND !RCHER
$ANIELS -IDLAND !$- WON THE CON
TRACTS TO PROVIDE A THIRD OF ALL 53 FOOD AID SHIPMENTS "ARRETT AND -AXWELL COMPARED OPEN MARKET PRICES
WITH PROCUREMENT PRICES UNDER FOOD AID CONTRACTS AND CALCULATE THAT THE 53 GOVERNMENT WAS PAYING UP TO
PERCENT MORE THAN THE PREVAILING DOMESTIC MARKET PRICE FOR MAIZE CORN /N AVERAGE ACROSS A NUMBER OF
COMMODITIES THE GOVERNMENT WAS PAYING PERCENT MORE THAN OPEN MARKET PRICES FOR FOOD AID "ARRETT AND
-AXWELL CONCLUDE hxFOOD IS NO LONGER A RELATIVELY CHEAP FORM IN WHICH TO PROVIDE AID )NDEED FOOD AID AS
PRESENTLY PRACTICED BY THE 5NITED 3TATES IS NOT NECESSARILY EVEN A CHEAP WAY TO PROVIDE FOODv
!GRIBUSINESS IN THE 53 IS A HIGHLY CONCENTRATED BUSINESS THREE lRMS #ARGILL !$- AND :EN .OH EXPORT
OVER PERCENT OF 53 CORN AND OVER PERCENT OF 53 SOYBEANS THREE lRMS #ARGILL !$- AND #ONAGRA
DOMINATE mOUR MILLING THREE lRMS "UNGE !$- AND #ARGILL HAVE PERCENT OF THE 53 SOYBEAN CRUSH
ING BUSINESS AND THREE lRMS #ARGILL #ENEX (ARVEST 3TATES AND !$- DOMINATE EXPORT TERMINAL HAN
DLING FACILITIES WHICH ARE ESSENTIAL TO SHIPPING THE GRAIN OUT 4HIS DOMINANCE IS THE MAIN REASON JUST TWO
lRMSAND NOT JUST ANY TWO lRMS BUT #ARGILL AND !$-HANDLE SO MUCH 53 FOOD AID
53 FARMERS NEITHER EXPORT FOOD NOR HANDLE FOOD AID CONTRACTS $EMAND FOR SOME FARMERS PRODUCTS IN
SOME YEARS MAY BE INCREASED SLIGHTLY BY 53 FOOD AID PURCHASES (OWEVER THESE PURCHASES FOR ALL BUT A TINY
NUMBER OF COMMODITIES ARE TOO SMALL TO AFFECT FARMGATE PRICES WHICH ARE DETERMINED BY THE MUCH MUCH
LARGER COMMERCIAL MARKETS AND THE POLICIES OF THE DOMINANT AGRIBUSINESS lRMS
3HIPPING #OMPANIES
4HE SECOND AND PERHAPS MOST IMPORTANT BENElCIARY OF 53 FOOD AID PROGRAMS ARE SHIPPING AND MARITIME
INTERESTS 53 LAW STIPULATES THAT PERCENT OF ALL FOOD AID MUST BE TRANSPORTED ON SHIPS mYING 53 mAGS
4HE PERCENTAGE WAS INCREASED FROM PERCENT IN THE FARM LEGISLATION AGAINST THE WISHES OF 53$!
53 &OOD !ID
53!)$ AND FARM GROUPS
4HE 53 SHIPPING INDUSTRY BENElTS HANDSOMELY FROM A NUMBER OF GOVERNMENT SUBSIDIES 53 SHIPPING
lRMS RECEIVE A STANDING SUBSIDY FROM THE $EPARTMENT OF $EFENSE BECAUSE #ONGRESS CONSIDERS THE MAIN
TENANCE OF A CIVILIAN 53 mEET TO BE A NATIONAL SECURITY CONCERN 4HE lRMS ARE DISQUALIlED FROM RECEIVING
THEIR STANDING SUBSIDY WHEN THEY CARRY MORE THAN A lXED TONNAGE OF BULK FOOD AID (OWEVER THERE IS A
LOOPHOLE THAT ALLOWS THEM TO COLLECT THE STANDING SUBSIDY AND THE PAYMENT FOR TRANSPORTING FOOD AID IF THE
FOOD AID THEY SHIP IS ALREADY BAGGED RATHER THAN IN BULK 4HE SHIPPING INDUSTRY WAS NATURALLY A SIGNIlCANT
SUPPORTER OF THE FARM LEGISLATION PROVISION TO INCREASE TO PERCENT THE AMOUNT OF NON
EMERGENCY
FOOD AID THAT HAD TO BE BAGGED BEFORE LEAVING THE 53 !CCORDING TO "ARRETT AND -AXWELL h)N THE
PERIOD NEARLY PERCENT OF TOTAL COSTS OF 53 FOOD AID PROGRAMS WERE PAID TO 53 SHIPPING COMPANIESv
53 SHIPPERS ARE FAILING AS BUSINESSES 53 CARRIERS NOW HANDLE ONLY PERCENT OF 53 IMPORTS AND EXPORTS
EXCLUDING FOOD AID 5SING
DATA THE 53 'ENERAL !CCOUNTING /FlCE '!/ ESTABLISHED THAT
53 BULK CARRIERS COST PERCENT MORE THAN FOREIGN BULK CARRIERS OVER THE SAME ROUTES AND SHIPPING THE
SAME COMMODITIES "ARRETT AND -AXWELL USED THE SAME METHODOLOGY TO ANALYZE THE
DATE FOR
B AND &OOD FOR 0ROGRESS SHIPMENTS AND FOUND THE PREMIUM FOR USING 53 SHIPS HAD GONE UP TO
PERCENT
!CCORDING TO THE '!/ ONLY SHIPPING lRMS WERE QUALIlED TO BID ON FOOD AID CONTRACTS IN THE S
)N "ARRETT AND -AXWELL COUNTED ONLY APPROVED 53 SHIPPERS )NEVITABLY THE RESTRICTIONS LIMIT
COMPETITION AND INCREASE COSTS &REIGHT FORWARDERS POSE A FURTHER BIG PROBLEM FOR COMPETITIVENESSFREIGHT
FORWARDERS ARE THE COMPANIES THAT ACT FOR THE OPERATIONAL AGENCIES SUCH AS #!2% #ATHOLIC 2ELIEF 3ERVICES
OR 7&0 6ERY FEW COMPANIES ARE BOTH WILLING AND ELIGIBLE TO HANDLE FOOD AID FOR THE OPERATIONAL AGENCIES
"ARRETT AND -AXWELL ANALYZED THE CONTRACTS GRANTED IN lSCAL YEAR AND FOUND THAT JUST FOUR FREIGHT
FORWARDERS HANDLED PERCENT OF THE FOOD AID IN VOLUME TERMS THAT YEAR
*UST AS FOOD AID IS NOT SIGNIlCANT ENOUGH A SHARE OF GLOBAL TOTALS TO MAKE A DIFFERENCE TO THE PRICE RECEIVED BY
FARMERS AT THE FARMGATE SO IT IS NOT PARTICULARLY SIGNIlCANT AS A SHARE OF THE GLOBAL SHIPPING BUSINESS -OST OF
THE 53 SHIPPING COMPANIES INVOLVED IN FOOD AID MAKE THEIR REAL MONEY ON CONTAINER VESSELS WHERE THEY ARE
MORE COMPETITIVE &OOD AID BRINGS IN A TIDY AND RELIABLE PROlT SAFE FROM COMPETITION BUT ONLY A SMALL NUMBER
OF SHIPPERS WOULD GO BANKRUPT WITHOUT IT 4HE 53 SHIPPING INDUSTRY IS NOT MAINTAINED BY FOOD AID BUT 53
FOOD AID IS RENDERED MUCH LESS EFlCIENT THAN IT MIGHT BE BY RESTRICTIONS ON WHO IS ELIGIBLE TO SHIP IT
0RIVATE 6OLUNTARY /RGANIZATIONS AND -ONETIZATION
0RIVATE VOLUNTARY ORGANIZATIONS 06/S COMPRISE THE THIRD ARM OF THE IRON TRIANGLE "ARRETT AND -AXWELL
REVIEWED THE NUMBERS FOR EIGHT OF THE MAIN .'/S ENGAGED IN FOOD AID 4OGETHER THESE EIGHT .'/S HAD
ALMOST BILLION IN GROSS REVENUES IN AND THREE ALONE #!2% 7ORLD 6ISION AND #ATHOLIC 2ELIEF
3ERVICES ACCOUNT FOR WELL OVER FOUR
lFTHS OF THIS TOTAL 4HE EIGHT REVIEWED WERE !DVENTIST $EVELOPMENT
AND 2ELIEF !GENCY )NTERNATIONAL !FRICARE #!2% #ATHOLIC 2ELIEF 3ERVICES #23 &OOD FOR THE (UN
GRY )NTERNATIONAL 0ROJECT #ONCERN )NTERNATIONAL 4ECHNOSERVE AND 7ORLD 6ISION "ARRETT AND -AXWELL
CALCULATED THAT FOOD AID WAS WORTH AN AVERAGE OF PERCENT OF THESE EIGHT ORGANIZATIONS GROSS REVENUES IN
4HE 06/S INTEREST IN PROTECTING THE STATUS QUO IS LESS OBVIOUS THAN THAT ON THE PRIVATE COMPANIES INVOLVED
IATPORG
!FTER ALL THE 06/S CREDIBILITY DEPENDS ON DELIVERING AND BEING SEEN TO DELIVER HELP THAT GOES STRAIGHT TO
THOSE IN NEED MAKING A REAL DIFFERENCE ON THE GROUND IN DEVELOPING COUNTRIES 4HESE AGENCIES PRIDE THEM
SELVES KEEPING THEIR OVERHEAD COSTS LOW AND ARE COMMITTED TO THE ERADICATION OF POVERTY 4HIS MAKES THEIR
ACTIVE LOBBYING TO PRESERVE THE STATUS QUO AROUND FOOD AID MUCH MORE DIFlCULT TO JUSTIFY THAN THE LOBBYING
OF lRMS WHOSE OBLIGATION IS TO MAXIMIZE CORPORATE PROlTS )N FACT MOST .'/S WOULD PROBABLY PREFER TO
MANAGE lNANCIAL RESOURCES THAN TO ACT AS FOOD BROKERS TO FUND THEIR DEVELOPMENT WORK
4HE TRAP FOR THESE .'/S IS DEPENDENCE ON MONETIZATION THE RELATIVELY NEW BUT RAPIDLY EXPANDING FEATURE
OF PROJECT FOOD AID -ONETIZATION IS THE SALE OF FOOD AID ON LOCAL MARKETS IN DEVELOPING COUNTRIES TO GENERATE
FUNDS FOR DEVELOPMENT PROJECTS /RIGINALLY LIMITED MONETIZATION WAS ALLOWED TO ENABLE 06/S TO COVER THE
lNANCIAL COSTS ASSOCIATED WITH HANDLING FOOD AID STORAGE FOR EXAMPLE 3INCE HOWEVER MONETIZA
TION HAS BECOME AN IMPORTANT REVENUE STREAM FOR 06/S FUNDING OF THEIR ONGOING DEVELOPMENT WORK 4HE
PROBLEM IS UNIQUELY !MERICAN BECAUSE OTHER AID
DONOR GOVERNMENTS PROVIDE MUCH OF THEIR FOOD AID IN THE
FORM OF CASH SO FEW NON
53 .'/S ARE TEMPTED TO SELL FOOD AID TO COVER THEIR COSTS
!CCORDING TO %D #LAYS STUDY FOR THE /%#$ h-ONETISATION OF 53 DEVELOPMENT FOOD RESOURCES ;x
PROVIDED UNDER 0, 4ITLE ))= BY .'/S INCREASED FROM IN TO OVER IN AND v
)N PERCENT OF 53 FOOD AID UNDER 0, 4ITLE )) VALUED AT MILLION WAS MONETIZED AS WAS A
PORTION OF B AND OTHER IN
KIND 53 FOOD AID
4HE 06/S ARE CAUGHT FOR SEVERAL REASONS LARGE SUMS OF MONEY ARE INVOLVED RELATIVE TO .'/S NON
FOOD
AID REVENUES THE MONEY COMES WITH RELATIVELY FEW STRINGS ATTACHED AND FOOD AID SHIPMENTS ARE GOOD FOR
THE BOOKS BECAUSE A RELATIVELY LARGE SUM OF MONEY CAN BE REALIZED FOR RELATIVELY LITTLE ADMINISTRATIVE COST
!ND THEY FEAR THAT ATTEMPTS TO REFORM FOOD AID WILL SIMPLY END FOOD AID ALTOGETHER WHEN POLITICALLY POWER
FUL 53
BASED AGRIBUSINESS AND 53 MARITIME SHIPPERS LOSE THEIR STAKE IN THE SYSTEM
2EQUESTS FOR FOOD AID FOR MONETIZATION HAVE TO MEET THE CRITERIA SET OUT BY A MEASURE CALLED THE h"ELLMON
$ETERMINATIONv AND PROVIDE AN ANALYSIS OF THE 5SUAL -ARKETING 2EQUIREMENT 4HESE CRITERIA REQUIRE ANY
AGENCY REQUESTING FOOD AID FOR A PROJECT TO DEMONSTRATE THAT THE RECIPIENT PORT INFRASTRUCTURE STORAGE AND
HANDLING CAPACITY IS ABLE TO HANDLE THE FOOD AID SHIPMENT PROPOSED AND THAT THE PROGRAM WILL NOT DAMAGE
EITHER LOCAL PRODUCTION OR THE INTERESTS OF COMMERCIAL IMPORTERS )N PRACTICE THE "ELLMON $ETERMINATION
HAS PROVED INSUFlCIENT AS A WAY TO BLOCK SALES OF FOOD AID THAT DISRUPT LOCAL MARKETS
4HE SALE OF PROGRAM FOOD AID USING EXPORT CREDITS AND MONETIZATION TOGETHER ATTRACT THE MOST HOSTILE ATTEN
TION AT THE 74/ 3INCE THE FOOD AID IS NOT TARGETED TO RECIPIENTS WHO LACK PURCHASING POWER TO BUY FOOD IN
THE MARKET AND BECAUSE THE FOOD AID IS IN DIRECT COMPETITION WITH LOCAL PRODUCERS AND COMMERCIAL MARKET
IMPORTS MONETIZED FOOD AID NEITHER MEETS THE CRITERIA FOR BEST FOOD AID PRACTICE NOR SATISlES LONG
STANDING
REQUIREMENTS ESTABLISHED BY THE INTERNATIONAL COMMUNITY TO PROTECT COMMERCIAL MARKETS FROM THE USE OF
FOOD AID TO UNDERCUT COMMERCIAL SALES
)S 53 FOOD AID WORSE THAN OTHERS
4WO THINGS STAND OUT ABOUT 53 FOOD AID /NE AS IT CONTRIBUTES ROUGHLY PERCENT OF THE GLOBAL TOTAL WHAT
THE 53 DOES REALLY MATTERS IN THE FOOD AID WORLD 4WO THE 53 HAS CONTINUED TO SPEND A LOT OF MONEY ON
EXPENSIVE AND SOMETIMES DAMAGING KINDS OF FOOD AID RATHER THAN SHOWING LEADERSHIP TOWARDS BEST PRACTICE
)T IS NOT THAT THE 53 IS ALONE IN ITS BAD HABITS #ANADIANS HAVE AN EVEN HIGHER DOMESTIC PROCUREMENT REQUIRE
53 &OOD !ID
MENT WITH A PERCENT MINIMUM THRESHOLD FOR IN
KIND FOOD AID 3OUTH +OREA ALSO SELLS FOOD AID RATHER
THAN PROVIDING ONLY GRANTS 4HE %5 DISBURSEMENT OF FOOD AID FUNDS IS SO SLOW THAT THE TIMING OF THEIR
ASSISTANCEA CRITICAL VARIABLE IN ASSURING GOOD RESULTSCAN MAKE IT LESS USEFUL THAN IN
KIND DONATIONS EVEN
THOUGH THESE HAVE TO BE PROCURED AND SHIPPED FROM THOUSANDS OF MILES AWAY *APAN USES FOOD AID TO GET RID OF
UNWANTED RICE IMPORTS FORCED ON IT BY THE 74/ !GREEMENT ON !GRICULTURES MINIMUM IMPORT REQUIREMENT
FOR COUNTRIES THAT DID NOT CONVERT MARKET ACCESS BARRIERS INTO TARIFFS .ONETHELESS MOST FOOD AID DONORS HAVE
MADE IMPORTANT REFORMS TO THEIR FOOD AID PROGRAMS IN RECENT YEARS THE 53 HAS NOT
4HE MAIN PROBLEMS WITH 53 FOOD AID ARE
&OOD AID SALES UNDER 4ITLE OF 0, !LTHOUGH PROGRAM FOOD AID IS NOW LESS THAN A TENTH
ITS FORMER SIZE THE 53 CONTINUES TO SELL FOOD AID
4HE INSISTENCE ON MINIMUM LEVELS OF 53 PROCUREMENT PROCESSING BAGGING AND SHIPPING
"EST PRACTICE WOULD CREATE A MORE mEXIBLE SYSTEM DESIGNED TO BE RESPONSIVE TO RECIPIENTS NEEDS
4HE %5S GREATER RELIANCE ON LOCAL AND TRIANGULAR PURCHASES CONTRIBUTES TO SHIPPING COSTS OF
LESS THAN ONE HALF THOSE PAID BY THE 53 4HE "USH ADMINISTRATION THIS YEAR PROPOSED CARVING
OUT A FURTHER MILLION FOR LOCAL AND TRIANGULAR FOOD AID FROM EXISTING FOOD AID RESOURCES
#ONGRESS ENCOURAGED BY FOOD AID 06/S AND OTHER LOBBYISTS FOR THE STATUS QUO REJECTED THE
PROPOSAL
4HE TIME LAG CREATED BY INSISTING ON IN
KIND FOOD AID &OOD AID SHIPMENTS FROM THE 53
TAKE AN AVERAGE OF lVE MONTHS TO REACH THEIR DESTINATIONMAKING THEM POINTLESS FOR RAPID
RESPONSE AND POTENTIALLY HARMFUL IF THE SHIPMENTS ARRIVE AT A TIME WHEN DOMESTIC PRODUCTION
IS AVAILABLE IN THE MARKET )T IS TRUE THE %5 HAS BUREAUCRATIC PROBLEMS WITH THE DISBURSEMENT
OF ITS FOOD AID CASH THAT CAN MAKE ITS LOCAL AND REGIONAL PURCHASES SLOW AS WELL 4HIS SITUATION
HAS TO BE IMPROVED "UT THE 53 WILL NOT BE ABLE TO IMPROVE ITS PERFORMANCE UNTIL IT MOVES
TOWARDS AN UNTIED SYSTEM THAT FAVORS FOOD PURCHASES IN DEVELOPING COUNTRIES NEAR WHERE THE
FOOD AID IS NEEDED
)N KIND FOOD AID WASTES MONEY !N /%#$ STUDY PUBLISHED IN DETERMINED THAT IN KIND
FOOD AID BY CONSERVATIVE ESTIMATES IS AT LEAST PERCENT MORE COSTLY PER METRIC TON THAN
THE MUCH SMALLER PORTION OF FOOD AID THAT IS PURCHASED IN THIRD COUNTRIES &OOD AID THAT IS
PURCHASED IN THE RECIPIENT COUNTRY USUALLY COSTS LESS THAN FOOD PURCHASED IN THE OPEN GLOBAL
MARKET AND FAR LESS THAN FOOD AID PROCURED IN DONOR COUNTRIES
&OOD AID NEEDS A SINGLE GOVERNMENT HOME WITH AN AGENCY THAT IS RESPONSIVE TO RECIPIENT NEEDS
AND WHICH KNOWS HOW TO WORK WITH THE MULTILATERAL COMMUNITY ENGAGED IN RESPONDING TO
EMERGENCIES AND FOSTERING LONG TERM FOOD SECURITY 53$! THE $EPARTMENT OF $EFENSE AND
MANY OF THE OTHER AGENCIES INVOLVED IN 53 FOOD AID HAVE LIMITEDIF ANYDEVELOPMENT EX
PERIENCE AND NO NATURAL CONSTITUENCY PUSHING TO ENSURE THEIR PROGRAMS SERVE PEOPLE LIVING WITH
HUNGER OVERSEAS 4HESE ARE NOT THE AGENCIES THAT SHOULD RUN 53 FOOD AID ALLOCATIONS )N
THE &ARM "ILL DECLARED THE SOLE PURPOSE OF ALL 53 FOOD AID TO BE FOOD SECURITY )T IS TIME ITS
ADMINISTRATION REmECTED THAT WORTHY AMBITION
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#ONTINUED LINKS BETWEEN LEVELS OF DOMESTIC PRODUCTION THE STORAGE OF DOMESTIC COMMODITIES
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TRUST PAYS PRIVATE COMPANIES TO STORE FOOD AGAINST POSSIBLE SHORTFALLS THE RESULT IS THE COMPA
NIES INVOLVED HAVE BECOME AN ACTIVE LOBBY TO STOP THE COMMODITIES BEING USED THEY ARE ONLY
PAID IF THEY HOLD THE GRAIN IN THEIR SILOS 3IMILARLY WHEN GRAIN PRICES FELL IN THE LATE S
53 PROGRAM FOOD AID SALES JUMPED ! TIGHTER ADMINISTRATION OF FOOD AID AND CLEARER MANDATE
FOR THE PROGRAMS AS A WHOLE COULD AVOID THE IMPOSITION OF DOMESTIC CONCERNS ON WHAT SHOULD
BE A PROGRAM THAT SERVES SOME OF THE WORLDS POOREST PEOPLE
!T THE MOMENT THE THREE SIDES OF THE IRON TRIANGLE ARE JOINED BY SOME FARM ORGANIZATIONS TO SUPPORT FOOD
AID &ARMERS REALLY HAVE NOTHING TO GAIN FROM FOOD AID AS IT IS NOW STRUCTURED 06/S GAIN LARGE AMOUNTS
OF MONEY FOR THEIR WORK BUT AT A HIGH PRICE THEIR LEGITIMACY IS CALLED INTO QUESTION BECAUSE OF THEIR SUPPORT
FOR PRACTICES THAT ARE REJECTED BY THE INTERNATIONAL FOOD AID COMMUNITY FOR THEIR COUNTER PRODUCTIVE EFFECTS
IN DEVELOPING COUNTRIES
-OST OF THE TRANSNATIONAL 53 HEADQUARTERED AGRIBUSINESSES INVOLVED IN PROVIDING FOOD AID ARE SUPPORTIVE
OF DEEPER TRADE LIBERALIZATION THROUGH THE 74/ FOOD AID CONTRACTS ARE LUCRATIVE BUT HARDLY WORTH THE TRADE
OFF IF 53 REFUSAL TO REFORM ITS FOOD AID PUTS OTHER COUNTRIES OFF SIGNIlCANT TARIFF CUTS UNDER 74/ NEGOTIA
TIONS 4RANSNATIONAL AGRIBUSINESS IS MUCH MORE INTERESTED IN ACCESS TO LARGER DEVELOPING COUNTRY MARKETS
THAN IN PROTECTING A FEW MILLION DOLLARS WORTH OF FOOD AID "ESIDES COMPANIES LIKE #ARGILL MIGHT WELL
CONTINUE TO GET SOME OF THE ACTION WITH A SHIFT TO LOCAL OR REGIONAL SOURCING SINCE THEY ARE MAJOR PLAYERS IN
THE GRAIN MARKET IN OVER COUNTRIES WORLDWIDE ESPECIALLY WHEN CROSS
BORDER SHIPMENTS ARE INVOLVED
4HE CONSTITUENCY WITH THE MOST TO LOSE IS PART OF THE SHIPPING INDUSTRY 3O LONG AS NOT MUCH IS KNOWN
ABOUT ITS ROLE IN FOOD AID AND THE SUBSIDIES THAT ARE CONSISTENTLY PUMPED THEIR WAY THEY HAVE NOTHING TO
LOSE BY PUSHING FOR THE CURRENT FOOD AID SYSTEM .ONETHELESS IT IS UNLIKELY THEIR ROLE IN FOOD AID WOULD EARN
THEM ANY PUBLIC SUPPORT AND IT COULD EVEN BECOME A TEMPTING TARGET FOR SOMEONE IN #ONGRESS LOOKING FOR
A CRUSADE AGAINST PUBLIC BOONDOGGLES
53 &OOD !ID
; =
2 %# / - - % . $!4 ) / . 3 & / 2 # ( !. ' %
&
OOD AID IS AN IMPERFECT TOOL YET RESOURCES OF ANY KIND ARE SCARCE AND THERE IS A REAL RISK
THAT CALLS FOR CHANGE MIGHT BE USED TO ADVOCATE AN END TO ASSISTANCE ALTOGETHER )!40 JOINS THOSE
WHO ARE CALLING FOR FOOD AID PRACTICES TO BE CONVERTED NOT ABRUPTLY BANNED 3OMETIMES EVEN
SECOND OR THIRD
RATE HELP IS BETTER THAN NONE "UT THERE IS NO EXCUSE FOR SECOND
RATE HELP WHEN WE
KNOW HOW TO IMPROVE IT !S IMPORTANT AS MAKING SURE NO ONE STARVES TODAY IS ENSURING THAT FUTURE GENERA
TIONS ARE NOT DEPENDENT ON CHARITY TO MEET THEIR MOST BASIC HUMAN NEEDS
)N OTHER WORDS THERE ARE TWO ISSUES WHERE SHOULD FOOD AID BE HEADED AND WHAT TRANSITION STRATEGIES DO
WE NEED TO ENSURE THAT TODAYS FOOD AID RECIPIENTS DO NOT SUFFER "OTH ARE NECESSARY IF FOOD AID IS GOING TO
START MAKING A REAL CONTRIBUTION TO LONG TERM FOOD SECURITY 7E WILL ALWAYS NEED STRATEGIES TO PROVIDE FOOD
IN EMERGENCIES LIKE THE RECENT TSUNAMI OR IN COUNTRIES THAT ARE lGHTING WARS (OWEVER MONETIZATION
PROGRAM FOOD AID TIED FOOD AID THESE SHOULD BE TARGETED FOR PHASE OUT AS CAREFULLY AS NECESSARY TO PROTECT
PEOPLE WHO NOW DEPEND ON FOOD AID BUT WITH A CLEAR EYE TO SHIFTING SUPPORT TO MORE LASTING INVESTMENTS
IN FOOD SECURITY
"UILDING COMMERCIAL MARKETS KEEPING A SHIPPING INDUSTRY AmOAT OR OFmOADING UNWANTED COMMODITY
SURPLUSES ARE NOT ACCEPTABLE OBJECTIVES FOR 53 FOOD AID PROGRAMS )T IS IMMORAL TO DRESS UP COMMERCIAL
SELF
INTEREST AS CHARITY 53 FOOD AID DOES NOT SUPPORT HIGHER FARMGATE PRICES IN THE 53 IT FAILS TO PROMOTE
COMMERCIAL FOOD EXPORTS IT IS A POOR WAY TO ADVANCE GEOPOLITICAL GOALS AND IT HAS FAILED TO MAINTAIN A VIABLE
53 MARITIME INDUSTRY
&OOD AID NEEDS THE FOLLOWING REFORMS
4RANSITION TO UNTIED CASH BASED FOOD AID 'OOD FOOD AID NEEDS TO BE WELL TIMED PROPERLY
TARGETED AND SUPPORTED BY ADEQUATE CASHWHICH MEANS MOVING TOWARDS UNTIED AND CASH
BASED FOOD AID FOR MOST SITUATIONS AND ENSURING THAT CASH IS PROVIDED IN A TIMELY FASHION
&OOD MUST ARRIVE AT THE RIGHT TIME IF IT IS TO HELP RATHER THAN HINDER A RECOVERY OR DEVELOPMENT
PROJECT %NSURING FOOD AID IS mEXIBLENOT TIED TO DONOR RESTRICTIONS ON SOURCING PROCESSING
OR SHIPPINGIS VITAL FOR GOOD FOOD AID 6ERY LITTLE 53 FOOD AID MEETS THIS FUNDAMENTAL RE
QUIREMENT 4HE EMERGING TREND AMONG MANY OTHER DONORS TOWARDS INCREASED RELIANCE ON CASH
NOT COMMODITIES TO FUND THE PROGRAMS MUST BE ENCOURAGED &OOD AID DONORS SHOULD ENSURE
THE MONEY IS DISBURSED QUICKLY AND FAVOR LOCAL THEN REGIONAL AND ONLY AS A LAST RESORT DONOR
MARKETS TO PROCURE FOOD #ASH IS NECESSARY TO ACCOMPANY THE FOOD WHEREVER IT IS PURCHASED
BECAUSE MOVING AND STORING FOOD COSTS MONEY
0HASE OUT SALES OF FOOD AID 4HE SALE OF FOOD AID ON CONCESSIONAL TERMS FOR GOVERNMENTS AND
PRIVATE AGENCIES TO SELL AGAIN IN DEVELOPING COUNTRIES MUST END -ONETIZATION ALSO NEEDS TO BE
PHASED OUT 4HE EVIDENCE CONSISTENTLY SHOWS THAT SALES OF FOOD AID WHETHER PROGRAM AID OR
THE 06/ MONETIZATIONS OF PROJECT AID THAT NOW DOMINATE NON
EMERGENCY 53 FOOD AID ARE
THE MOST DISRUPTIVE OF LOCAL PRODUCTION LOCAL MARKETS AND THEREFORE OF LONG
TERM FOOD SECURITY
4HIS FOOD AID IS NOT TARGETED TO RECIPIENTS AT OR BELOW THE POVERTY LEVEL AND SO ALSO IS THE MOST
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DISRUPTIVE OF COMMERCIAL IMPORTS
)MPOSE STRICT LIMITS ON IN KIND FOOD AID -OVING LARGE AMOUNTS OF COMMODITY FROM ONE
PLACE TO ANOTHER ACROSS THOUSAND OF MILES IS SELDOM A GOOD USE OF RESOURCES ALTHOUGH EXCEP
TIONAL EMERGENCIES MAY MAKE IT NECESSARY ON OCCASION !LL FOOD AID NEEDS TO MOVE TOWARDS BE
ING UNTIED FROM THE OBLIGATION TO SOURCE FOOD IN THE DONOR COUNTRY )N MOST SITUATIONS SOURCING
FOOD AID NEAR THE REGION WHERE THE FOOD IS NEEDED OFFERS THE MOST PROMISING RESULTS FOR A COST
AND TIME EFFECTIVE INTERVENTION
0ROTECT AND PROMOTE PEOPLES RIGHT TO FOOD &OOD AID MUST BE PART OF A LARGER DEVELOPMENT
PROGRAM ONE THAT RECOGNIZES ACCESS TO ADEQUATE AND NUTRITIOUS FOOD AS A NECESSARY COMPONENT
FOR A LIFE LIVED WITH DIGNITY 4HE BEST FOOD AID WILL BE INTEGRATED INTO PROGRAMS THAT SUPPORT
EDUCATION HEALTH CARE ACCESS TO CLEAN WATER AND OTHER LONG
TERM INVESTMENTS IN PEOPLES CAPAC
ITY TO EARN A LIVING SUPPORT THEIR FAMILIES AND PARTICIPATE IN THEIR COMMUNITIES
0ROTECT AND PROMOTE INDIVIDUAL COUNTRYS RIGHT TO DETERMINE THEIR FOOD SECURITY STRATEGY
%XPERIENCE SHOWS MANY WAYS TO IMPROVE FOOD SECURITY &ULL LIBERALIZATION OF TRADE AND AGRI
CULTURAL POLICY IS UNLIKELY TO BE A SOLUTION FOR MANY OF THEM !GRICULTURE DOES NOT RESPOND WELL
TO THE ASSUMPTIONS OF PERFECT COMPETITION #OUNTRIES SHOULD BE ALLOWED TO MAKE INDEPENDENT
DECISIONS ON HOW TO STRUCTURE ECONOMIC INCENTIVES AND INVESTMENT REGULATIONS 4HEY SHOULD BE
ALLOWED TO DETERMINE THE MIX OF PUBLIC AND PRIVATE POLICY THEY WANT TO SUPPORT 5NDER MUL
TILATERAL RULES TO ENSURE OTHER COUNTRIES ARE NOT HARMED BY THESE CHOICES FOR EXAMPLE THROUGH
DUMPED EXPORTS INDIVIDUAL COUNTRIESPARTICULARLY DEVELOPING COUNTRIESMUST HAVE THE
mEXIBILITY TO DETERMINE THEIR OWN DEVELOPMENT
)NVEST IN AGRICULTURE !GRICULTURE IS CRITICAL TO RURAL LIVELIHOODS AND DOMESTIC MARKETS AND
THEREFORE TO WIDER ECONOMIC DEVELOPMENT &OOD AID SHOULD SUPPORT THE LARGER EFFORT TO RAISE
DOMESTIC FOOD PRODUCTION /BVIOUSLY EMERGENCIES ARISE IN WHICH NORMAL FOOD SUPPLY CHAINS
ARE DISRUPTED AND ACCESS TO FOOD IN THE SHORT TERM BECOMES THE OVERWHELMING NEED "UT MOV
ING TOWARDS LONG TERM SUSTAINABLE FOOD SECURITY REQUIRES AN EMPHASIS ON BUILDING CHOICES AND
OPPORTUNITIES NOT DEPENDENCE ON EXTERNAL AID
%STABLISH STRONG AND ENFORCEABLE MULTILATERAL GUIDELINES &OOD AID NEEDS CLEAR MULTILAT
ERAL RULES WITH APPROPRIATE MONITORING AND ENFORCEMENT MECHANISMS 4HE CURRENT &OOD !ID
#ONVENTION DOES NOT ALLOW RECIPIENT COUNTRIES A VOICE 4HE &!# SHOULD BE MOVED OUT OF THE
)NTERNATIONAL 'RAINS #OUNCIL TO THE &!/ OR PERHAPS TO A JOINT BODY THAT GIVES A PLACE TO THE
&!/ 7&0 5.)#%& 7(/ 5.(#2 AND POSSIBLY OTHER 5. PROGRAMS 4HE 5.!)$3
OFlCE PROVIDES AN EXAMPLE OF HOW A MULTI AGENCY APPROACH CAN WORK EFFECTIVELY 2ECIPIENT
COUNTRIES MUST BE GIVEN A PLACE IN THE DECISION MAKING ON THE FUTURE OF FOOD AID !LL FOOD
AID WHETHER BILATERAL OR MULTILATERAL SHOULD BE BOUND BY THE BEST PRACTICES DETERMINED BY THE
MEMBERS OF A NEW &!#
%STABLISH A SYSTEM OF REGIONAL RESERVES 2ESERVES OF EMERGENCY FOOD SHOULD BE ESTABLISHED
FOR THE MULTILATERAL SYSTEM TO CALL UPON RATHER THEN RELYING ON THE CURRENT MOSTLY AD HOC
53 &OOD !ID
SYSTEM THAT LEAVES THE 7&0 WITH LESS FOOD THAN IT NEEDS AND SENDS FOOD TO HIGH PROlLE EMER
GENCIES THAT THE DONORS PRIORITIZE RATHER THAN TO WHERE THERE IS THE GREATEST NEED 3IGNIlCANT
CHANGES IN AGRICULTURAL POLICY IN DEVELOPED AND DEVELOPING COUNTRIES ALIKE HAVE UNDERMINED
DEVELOPING COUNTRIES PUBLIC ACCESS TO FOOD RESERVES IN TIMES OF NEED
%STABLISH SUPPORTIVE MULTILATERAL TRADE RULES ON FOOD AID 4HE MULTILATERAL TRADING SYSTEM
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PRODUCERS 4HE USE OF FOOD AID TO DISPOSE OF UNWANTED SURPLUS FOOD SHOULD BE PROHIBITED AS
DUMPING
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