the state of food and agriculture 2006 pptx

Challenges in decision-making and response improving deckion-making and response 2 ood emaroancia and food id 3 External aesstance to agriculture §3 Gro, lvestock and food production Wor

THE STATE

OF FOOD, AND,

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THE STATE

OF FOOD AND

AGRICULTURE

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Food aid for food security?

3 latodacien and avers

Food ad and food secur

2 framing the debate

Food aid programming

Food aid governance

Food sid’ the context of food security

ng

3_ Etoaonicsantrsueniesnuecnnd aid

Livelhonds and fond aid

(Does fod aid cause "dependency"?

‘Does food sid undermine local sqreuture?

Does fod aid diupt comnmerial trade?

Challenges in decision-making and response

improving deckion-making and response

2 ood emaroancia and food id

3 External aesstance to agriculture

§3 Gro, lvestock and food production

World cereal supply stuation

International commodity ce tends

Table AB Trade indcators 19 Table A? Economic indicators và

‘able AB Total factor productivity mô

Special chapters of The State of Food and Agriculture 18 Selected publications 185

Food sovereignty and the right to food should aude food aid reform:

23 view from chil society ”

1 Shipments of food ad in cereals Juyune a

BOXES

2 om elena, due ned ood a 1

2 Evolution of fod aid rom surplus Taper] to food sean 18

|3CARE-USA white paper on food id policy 2 food incecurty nce content 2a

1 community-level mara hazard 3 Dependency ane humanitarian rae „ Experiences withthe Word Food Programm local procureman 3

10 Food-orswork and oes sqreutural production a2 {1 Food ai for market development ry

12 Impacts of food aid on coneumption patra =

$2 ctcalceponge qapein the Greater Hom of Anes drought, 2005-7006 se

|The ube Mountsine Programme Advancing Confit Transformation, 60

Tả Chronically underfunded crs 2 [WEP and the project or Stengihening Emergengy Needs Rueument Capaciy 65

1 UW humendarianvefrm, 2005 7

RGURES

Counties in rss requiring eternal asistance, October 2006

‘Total food ai shipments and cereal prices, 1970-2008

eves a cereal food ad shipments by donor, 1970-2005

Cereal food ad recelpts by zecpient region, 1988-2005

{Leading recipient of cereal food ald, 201-2005

{cereal food ae by category, 1978-2008,

-Aderesing vulnerabiiz the role of food aid in socal protection

Economic effects of food ad

Wielfare effects of food aid

Funding requirements and contributions

Integrated Food Security and Humanitaron Phot Clasfication Reference Table Somalia station analysis, pos-Deyr 200506 projection, January 2006,

Undernourished population by region, 2001-2003

Percentage of undernourished in the population by region, 2001-2003

“rend in number of undernourished in developing Countries, by region

“rend in percentage of undernourished in developing courte, by region Recipients of food 8

Long term trend in external assitance to agriculture, 1975-2003,

Commitments of externa assistance to agviulture, by main recipent regions changes in world total and per capita crop and livestock production

{Changes in crop and livestock production,

Long-term tend in per capita food production by region and county group World cereal production and utilization

‘Word cereal stocks and stocks to-tlaation rato

Commodity price trends

Annual change in value of global agricultural exports

Global agricultural exports

Aaricultural imports and exports, by region and county sroup

‘Worldfish production, China and rest ofthe word

Exports and import of fshery products, developed and developing countries

Pe capita fish supply from capture and aquaculture, China and rest ofthe woe

‘rid roundwood production, 1965-2008

Roundwood production, developed and developing countries, 1966-2008

Foreword

No person of conscience can deny the moral

imperative to help people who are unable to

fed themselves indeed, one ofthe oldest

forms of foreign ad is food ai Yet many

‘thoughtful servers question whether food

aid effectively promotes food security or

winter it may infact, do more harm than

soo The State of Food and Agriculture

2006 examines the issues and contioversies

‘ureoundling food ae and seeks to clarify

how food ad ean ~ and cannot support

‘sustainable improvements in food security

The Food and Agriculture Organization of

the United Nations (AO) estimates that 854

milion people inthe world lack suiclent

fod for an active and heathy life, a number

that has hardly changed since the early

19905 The World Food Programme (WFP)

provides emergency food aid tomilions of

people eath year 72 milion in 2005 alone

and the number ising rapidly with the

Increasing eae an frequency of natural

and human indice disasters,

Despite the magnitude ofthe global food

security challenge, food ad is relatively

teode, averaging about 10 milion tonnes

per year This amounts t les than 2 percent

‘of global cereal exports and less than 05

percent of global production Food aid has

‘hanged significanty in recent years Until

about a decade ago, most food aid was

provided bilaterally on a government-to-

‘Government bass and wa sold n the open

‘market in recipient countries But, curenty,

bout 75 percent of al food ad is now

tsrgeted irecy to hungry people through

emergency operations or projets addressing

chronic hunger

Food aid has rightly been credited with

‘ving millons of ives Indeed, food ad is

ten the ony thing standing between a

Starving cil and death may be the only

Fesoutce available ta prevent an earthquake

fr a hureane fom planging an entice

Community inte 8 humanitarian cris In

‘ome cases, food aid dntbuted through

‘hoo! feeding programmes provides the

small inducement necessary to keep a young tin schoo, helping to break the vicious {le that passes poverty from generation to

‘generation, Food aid, however, is frequently citcled asa donor-driven response, serving the Interests of donor rather than the food Security needs of recipients As evidence, feities point othe fact that the quantity of {00d ad avaiable from year to year vores inversely with world prices, rising when stpplies are plentiful and pices low but falling when supplies are tight and prices high just when its needed most

Some eres charge that food aid creates

“dependency” on the part of recipients, allowing them to neglect thei vin esponsibility of achieving food security, Empirical studies find that food aid flows are

‘generally 00 unpredictable and smal for Fecipients to depend an, and that concerns about such “dependency” are often misplaced Yet people ought tobe able to rely on the availability of asistance when they are unable to secure adequate food on Development specialists have long been concerned with the risk of imported food aid Uundermining loca agricultural development Food aid can depres and destabilize local market prices ifs not well managed, potentially threatening theivalinoods of Toca producers and traders upon whom long tetm foed security depends, studies Show that these destabilizing effects of food did are most severe when it arrives atthe

‘wrong time or wien itis not targeted at needy households

While the effects of food aid on local prices ae well-documented in the literature,

‘here litle evidence ta suggest that food aid significantly reduces food production in Feciplent counties This is due tothe fact that production in many ofthese countries Iseurtently more dependent on the vagaries

‘ofthe imate and other factors than on a responie to potential demand In aditon,

‘hose consumers who can buy food woul

prefer locally produced foods when food

Bid ie available at ml pies In some

{ases, food aid may actualy help afected

producers hold onto their esientialasets

uring aeriss, thereby enabling them to

resume production more readily when the

crisis pases

The risk of food ae spacing commercial

trade has aso been recognized for along

time Although foad ad can be beneficial to

Fecipient counties, enabling them to save

scarce foreign exchange, many commercial

exporters consider ito be a form of unfair

competition Thishas been one ofthe mast

‘contentious sues discussed in the Doha

Round of Weld Trade Organization (WTO)

regotlations Studies find that food aid

partially displaces commercial imports by Fecipient countries, The wade diplacement

effect of food aid when itis a short-term

‘Bheniomenon may actualy promote

‘commercial trade in the lange term,

‘perhaps by stimulating consumer demand for wider variety of foods Food aid that

‘swell argeted to insecure households

land needy people can minimize the trade

displacement effec

Procurement of food aid within the

‘country or region where it is needed has

been offered as a possible solution to the

problems associated with bringing food

Commodities dveatly from donor counties

1.2005, about 15 percent of al food aid

‘was procured locally or regionally This

Clearly has the potential of reducing the

transaction costs -in money and time

“of food aid deliveries, and may support

‘the development of local production and

dlstibution channels but due attention

rust be paid tothe potential of such

transactions to distort ocal markets, raising

food prices for poor consumes who do not

receive food aid

Food ad is often extentialin responding to

humanitarian emergencies, but considerable

controversy surrounds the management of

food aid in such circumstances Food aid

tends to dominate the emeegenc response,

‘even when food supplies remain plentiful

because it often the only avaliable

resource Greater flexibility nthe financing

{and programming of emergency response,

‘combined with better information, needs

{sserament and monitoring, could be

enormously beneficial in reducing human Suflering and saving scarce resources

Mare prompt responses with appropriate Fesoutces could alleviate many food Insecurity problems before they become fl scale emergencies requiring huge and very

‘expensive interventions Finally, it must be remembered that more than 90 percent of the world’s Undernourished people are chronically ongry For them, unger sa daily burden,

an emergency for noone but themielves, Food aid may form an essential part ofa social safety net that ensures the fulfilment

‘ofthe right to food for people who are too

‘p00 oto il to achieve food security on thei own, Food sid can be uniquely Mepful

in some situations ~ such as supplemental

‘utrition programmes or food or-education initiatives - butt isnot always the most effective or most appropriate intervention,

‘On balance, the repor finds that food aid can support food security both in emergencies and in cases of chronic hunger

IM itis properly managed Most ofthe concerns and controversies regarding food aid dependency, production disincentives and trade csplacement are closely inked

to programming and management decisions When food aid is pacly timed or poorly targeted, the risk of adverse consequences increases in many cases, food ald i used because it ithe only availabe resource, not

‘becaue it i the best solution to the problem athand Increased and more flexible

‘esources are needed to address 00d insecurity More work is needed to design and implement food security interventions that move effectively and eficemty address the problem, while minimizing the vik of haem, But whenever possible, tis always etter to teach andhelp people to fh rather than to give them fh Inthe long term the focus should be on preventive measures aiming at an increase inthe

‘ecarity of production ond in productivity, instead of waiting for crises to roth food id

‘whieh by then would be the only option to Save starving children and mothers

Food ad is never sufficient, on sown, to adores the root cautes of chronic unger

‘and malnutrition: ack of investment in rural infrastructure (particulary small-scale water contro, ural roads storage facilities, etc),

lo agrcutural and labour productivity

‘that limit poor families’ purchasing power, poorly functioning merkets that ive up the Feal cost of food forthe poo, insicient access to ced and insurance among the poor, socal exclusion and various forms

‘of ciscrimination ete These fundamental problems must be addresed ifthe world Isto achieve the et World Food Summit target and Milennium Development Goals

of reducing by half hunger and extreme poverty by 2015,

sacques Diouf FAO DIRECTOR-GENERAL

Acknowledgements

The State of Food and Agriculture's prepared

by FAO’ Agricultural and Development

Economies Division under the overall

supenision and guidance of Prabhu ingal,

‘rector ofthe dsion The core team fr

‘the 2006 report was led by Ter Rane seior

‘economist and editor and included: Coin

Andrews, Andre Croppenstet, Emilia Rina,

Sobodanka Teodosjevic and Mette Wik

Stella a Lorenzo and Paola di Santo provided

secretarial and administrative support

Part, "Food aid for foos security? was

‘written by Terri Raney with assistance from

Colin Andrews and Mette Wik, and with

conteibutions fom many people in FAD,

other international organizations and

‘Several independent experts Background

papers ier prepared by Titus Awokuse

fof the University of Delaware, Christopher

Barrett of Cornell University and Sarah

Lowder, now of the United Nations

Economic and Social Commission for Asia

and the Pacific, The contributions of WFP in

the preparation and review of this report are

gratefully acknowledged ‘The report drew heavily on material

‘prepared for the “International Workshop:

Food Security and Crisis in Countries Subject,

‘to Complex Emergencies", organized by the

Agricultural and Development Economics

Dhision, 23-25 September 2003, Two,

aly The report azo benefited from work

prepared for an informal consultation

‘of experts on food aid in the context of

the WTO Doha Round, organized by the

FAO Commodities and Tade Diision, on

27-28 Januar, 2005 a FAO in Rome, aly

Paperson social safety nets and food aid

prepared forthe FAO “intergovernmental

‘Working Group fr the Elaboration of a

Set of Voluntary Guidelines to Support

‘the Progressive Realization ofthe Right to

“Adequate Food in the Contest of National

Food Security" provided adaitional

background materia forthe report

‘The following individuals drafted sections

‘of the report andor contributed background

research: Luca lino, Colin Andeews, Titus

Awokuse, Chritopher Barrett, Sumiter Bro,

Benjamin Davis Margarita Flores All Gurkan,

‘Khwaja, Sarah Lowder, Prabhu Pingal, Ter Raney, Jeky Sutton and Mette Wik

‘The report benefited greatly from adviee, critical comments, analytical reviews and substantive eiting from: Abdolreza

‘Abassan, Petros Ail, Luca Alinovi, Kym Anderson, Richard China, Alessandro

<deMatels, Water Falcon, Margarita Flores,

‘ison Guna, Daniel Gustafson, Gonter emch, Henri Josteand, Panos Konandreas, Dennis Latimer Elen Mecullough, Jennifer Iybera, Prabhu ingal, Luca Russo, Shahla shapour, Andrew Shepherd, Kostas Stamoulls, Randy Stinger, Patrick Web» and Sonali Wickrems Thee contibutions are gratefully acknowledges Part, “Word and regional review facts and figures, was prepared by Slobodanka Teodesjevic withthe assistance fof Andre Croppenstedt and Emilia Rina Contributions and data for Part I were

‘made by the Animal Production and Health Division, the Commodities and Trade Division the Statistics Division, the Fisheries Department and the Forestry Department Parti “Statistical annex”, was prepared

by Kristian Jakobsen and Emilia inal

‘with assistance from Ande Croppenstedt largely onthe basis of data proviged by the Statistic Division, The CD-ROM wa prepares by the Statistics Divison

‘The team's particularly grateful to The state of Food and Agriculture External

‘Advisory Board, comprising Waite Falcon (Chai), Bine Agarwal, Kym Anderson, Simeon Eh, Franz Heidhues and Eugenia Mochrik, who provided valuable guidance

‘on the scape and focus of the report,

“The report benefited from the work ofthe

‘editors, designers and layout artists ofthe FAO Electronic Publishing Policy and Support Branch

“Two regular members of The State of Food and Agriculture team left the organization

‘this year: Randy Stinger, former chet of

‘the Comparative gyicltual Development Service, and Stella di Lorenzo, former secretary to the cet Their contibutions

‘ull be greatiy missed

Glossary

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ena

Rc

BÀ

sơ Fac FEMSNET trw FAN ovine

ews

Ho vere

PR

(United Nations) Consolidated Appeals Process Central emergency Response Fund

Committe on Food Aid Policies and Programmes of WFP

‘Crop and Food Supply Asiessment Mision Committe on World Food Security of FAO

Ci society organization Consultative Sub-Committee on Surplus Disposal FAO) Development Assistance Committee ofthe OECD DDohe Development Agenda

Emergency Food Needs Assessment Emergency Fod Security Assessment Emergency Needs Assesment Emergency Relief Coordinator Agricultural and Development Economics Divison FAO) European Union

Food Aid Convention Famine Early Waring System Network Food fr work

Foodfist information and Action Network Food insecurity and Wunerbilty Information and Mapping System Food Security Analysis Unit

Global information and Early Warning System

‘Good Humaitaian Đonoohip Internationa Emergency Food Reserve

International Food Policy Research Institute

‘Overseas Development Institute Organisation for Economic Co-operation and Development

‘Strengthening Emergency Needs Assessment Capacity Sudan institutional Capacity Programme: Food Security Information for Action

Standardized Monitoring and Assessment of Rte and Transitions Sudan Peoples eration Movement

Usual Marketing Reairement Joint Urited Nations Programme on HIVAIDS United Nations Development Programme Unite Nations High Commisioner for Refugees LUN Resident Coordintor& Humanitarian Coordinator United NaionsChieren5 Fund

Unite Nations Office forthe Coordination of Humanitarian Afars United states agency for international Development

United states Department of agelettre

‘World Food Programme

‘World Heath Orgarization|

‘world Trade organization

xii

Explanatory note

The stati information nthe ieue of The State of Food and Agriculture has been prepared from information avallable to FAO

Up to October 2006, The following symbos are used none or neghgible in tables) not available in tables)

Us oars

“The following forms are uted to denote years

oF groups of year 2003/08 = 2 crop, marketing or fal year

running from one calendar year tothe next

“3003-08 < the average fr the twa calendar

years Unies otherwise indicated, the metric sytem 's usd in this publication,

all the indices, whether a the county, regional or word level are calculated by the Lspeyres formula Production quantities of each commodity are weighted by 1989-91 {verage international commodity prices and Summed foreach year Te obtain the index,

the aggregate fo a gven years vied by the average aggregate forthe base peti 1965-51

‘The indies of trade in agricultural produc: are also based onthe base period 1989-99

‘They include all the commodities and

‘countries shown inthe FAO Trade Yearbook Indices of total food products inclu those edible products general asiied as

“food Allinices represent changes current value of exports (fee on board 0.5), {and imports (ost, insurance, eight (i), expressed in US dallas When countries tepon imports valued a 100, these are adjusted to approximate ci values Volumes and unit value indices represent the changes in the price weighed sum of

‘quantities and ofthe quantity weighted Unit values of products waded between

‘counties The weights are, respectively the price and quantity averages of 1989-91 lshich she base reference period used {oral th index number seis curenty computed by FAO The Laspeyres formals {ead 0 construct the ines numbers,

Part |

FOOD AID FOR FOOD SECURITY?

Part |

1 Introduction and overview

Food aid sone of the oldest forms of foreign responsibilty fr the food security of thet

Bid and one af the most controversal.Fo0d people ike any other external source,

aid hay ben credited with saving millions of food aid may be captured by local elites

lives and improving the lives of mary more, tho - through incompetence corruption

but itwasalso a serous obstacleinthe Doha or malevolence fale channel it tothe

Round of muftilateralvade negotiations intended beneficiaries,

Nothing seems more obvious than the nee! Food aid has been citized asa wasteful

to give food to hungry people, and yet means of transfering resourees to needy

‘thisapparently benevolent response is far people, not least because almost one-thid

more complicated than itseems Does food ofall foad aid resources are captured by

‘aid do more harm than good? This sue of domestic food procesiors, sipping firms and

The state of Food and Agriculture seeks to other intermediaries in the donar countries

Understand the challenges and opportunities (Clay Riley and Urey, 2005) Such findings

‘associated with food aid, particularly in ess reinforce the widely held view of food aid

Situations, andthe waysin which it can ~and aba donor-driven response, designed more

‘annot~support sustainable improvements to subsidize domestic interests inthe donor

in food security, country than to help the poor abroad

‘Questions about food aids potential to Some ees even say that commodity

depress commodity prices and erode long- food ald should be banned, except in

term agricultural development in recipient clearly defined emergencies here t

counties were fist raised by TW Shuts serves legitimate humanitarian function

(1960, Since then, some development (international Relations Canter, 2005) Even

specialists have worried that food ad can’ in the ete af emergency response, food

establze local markets, create disincentives aid pole is critcized as being inflexible

‘or producers and waders and undermine the and unresponsive to the particular contexts

tesllence of food economies In hich its deployed Emergency needs

‘The possibility that food aid may create astesiment ie dominated by "Yood aid needs

"dependency" on the part of recipients is 2 assessment, which presupposes that food

fong-stonding concern of polcy-makersin aids the appropriate response mechanism,

the donor community aswell sin recipient often resulting in interventions that are 00

countries, The concer i tha fod ai, ike narrowly focus

other forms of extemal ad, has the potential On the other hand, supporters believe that

twintluence the incentives of recipients such food aid ia uniquely effective mechanism

that short-term beneit erode longer-term for addresing bath acute humanitarian

strategies for sustainable food security neds and longer-term food security

thas also been argued that food aid may objectives suchas mother and eld tition,

make recipient governments dependent schoo attendance (particulary by gil),

fon foreign resources, enabling them to —health interventions in households affected

Postpone needed reforms orto abdicate by HVIAIDS and public works aimed at

4

building basic productive infrastructure WFP, 2008), They advocate the ore of F008 dn response to food eres as wll st combat {chronic hunger among targeted populations fans to promote economic and market

‘evelopment in poor countries

Some humaritanan workers believe that

‘ood ais es ikely tobe misperopriates than cash because it ies fungi Furthermore, within household, it believe that women are mar key to

‘retain conta of food ad resources than {anand are alo more likely to channel the

Se to the met vulnerable faily members {Emergency Nutrition Newark, 2008, Researchers wory that food aid isan asitionlreaurce”, and tht were food sid to be curtaed, donors would not replace commodities with an equivalent amount

‘of cash thus, eliminating food ad would Fedice the overall amount of foreign a

‘While ecknowledging the need to discipline the misuse of food ai, they warn against

‘excesve restrictions because even badly

‘managed fod ai saves ives (Young, 205) Supporters say that food aid management has improved sramticaly in recent years and they are atively pursing urther improvements in procurement, dstibution and monitoring to minimize the unintended negative consequences of food id But eritcs, prevent the pervasive market astptions associated ith lage fod aid wansactons

- Food aid and food security About 850 milion people inthe world

re undemourised, 2 number that has haraly changes from the 1980-1992 figures

an which the World Food Summit and Milennium Development Goa commitments

te having hunger by 2015 were based Lack

of progress in reducing hunger and the

‘rowing number, complexity and duration

Gf focd security esas over the past few years have raised concern throughout the International ai system about the scope and nature of aid vespanss to food inscutty The total volume of fod ai varie {eom yer to year but has averaged about

10 milion tonnes (grain equivalent) per year recently This inequivalent to about 2 percent of world grain wade and less than 0.5 percent of wora grain production

Food aid distbuted by the World Food Programme (WFP) reaches about 10 lion donor probably reach about another

400 milion people ial ofthe fopd ai in these ecpients, would provide only about 50 kilograms of grin par person per Year this food aid were cvides among

‘the 650 milion undernourshed people in

‘the word it would provide es than ktograms per person leary, food ais far toa small to provide food secune forall of the people in nee

od ad fe not dtibuted evenly among all vulnerable people Te relatively small Yolume of foo ai avaiable globally can be

ft major sgntcance for certain oustees

In certain yeas For example n 2001-2003, food aid atcounted for 22 percent of the total food supp, meine in caloric terms,

of the Democratic People’s Republi of Korea For rte, ths igure was 46 percent

‘While these are extreme examples, 19 other counties rele on food a for 3 ost 5 percent oftheir total food supply during this peri A deca eal In 1990-192,

‘the volume of soba fod aid was larger

fd more counties received a sigiiant

‘hare of thelr otal fopd supply inthe form

of food ai 38 countries received mae than Spercent, and of thee 10 countries reeves

at Teast 20 percent (FAO, 20069) Food ad

‘central to the immediate food scuny of

‘many countries butt ies clear Row food

id in such volumes may inluence longer tem tratagies or f0d security

‘growing share ofall food ad is provides

te people sutfering food eres Emergency food aid now accounts for one all te thirds of al food ag At of October 2006

38 counties faced food cries requiring lemmergency sstonce Figure 1) FAO, 2008)

‘Over the pas we decades the number of food emergencies hat isen from an average (of 5 pr yearn the 1980s to more than

530 per year sine 2000, Much of te increase has occurred in fis, where the average numberof annual food emergencies hat rpled (FAO, 20049),

taraly the result ofan absolute shortfall in

‘the availability of fod: rather, widespread lack of aces to food is more common

Human actions are often an underljng cause

or trigger for food crises, either directly

{ehrough ware and civil confit) or ndirectly

through ther interaction with natural

hazards that would otherwive have been of

minor importance Of the 39 countries facing

‘ood eises in mid-2006, 25 were caused

primarily by conflict and its aftermath, oF

“combination of cnflt and natural hazards

‘The HIVAIDS pandemic itself a product of

human and natural hazard interactions is

also frequently cited as a major contributory

factor to food crises, especially in Aca

(AO, 20060)

Human factors ae particulary culpable in

protracted crises Approximately 50 milion

Deople worldwide lve in an area marked

bya protracted css that has lasted fr five

years oF more Ethiopia, Somalia and the

Sodan, fr example, have each been 2

state of protracted crisis for over 15 years

(AO, 20083) Providing humanitarian

support for people living in such conditions is

‘enormously difficult and fought with ethical

đilemmas

‘While ther ite controversy about

the need to provide fod aid and other

assistance to peopl caught up in ris

situations, the management of external

‘esitance in such situations ishotly

feud

‘Countries in crisis requiring external assistance, October 2006

contested People do agree, however, that if

‘ood aid isto improve food security, needy populations must be propery targeted, Shipments af appropriate foods must arrive ina timely manner (for as long as needed but no longer and complementary resources must also be provided

to the world foad economy, Nonetheles, food aid remains very impartant for certain countries in certain years sometimes accounting for more than half ofthe total cereal supply

Food aid programming has become more responsive to recplent needs and lass

‘riven by donors interests, although mary

‘controversial protces continue, Most food aid is now used in emergency situations and

is targeted to vunerabe individuals and households Nevertheless, about one-quarter ofall food aide stl soe on recplent-

` ằŠ5 Rerssees ———- leodpodoelolepple ẽ food inscuty

‘county markets At the some ime, many

donors are replacing commesity donations

with cash, making it possible to procure

‘more food aid lealy o in neighbouring

‘countries About 15 percent of all food ald

‘vas procured in local or regional market in

2005

‘Some economists argue that, despite

an increase in <ash donations, os much 38

30 percent of al food aid resources remain

“tied” in one vay or anather About haf

ofall food aids dvety tied to domestic

procurement, procesing and shipping

Fequirements in the donor country Most cash

‘donation are ted to other procurement

and distribution requirements that may

prevent the implementing agency from

Using the most efficient channels, Globally,

tying requirements are rezponsile for an

estimated 30 percent efficiency los ofall

ood ad resources (Cay Riley and Urey,

2009

Food aid governance mechanisms have

Jong sought to balance the interests of

donors and recipients, while reconciling

‘the multiple objectives assocated with

{ood aid: commodity surplus asposa,

price suppert, trade promotion, foreign

policy and food secur Never able to

Feconil these conflicting goals, food aid

‘governance has kept pace neither withthe

Fecent changes in food ad programming

‘er with current thinking on food security

and sail protection Calls for reform ofthe

International food-ai system are increasing

feven athe demand for humanitarian

Intervention grows

“This port argues that food aid should

be sen in the context af broader concepts

and strategies supporting food security and

Social welfare social safety nets include a

broad range of measures tht ain to provide

income or ether consumption transfers

te the poor and to protect the vulnerable

agains lvlinoad rss fod ai can be part

fof soca safety net aimed a supporting

food security, butt is nat always the most

appropriate tool

‘Understanding the proper role of food

id within a social safety net requires

fn understanding of the nature of food

Security and how it may be compromised

Food security can be sad o exist when all

people have acces at all times to sufficient

nutritionally adequate and safe food,

Without undue risk of losing such access Tis

<efinition has four dimensions: avaabilty, acces, utiization and stability

‘The availabilty of food ina county -from domestic production, commercial imports or ood aid isa necessary conltion for food security, but te not sufilent Paople must

‘also have access to food from their own production, prchoses on local markets or transfers through socal safety nets either

‘of food itset or the means to acquire Utiiation refers to an individuals ability to.abiotb the nutients in food, and thuy Fighlghts the importance of non-food inputs to food security suchas acess to dean

‘water santation and health care Stability Underscores the dynamic nature of food security, Food insecurity may be manifest

‘ona chronic bass, usualy reflecting severe Lnderving poverty a situations recognized

‘whether food aid i appropiate in a given situation depends on which aspect of

‘ood security has been compromised and why Where food is avalable and markets

‘Work reasonably wll, foed ald may not

be the best intervention, Cash or vouchers ray be more effective, more economically ficient and ess damaging to local food systems

Food ad is often extentil in emergency situations but even in these cates, four

‘lements need tobe considered when designing and implementing appropriate interventions: how the ers affects the different dimensions of food insecurity

‘overtime: ithe economic, social and political context ofthe ess i) he nature, magnitude and extent of the gi: Ioelf {and how thi affects the ably of local

‘Sovernments an institutions to respond

‘nd a) how short term interventions may affect longterm food security

Displacement, disincentives and dependency

“The rik that food aia can dspace commercial exports was recognized from

‘the beginning ofthe modern foodaid era,

in the years immediately following the Second Werld War Concern about the {ik of fod aid creating disincentives for domestic agricultural production and market

‘development ware rated, Development Specialists ave long wortied that food ald

might create “dependency” on the part of

Feciplens and goverment

Dependency ecu f the expectation of

recsving food aid creates perverse incentives

‘that cause people to take on excessive isk

‘orto engage in self defeating behaviour in

‘order to receive aid The empirical evidence

‘hows that fod ad lows are generally

‘wo unpredictable and small to create

such dependency Beyond afew isolated

incidents, thre ino established evidence

‘that dependency isa widespread problem

Yet people ought tobe able to depend on

appropriate safety nets wien they cannot

‘meet ther food needs on their ov, both

because food a fundamental human ight

and because it can be an essentil part of 2

broader strategy for hunger reduction and

poverty alleviation, Basic economic theory suggests that

{food ad can displace commercial rade

‘The empirical evidence on this point

surprisingly thin, however Food id can

displace contemporancous commercial

Imports by about one third ofthe amount of

2d, The erature suggests that the trade

spacing eet is shreved: commercial

Imports recover quickly nd may actually

‘100 inthe years following food aid lows ‘The empirical record onthe rk of food aid

creating disincentives fr loi agricul

{development irather mixed The evidence

‘how that large footed deliveries earty

depress and destabilize domestic pices in

recipient countries, potentially threatening

‘thelvelnoods of domestic producers and

leaders and undermining the resilience ofthe

local food systems Given that mast people

inctdng the rurl poor, depend on markets

‘or their food security, this could have serious

long term consequences

‘Whether these price effects create long

term disincentives fo domestic production

isles clear Several tudes have found 3

negative relationship between food aid flows

and domestic production, especialy in eater

‘decades when most food aid wos untergeted

(tappe and colin, 197; Jean apts, 1979,

Jackson and Eade, 1982) More recent work

oggests tha hese studies may have had the

iretion of causality reversed, Because food

Si tends to flow to communities that are

already suffering from severe chronic poverty

fand recurrent ater, food aide correlated

with lw productivity ~ butt doesnot

necesatly cause ow productivity Indeed,

‘more recent studies find that any production disincentive effects may be quite small and

‘would appear to be temporary (Massel,

1961 Barrett, Mohapatra and Snyder, 1999; [And ond Tatp, 20%; Lowder, 2008 ‘Although measurable production eects are smal the empirical evidence suggests

‘that commodity food aa can disrupt local

‘markets and undermine the resilience of local food systems, Instead, where sufficient ood is available in a area and markets work reasonably wel, cash-based transfers or

‘ood vouchers can stimulate local production, strengthen local food stems and empower

‘ecient in vay that traional ood ad

‘cannot Foad aids most likely to be harmful

‘when: () t atrives ors purchased atthe

‘wrong time; (i ts not well targeted to

‘the mast food-nsecure heusehols ri

‘the local markets poorly integrated with brosder market

‘sels, enabling them to resume thế normai livelihoods a sn athe crise pases Nevertheless emergency responte tends to suffer trom o number of common problems Food aid i usally the most readily avaiable resource incre stations ~ donors know how to give it and agencies know how todelvert-s0 tbecomes the default response, While food ai is often exert Itisnot always necessary and its never sufficient to deal with the myriad needs of people affected by crises ‘Winats more, emergency food ad sa relatively expensive and slow intervention,

‘expecially ite sourced ns donor county Experience shows that timely delves of

‘appropiate resources can enable people

‘to manage shocks and aid sipping into severe food nsec Ealy appeals for {assistance are routinely ignored, however, 0

‘manageable shocks too often become full-

‘ale cies requiring masive intervention

with incalculable human costs: Emergency

‘measures common fale appreciate the

tentent to which people rely on markets

for their lvelinods and food security

Interventions aimed at rebutting market

infrastructure and restoring wade links can

‘often achieve lasting improvements in food

security without the need for massive to,

2id shipments

When crises occur repeatedly aginst 2

backdrop of chronic hunger, danors and

recipients can find themseives cought in 3

“elle trap", in which development-orented

strategies are neglected The longer and

‘more complex an emergency becomes,

the more dificult tito respond with

the right resources at the sight time, and

so the challenges of ting and targeting

(0 important in all fod aid transactions)

become even more intractable, Donors and

agencies should consider a broader and more

flexible range of intervention, beginning

‘with beter information and analy to

Identity the real priority needs of atected

populations Food aid may be par of he appropriate

response when insufficient food is available

ina region, many households lack access

to uffilent food and markets ae not

functioning propery But fod ad is often

used inaporopriately for a varity of reasons:

() food ai ir the mos ready avaliable

resource (i) inadequate information and

nays alto identity the eal needs of

affected populations and (i) implementing

agencies foil to appreciate the complex

Invetinood strategies of vulnerable

households, particularly the extent to

whieh they ely on markets for food

security In many cases, emergency food-aid

interventions are used to address chronic

‘ood insecurity and poverty, challenges that

‘an be met effectively only witha broader

development strategy

Polley gaps in protracted and complex

emergencies

‘The number and scale of complex and

protracted cries have rten sharply

‘ver the past decade, especially in sub

Saharan Atria The growing prevalence

(of protracted eres has created particular

problems forthe international humanitarian

‘community, because resources or addresing

femergencies tend to wane after short,

perio, Food security interventions in Drotracted cries have tended torflet 3 narrow range of standardized, soppy sven policy responses, with a bias toward short term project dominated by proviion of food sid and agreitral inputs

“This policy failure partly stems from inadequacies in systems for generating upto: date information and knowledge about the complex crises also arises from a lack of

‘capacity to produce timely, contertspeciic policy respons using the considerable

‘amount of information and knowledge

‘volable, This in tur reflects an id system vied between agencies that focus on humanitarian emergencies and others that focus on development

Because the humanitarian agences command the greatest aid resources for protracted food security ces, wadtional

"etponse food id in particsae~ tend to dominate In each cis the strengthening of food systems should be bated on an analysis

‘ofthe dynamic of food secur resiience and

‘ulnerablty The analysis should als adress the cautal facts in the evolution ofthe csi

‘Main messages from SOFA 2006

“Food aid should be seen as one of

‘many options within a broader range

of social protection measures to assure access to food and to help households

‘manage rsk Whether to provide food

‘rectly instead of cath of food vouchers

‘depends largely onthe avail, lof food and the funtioning nature fof markets, Where adequate food i

‘valle through markets that remain eceslbl to si alfected people, food bid may not be the most appropiate The economic effects of food aid are complex and multilayered, and solid empirical evidence is surprisingly ite The existing empirical evidence doesnot support the wew that food aid creates, negative "dependency" Because food did flows are too unpredictable an too small alter recipients behaviour Foutinely or substantially Concerns

‘ver dependency should not be used

to deprive needy people of required assistance Indeed, people ought tobe able to depend on appropiate social Safety nets

+ Food ad an depres and destabilize

market pies in recipient countries Food

Sid that aries a the wrong time or

is pooty targeted i expecially key 10

Sestabiize local prices and undermine

‘he ivelinoods of local producers and

traders upon whom sustainable food

security depends

Food ad tends to place commercial

fuports inthe short ru, although

lander certain condition it may have 3

Stimulating effect ia the longer term

The impacts of food aid on commercial

trade difer by programme type and

tec alternative supplies diferent

Wl targeted food aid ean minimize

the caplacement effet on commercial

trade

Emergency food ai and ther soil

safety net are etential to prevent

{tanstory shocks fram diving people

Into conic dstittion and hunger, but

by themselves they cannot overcame the

‘underlying socal and economic causes of

poverty and hunger This challenge con

nly be effectively addresses part of

48 broader development svtegy Donors

should avod falling into a “reli trap

in whieh so many esoures are devoted

to;mergencles that longer term needs

are neglected

‘Apalcy gap between food aid and food

“ecurity ents on many levee Brigging

‘this gap requires: (i) improving food

Security anasto ensure that responses

sare needs bated, strategic and tim!

Gi incorporating needs assessment as

part of a proces linked to monitoring

‘nd evalation, rather than a one-off

‘event iver by rexource requirements

2nd (i) supporting national and reølenal

institutions to make food securty 2

primary poly concer, eelnfored by

Interventions atthe global level focused

‘on reforms tote international food ad

fn humanitarian syste,

Retorms to the international food aid

system are necessary but the should be

undertaken giving de consideration

to the needs of those whore lives are

2 ik Much ofthe debate on food aid

Is bated on surprisingly weak empical

evidence; nevertheless, tis known

that the consequences of fod aid are

cdasel inked to timing and targeting,

{A few bosc reforms could improve the

‘ffectivenee and efficiency of fod ad

‘while addressing legitimate concerns regarding thers of causing adverse

‘consequences Desirable reforms nude:

= Eliminate untargeted forms of food {3d Food ad that sold on recipient

‘country markets likely to dspace

‘commercial imports or dit local markets and production incentives, food security In practical tems, this means eliminating programme food {aid and the monetization of project,

4,

= Unti fod ae rom domestic procurement procesing and shipping requirements About one-thit af

‘labal food aid resources are wasted

‘due to such requirements Many

‘donors have untied food ai fem domestic procurement requirements:

others should consider doing #0 3 well

= Useinkind commodity food aid only were food incecuity i aused by

2 Shortage of food Where food is Srallable but vulnerable groups lack accesso it targeted cash assistance or food vouchers wll be more effective

‘and eficen in meeting their food rede without undermining local markets Interventions tha improve the functioning of markets epaing

‘reads, for example) may be more effective in supporting sustainable food security than direct, food based

~ Use loca and regional foo id procurement where appropriate, bur do not replace domestic yng with fecal and regional tying uch Jerventions may result in inflated

‘ood ries pald by poor consumers and may reate unsustainable market incentives for food produces ane traders This point reinforces the need {or careful monitoring ofthe impact ofall food ad interventions

= Improve information rtm needs analysis and monitoring These retorms

‘sll ensure thet appropriate and negative consequences are minimized

2 Framing the debate

Modern food aid began inthe years

following the Second World War as away

of esposing of surplus commodities while

stimulating demand in poor countries where

hunger vas despre In these sary

years food ald was meant to accomplish multiple goals for the donoes surplus

disposal, farm price suppor, export market

development and foreign policy objectives —

‘while promoting food security in recipient

Internationa foo aid governance

‘mecharisms have long sought to reconlle

‘these multiple ams, with ited sucess

[AS the understanding of food secuty

thas deepened, food ai has come under

increasing srtiy Food aid practices have

improved substantially over the decades,

ven primarily by changes invade and

farm poly donor countries, but also by

3 mere nuanced understanding of food

Security Despite the progress that has been

‘made, however, many controversial food

“This chapter reviews the evolution of food

aid practices and governance over recent

Gecades, and ascuses how the changing

conceptvalzation of foed security and socal

protection is changing the way food ad

perceived This background materials meant

to frame the debates that willbe explored a

‘more depth in folowing chapters

=

Food aid programming’

Food ai programming is extremely complex

with many aiferent donor and agencies

Involved in implementing a wide range

of interventions The effectvenes and

tficiency of food aid in supporting food

curity objective and its potential for

Unintended adverse consequences depend

‘rucialy on how its managed, Thi section

outlines how food ad has evolved in recent decades

‘Trends in total food aie Since 1970, the earlier dat for which comprehensive data are avalabl, food ait has fluctuated between 6 and 17 milion tonnes per year (Figure 2) nomial terms, tis hasbeen equivalent to about S850 mllon to U552 3 bMNlon In reeenk year total fod aid has averaged about 10 niên tonnes (worth about 882 bien) per year Cereals account for he largest and oi variable component of total food a

By anumber ef reeosres, food aid about 20 percent of total bilsteral offical development assistance (ODA) in the 1960s tolesethan 5 percent today (Baret and Massel, 2008), Food ad has declines 3 share of worl cereals trade, from 10 percent

in the 1970s to less than 3 percent in recent years, although sill makes up about 50 opercent ofthe net food ports of al the typically average lee than 05 percent of total cereal production inthe word, butt cạn be very important clative to domestic Production for incvidusl ecpient countries

“Te fluctuating volume of total food aid historically has shown an inverse elatonship swith commodity prices Food aid volumes fallby half between 1970 snd 1974, 3 led when world cereal prices almost trebles in

‘the mid-199%s, arial polis teformsin several major cereal producing countries ed together with sort harvests in 1996, fed to

‘spike in word cereal prices and another precipitous drop in food a shipment,

“The inverse relationship betieen food

‘aid volumes and cereal prices reflects the hatorcal origins of food aid 3 to! for

Defining food aid

‘The fist efforts to define food ald

date from 1954 and the creation of

‘the FAO Consultative Sub-Committee

‘on Surplus Disposal (S50) Because

‘conceptual difculties prevented the

‘group from agreeing ona definition of

food ai, the CSSD instead estaished

lt of transactions ~ the Catalogue

‘of Transactions, later the Register of

Transactions that would be considered

fod ad

“The definition wed inthis report

‘emphasizes the international nature of

{ood ad ands consiten ith the data

reported by the Word Food Progranme:

ood aid isthe international sourcing

‘of concesional resources inthe form of

for for the provision of food” (Barrett

‘and Massel, 205) This definition its

food aid ta international ssstance in

the form of food r forthe procurement

‘of food Itindudesfood soured in the

‘donating county ~ often called “in-kind”,

direct" oF "Wed a5 wel ax cash

resources ued or the purchase of food on

Iinckides food provided to rciient

fxganizations in grat foxm or on

oncesional term, and whether ts

“targeted to needy household or resold

in the United tates of Americ, the major

{ood aid donor Econometric evidence om

the an years of international food aid

Confirmed the roe of commestity prices

and stocks asthe key determinants of food-

‘Sid donations from thre of the five major

‘nots atthe time, The same study evened

that gobalfood aid donations were ony

slightly influenced by production shortals

'afedple reglos (Kenardreas 1387),

valdstng the view of food das» donor

‘Changes inthe agricultural poles of

‘mest major donors since the mid-1990s have

‘meant that government ‘held commadty,

Stocks arena longer erect determinants

‘of fond aid flows The inverse relationship

‘between cereal pies and fod a lowes,

‘on the domestic market t does not include all types of assistance that may affect fod secutity, nor does it indude atonal fod security programmes based

‘on domestic rexources,

‘Wile defining fond aid might seem like an easy atk, even food aid experts

in 2003, expers developed (but by no teans asthe result of consensus), the flowing expansive deintion:

food aid can be understood sal food sported interventions aimed atimoroving the food security of poor

‘ope in the short an long term, wether funded wa international, rations! public and [se] private resources" von Braun, 2003) The Betin and domestic actions and distributions

of food, a well as non-food resources ted in combination with fod for food security purposes As such, the Bern detntiono fo ai is more similar to food-bated interventions” These include food distribution, market intervention

y financial transfers that are funded Bye intended to improve food security (Clay, 2008)

contines, however, because fod aid budgets are set onan annual Basi in fed monetary terms fxed budget buys le {ood aid when price are high and, because

‘budget allocations cannet normally be Carte over from year to year, the resus {an inverse relationship between food aid

\olumes and prices This elatonship provides powerful support frees who argue that ood aid esappears precisely wen iis needed most

coxganizations, priate chats and businesses donate food aid but, se noted above, the msjrity is provided by the Unite States Figure 3) since 1970 the Unite States has contributed an average of

and hasbeen the soure of 500 60 percent Commonwealth of Independent States

‘of total cereal food ai WFP 2006), funds received large but quite variable cereal food

50 percent of WFP food aid operations andi shipments in the decade follwing the

‘that organization is tycally responsible for break-up ofthe Soviet Union, The share of

4010 50 percent of global food aid WFR otal cereal food ad distibuted in Latin

2008) -Amerea an the Caribbean hes decined

‘Sub-Saharan Aria an Asia receive ‘rom meaty 20 percent in the late 196050

‘the majority of cereal food aid in typical percent in mare recent years Shipments

years Figure 4) Eastern Europe andthe tothe Near East and North Africa have aso

Cee eee eee reglon, 1988-2005

cdedined rom a peak of about 20 percent ia

the late 1980 10 percent in more recent

years, withthe exception ofan atypical peak

flow tothe region in 2003

‘Although food aid is eatvely small

In terms of the global food economy, it

provides a significant share of the total

food supply for individual countries in

certain years During the 1982083 drought

‘in Mozambique, for example, food ad in

the form of yellow mize supplied about

60 percent of total cereal availabilty in the

‘country, and it continued to represent 200

35 percent of cereal supplies throughout the

first half ofthe 1990 (shirley, Donovan

and Weber, 1996) Figure 5 shows the ten

leading recipients of food ai over the

five,year perio from 2001 to 2005, The

Democratic People's Republic of Kore, the

biggest recipient in recent years, eceives

‘more than 1.1 milion tonnes of arin

‘equivalents per year on average Ethiopia

‘receives almost a much on average, but the

lamount vary significant from year to year

‘Over the lst ten years, food id to Ethiopia

hha averaged 13 percent of the country’s

total cereal production, reaching 23 percent

‘2003 In the Democratic People's Republic

(of Korea, food aid equaled 31 percent

(of total cereal production in 2002 and

to the way donors provide itt recipient

‘countries, that through programme, projector emergency operations Figure 6 hows the breakeovtn of cereal food ald

‘elveries by category from 1978 to 2008

‘key diference among the three categories of food ai relates to targeting the effort to get food aid into the hands fof the hungry poor When food aids well targeted, Ireaches the people who need TRand only the people who need it More formally proper targeting ensures that there are minimal erors af inlsion and fexcluson,Erors of Inclusion accur when food aids provided o people who would have atheewise purchased i using thee own resources without unnecessarily depleting their ates Inclusion errors increase the likelhood of food ad aduersey afecing local producers and traders Errors of fexcution occur when food:ineecure people

fd not receive the food aid they need (Gebremednin and Swinton, 2001) Programme fod siẻi§ ưanserred bilaterally ona government to.government bass About half fall programme aid

is donated in fully grant form and about half is sola tothe recipient goveenment

at concesional prices oF ced ers, Le

fates Programme food ai is resold by he

Fecipient government onthe local market,

land therefore not targeted As such,

Brogramme food ids asocated with

Soca enor otrlsion Kine

oes not divectlyaect food security (Clay

land Benson, 1990), Uni the mic 19805, more

than half fal food aid was of hie spe, but

+ now accounts fr ls than 20 percent of

the total

"Project fod aid may be transfered

and the government ofthe recipient

inthe transaction Project fod ai is

‘sualy but not always targeted to Specific beneficiaries may be provided

‘conditions, and often asocated with activities intended t promote agricultural for broader economic development as well as food security Examples of project fod aid ndude food for work, shoo! feesing and

‘otherand<hild nutriton centres, Thess activities are typically run by WFP or non

‘governmental organizations (NGOs, and are

Sometimes projet food aids sold on

‘ecient country markets to generate cash

{or elit and development programmes

This practice known 35 “monetization”

Monetization is used by NGOs implementing

projec aid mainly fom the United states

la the late 19805 only about 10 percent of

al project food aid was monetized, but this

hasinereaed to mare than 30 percent

recent years (WFR 2006) Monetized project

iis smiar to programme ad in tat

isnot targeted to specifi food insecure

populations Emergency food ad is targeted to food

ineecure populations in times of ris,

Insome cases, the distinction between

emergency and project food ai is lured

For example, in Ethiopia, emergency 00d

tid is sometimes dtbuted through food

for ork programmes Emergency aid has

Increased steady and now accounts or

about two-thirds of total food sa

“The decine in programme food aid is

largely the reut of shrinking cereal socks

Indonating counties asa result of trade

Niberaiation and domestic agrcutural

policy reforms The need fr programme

231d has ao dened especialy in many

[sion countries where donc food des

fo longer occur Concerns over market

distortions resulting from programme and

Droject ad, and an nceaee incidence and

‘wareness of emergendes have aio played

HE roi

2 par in increasing the share of food al

“devated to emergency response (sso el, 2008)

Like other forms of foreign ae, food aid

Is often ted tothe procurement of goods and services in the donating county Almost all food aid donated by the United Stats's tied to domestic procurement, processing

‘and shipping requirements, ane many other

‘donors have similar tying quirements Somme donors have stopped danating food

id inthe form of commodities, proving Cash instead so as much a5 15 t0 25 percent fal food aid snow purchased inthe country or region winere tis needed (WF 2006), Such transactions are generally referred to a “untied though donors

‘may stipulate where purchases are to be

‘mate, thus reducing the overall lesbilty {ofthe procuring ageney and rasing costs (@ox2}

Food aid governance*

.Coneerm gboutth tự of food aid cirupting conrtercal exports and domestic markets were recognized fom the beginning

‘of the modern food-aid era and eal food:

‘aid governance mechanisms were shaped

‘ving food aid to domestic procurement

isa controversial practice that imposes

‘ignitiant efficiency costs on aid

‘transactions, Most ied food ad onsite

‘of circ transfers from donor to recipient

‘county, but triangular (procurement of

fod in third countries) 0” local purchases

fof food might aso representa form of ais

tying In these cases the prociring agency

may be prevented from using the most

efficient or appropriate sources of spy Some countries, notably the United

States, have legislation or regulations

“governing food ad operations that

Tequire procurement largely within the

‘donor county The United States also

has further legislative requirements

that 50 peccent of commodities shoul

be processed and packed (value addec)

before shipment, and that 75 peeent

f the food ald managed by USAID and

50 percent of that managed by USDA

be transported in “lag <arying” vessels

reg)stered inthe United states Barett

and Maxwell (2005) estimate that 25

2 result of various ying fequirements,

‘approximately half ofthe total United

States food aie budget is captured by

domestic processing and shipping firms

(american farmers generaly do not

benefit because food ad too small to

influence domestic prices,

primarily with those concerns in mind, The

fist interational governance institution

{or fo ai, the FAO Consuitative Sub

Committee on Suipls Disposal (C350), wos

stablighed m 1854 to prove a forum for

Consultation among food-exporting countie:

aimed at minimizing commercial market

isuption

International governance mechanisms

for food aid have evolved since then, but

‘thee primary focus remains on minimizing

the tgk of elstorting markets and trade

Less attention has been given to creating

c’effective governance mechanisms to

promate and protect the food security

‘bjectves of food aid, Athough some

‘governance mechanisms acknowledge the

Clay, ily and Urey (2005) estimate

‘that 90 percent of al food aids tied in some vay Tey caleulate tht the global inetficlency cont of providing tied food aid instead af financing commercal imports Isat leas 30 percent The cost of dvect faod-ai transfers from the donor country

‘was on average approximately 50 percent

‘more tha local food purchases, and

23 percent more than regional purchases

‘These are conservative estimates, as they

‘are based on the maximum price that

‘would have been pad for commercial Imports Furthermore the considerable transaction cast of organizing foo aid deliveries are not reflected in these

‘aleuatons

‘Chay, Rly and Urey (2005) argue that the mot efficient frm of ood aie likely tbe for protracted or continuing relief operations, flexibly sourced within

‘the recipient county or region Direct food aid i almost alvoys more costly than alternative commercial imports oF local and regional purchases The relative Cfiieney of local purchases and purchases from tie counties aso suggests thatthe benefits of untying would not just low

‘to midalesncome agrcultral exporting

‘countries, but could benefit agrcultural development in many loveincome developing countries

reed to ensure the avallability of adequate levels of food aid, none has food security 28 Ins central focus, and none holds dons oF agencies accountable to recipients {or thee Today, food aid flows are syppoted to be reported to four diferent bodies: the Csso, the Food Aid Convention (FAC), WEP an the Development Assistance Committe (OAC) of the Organisation for Economie Co-aperation and Development (OECD) None ofthese

‘organizations has the capacity or mandate to.govern food ad effectively from a food security perspective Of these, only the FAC isa formal international accor, but thas

no mechanism for enforcing cmpiance of

‘ignatoris to ther commitments

In addition, the World Tade Organization

(WTO) Agreement on agiclture refers to

food ald, but does nota yet contain any

binding provisions Members of the WTO

are currently negotiating sicter declines

on the ue of fod ad aimed to prevent

Iefrom being used to creurwent rues on

‘export subsides, while also protecting the

humanitarian role of food adi a “safe

box Meanwhile, a numberof NGOs are

seeking 0 reform their avn food ad

FAO Consultative Sub-Committee

fn Surplus Disposal

“The fst cacusion of fod aid in an

International forum was atthe Seventh

Sesion ofthe FAO Conference in November

1953, The Conference cscused the rowing

ficulties in absorbing surpluses of

fertan commodities, an concluded hạt,

In accordance with FAO's basi aims the

feremest remedy forthe absorption of exces

supplies was tobe sought in increasing

Consumption inthe developing counties,

‘Accordingly, the Conference instructed

the Committee on Commodity robles

te consider: () the most suitable means of

isposing of surpluses i he principles

that should be observed in order that the

spon of surpluses would be made without

harmful interference with normal patterns

‘of preduction and international trade: and

Gin the strengthening of intergovernmental

‘matters (FAO, 1953) Underpinning these

fonaultations were 8 eres of analytical

Studies prepared bythe FAO Secretariat

that fst articulated 2 numberof strategies

land concers regarding the we of fo aid

(Box 3) These consultations resulted nthe

fdoption of the FAO Principles of Surplus

Disposal and Consultative Obligations

and the creation of the Contultative Sub

Committee on Surplus Disposal (CSSD) in

1958 Iitaly 37 FAO Member Nations

agreed to adhere to the principles, a number

‘hat ha increased to more than 50 bythe

The Principles of Surplus Disposal represent

‘code of conduct for overnmentsin

the provision of food ain the main,

they seek to ensure that food and other

‘agrcultural commodities that are exported

‘on concessional terms result in adttonal,

consumption forthe reipent county and do not eplace normal commeccia imparts, and thot domestic production snot discourages

or othervise adversely affected while the Principles are nota binding instrument, they representa commitment by signatory

“ountues They help governments to focus on

‘ther responsibiltis as partes to transactions fon concessional terms and to avoid potential đØ1eufies and ragreemente

‘The interests of recipient counties are safeguarded, in theon, by the emphase fon increasing consumption rather than Festicting supplies The interests of, fxporting counties are protected bythe Undertaking that such disposals should bbe made without harmful interference with narmal patterns of production anc International ade, assurances against ele

or transhipment of commodities supplied fon concessional terms and the intraducion ofthe concept of “adational consumption”, hich i define as consumption that would not have taken place inthe absence ofthe transaction on concessional term,

The mechanism for asturing such aisitionalty is the Usual Marketing Requirement (UMR), a concept adopted

by FAO in 1970, The UMR ia commitment bythe recipient country to maintain a normal evel of commercial imports of

‘he commonly concerned, is addition £0 the commonly supoied 35 food aid Tis provision has become a standaré element fof many food aid agreements (most transactions channeled through WFP and INGOs are exempt from the UMR, a are

‘emergency tantctons) The S80 monitors food aid transaction, in principe prior to signature ofthe agreement and shipment of the commodity

Because the FAO principles are voluntary svigeines, many donors have failed to Shore to these reporting requirements im Fecent yeas n 1999, the FAO Secretariat tupresed concern over the declining share food aid transaction reported tothe CSSD

An the ineresing numberof transactions that Were exempt fom formal eporing requirements, tends that elect) he relatively small ize of most transactions: andi the inerease proportion of food a

‘hati channelled through private voluntary

‘orgeniations and multlaterel agencies or

80X3

Evolution of food aid from surplus disposal to food assistance

In 1958, FAO cared out a major study

‘on surplus elisposal that pioneered some

‘eative ways to make appropriate we of

food aid to address humanitarian reeds

in developing countries This was the fist

Imajr step in te conceptual evolution of

‘ood aid towards its eventual food security

role (FAO, 1954 That study had profound

Implications at both the conceptual and

institutional levels launched new ideas

for utling food surpluses in food fr

work projects for feod stabilization

purposes in special feeding programmes

for the most vonerable target groups and

in support of government programmes to

subsiaize consumption,

‘Closely related in timing and

significance was another FAO study (1955),

‘whieh concerned the posible contribution

‘of food aid to economic development

{lear dstncion was made forthe fst

time betvieen food aistance for welfare

and support for general development

programmes That study stressed the role

‘of food ae as an addtional capital to

finance economic development, including

itsbalance of payments and budgetary

In 1958, the CSSD submited a report on

‘Consultative machinery and procedures

and operations and adequacy of the

FAO Principles of Surplus Disposal” (FAO,

1959), As several countries became net

‘exporters of basic foods in the early

1960s, additional tensions in food aid

‘governance were recognized and 2

(S50 ad hoc group was formed on

“changing attudes toward agricultural

surpluses" Te report pointed out new

developments in the scope and nature

‘of "near commercial” and “extra

‘commercial transactions (FA, 1963), and

provided in response to emergency situations

(FA0, 199)

Food Aid Convention

‘Tae institutional bos of food ald was

strengthened wth the signing of the

Food Aid Convention (FAC) in 1967 within

was followed two yeas later by 2 “Grey

‘Area Panel Report” on developments and problems arising from concessional transactions with commercial features and commercial transactions with concesional tlements (A0, 1965),

Mean, the establihment of the Wer Food Programme under the Joint auspices of FAO and the United Nations in 1962 marked the beginning (of multlteral ood aid The decions {and reconmendtion ofthe World Food Conference in 1978 (UN, 1975) marked

‘another majoe tp inthe evolution of food

id In particular the conference exabithed the WEP Committee on Food Ai Policies and Programmes (FA) andthe FAO Commitee

cn Word Food Security (C5) Both of

‘appcoaches inthe oe of fod aid to support fear seer and economic development in

‘The conference recommended measures

to meet international food emergency requirements in order to echance WFP's capacity to render speedy assistance in femergences The later recommendation led to the ertablshment of the

International Emergency Food Rese (UFR) by the UN General Assembly in September 1975,

the contest of the International Grains Arrangement (IGA), an itergovernmental

‘organization outside the United Nations system The Internationa Grins Cound, located in London, has serve asthe Convention's host agency and secretariat since Its ineption The FAC has been successively

extended or renewed since then and the

furent convention, which came into forcein

1855, has been extended beyond is heduled

‘expiration 0930 June 2002 Negotiations on

' new FAC may begin soon in anticipation of

the concusion ofthe Doha Round af WTO

‘negotiations (Hoddinott anc Cohen, 2006),

Under the FAC, donors undertake to

provide = minimum lvel of food aid

expressed in tonnage terms (wheat

equivalent) Ths minimum vel has varie’

between about & milion and 7.5 millon

tonnes and is curently set at about

milion tonnes Membership in the FAC &

Uimited to countries that commit to making

food ald contributions The 1999 FAC has

23 signatories*

Since 1998, himanitarian and development

assttance policy concerns are taken ito

‘onsieration 9 a much greater extent than

before The objectives ofthe FAC are:

1 to make “appropriate levels of food aid

available ona presictable basis"

two encourage “members to ensure

that the food aid provided i aimed

partcalarl atthe aleiation of

poverty and hunger ofthe most

vulnerable groups, and is consistent

ith agricultural development in those

counties"

to maximize “the impact, the

fectveness an quality ofthe food aid

provide asa tool n supporto food

Security"; and

“to provide a framework for

co-operation, co-ordination and

Information sharing among members

‘on food aid related matters to achieve

‘greater etfenc inal aspecs af food

aid operations ad better coherence

between food aid and ether policy

In alton 0 the initial focus on grains,

the current convention als includes pulses,

‘oot crops, edible ol sugar and skimmed

mk powder Te convention encourages

members to provide food ald in grant form

Father than as concesional sales, and 10 de

‘couple food ad from export promotion,

Hoddinott and Cohen (2006) review the

principal ergs ofthe FAC, and present

‘our main areas of concern The mala focus

‘ofthe criticisms has been onthe minim level of fod ai In vecent years, this tminimm level has been set at such low level that sts not very meaningful, Usually

‘the international community has exceedes

‘this minimum requirement by considerable

‘amounts Since the commitments are based

‘on volume rather than monetary valve, the FAC shoul, principle, contribute

‘modestly to making food aid countercyclial swith respect to word grain supplies and prices As we have seen earlier inthis

‘chapter, this does not occur 35 food ale provision is negatively correlated with

‘alobal gran pies The fst key sue raised

by Hodeinatt and Cohen i that there are

no significant consequences wien members fail to meet their commitments, Second,

‘here lack of effort and mechanisms

to provide any meaningful dialogue on the effectvenes of food aid provided by signatories Tie, stakeholders who ae not signatories (e9 doner governments) {are excluded from negotiations on FAC terme and discussione of food a6 poli and practice Fourth, the FAC operations lack transparency World Trade Organization

Food aid has been ane ofthe most ifcat ines acute in the Doha Round of WTO negotiations, Progress wa alo slow on a numberof other sues, bụt eeohing the food aid ive wos considered of pivotal importance in making progress in he agricultural negotiations overall

The existing WTO disciplines on food aid came into force in 1995 under the export

‘competition pla of the Unuguay Round

‘Agieement an Agriculture, and were Intended ta prevent food ad being used to circumvent commitments on export subside,

In addition, the tatrakesh Decsion an Measures Concerning the Posble Negative Effects ofthe Reform Programme on Least Developed and Net Foodmporting Developing Counties (which san integral part of the Uuguay Round Agreement) Sought 10 ensure that agicutual reforme: would not adversely affect the aualablity

tf euticent level ef food aid to help meet the needs of developing counties especially least-developed and nt food imparting developing counties

‘The agreement tates that fod aid should

not be ted to commercial exports that all

food aid transactions shouldbe carried out

In accordance with the FAO Principles of

Surplus Disposal and Consultative Obligations

land that such ald should be provided to

the extent possible flyin grant form or

fon terms no less concessional than those

provided fo in the 1986 FAC In principle,

these explicit references to the FAO Principles

and the FAC meant that they became part,

‘of members rights and obligations under

‘the legal framework of the WTO, However,

‘adherence to these dieipine ha nat

‘always been inline with expectations, party because there has nat been a corresponding

remedy inthe WTO legal framework in cases

‘of partial compliance ts fr these reasons

that new enhanced disciplines on food

‘aid wore considered necessary by the WTO

membership under the negotiations in the

Doha Development Agenda (ODA),

Because ofthe humanitarian ature of

food ai, there was general support by

‘the WTO membership to preserve and

‘enhance it Some members considered that

‘maximum flexibly shouldbe allowed inthe

provision of food ald so that humanitarian

“Considerations are not compromised Others

‘alle for reforms, but were motivated by the

same objective They argued that aisciplining

fad ai to minimize ts possible adverse

market effects, both on word markets and on

the market ofthe recipient counties, would

enhance is humanitarian effectivenes

Inthe framework text ofthe General

Council Decision of 1 Augutt 2008, WTO

‘members agreed thatthe objective of the

ew disciplines on food aid would be to

prevent commercial displacement, and

thất food aid outside the diplines fo be

agreed) would be eliminated in parallel

with other forms of export subsisization

[At the Sith Ministerial Conference fn Hong

Kong Special Administrative Region in

December 2005, ministers reafirmed this

‘commitment and agreed on 2013 s: the

date for elimination of export subsidies,

Including “effective dsiplines on in-kind

food aid, monetization and re-export so

that there can be no loophole for continuing

‘export subsidization” (WTO, 2005) The

ministers recanted thee commitment to

maintain an adequate evel of food ald and

to take into acount the interests of fod aid recipient countries & safe box” for bone fide food aid was to be provided “to ensure that there leno unintended impeclment to dealing with emergency tuations” Tas,

2 clear datinction was established between, temergency food ald and non-emergency food ai

Asregards emergency situations the main

‘contentious te involved who could initiate appeals for in-kind food aid tobe provides Under the ste bor While some members argued for an explicit definition of what

‘ould constitute an emergency situation, the mainstream view supported the notion

of a “multilateral rigger, on the bass of

an appeal by the relevant “multilateral or International agencies” that are bes placed

to determine and asses an emergency situation based on ther oven knowledge, tapers and standards, in collaboration wth the recipient country concerned, There were aso some differences regarding the role of other actorsin the emergency response, including charitable boces and bilateral government-o-government arrangements as well a the duration of

‘assstance under emergency tuations The sue of dscplines fr in-kind food aid in non-emergency situations was more lfc One proposal wos forthe complete phasing out of this typeof assistance by

‘the end ofthe implementation period and tseeplacement with untied casrbosed Contributions Another view was that both Invkind food aid and monetization should remain permissible subject to certain Conditions ~estentaly, when such id

‘bated on an assessment of needs, is targeted ton identified vulnerable population

‘group and is provided to addres specific

<evelopmental objectives or nutritional

‘Although the Doha negotiations were suspended in July 2006, te latest report

‘rom the chairperson ofthe agriculture negatiations suggested that there was Support by the WO membership for some

‘general principles that should apply to all food aid wanssctions, namely, that food

id should be n€edrdruen and esi in beditional consumption; provided flyin

‘grant form; not tied directly oF indeecty to Commercial exports of agricultural products

oro ether goods and services not linked

temarket development objectives of danor

‘members; and not re-exported, except

during an emergency stuation where tis

An integral part ofa food aia transaction

Initiated by a elevant United Nations

agency, Other generally agreed principles

were that suhen providing food ai, donor

members should take fully into acount local

‘market conditions of the same or substitute

products and are encouraged to procure

food aid from local or regional sources tothe

extent posible (WTO, 2008)

Governance options for interna

food aid

While the dplines being dscssed in

the WTO appear to take the food security

objectives af recipient counties very

Seriously the WTO fs not primally concerned

with food security Some participants in

the food aid discussion argue that a more

effective international food ald coordination

fand governance mechanism is equited

{a minimize rade deputes and maximize

the effectiveness and appropriateness of

repose a humanitarian emergence

poverty and hunger reduction goals

(Konendreas, 2005; 8arret and Masuel,

2006; ay, 2005; Hoddinot and Cohen,

2006)

Humanitarian and development

practioner, meanwhile, increasingly

Fecognize the need for greater accountability

for the consequences oftheir activities

recipient countries NGOs have undertaken

‘numberof voluntary initiatives to

Improve the efectveness of fod ai at

‘humanitarian and development tol

Although these codes of conduct are

voluntary, they have had considerable

influence in recent years (Heddinott and

Cohen, 2008) CARE-USAS poi statement

‘on fod ai is summarized inBox 4, The

‘ans Atlantic Food Ald Poly Dialogue, @

broad calton of NGOs invlved info aid

programming, is alo calling for substantive

Feform The International NGOISO

Panning Committe for Food Sovereignty, an

Interocutor between FAO and cl soe,

has provided a special contribution atthe

fend of tis repor in which it calls for reforms

‘ofthe international food aid system

- Food aid in the context of food security

‘Along with food ai programming and

‘governance, the way food ai and food security are conceptualized has evolved Significantly over the past few decades Food secutitys now widely understood a accesso ll people tal times to suffcent, nutritionally adequate and sate food,

fvithout undue rik of losing such acces (AO, 20030), This definition includes four stnct dimensions aval, acess, ulization a stability

Fora long time, food security mechaniims that ensures the availabilty of food

(through production, commercial ports food aid) were viewed a sufficient to prevent hunger Thanks to Sens influential

‘otk, Poverty and famines (1981), t's now Understood thatthe avalalit ef suffident food inthe right place and a the right time Isa necessary condition for food secur, but tis not sufficent Houde and individuals must also have aces to food

‘through their own production purchases in the marketplace ox transfers via sca safety Recent thinking has added the concep of utlization a8» dimension of fod secur

‘This tefes to the physiological ability ofthe body to absorb the nutrients in food, and

‘thushighights the importance of non-food Iinutsin food security such as clean water, sanitation and heath care, Finally, stability

an extential element of fod security because tven temporary interruptions of food availabilty, aces or Hlizdion ean have Serious longterm consequences,

In any particular case of fod isecury, cone or more ofthe dimensions of food Security may be compromises effective Support for restoring food security Fequires understanding which mensions

be theatened and wy The ful et of

‘echaniss that quoranees continued Dyscal and economic accesso food must

be considered, This demands an appreciation

af food security that goes well beyond the domain of providing food si

‘The following section discusses food ald inthe broader content of social saety nets aimed at improving food security The

80X4

CCARE-USA white paper on food aid policy

CAREUSA reviewed its fod aid policies

and management practices in 2005 and

made several changes to ensure greater

onsstency with the organization’

foals and values, CARE-USA has long

been sưodated with food detrbution

programmes and continues to believe

that food ai, properly managed, can

be an important component of a global

strategy to reduce vulnerability and food

Insecurity However recent analyss has

shown thet, under some circumstances,

food id ean harm local production

and markets, undermining long-term

food security CARE-USAS objecivesin

using food aid are to save ives, protect

livelihoods, reduce vulnerability and

address underlying causes of poverty,

‘while minimizing any potential harmful

Side effects The policy review led CARE to

‘make four specific palcy decisions

* Monetization (the sale a food aid

to.generate cath for humanitarian

programmes): CARE-USA will phase

‘out monetization by September

2009, except in situations winere

it can be dearly demonstrated

ciferet types of safety nets ate outined,

‘and some features that shouldbe considered

in the design and implementation of safety

ets are dusted,

Social protection, safety nets

and food security

Social protection abroad concept that

refers toa range of measures designed

‘to provide income or other transers to

the poor and to pratet the vulnerable

against livelihood risks, with the overall

im of reducing the economic and secal

‘ulnerabiity of poor, vulnerable and

marginalized groups (Devereaux and

Sabates Wheeler, 2004) These measures vary

according to thelr degree of formality, who

provides them and haw they are funded

‘that monetization adarestes the Underlying causes of chronic food Insecurity and vulnerailties with reasonable management costs an without causing harm to markets

or local production, CARE wil use

‘monetization only when it issue that the food tha s monetized reaches vulnerable populations and has effective targeting of poor people

‘eth limited purchasing power CARE Aites thre reasons for this deco:

(i the practice requires intensive ‘management and i fraught with legal and financial isk; tis an economically inetfiient means of funding food security programmes:

and (i) open sales of commodities

‘on local markets inevitably cause commercial displacement, harming traders and local farmers and undermining long-term food sect

Local and regional purchase: CARE:

USA suppers local ad regional purchases of food supplies for food Security programming but recognizes

‘that the practice i complex and

“They may be informal (such as gis or loans {om family members or formal suchas private insurance or government sponsored Secial security schemes) Formal social protection programmes may be supported tth domestic or Intemational resources and be operated by governments, private busineses of charitable organizations Social safety nets, an important component

‘of social protection refer to cath or in-kind tansfer programmes that seek to reduce poverty and vulnerability by redistributing wealth and protecting households against Income shocks (Figute 7), Food safety nets area subset of social safety net, and aim to.ensure a minimum amount of food consumption and to protect households

‘aginst shocks to food consumption (FAO 20048) Food aan turn, is ane of many ood satery nets

Both social safety nets and food safety ets eek to ensure a minimum level of

‘may ental sks The two main

[istfiations for loca and reglonal purchases ae: () 10 reduce costs,

Sela and market estortions brought

about by “tying” food aid to domestic

procurement inthe donoe country:

and i to inerease procurement

flexibility while providing economic

‘pporturites for small farmers in

‘Countries where the purchases are

‘made Local and regional purchases

an cause harm nok manages

proper by rasing pices for

oricutural commodities in local

markets,

Spectc Unite States Department

(of Agriculture (USDA) programmes:

CCARELUSA supports the Coalition for

Food Aids pole statement Food aid

should not be used to enable a donor

toresablsh an unfair commercial,

advantage and must not create

Sisincetives ta loca production and

markets", CARE believes two USDA

programmes Title 1 (concessional

Sales) and Section 416b (surplus

isposa), are inconsistent uth that

wel-being including a minimum level of

rutriton, and to help hausehelds manage

Fisk, though they often use aitferent

tefinition or indicator of heusehold or

‘monetized therefore CARE-USA will phase out participation init as well International trade, agricultural subsides and food aia: CARELUSA wil enhance its capacity to understand howe the poor ae likely tobe affected

by trade liberalization, particlarly if liberalization is inked to reform of the food aid sjstem and the posible tlimination of safety nets precisely

t the moment when they ae mrt needed, CARE-USA i committed to

‘engaging with ster agencies, donors and other stakeholders to increase the overall effectiveness of food aid akan important instrument to address Underying causes of poverty and food insecurity,

Individual wellbeing Social safety nets

‘usualy rely on poverty indicators, while food safety nes rly on indicators more directly elated to food insecurity (auch a¢

80X5

Food insecurity in criss contexts

Crisis conten offer particular challenges

inthe design and implementation of

fod acunty intervention Interventions

ned tobe Based on an understanding of

Specific css contents and the underying

processes that thveaten food security

‘A "food security esis can be seen as

a time of extreme food insecurity, when

fhe main dangers widespread loss of

3¢ces5 food, perhaps leading to famine

Walker 1989, 68) defines famine in

terms of “a socio-econome proces which

Cautes the accelerated destitution ofthe

‘most vulnerable toa point where they

Thethoodt, hé defitien highlights the

clese connegion between food acuity

ng Iveioeds and the dynamic nature of

food cries

‘Yet, food security crises are stil regulary

treated ae purely transitory phenomena

{even wien in practice they may lat

several year) with a primary focus on

thes tht apr them and on the

acceptable food-consumption levels The

Underlying mechanisms that lead to css

are usually not addressed,

anthropometric measuements, consumption

-uwsysar vulnerabiity crted)

‘Soda safety nets and food safety nets pay

a much broader role than providing food

Guring cise They provide fungible resources

that can be sed to protec orto invest in

productive axiets They can ala be arety linked to human capital development when

made conditional on shoo! attendance and

heath care checkups

ey eta in designing fod safety nets

Many criteria must be considered in the

formulation, design and implementation of

ood safety nets:

‘nature of fod insecurity

+ programme ebectives,

+ Institutional capacity and budgetary

* polities, public opinion and the role of

Sovernment and cl cet

Wile rises tend tobe dives, their impacts are often broadly silo Threw identified: sdden-onet,slw-onset

‘and complex or protracted emergence,

“These are by no means comprehensive or

‘mutually exclusive categories Rather, they {erve to demonstrate that the succese of

an intervention is very much the outcome

‘of understanding the fl rss context land factoring th kind of knowledge into the responee File todo 0 can prolong food security crise

Sudden onset food crises re often triggered by climatic hazards sch

48 floods or hurricanes, Given the episode nature ofthe shock, national

‘governments and cil society often have Signiiant capacity to mobilize resources And to respond to basic demands for food, water and shelter The difficulties stem from the fat that resources to

o that transitory food insecurity Becomes

‘oni + Incentives and preferences ofthe targeted population;

+ targeting mechanisms

4 effects on prices, labour and trade

Te fist consideration in designing food safety net is 0 understand the ature of food insecurity: Who food Inecure and what are the inmediate and underying causes? Many factors

‘may contribute to food insecurity, Such as Seasonal supply variations, Chronic poverty and lack of assets, Intrahousehold distributional inequities and the functioning of local food markets

Responding to food insecurity in erisis contents is particularly challenging (ee Sox and Chapters) The existence of food insecurity n areas where adequate {ood is avaliable and food markets {unetion well suggests thatthe problem sone of purchasing power that that

Slonsonset fod insecurity cites arse

shen people who are cranial food

persistent external shocks such os drought,

HIVIAIDS, poor governance and poles,

‘degradation of land and water resources,

social and polite! marginalization or

ther factors Although loveonset rises

nay offer greater opportunites for

planning and implementing appropriate

responses they can have macolevel

fects, leading toa cumulative dain

fon resources and undermining ofthe

atonal capacity to respond Where these

impacts ae widespread and severe, and

strtures of governance ae 10 weak to

Character of protracted ess

Protracted ar complex crises have the

potential to incest fod insecurity by

fdavingrading, constraining or destroying

altogether people's mechanisms for

ensuring food avaliablty, acces,

tization and stability, Conf săn

fctity needed to develop food security,

fd economic actty an self become +

fecal point for conf The involvement

the food insecure do not have enough

Income t purchase suficient food, in such

(oF providing cash-bosed transfers food

markets are not functioning wall then a

focal or regional food shortage may be

the key underlying problem, which would

suggest that a progromme should provide

ood diectly of take measures to improve

the functioning of local markets

The recon key apc involies defining

Interventions ave requited ar programmes

aimed at alleviating trctural or ươnc

ood insecurity versus those aimed at

transitory ocr stations a dtintion

taken upin more detail elow and in later

chapters Other programme objectives,

‘ould include empowerment ofthe poor

‘or women, or addressing specific ypes of

or destruction of wider governance Institutions - particulary thowe of the bythe nature of pratracted crises and by the “humantarian-development” divide that inhibits the necessary broad, long term analy of the proces aca, poilica, economic and environmental) that shape food security

Chapter 5 eetuns to tis theme but brely four elements need to

be factored in when designing and Implementing appropriate interventions ina isis () how the dypamic nature farsi affect the four food security overtime; i) how the secopaltial fan economic contet influences food Security: i) how the nature ofthe crisis fects the institutional and governance Srangements for effective palcy design

‘and implementation and (y) how shor {erm outcomes influence long erm objective or food security,

is etrerely inted due to weak goveroment institutions and a shortage of qualified personne Aminstrative init may thus

“onszain the level of complexty and the teach ofa given intervention, Tight budgets abviously constrain programme design, most cdeany la forcing a choice between coverage Band the size ofa given arse

“A fourth consideration involves the elatve roles of ciferent levels of government and đi sodcty in terms ofboth the Dminstvative and budgetary disebution responsibly Tis depends in parton the

80X6

Targeting

Targeting refers to efforts to ensure

that atance reaches all of the people,

byt only the people, who need i Many

different targeting mechanisms exist

and policy makers need to know how

Hee the different mechanisms are

Unfortunately, there iit consensus

about which ofthe commenly ured

methods fr targeting transfers to

the poor is best A meta-analysis by

Coady, Grosh and Hoddinott (2008)

compiled a comprehensive database on

128 programmes in 8 counties The

study provides information on the use of

targeting techniques, summary statses

on comparative programme performance

and regression analysis to examine the

Correlations between methods and

foutcomes, The most comavon targeting

methods ae

* Individual /household assessment:

= Means testing: An official diecty assesses whether the applicant is

eligible forthe programme

for ench households calclated

based on a small umber of easily

~ Community targeting: & community

leader or group of community

Institutional history of a given country

‘wall atthe desire to corect or compensate

{or institutional shortcomings suchas lace

‘of democracy at local lvels The palit and

‘waditions ofa given country may govern

what kind of food safety neti acceptable in

‘the ees of pubic opinion

Programme designs also guided by

‘the type of incentive effects that policy makers want to promote or discourage and

the preferences ofthe target population,

Potential beneficiaries may prefer a certain

kind of programme for economic Social or

‘cultural atone For example, howls,

‘may prefer cash because I allows greater

flexibility in meeting diverse needs, and

Indigenous communities may resist measures

‘targeted atthe individual or household

level, preferring instead community-based

members decides who inthe Community should eceve benefits + categorical targeting:

~ Geographical Eigity for benefits

Is determined by location of

~ Pemographic talbii9 is determined by age, gender or some other demographic characteristic seittargcting: A programme

‘ut designed in such away that participation wil be moch higher lamang those wha are poor than those

‘oh ate not

The study drew five broad conclusions

"Targeting can work The median programme provided a quarter more Bragrammes withthe best neence

‘elivered two to four times ther per capita share of benefits tothe poor Progresve allocations were posible inal country settings, in counties at markedly different income levels ond

in mest types of programmes

‘While median performance was good targeting was egresive ina quarter

‘measures Ignoring acl preferences may Feduce the impact ofa given intervention Targeting mechanisms must be carefully considered, Mas interventions are targeted towards a specific region or type of

hausehold because of budgetary and equity reasons The methodology chosen to reach ' target population determines in large part the effecveness of an intervention, a5 wll asthe sk of causing unintended negative Consequences Many methodologies ae alsble (80x69, ad the choice depends fon programme objectives and design, the avalality of data, budget and the operational capacity ofthe implementing agency Some progfammes are considered saletargetng, in that wages are <0 lon, oF Fequirements 50 high that only the poorest household wil participate Such a se