Horn of Africa Food Shortage - Is it right to give food aid?

[Simon.D]

BBC News

Ethiopia is a country addicted to free food, and has been since the famines of the 80's... Indigenous food producers, outside of state-owned farms, find it hard to compete with this free produce, killing off the entrepenurial incentive needed to fill this food void and prolonging the desperate state of this countries economy.. During food shortages these farmers face an account busting double blow, crop failure coupled with a fall off in demand for the produce they manage to harvest as they try to compete with the free vendor (i.e. Charity) down the road..

Would a social welfare, cash payment, not be a better option for the hungry of these countries during such crises? I know such a system might be a little bit more expenisve, and such a move may not sit too well with vested interests like the powerful corn lobby in the US, but would it be worth it? Would it reduce the frequency of these events by strengthening the local food producing economy?

[Kf]

All sounding a bit Laissez Fairish/Kevin Myerish there. Its really not as simple as you make out.

The majority of food distributed in Ethiopia is by WFP, they will have a mix of activities and targetting with a relatively small number of people recieving "free food". So they will have a School Feeding Program to encourage children to stay in education thereby building the capacity of the future labour market. They will also have a food for work scheme that provides a part ration of food for vunerable yet healthy males to undertake public works that aim to increase or improve access to markets (building roads) or productivity (building irrigation schemes). There is probably refugees in the country and typically refugees living in a camp will be in reciept of a supplementary food ration. Another typical programme will be aimed a pregnant and lactating mothers and conditional on attending pre and anti-natel clinics.

It is only after acute malnutrition is recorded do WFP start full ration feeding programmes of the ones you allude to. In addition WFP will always purchase product in-country on commerical rates. So while the majority of the grain element of the feeding intervention will be donated, they seek to directly purchase other parts of the package (oils, vegetables, pulses) locally.

So in summary Yes it is right to give food aid.

Ask the same question of the situation in Ireland in relation to any social welfare payment and honestly then assess if your assumptions in relation to Africa remain

[Simon.D]

The majority of food distributed in Ethiopia is by WFP, they will have a mix of activities and targetting with a relatively small number of people recieving "free food".

Something like 5 million people in Ethiopia are dependent on free food, thats a relatively small number??? Do you not agree that the povision of this free grain distorts and depreciates local food prices?

So they will have a School Feeding Program to encourage children to stay in education thereby building the capacity of the future labour market. They will also have a food for work scheme that provides a part ration of food for vunerable yet healthy males to undertake public works that aim to increase or improve access to markets (building roads) or productivity (building irrigation schemes). There is probably refugees in the country and typically refugees living in a camp will be in reciept of a supplementary food ration. Another typical programme will be aimed a pregnant and lactating mothers and conditional on attending pre and anti-natel clinics.

Free food is free food, regardless of how it's packaged... It's a cash flow that's bypassing the local producers... Why can't these's workers be paid? Or students receive a weekly allowance? Both would provide the same incentives, while also maintaining a flow of cash at the local market, keeping the economy of the locality somewhat healthy during such difficult times...

Ask the same question of the situation in Ireland in relation to any social welfare payment and honestly then assess if your assumptions in relation to Africa remain

I don't see bags of grain be handed out at the post office....

[Kf]

Simon, I had a quick look at the WFP programme in Ethiopia it appears that about 1 million would be dependent on "free food". The other 4 million are in variety of programmes some of which would include a partial food donation.

Anyway the substance of your point is sound. Why not replace the food with money, well it happens but usually done by UNHCR and the larger Aid agencies who will run cash based schemes. One of the reasons that the donors are reluctant to do it is that money is more fungible than food and so it increases the risk of the intervention (ie money) not being used by the beneficary. Bear in mind that a full food ration is designed to prevent acute malnutirtion, so the intervention is as more medical than economic. Think of it more as a prescription than a donation.

As for the distortion argument - yes its valid but again bear in mid that where possible the donor will try and source food locally. Even in the event of food being donated increasing what happens is that the agency will be allowed Monterise the food (ie sell it) on the international market then use that cash to purchase locally. As for food prices - its a mixed bag, the price of food pre-famine will shoot up in price, indeed it is one of the EWS indicators, and stablises juts prior to the shift from chroinic to acute malnutriton rates. Then it tends to stablise, mainly due to a lack of affordability. Where possible agencies will look to purchase locally which may indeed drive the price up.

In addition huge effort is applied to try and prevent a the sale of donated food in local markets, indeed in some countries it is an legal offence to do so. The only time, I am aware of that food was delibertaly flooded onto a market was during the early 90's somalia crisis when ICRC and WFP orgainsed to flood the eastern Somalian market which had by then become a corrupt monopoly run by the clan chiefs.

[toxic avenger]

As I understand it, most charity-work in Africa is geared towards protecting and encouraging indigenous industry, and they are well aware that food 'dumping' is an enemy of such work. If you're looking for someone to blame, look at the European Union, which dumps its excess on Africa and destroys local production and competition. There's where the real problem lies, not with glorified soup-kitchens in hunger-ridden corners of certain countries.

[jcdf]

So we are in agreement, no more food aid to Africa. We should instead sell our excess food produce to the Chinese who will pay us for it.

[toxic avenger]

Food aid is fine in the limited circumstances of hunger-ridden areas, indeed it is a moral responsibility. Turn your guns on EU dumping, not on relief efforts in areas facing starvation.

[Simon.D]

Anyway the substance of your point is sound. Why not replace the food with money, well it happens but usually done by UNHCR and the larger Aid agencies who will run cash based schemes. One of the reasons that the donors are reluctant to do it is that money is more fungible than food and so it increases the risk of the intervention (ie money) not being used by the beneficary. Bear in mind that a full food ration is designed to prevent acute malnutirtion, so the intervention is as more medical than economic. Think of it more as a prescription than a donation.

I understand and accept that point, i.e. when people are approaching a state of severe malnutrition this sort of medical intervention is necessary.. Plumpy'nut definately has it's place...

As for the distortion argument - yes its valid but again bear in mid that where possible the donor will try and source food locally. Even in the event of food being donated increasing what happens is that the agency will be allowed Monterise the food (ie sell it) on the international market then use that cash to purchase locally. As for food prices - its a mixed bag, the price of food pre-famine will shoot up in price, indeed it is one of the EWS indicators, and stablises juts prior to the shift from chroinic to acute malnutriton rates. Then it tends to stablise, mainly due to a lack of affordability. Where possible agencies will look to purchase locally which may indeed drive the price up.

Purchasing locally is a step in the right direction. Though I can still see distortions creeping in with this kind of scenario, owing to the presence of a monopsony.. But assuming the charity reimburses the farmers adequately for their terrible harvest, It has the potential to have a similar effect that a cash based system would on the locality..
Food prices need to be allowed to shoot up following a bad harvest in order to help sustain the local food producers and keep them somewhat afloat.. So I hope charities, with their big buying power, don't undercut them...