14
May 13

Getting Food Aid Right

How many of us read a story of disaster striking people half a world away and respond by getting out our checkbooks?  Tens of millions of us in any given year, and Americans are especially generous. Relief agencies received more than $1.2 billion in the wake of the disastrous 2010 earthquake in Haiti and $3.9 billion following the 2004 Indian Ocean tsunami.  But is anyone foolish enough to go to the local grocery store, buy food and ship it to communities devastated by disaster? Of course not. That would cost much more, take too long to reach people in need, risk spoilage in transit, and likely not provide what is most needed.

Yet with only minor oversimplification, this is precisely what our government’s food aid programs have done since 1954. Our main international food aid programs are authorized through the Farm Bill and must purchase food in, and ship it from, the United States. This system was originally designed to dispose of surpluses the government acquired under farm price support programs that ended decades ago.  These antiquated rules continue today thanks to political inertia in Washington.

As a result, only 40 cents of each taxpayer dollar spent on international food aid actually buys the commodities hungry people eat; the rest goes to shipping and administrative costs. And the median time to deliver emergency food aid is nearly five months. We can do better.

From a longer piece by my friend and frequent coauthor Chris Barrett on CNN’s Global Public Square blog. Chris is also the author with Dan Maxwell of what is without a doubt the best book anyone can read on food aid.


06
Mar 13

Food Aid: Why Local and Regional Procurement Is Better (Updated)

USFoodAid

US Food Aid (Source: Explore.org).

A few weeks ago in my food policy seminar, we discussed food aid. Paarlberg (2011), whose discussion of food aid informs much of the first half of this post, defines food aid as the international shipment of food through noncommercial channels as a gift.

Though almost 60 percent of food aid is delivered by the United Nations’ World Food Programme, the US remains a major provider of food aid. The delivery of food aid by the US is not without its fair share of problems. Among the most decried features of the US food aid program are that

  1. US food aid has to be purchased in the United States, and
  2. US food aid has to be shipped on US-flagged vessels.

As a consequence of those two rules, 65% of US spending on food aid is spent on administrative and transportation costs. Continue reading →


05
Feb 13

Sen on Famine (and a Reflection on Hunger)

In a situation of direct entitlement failure, food availability in shops may not go down very much even when total food availability sharply goes down. When during the Irish famine in late 1846, people were starving, Major Parker, the local Relief Inspector sent the following report on December 21st from Skibbereen: “On Saturday, notwithstanding all this distress, there was a market plentifully supplied with meat, bread, fish, in short everything. Similar reports from all over Ireland made Trevelyan insist that all the “resources” of the country should be, as he put it, “drawn out.” In fact, however, the apparently paradoxical situation had arisen from a decline in entitlement in excess of the supply of food. That situation is, in fact, quite a common occurrence in famines. What has to be guaranteed to prevent starvation is not food availability but food entitlement.

That’s 1998 Nobel laureate for economics Amartya Sen, in an 1980 essay in World Development titled “Famines,” which I assigned as a reading in my food policy seminar. Continue reading →


30
Nov 12

China’s Great Famine

Courtesy of one of the students in my development seminar, here are links to a two-part NPR story about China’s famine of 1958-1962: part 1 and part 2.

Between 1958 and 1962, an estimated 20 to 43 people died of hunger in China, which China’s official statistics claiming 15 million deaths and the highest estimates reporting a death toll of 45 million. For comparison, the death toll from World War 1 is estimated to be about 17 million. During the Chinese famine, people eventually survived on anything they could find, eventually going so far as to eat their dead and their own children.

The NPR story discusses Tombstone, a book which just came out in English and which took Chinese reporter Yang Jisheng 10 years of working in secrecy to write. I’m about 100 pages into the book. It is a fascinating and monumental account of China’s Great Famine. And as one might reasonably expect, it is banned in China. Continue reading →


27
Sep 12

Measuring Who Wins and Who Loses from High Food Prices

Anecdotally, one would be tempted to infer the existence of a strong positive relationship between higher food prices and poverty. After all, it is the poor who spend a higher share of their food on basic staples and have the least means to buy food with their meager income. And several studies using the available, imperfect data tend to confirm that relationship.

This is despite the fact that three quarters of poor people live in rural areas and the majority of them earn their living from farming. Some poor farmers produce more food than they consume and hence benefit from higher prices, but many others are net buyers of food and hence lose out when food prices rise. But identifying which households gain and which lose, and hence the overall impact on poverty, requires knowledge of this relationship for all vulnerable households. A major problem is that we still lack the data for accurately gauging who, for a given level of production and pattern of food consumption and purchases, is more likely to be negatively impacted by higher food prices.

From a post by Gero Carletto over at the Development Impact blog.

This is a point that is too often forgotten by nonexperts when discussing the effects of high food prices: that rising food prices (much like food price volatility) generates winners and losers. Continue reading →