International Master Programme in Cooperation and Development
Food Aid and Trade
Food Security
Master CD, IUSS, University of Pavia, 2008/09
Paola Fava
Maria Elena Ladron de Guevara
Prakash Sharma
23 April, 2009
International Master Programme in Cooperation and Development
Food Aid has been one of the ways to
840 million undernourished
solve food insecurity problems
people in the world
over the last 60 years
International Master Programme in Cooperation and Development
Food aid: types
• Program
– In-kind aid
– Government to government transfer
• Project
– As part of a specific project
• Relief or Emergency
– Distributed in emergency situations
– Countries facing chronic food insecurity
International Master Programme in Cooperation and Development
Main donors involved
International Master Programme in Cooperation and Development
Reasons for receiving
Food Aid
• Hunger?
• Political
• Economical
• Commodity Surplus: (i.e. CSSD)
International Master Programme in Cooperation and Development
The process
• Distribution
– Big U.S. shipping companies involved
• Major commodities used as Food Aid
– Cereals (90%)
– Rice
– Course grains
International Master Programme in Cooperation and Development
Food Prices
• Inverse relationship
International Master Programme in Cooperation and Development
How does Food Aid
affect trade?
• Emergency Food Aid
-Limited effect
• Food aid can replace commercial imports
International Master Programme in Cooperation and Development
It can destabilize local
markets
• Dumping
- Undercuts local farmers
• Prices fall:
– Benefits food buyers
• Create new tastes and markets
International Master Programme in Cooperation and Development
Food Aid Concerns
• Donor-driven system (promotes domestic
interests)
• Can create dependency
• Food Aid management (corruption)
International Master Programme in Cooperation and Development
Our thoughts..
• Food Aid is not one of the solutions to food
insecurity
• Paradox: over 50% of people suffering from
hunger are smallholder farmers
International Master Programme in Cooperation and Development
Possibilities
• Weather-resistant seeds
• Encourage transparency within governments
• The usage of local markets
• Food diversity
• Financing research for sustainable
approaches and infrastructure
International Master Programme in Cooperation and Development
Thank you!