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The Evolution of US Food Aid: Major Changes and Key Issues. Chris Barrett Cornell University May 12, 2011 Congressional Research Service Briefing Capitol Visitor Center, Washington, DC. Food aid in support of MDG #1. United Nations Millenium Development Goal #1:
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Major Changes and Key Issues
May 12, 2011
Congressional Research Service Briefing
Capitol Visitor Center, Washington, DC
United Nations Millenium Development Goal #1:
Reduce by half the proportion of people (i) living on less than a dollar a day and (ii) who suffer from hunger.
What role for food aid?
US still accounts for 50-60% of total food aid worldwide each year. US food aid policy drives global food aid system.
- Gov’t stocks (CCC/FOR) down 95% 1987-2005
- Now procure based on IFBs, at a premium
- No price impact, yet myth persists b/c people conflate correlation with causality
5. Shift From Program to Emergency Food Aid:
- Until 1992, most US food aid was “program” – govt-to-govt concessional sales on credit: Title I and Section 416(b)
7. Other Donors Reformed Their Food Aid Programs
Example: when Denmark decoupled, replacing cheese and canned meat food aid with bulk grain, wheat flour, peas and vegetable oil, it generated 6x calories and 3x protein at lower cost, from 1990-1997.
Exception: US has neither budget integration nor significant untyingdget integration nor untying.
The Golden Hour, LRP and Untying of Procurement:
GAO: 10-country averages in sub-Saharan Africa:
21 weeks for U.S food, 7-8 weeks for LRP
CFGB: Kenya, Ethiopia, & Afghanistan
11-19 weeks for Canadian food, 4-6 weeks for LRP
4. Cargo preference
International Food Assistance Governance
Food aid remains important as part of the “twin track” strategy found in the 2009 Rome Principles.
US still leads the global food aid system.
But much has changed … the next Farm Bill is dealing with a radically different food aid program than what the US had 20 years ago.
Improving awareness of changed landscape will help build the coalitions necessary to tackle key remaining issues:
- Cargo preference
- Budget integration
- Food assistance governance