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Food Aid

Food Aid. Origins of Food Aid United States. Objectives: Attempt to persuade developing countries to seek alliances with the U.S. rather than Socialist Countries. Origins of Food Aid United States. Objectives: Help the development of the economies of countries in the Developing World.

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Food Aid

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  1. Food Aid

  2. Origins of Food AidUnited States Objectives: Attempt to persuade developing countries to seek alliances with the U.S. rather than Socialist Countries.

  3. Origins of Food AidUnited States Objectives: Help the development of the economies of countries in the Developing World.

  4. Origins of Food AidUnited States Objectives: Find outlets for surplus agricultural production.

  5. Origins of Food AidUnited States Objectives: Build future export markets for U.S. agricultural products.

  6. The Bill Emerson (U.S. Representative from Missouri) Humanitarian Trust is a food reserve for Public Law (P.L. 480) administered under the authority of the Secretary of Agriculture. This reserve is available to meet emergency humanitarian food needs in developing countries, allowing the United States to respond to unanticipated food crises with U.S. commodities.

  7. PL 480July 10, 1954 President Dwight Eisenhower signed the Agricultural Trade and Development Assistance Act Public Law 480 (P.L. 480) also known as the Food for Peace Program. The P.L. 480 food aid program is comprised of three titles.

  8. Each title has different objectives and provides agricultural assistance to countries at different levels of economic development.

  9. Title I of the P.L. 480 program is administered by USDA, and Titles II and III are administered by the Agency for International Development (AID).

  10. P.L. 480 programs are entered into to combat hunger and malnutrition.

  11. Promote broad-based equitable and sustainable development, including agricultural development.

  12. Develop and expand export markets for United States agricultural commodities.

  13. To foster and encourage the development of private enterprise and democratic participation in developing countries.

  14. Title I provides for government-to-government sales of agricultural commodities to developing countries under long-term credit arrangements.

  15. Repayments for agricultural commodities sold under this title may be made either in U.S. dollars or in local currencies on credit terms up to 30 years, with a grace period of up to seven years.

  16. Repayments for agricultural commodities sold under this title may be made either in U.S. dollars or in local currencies on credit terms up to 30 years, with a grace period of up to seven years.

  17. Title II provides for the donation of U.S. agricultural commodities by the U.S. government to meet humanitarian food needs in foreign countries

  18. Commodities may be provided to meet emergency needs under government-to-government agreements, through public and private agencies.

  19. Commodities requested may be furnished from the Commodity Credit Corporation's (CCC's) inventory acquired under price support programs or purchased from private stocks.

  20. Title III provides for government-to-government grants to support long-term economic development in the least developed countries

  21. The donated commodities are sold on the domestic market, and revenue generated from the sale in the recipient countries is used to support programs of economic development.

  22. P.L. 480 Title II Programs (programs to enhance food security and combat malnutrition) ($0.85 billion in 2002). The biggest recipients in 2002 were India ($86 million), Afghanistan ($40 million), and Peru ($31 million). Ethiopia received $140 million in 2000 and $103 million in 2001, but only $13 million in 2002.

  23. Critics argue that providing inexpensive imports may depress the importing country's farm prices to the detriment of domestic producers.

  24. In addition, the availability of food aid may result in recipient governments having less incentive to reform policies to develop self-sufficiency by increasing domestic production or generating foreign exchange to purchase food imports.

  25. Others argue that food aid has been directed to countries based on market development priorities at the expense of those countries with the most immediate or chronic food shortages

  26. Compared to other donor countries, the United States gave the largest amount of development assistance in 2001, and was second only to Japan in previous years.

  27. The United States gives the lowest amount relative to the size of its economy.

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