Marco CiapparelliMarco CiapparelliMarco Colucci Marco Colucci Laura DeottiLaura DeottiGeoffrey LambertGeoffrey LambertYasmine MittendorffYasmine MittendorffAnna TurcoAnna Turco

The use of food aid to address food insecurity: instruments and approaches

Uses of food aid to address food insecurityUses of food aid to address food insecurity

1. ACUTE HUMANITARIAN EMERGENCIES• General direct distribution of basic food ration to vulnerable groups • Supplementary / theraupetic feeding• Food for work

2. FOOD BASED SAFETY NETS• Timely provision of assistance • Limits: - protect food security and nutritional status only in the short term

- provide only for consumption requirements

3. FOOD AID FOR DEVELOPMENT • Maternal child health supplemental feeding• Food for education, work, participation

4. MONETIZATION

• Food aid sold to commercial traders on open market. The proceeds from sales used for other purposes, not directly related to provision of food to hungry people (weakness: food aid is generally sold on local market at below than market price, destroying local market channels)

Case study :FFW Programme Bangladesh 1975-1989 (I)

CONTEXT OF THE COUNTRY :CONTEXT OF THE COUNTRY :• Half of the population (112 million) cannot afford an adequate dietHalf of the population (112 million) cannot afford an adequate diet• 50 Percent of rural households are landless50 Percent of rural households are landless• Majority of population depends on agriculture; high Majority of population depends on agriculture; high unemploymentunemployment due to due to

seasonalityseasonality• Absolute poverty level declined from mid-1970 to mid-1980 but peaked in Absolute poverty level declined from mid-1970 to mid-1980 but peaked in

correspondence of famines (1974,1977,1988) correspondence of famines (1974,1977,1988)

NATURE of the FOOD for WORK PROGRAMME :NATURE of the FOOD for WORK PROGRAMME :• Started in 1975 as a response to an Started in 1975 as a response to an acute humanitarian emergencyacute humanitarian emergency and and

then shifted into a food aid for then shifted into a food aid for development programdevelopment program. . • Food as Food as incentiveincentive to stimulate work in public employment schemes: to stimulate work in public employment schemes:

workers paid not with money but with food rations to build infrastructuresworkers paid not with money but with food rations to build infrastructures• Major Major objectivesobjectives: :

1.1. Providing Providing incomeincome to rural poor during the slack period to rural poor during the slack period

2. 2. Stabilizing food grain pricesStabilizing food grain prices in the market in the market

• Projects administered by WFP and implemented by governmental agencies • Projects administered by Care, financed by USAID , implemented by local gvt• Wage rate varies according to type of project and sex of workers ( Average wage rate : 4.6 kg of wheat per day, higher for women)

PROS:

• Using labour, the only asset owned by rural poor, to feed families. (4 million of direct beneficiaries)

• Creation of public goods: coastal and flood-protection infrastructure, small and large-scale irrigation projects, building / repairing of roads, reforestation and creation of fish ponds.

CONS:

• Technical, organizational and administrative weakness

• Non sufficient consultation with local people

• Overlapping between Care and WFP: same zone same period

• Targeting errors

FFW Programme Bangladesh 1975-1989 (II)

IMPACT:• Improved production (+ 27%) and income (+26%) in agricultural sector • Enhanced employment, educational and marketing opportunities • Strengthened communications between communities • Reduced mortality (structures holding back floods + access to health services)

NUTRITIONAL IMPACT :

• In general no evidence of relevant positive results (no provision specific activity, risk of distortion of private Investments and implementation of unnecessary/damaging activities )

• But Bangladesh’s programme experienced positive outcomes, such as :− calories and proteins consumption raised for all age groups in the

project area but for children in the weaning stage.− calories per capita improved by about 9% and adequacy by about 8%

for the poorest 25% of population.

thanks to : - better supply/demand conditions for food - better infrastructures (irrigation, access to health facilities,housing)

FFW Programme Bangladesh 1975-1989 (III)

Management of FA : Targeting dimensions (I)

a) WHO :a) WHO :

Beneficiaries : Beneficiaries : only food insecure communitiesonly food insecure communities direct: vulnerable peasants and unskilled workers (4 million)direct: vulnerable peasants and unskilled workers (4 million) Indirect : wheat producers/consumers + people living where FFW Indirect : wheat producers/consumers + people living where FFW

implemented implemented

Risks of 2 types of errors:Risks of 2 types of errors:

1.1. leakage errorleakage error : inclusion of people who don't need assistance : inclusion of people who don't need assistance Costs: - waste of resourcesCosts: - waste of resources - creation of FA dependency- creation of FA dependency - disruption of mkts and local production incentives- disruption of mkts and local production incentives

35 % , underestimation of base-line conditions, over-reporting of work 35 % , underestimation of base-line conditions, over-reporting of work

2.2. undercoverage errorundercoverage error: exclusion of food insecure people requiring : exclusion of food insecure people requiring assistance with high humanitarian costsassistance with high humanitarian costs

underpayment to workers from 17 – 27% in the project underpayment to workers from 17 – 27% in the project 18-35 % of wheat not arrived18-35 % of wheat not arrived Under completion of workUnder completion of work

b) HOW :b) HOW :

1. administrative targeting1. administrative targeting : : • Based on screening individual applications for assistanceBased on screening individual applications for assistance• Poorly used as too costly (time-consuming and info-demanding)Poorly used as too costly (time-consuming and info-demanding)

2. indicator targeting2. indicator targeting : :• Distributing FA to subpopulations less food secure than othersDistributing FA to subpopulations less food secure than others• Need to use imperfect indicators such as : physiological measures of Need to use imperfect indicators such as : physiological measures of

vulnerability (nutrition, health) or economic measures (assets..)vulnerability (nutrition, health) or economic measures (assets..)

3. community-based targeting :3. community-based targeting :• responsibility for targeting delegated to local community leadersresponsibility for targeting delegated to local community leaders• Geographic indicator targeting to identify food insecure areasGeographic indicator targeting to identify food insecure areas

Pros Pros : - exploit local info advantage : - exploit local info advantage

- better understanding of local vulnerabilitybetter understanding of local vulnerability

Cons Cons : - not pro-poor /elite biased targeting : - not pro-poor /elite biased targeting - uniform distribution of food to all members of community- uniform distribution of food to all members of community

Targeting dimensions (II)

Targeting dimensions (III)

4. Self-targeting :

• beneficiaries chose to participate on a voluntary basis

• conditions set to foster the participation of only the poor

Pros : - no administrative cost of screening

- minimize leakage errors

Cons : - effect of level of FFW wage on local labour market ( risk of substitution wage work )

- FFW placed where expected returns on investments are highest , not where most needed

Bangladesh: evidence that only poorest tend to participate due to :

- nature of the work (hard work: e.g. creation of roads)

- specific cereals retribution (e.g. wheat instead of rice)

- seasonally work (85% of the FFW resources are spent on during the agricultural activities )

c) WHAT

Sometimes FA is the most convenient transfer for donors not for recipients

Problems:

- Which commodities / which varieties ? - Raw or processed product ? (e.g. : grain or flour )

Bangladesh Wheat : - negative income elasticity of demand in rural areas - alleviate specific nutritional deficiencies at min costs

d) WHEN

FA should be provided exactly • to face seasonal food insecurity• as a counter-cyclical transfer (food output / world market prices ST shocks)

But evidence of pro-cyclical bilateral FA as a result of :

- Long lags between time of commitment and effective delivery of FA - Bureaucratic delays (procuring/transporting food) - Inertia : generalized need , no present specific country conditions

Targeting dimensions (IV)

Bangladesh : From January to May, when no more flood water

FFW fails to address the problem of slack season unemployment ( Sept-Oct and Jan-Mar) and increasingly competes with agricultural activities when unemployment higher

e) HOW MUCH :

Difficult determination of needs due to: − Scarce availability of data on which basing forecasts− Difficulties in predicting needs − Political pressures

Improvement in needs assessment over past decade due to: - general accepted set of needs estimates continuously updated (FAO GIEWS ) - widespread adoption of methods evaluating food access (Save the Children)

BUT assessing food requirements of a population remains difficult because of : - relying on variety of assumptions - poor information - pressures to act quickly

Targeting dimensions (V)

Procurement , Supply Chain and Reserves (I)Procurement , Supply Chain and Reserves (I)

A) LOCATION OF FA PROCUREMENTA) LOCATION OF FA PROCUREMENT

1. Local purchase : 1. Local purchase : food is purchased in the recipient countryfood is purchased in the recipient country

2. Triangular transaction2. Triangular transaction : food purchased in a neighbouring country of : food purchased in a neighbouring country of the recipient the recipient

3. International 3. International : food is purchased in donor country and sent to recipient: food is purchased in donor country and sent to recipient

local purchases / triangular transactionslocal purchases / triangular transactions : :

Pros :Pros : - Usually shorter delays between procurement and delivery - Usually shorter delays between procurement and delivery

- Food provided is presumably more culturally appropriate- Food provided is presumably more culturally appropriate

- By increasing demand on local/regional markets, improvement of - By increasing demand on local/regional markets, improvement of local farmers’ incentives to grow food local farmers’ incentives to grow food

Cons:Cons: - Food surpluses not always reliable - Food surpluses not always reliable

- Acquisition and logistics problems due to underdeveloped , highly - Acquisition and logistics problems due to underdeveloped , highly fragmented marketing system ( risk of collusion big traders)fragmented marketing system ( risk of collusion big traders)

- Potential negative impact on net food buyers : increase in prices - Potential negative impact on net food buyers : increase in prices

B)B) EFFICIENCY OF RESOURCES TRANSFER IN FORM OF FOODEFFICIENCY OF RESOURCES TRANSFER IN FORM OF FOOD

Evidence of Evidence of inefficiency inefficiency in food delivering:in food delivering:

- less money generated for recipients per dollar spent on FA by donors - less money generated for recipients per dollar spent on FA by donors

- FA programs more costly that buying same food in recipient country mkt - FA programs more costly that buying same food in recipient country mkt (Barret , Maxwell, 2004)(Barret , Maxwell, 2004)

due to : due to : • High High CostsCosts of transoceanic food aid shipments + Ground and of transoceanic food aid shipments + Ground and

handling costs between ports and final destinationhandling costs between ports and final destination• Administrative costsAdministrative costs incurred by donor or recipient agencies incurred by donor or recipient agencies• RentsRents for successful vendors for successful vendors• Risk of Risk of spoilagespoilage + monetization losses + monetization losses• Aid tyingAid tying (double) : aid provided under some conditions (double) : aid provided under some conditions

reflecting the lobbying power of influential interest groups reflecting the lobbying power of influential interest groups (sub communities of producer groups , few large agri-business (sub communities of producer groups , few large agri-business

selling to FA programs, few freight forwarders)selling to FA programs, few freight forwarders)

Bangladesh FFW program delivers one taka of income to participating Bangladesh FFW program delivers one taka of income to participating household at cost of 1.8 – 2.4 taka , due to high system leakage and household at cost of 1.8 – 2.4 taka , due to high system leakage and costs of foodgrain handlingcosts of foodgrain handling

Procurement , Supply Chain and Reserves (II)Procurement , Supply Chain and Reserves (II)

C) SUPPLY CHAIN MANAGEMENT AND STRATEGIC RESERVES C) SUPPLY CHAIN MANAGEMENT AND STRATEGIC RESERVES

1. Transport FA from point of entry to final distribution :1. Transport FA from point of entry to final distribution : Improved efficiency due to upgrading infrastructures and careful Improved efficiency due to upgrading infrastructures and careful

management of the logistics ( WFP Ethiopia crises in 2000 , 2003)management of the logistics ( WFP Ethiopia crises in 2000 , 2003) Unsuccess in other cases ( Uganda 2002)Unsuccess in other cases ( Uganda 2002)

2. Food storage :2. Food storage :

Many countries were provided with Many countries were provided with grain reservesgrain reserves aimed at aimed at

stabilizingstabilizing (interseasonally or interannually) (interseasonally or interannually) domestic food pricesdomestic food prices faced by consumers and/or farmers faced by consumers and/or farmers

Providing a Providing a publicly-held strategic stockpilepublicly-held strategic stockpile for distribution in times for distribution in times of crisis , in order to :of crisis , in order to :

increase the availability of food at lower than mkt prices increase the availability of food at lower than mkt prices insure local population against delays in the arrangement of insure local population against delays in the arrangement of

commercial imports and in the arrive of international food aid commercial imports and in the arrive of international food aid

contrast private hoarding contrast private hoarding prevent formation of negative traders’ expectationsprevent formation of negative traders’ expectations

Procurement , Supply Chain and Reserves (III)Procurement , Supply Chain and Reserves (III)

Most grain reserves Most grain reserves dismantled dismantled in the wake of mkt liberalisation started in 1980s :in the wake of mkt liberalisation started in 1980s :

No more necessary due to timely access to affordable imported foods No more necessary due to timely access to affordable imported foods and rural infrastructure improvementsand rural infrastructure improvements

Perceived crowding out of the private storage and consequent Perceived crowding out of the private storage and consequent disincentive to adopt own survival livelihood strategiesdisincentive to adopt own survival livelihood strategies

Difficulties in determining optimal size /appropriate turnover ratesDifficulties in determining optimal size /appropriate turnover rates

High fiscal costs for already deficitary governmentsHigh fiscal costs for already deficitary governments

In 1974 the Government of Bangladesh found itself constrained by :In 1974 the Government of Bangladesh found itself constrained by :• Unexpected Unexpected shortageshortage of food stock of food stock• Fall in Fall in imports imports due to rise in international rice pricedue to rise in international rice price

In 1988 and in 1998 Government stockpiles of basic food helped stabilize In 1988 and in 1998 Government stockpiles of basic food helped stabilize markets and food pricesmarkets and food prices

In recent years evidence of the importance of strategic famine relief-stocks both In recent years evidence of the importance of strategic famine relief-stocks both at onset and during emergencies ( at onset and during emergencies ( Malawi Malawi : 2001/2002 famine vs 1991/1992 : 2001/2002 famine vs 1991/1992 crisis)crisis)

Procurement , Supply Chain and Reserves (IV)Procurement , Supply Chain and Reserves (IV)

Thank You Thank You

for the attention!for the attention!

Household Food Economy of Household Food Economy of Save the ChildrenSave the Children

method for identifying areas or population groups vulnerable to food method for identifying areas or population groups vulnerable to food insecurity.insecurity.

developed in recognition of the need to go beyond questions of crop developed in recognition of the need to go beyond questions of crop production and food supply to examine the question of production and food supply to examine the question of households' households' access to foodaccess to food..

analysis based upon an understanding of how people obtain food analysis based upon an understanding of how people obtain food and cash income and how those sources of income might change at and cash income and how those sources of income might change at times of crisis - because of crop or grazing failure, or due to war, times of crisis - because of crop or grazing failure, or due to war, civil conflict, insecurity or displacement. civil conflict, insecurity or displacement.

PROS : PROS : - - transparency transparency (a logical link is built between problem definition and (a logical link is built between problem definition and

recommended response) recommended response)

- - modest requirements in terms of field datamodest requirements in terms of field data, met using relatively , met using relatively inexpensive 'key informant' techniques. inexpensive 'key informant' techniques.