Cash transfers and high food prices: Explaining outcomes on Ethiopia's Productive Safety Net Programme
AbstractAn ongoing and highly politicised debate concerns the relative efficacy of cash transfers versus food aid. This paper aims to shed light on this debate, drawing on new empirical evidence from Ethiopia's Productive Safety Net Programme (PSNP). Our data derive from a two-wave panel survey conducted in 2006 and 2008. Ethiopia has experienced unprecedented rates of inflation since 2007, which have reduced the real purchasing power of PSNP cash payments. Our regression findings confirm that food transfers or 'cash plus food' packages are superior to cash transfers alone - they enable higher levels of income growth, livestock accumulation and self-reported food security. These results raise questions of fundamental importance to global humanitarian response and social protection policy. We draw out some implications for the design of social transfer programmes and describe some steps that could be taken to enable 'predictable transfers to meet predictable needs'.
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Bibliographic InfoArticle provided by Elsevier in its journal Food Policy.
Volume (Year): 35 (2010)
Issue (Month): 4 (August)
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Web page: http://www.elsevier.com/locate/foodpol
Cash transfers Food security Inflation Ethiopia Social protection;
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- Ayele Gelan, 2006. "Cash or Food Aid? A General Equilibrium Analysis for Ethiopia," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 601-624, 09.
- Benson, Todd & Minot, Nicholas & Pender, John & Robles, Miguel & von Braun, Joachim, 2008. "Global food crises: Monitoring and assessing impact to inform policy responses," Food policy reports 19, International Food Policy Research Institute (IFPRI).
- Stefan Tangermann, 2008. "Agricultural Commodity Prices: Perspectives and Policies," EuroChoices, The Agricultural Economics Society, vol. 7(SpecialIs), pages 36-43, 08.
- Emebet Kebede, 2006. "Moving from Emergency Food Aid to Predictable Cash Transfers: Recent Experience in Ethiopia," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 579-599, 09.
- World Bank, 2012. "Using Public Food Grain Stocks to Enhance Food Security," World Bank Other Operational Studies 11878, The World Bank.
- d'Agostino, Giorgio & Pieroni, Luca & Scarlato, Margherita, 2013. "Social Protection and Food Security in Sub-Saharan Africa: An Evaluation of Cash Transfer Programmes," MPRA Paper 49536, University Library of Munich, Germany.
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