Food Aid’s Intended and Unintended Consequences
AbstractThis paper surveys the existing empirical evidence on the unintended consequences of food aid. Micro-level evidence is presented on the impacts of food aid deliveries on household labour supply, production incentives, consumption patterns and natural resource use. At the meso-level, evidence on the impact of food aid on market development, market prices, informal insurance arrangements, and the behavior of implementing agencies is surveyed. Macro level evidence on the impact of food aid on balance of payments, economic growth, international trade, exchange rates and other factors is reviewed. Although food aid can have negative unintended consequences, the empirical evidence is thin and often contradictory. The available evidence suggests that harmful effects are most likely to occur when food aid arrives or is purchased at the wrong time, when food aid distribution is not well targeted to the most food insecure households, and when the local market is relatively poorly integrated with broader national, regional and global markets. These results imply the need for caution in basing food aid programming decisions on a relatively weak body of empirical evidence.
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Bibliographic InfoPaper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 06-05.
Length: 27 pages
Date of creation: 2006
Date of revision:
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Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy
Phone: +39(6) 57051
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Web page: http://www.fao.org/es/esa/
More information through EDIRC
food aid; aid effectiveness; dependency; disincentives; trade distortions.change; market-based mechanisms.;
Find related papers by JEL classification:
- F35 - International Economics - - International Finance - - - Foreign Aid
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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