David Tschirley (Department of Agricultural Economics, Michigan State University) Anne Marie del Castillo (USAID/Food for Peace)
Abstract
Procuring food aid supplies locally and regionally can save lives by improving the timeliness and reducing the cost of food aid delivery. Experience with local/regional procurement (LRP) in Africa has demonstrated significant cost savings compared to in-kind food aid; World Food Program (WFP) experience in Africa shows that LRP can be efficient relative to both local and international prices, and can be designed to have minimal disruptive effects on local markets while providing an important additional outlet for marketed surplus; A wide range of procurement modalities, each potentially appropriate under different circumstances, are available. For example, donors can and do rely upon WFP to carry out the local procurement. WFP can allow quick start-up to procurement activities, and may be cost effective (relative to other LRP modalities) when large quantities are needed, but is relatively inflexible as it is obliged to follow its own established procedures. Reliance on NGOs may require greater local monitoring by the donor, but can offer greater flexibility, since NGOs may be able to procure and distribute (smaller quantities) more quickly than could WFP or a commercial buying agent
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