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Foreign Assistance and the Food Crisis of 2007.08

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  • Abbott, Philip
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    Abstract

    Dramatically increased international agricultural commodity prices from 2007 to mid-2008 brought food inflation and greater incidence of poverty and malnutrition to developing countries. Higher food prices in 2011 threaten to repeat that crisis. The international community responded strongly to these concerns in 2008 and 2009, promising greater financial support for food aid, safety nets, and agricultural development. The focus of international dialogue differed somewhat from the priorities of national governments, and the objectives of national governments mostly targeting short-run responses to both food security and agriculture prevailed. But a long-run trend of declining foreign assistance to agriculture appears to have reversed.Nevertheless, foreign assistance was small relative to promises made by donors, increased grain and fertilizer import costs, budgetary costs of mitigating policy responses, an investment costs needed to accelerate agricultural production. Both food aid and agricultural development projects have in the past come under the criticisms found in the aid effectiveness debate. Issues to be addressed if renewed efforts toward agricultural development and food aid are to be effective are explored here. High returns to agricultural research require that enabling institutions are developed. National ownership and governance of initiatives that share donor objectives focusing on poverty and long-run development are critical to success.

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    File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2012/wp2012-019.pdf
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    Bibliographic Info

    Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2012/19.

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    Length: 36
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:unu:wpaper:wp2012-19

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    Keywords: foreign assistance; food crisis; agricultural development; food aid; safety nets; aid effectiveness; international commodity prices;

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    1. Quentin Wodon & Hassan Zaman, 2010. "Higher Food Prices in Sub-Saharan Africa: Poverty Impact and Policy Responses," World Bank Research Observer, World Bank Group, vol. 25(1), pages 157-176, February.
    2. Trostle, Ronald, 2008. "Factors Contributing to Recent Increases in Food Commodity Prices (PowerPoint)," Seminars 43902, USDA Economists Group.
    3. repec:oup:wbrobs:v:25:y:2009:i:1:p:157-176 is not listed on IDEAS
    4. Paul Winters & Alessandro Maffioli & Lina Salazar, 2011. "Introduction to the Special Feature: Evaluating the Impact of Agricultural Projects in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(2), pages 393-402, 06.
    5. Finn Tarp, 2006. "Aid and Development," Discussion Papers 06-12, University of Copenhagen. Department of Economics.
    6. Titus O. Awokuse, 2011. "Food aid impacts on recipient developing countries: A review of empirical methods and evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(4), pages 493-514, May.
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