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Strategic grain reserves in Ethiopia: Institutional design and operational performance

  • Rashid, Shahidur
  • Lemma, Solomon

Holding strategic grain reserves to address food price hikes has received renewed attentions in recent years. This paper examines such a program in Ethiopia that has been successful in addressing several emergencies since the 1990s. The analysis suggests that the key ingredients behind the success are a unique institutional design, coordination during emergencies with food-based safety net programs, and keeping the grain stocks to a minimum. Institutional design is unique because, unlike similar agencies in other countries, Ethiopia's Emergency Food Security Reserve Administration (EFSRA) is independent of price stabilization and hence is not engaged in buying and selling of grain. The paper also demonstrates that scaling up school feeding programs will generate additional food demand and an effective outlet for stock rotation; and that increasing the stock level for price stabilization will adversely affect both grain markets and the performance of the EFSRA.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 01054.

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Date of creation: 2011
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Handle: RePEc:fpr:ifprid:01054
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  1. Stephen Coate, 1987. "Cash Versus Direct Food Relief," Discussion Papers 724R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  2. Krishna, Raj & Chhibber, Ajay, 1983. "Policy modeling of a dual grain market: the case of wheat in India," Research reports 38, International Food Policy Research Institute (IFPRI).
  3. Mogues, Tewodaj & Ayele, Gezahegn & Paulos, Zelekawork, 2007. "The bang for the birr: Public expenditures and rural welfare in Ethiopia," IFPRI discussion papers 702, International Food Policy Research Institute (IFPRI).
  4. Paul Dorosh, 2009. "Price stabilization, international trade and national cereal stocks: world price shocks and policy response in South Asia," The Science, Sociology and Economics of Food Production and Access to Food, Springer, vol. 1(2), pages 137-149, June.
  5. Basu, Kaushik, 1996. "Relief programs: When it may be better to give food instead of cash," World Development, Elsevier, vol. 24(1), pages 91-96, January.
  6. Gilligan, Daniel O. & Hoddinott, John & Taffesse, Alemayehu Seyoum, 2008. "The impact of Ethiopia's Productive Safety Net Programme and its linkages:," IFPRI discussion papers 839, International Food Policy Research Institute (IFPRI).
  7. Ahmed, Akhter U. & Rashid, Shahidur & Sharma, Manohar & Zohir, Sajjad, 2004. "Food aid distribution in Bangladesh," FCND briefs 173, International Food Policy Research Institute (IFPRI).
  8. Franzel, Steven & Colburn, Forrest & Degu, Getahun, 1989. "Grain marketing regulations : Impact on peasant production in Ethiopia," Food Policy, Elsevier, vol. 14(4), pages 347-358, November.
  9. Dorosh, Paul A. & Farid, Naser, 2003. "Implications of quality deterioration for public foodgrain stock management and consumers in Bangladesh," MSSD discussion papers 55, International Food Policy Research Institute (IFPRI).
  10. Carlo Del Ninno & Paul Dorosh, 2003. "Impacts of in-kind transfers on household food consumption: Evidence from targeted food programmes in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 40(1), pages 48-78.
  11. Rashid, Shahidur & Taffesse, Alemayehu Seyoum, 2009. "Grain Markets and Large Social Transfers - An Analysis of Productive Safety Net Program in Ethiopia," 2009 Conference, August 16-22, 2009, Beijing, China 51764, International Association of Agricultural Economists.
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