A good question about food aid

Continuing to follow the food aid reform issue that we discussed in April and last year, it is worthwhile to consider the toughly worded question that Cornell professor Chris Barrett asks on cnn.com this week:

How many of us read a story of disaster striking people half a world away and respond by getting out our checkbooks? Tens of millions of us in any given year, and Americans are especially generous. ... But is anyone foolish enough to go to the local grocery store, buy food and ship it to communities devastated by disaster? Of course not. That would cost much more, take too long to reach people in need, risk spoilage in transit, and likely not provide what is most needed.

Yet with only minor oversimplification, this is precisely what our government’s food aid programs have done since 1954.

Obama proposes food aid reforms

President Obama's budget proposal includes several sensible reforms to U.S. food aid to other countries.

As Eric Muňoz at Oxfam America explains, "The proposal would end the practice of 'monetization' which provides cash to NGOs doing food security programs in developing countries but is highly inefficient and wastes a lot of money."

Also, the administration's proposal appears to reduce, but not eliminate, requirements that a large portion of U.S. food aid be purchased in the United States.  These requirements increase the aid programs' support among U.S. farmers, but generally are inefficient for meeting humanitarian assistance and development objectives.

U.S. Agency for International Development (USAID) Administrator Rajiv Shah this week explained why local purchases closer to the recipient countries make more sense:

The President’s proposal reflects the growing, bipartisan consensus that the traditional approach to development must be modernized to help us efficiently meet the economic and moral challenges of our time.

The truth is that for years our practice in food assistance has lagged behind our knowledge. In the last decade, more than 30 different studies—from Cornell University to Lancet medical journal to the Government Accountability Office—have revealed the inefficiencies of the current system.

They’ve shown that buying food locally—instead of in the United States costs—much less—as much as 50 percent for cereals and as much as 31 percent for pulses. That’s because the average prices of buying and delivering American food across an ocean has increased from $390 per metric ton in 2001 to $1,180 today.

These costs eat into precious resources designed to feed hungry people—causing more than 16 percent of Title II funds to be spent on ocean shipping.

Buying food locally can also speed the arrival of life-saving aid by as many as 14 weeks. Those 98 days take on an entirely new meaning when you consider that waiting every additional day—every additional hour—can mean the difference between life and death.

Buying food locally is not only faster. It can also be a more effective approach to achieving our ultimate goal of replacing aid with self-sufficiency. In Bangladesh, we worked with Land o’ Lakes to buy cereal bars locally, helping create a commercially viable and nutritious product for the local market, while supporting U.S. jobs at home.

Shah's speech also highlighted the work of my Friedman School colleagues, led by Patrick Webb and Bea Rogers, to improve the nutritional quality of food aid.  Shah said, "In 2011, we completed a two-year food aid quality review in partnership with Tufts University that resulted in the most far-reaching improvements to U.S. food aid since 1966."

Demonstration kitchen at a clinic in Burkina Faso, West Africa, where mothers combine food aid products with local ingredients to help treat child undernutrition. Source: Patrick Webb 2008.

 

Update (later the same day): Corrected a name spelling as suggested in the comments. Thanks!

More from Oxfam on food aid reform

Following on another recent post, I enjoyed this video from Oxfam America, mocking what seems like the only bi-partisan consensus in Washington.  Policy-makers preserve the rules that require most food aid to be purchased domestically and shipped in U.S. vessels, regardless of the aid agencies' own assessment of the most efficient delivery options.  Lives are at stake.  Food aid should be reformed.

Food aid reforms would be like money back on your grocery bill

Oxfam America and the American Jewish World Service (AJWS) explain here how much money could be saved -- and how many more hungry people could be fed -- if the United States reformed its food aid programs. Some of the key reforms include eliminating a rule that most food must be sourced from the United States and shipped in U.S. ships.

For more detail on such issues, the best book is Food Aid After Fifty Years, by Chris Barrett at Cornell and my colleague Dan Maxwell here at the Friedman School at Tufts. A good recent report comes from the GAO: Local and Regional Procurement Can Enhance the Efficiency of U.S. Food Aid, but Challenges May Constrain Its Implementation.

Cargo preferences cost $140 million that could have helped the hungry

Cargo preferences are the regulations that require a large part of U.S. food aid to be shipped in U.S. ships.  The regulations are more cumbersome and expensive than you might think, leaving even some U.S. businesses out of luck, simply because they use other countries' ships for parts of a cargo's journey.  The losers from these policies are the world's hungry.

We think of a food aid as a way to demonstrate American generosity to the world, but the governments of countries that receive the food aid instead see a tragically mixed message, a sort of gesture toward generosity combined with greed at the expense of some of the poorest people in the world.

Cornell professor Chris Barrett in today's Washington Post explains:

Cargo preference was launched in 1954 alongside modern American food aid programs. By requiring the U.S. government to ship three-quarters of its international food aid on U.S. flag vessels, the policy was intended to maintain essential sealift capacity in wartime, safeguard maritime jobs for American sailors and avoid foreign domination of U.S. ocean commerce. But in a comprehensive - and, to date, the only peer-reviewed - analysis of available shipping data and shipping vessel ownership records, we found that cargo preference falls well short of these objectives. Our study of the shipping data and the fiscal 2006 food-aid shipment records - the only full year records were available - from the U.S. Agency for International Development found that by restricting competition, the policy costs U.S. taxpayers a 46 percent markup on the market cost of ocean freight. 

Along with my Friedman School colleague Dan Maxwell, Barrett wrote the authoritative book on U.S. food aid.

Some news on GM crops

One of the main concerns for advocates against Genetically Modified (GM) crops is the growing number of pesticide tolerant or resistant weeds and their affect on crop yield. According to an article published in Geoforum by Binimelis et al, in 2009 a glyphosate-resistant biotype of johnsongrass (Sorghum halepense (L.)) appeared in Argentina and now covers at least 10,000 ha. They explain that no preventive strategies are deployed against the invasion. The reactive measures are based on "gene-stacking" that allows the use of still more glyphosate or new combinations of herbicides. A new phenomenon called the "transgenic treadmill" is identified. A colleague of mine pointed out that since the EU is the largest importer of soybeans, European awareness of the local impacts of imported soybeans (as feedstuffs and/or agro-fuels) should not focus only on deforestation, but also consider the socio-environmental consequences apart from the loss of productivity.

Bonnie Azab Powell at the Ethicurean recently posted “The Failure of Science”: New paper makes a damning case against genetically modified food crops" where she mentions the new book “Intervention: Confronting the Real Risks of Genetic Engineering and Life on a Biotech Planet" by technology reporter Denise Caruso and recent articles published in the International Journal of Society of Agriculture and Food. The two part series Part 1: The Development of a Flawed Enterprise and Part 2: Academic Capitalism and the Loss of Scientific Integrity highlight the conflict between science and society through a historical perspective, tactics used, and regulatory flaws and failures.

This year's Global Food Security Act of 2009 introduced by Senator Richard Lugar, "would authorize appropriations for fiscal years 2010 through 2014 to provide assistance to foreign countries to promote food security, to stimulate rural economies, and to improve emergency response to food crises, to amend the Foreign Assistance Act(FAA) of 1961." Sounds like a great bill for the US to help alleviate world hunger except that it creatively amends the FAA of 1961 by makinging the first sentence include "research on biotechnological advances appropriate to local ecological conditions, including genetically modified technology." Consequently, the bill specifies that the U.S. MUST fund GMOs and biotechnology, a change in policy up to this point.

The bill was nicknamed "the REAL Monsanto bill" by the Organic Consumers Association. According to Monsanto's first quarter lobbying reports, the company spent $2,094,000 in the first quarter 2009. Their specific lobbying issues were Biotechnology acceptance, S. 384- Global Food Security Act of 2009, Sustainable Yield Initiative, Crop insurance/Biotech yield endorsement and USDA Rulemaking - 7CFR Part 340. (thanks to La Vida Locavore who was contacted by Monsanto who denied involvement in the bill).

In the waning months of the Bush Administration, the U.S. Department of Agriculture (USDA) released a proposal to completely overhaul its regulation of genetically engineered crops, significantly weakening its oversight. USDA also published the rules before publishing the full Environmental Impact Statement (EIS), as required by law, and in the absence of public review of the data needed to make regulatory recommendations. A comment period for USDA's Docket No. APHIS-2008-0023, Importation, Interstate Movement, and Release into the Environment of Certain Genetically Engineered Organisms has been extended until June 29th.

If you wish to submit a comment using the Internet, go to the Federal eRulemaking portal. Then click on “Add Comments.” This will also allow you to view public comments and related materials available electronically. Using the Federal eRulemaking portal is the best way to ensure that your comments will be associated with the right docket and reviewed by the right people. Consideration will be given to all comments received on or before June 29th.

Crossposted from Epicurean Ideal.

From Wall Street to Main Street

As Congress moves to bail out some of the largest corporations in order to prop up the economy, Main Street is jumping on the bandwagon to ask for a little help in these hard times. Is this the 'new New Deal?'

Democratic Senators are working to pass the Reid-Byrd Econ Stimulus Bill. In response to higher unemployment, rising food costs, higher energy costs, State budgets in crisis, and increased dependence on foreign oil, President-Elect Obama has called for a second stimulus bill to jump start the economy and help Americans recover from the recession.

It is well known that the hits on Wall Street take a few months to trickle down to Main Street. The bill focuses on the areas of society that are being hit the hardest:

Unemployment: "The U.S. economy has lost jobs every month this year, a total of 1.2 million jobs, with almost half of the job losses coming in the last 3 months alone." The bill would extend unemployment benefits by seven weeks in all states.

State Economies: The package includes $37.8 million to help States reduce their share of Medicaid, in order to ease the budget shortfalls affecting local economies.

Auto-Industry Assistance: $25 billion in loans with required long term financial plans.

Tax Relief for New Car Purchasing: to help tax payers afford new cars, while propping up the automobile industry.

High Food Costs: "$445 million for the Women, Infants, and Children (WIC) program (which would allow 600,000 women and children to receive WIC benefits, meet some of the rising demand due to a faltering economy, and allow states to avoid creating waiting lists). $50 million is included for Food Banks, $8 million for the Commodity Supplemental Food program, and $60 million for senior meals programs (18 million more meals)."

High Energy Assistance: In order to help Americans cope with spiraling energy costs, $500 million is included for weatherization programs.

Energy Independence: The stimulus makes major investments in electrifying vehicles with $300 million for advanced battery research, and $1billion for the advanced battery manufacturing loan guarantee program which will authorize over $3.3 billion in loan guarantees. In addition, the stimulus includes $500 million to help local governments improve energy efficiency; $500 million for additional energy efficiency and renewable energy research, development and deployment; and $140 million for electricity transmission improvements.

Caring for the Environment: Over $5 billion is included for environmental clean up, urban and rural clean water systems, and for maintenance of our parks, forests, and wildlife refuges.

Building Infrastructure and Creating Jobs: The stimulus package includes: $13.5 billion for building and repairing highways, bridges, mass transit, airports, and AMTRAK, creating 470,000 jobs.

Housing: The Committee bill includes $700 million for capital funding grants to public housing agencies and $200 million to provide housing agencies with additional funding to alleviate the increased costs of energy.

Improving the Quality of Life for Military Families: $175 million for the construction, replacement, and improvement of military family housing at Army and Air Force installations, and an additional $75 million for the construction of child development centers at Navy installations.

Education and Job Training: $2.5 billion is included for school repairs, $600 million for youth training and dislocated workers, $200 million for the Community Services Block Grant, and $36 million for homeless education.

Health: $1 billion to restore some of the purchasing power of NIH that was lost because of inflation in the past five years and allow NIH to award as many as 2,700 new research project grants that could lead to cures and treatments for cancer, Alzheimer’s, heart disease, and many other devastating diseases.

Small Businesses: The stimulus provides $615 million to support $22.5 billion in zero-fee loans to small businesses under the 7(a) program and the 504 program. The bill also provides $1 million to support $10 million in new microloans for small businesses and $4 million for critical technical assistance for these “micro” borrowers.

Border Security and Crime Fighting: The bill includes over $1 billion for border security and other homeland security investments.

Science: $675 million for NASA, Department of Energy and Cyber Security.

Disaster Assistance: Relief support for farmers facing crop damage, and community disaster loans.

Consumer Protection: 13.1 million to permit prompt implementation of new authorities enacted in the 2008 Farm Bill (P.L. 110-246), $75 million for the FBI for agents to investigate rising claims of mortgage fraud, and $10.5 million for the Treasury Inspector General to conduct critical reviews of bank failures.

CARE declines to accept millions of dollars in U.S. food aid

You can tell U.S. food aid policy needs reform when it comes to this (on the front page of the New York Times last week):

CARE, one of the world’s biggest charities, is walking away from some $45 million a year in federal financing, saying American food aid is not only plagued with inefficiencies, but also may hurt some of the very poor people it aims to help.

CARE’s decision is focused on the practice of selling tons of often heavily subsidized American farm products in African countries that in some cases, it says, compete with the crops of struggling local farmers.

The charity says it will phase out its use of the practice by 2009. But it has already deeply divided the world of food aid and has spurred growing criticism of the practice as Congress considers a new farm bill.

NYT reporter Celia Dugger has been on the trail of this story for many months. Last week's article quotes Daniel Maxwell, formerly of CARE and now at the Friedman School of Nutrition at Tufts, who co-authored an important book on food aid with Chris Barrett in 2005 and has continued to write on the topic.

Ultimately, CARE’s decision to phase out such sales evolved from a senior manager’s change of heart. Daniel G. Maxwell, a professor of nutrition at Tufts University, was a food security adviser for CARE in Nairobi who saw sales of American food as an imperfect, but useful way to raise money.

He knew firsthand, however, how risky it was to manage projects financed in fluctuating commodities markets. When prices sank, CARE had too little money and was sometimes forced to lay off workers. Mr. Maxwell said he also strongly suspected that buyers had offered too little for the farm goods, knowing they were dealing with aid workers who were novices in commodities trading.

Food aid gets a free ride, politically, because of a "halo effect." How could a gift of food be a bad thing? But some poor farmers around the world don't want our gifts. They want to earn a fair price selling us their products. And even non-farmers in poor communities around the world may be harmed by food aid in some circumstances. In food aid's favor, one must consider the depth and urgency of the need for assistance; on the other side of the ledger, one must consider that food aid may suppress demand for local farm production, and the local production may increase demand for the goods and services of other local families even if they are not farmers.

Here is more information about CARE.

[Updated slightly, following a conversation with colleagues here, to narrow the critique of food aid in general.]