The Development Effectiveness of Food Aid : Does Tying Matter?

The Development Effectiveness of Food Aid: Does Tying Matter? provides a detailed look into two food aid issues. First, the study assesses the effectiveness of the various ways in which food aid can promote food security and poverty alleviation. Second, the study demonstrates that food aid in-kind carries substantial efficiency costs, conservatively estimated as at least 30% on average. In contrast, most local purchases or regionally sourced imports are relatively efficient ways of providing food aid. Thus, there is scope for considerable efficiency gains by switching to less restricted sourcing of food. The study therefore argues that, in most circumstances, financial aid (cash) is the preferable way to fund direct distribution of food or to provide budgetary support for general development or project assistance.