One way that developed countries ‘help’ the less fortunate
nations of the world is by offering aid in the form of food. This approach to aid has been criticized
by some as ineffective at best, and criminal at worst.
As I mentioned in Blog Post # 8, food aid can be destructive
on the economy of a recipient nation and can contribute to a cycle of more
hunger and poverty in the long run.
Food dumping (free or subsidized food) below market prices hurts small
local farmers, who cannot compete and are driven out of jobs and into poverty
again and again. Wealthy countries that provide foreign aid (not emergency
relief) contribute to underdevelopment by encouraging a dependent culture –
this does not give local communities motivation to find sustainable solutions.
The U.S. Congress has been under attack by the World Trade
Organization (WTO) because the U.S. has been dumping agricultural surpluses
(disguised as food aid) in an attempt to create new markets for its exports.
Below is a quote from an Oxfam Briefing Paper that illustrates the plight of a
small rice farmer in Indonesia:
‘I harvest my rice usually two times per year, but it depends on
rain because my land is rain-fed. Last year I sold my rice at Rp 2,600–Rp 2,700
[approx. $0.25] per kg. This year, however, its price was only Rp 1,500–1,700
[$0.15] per kg due to the flooding of rice from the social safety net programme
to the local market.... Some people said that rice came from the US.’
—Wagino, 42, farmer and father of four children, Boyolali Regency,
Central Java Province, Indonesia, June 2001
‘Meaningful and immediate increases in food aid now could mean the
difference between survival and financial disaster for rice mills in this
region.’
— Thomas Ferrara of Greenville, Mississippi, USA, Chairman of the Rice Millers’
Association, July 2001
It appears that food aid is not driven by need. There are three types of food aid: program (sold on recipient country
markets to generate cash), project (promotes agricultural/economic development,
nutrition, food security – mother/child nutrition centres) and emergency (war
and famine).
We need new rules for agricultural trade with the goal of
reducing agricultural dumping and fostering economic development. In many
instances where food aid is desirable, cash donations may be better than food
donations, as they allow food aid to be purchased locally and delivered more
quickly and cheaply.