Food Aid Case Study

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group also represents a sizeable share of the total population under FNS risks and of total domestic food supply in many developing countries. These are some of the reasons why agricultural sector in most of the developing countries holds many of the keys to national FNS. This is generally true, despite the fact that the sector is highly differentiated and that heightened risks, uncertainties and new barriers to FNS keep appearing (Conway, 2012). The risks can be classified into two components (Karlan and Appel, 2011). First, there are environmental risks that all farmers encounter such as drought, insect attacks, floods and others. Second, there are risks stemming from limited information, lack of access to profitable markets, and volatility in commodity prices. In this regard, risks and uncertainties should also be considered as FNS indicators. The characteristics of risks are clearly explained by (Stirling, 1998; Stirling, 2007) in terms of probability or likelihood of events and…show more content…
Nevertheless, it is argued that food aid as alternative strategy of food supply has some drawbacks and minimal impact on development: food aid is generally subject to high cost of procurement (including high storage, transport and distribution costs) and poor targeting (Jayne et al., 2001, Francken et al., 2012). More importantly, food aid might become a source of food insecurity as it may create disincentives for domestic production through the low price competitiveness of domestic food commodities, leading to unfavorable public and private investment (Del Ninno et al., 2007). For all the reasons mentioned in this paragraph, macro indicators of trade openness, price transmission mechanisms, demographic change, political stability, climate variability are also pertinent as indicators of macro-level FNS

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