Africa famine crisis – Malawi today
MALAWI - VIDEO
Estimated population: 12.88m
Projected number needing food
aid: 4.9m
Key underlying reasons:
•Drought in parts
•High food prices
•Aids: about 20% infected with HIV
•Sale of grain reserves
•High population density, shortage
of land
•Aid dependence (Oakland institute 2005)
Source: BBC 2006
7/16/2016
Copyright 2006 Tim Feddersen
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Final Project: Famine Relief*
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More than 850 million people are chronically
undernourished around the world.
The chances of saving lives at the outset of a [relief]
operation are greatly reduced when food is imported.
*from speech by USAid director Natsios in May 2005
7/16/2016
Copyright 2006 Tim Feddersen
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Is there a relationship between aid and famine?
Is there a causal relationship?
If so, which factor is driving which?
US is largest donor of food aid
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Copyright 2006 Tim Feddersen
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Cost of US Food aid
Cost of delivered food aid
Data from US Department of Agriculture, General
Accounting Office, and Bureau of Economic Analysis.
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Copyright 2006 Tim Feddersen
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Food aid addiction?
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“While vast sums of international support are needed to save lives, that help
carelessly applied can make things worse rather than better over the long term.”
… “Any large-scale intervention by definition distorts local economics…When
foreign aid lands, local prices collapse, and farmers who have managed to
produce a surplus find their crop is virtually worthless.” - BBC 2006
“Damage to local production in recipient countries: in 2002/2003 food aid
donors over-reacted to a projected 600,000 metric ton food deficit in Malawi,
causing a severe decline in cereal prices and hurting local producers” – World
Food Program 2004
Copyright 2006 Tim Feddersen
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The White House’s Proposal*
“Starting next year, the White House wants to spend one-quarter of
its food-aid budget to buy overseas goods to feed starving
foreigners. Currently, it's required to buy that produce from
American farmers. The administration says the change will cut
the cost of buying and shipping commodities and save 50,000
more lives a year.”
“American agriculture prizes the income it earns from food aid and
is a powerful constituency lobbying Congress to maintain the
$1.2 billion program. Charities fear that slashing funds spent on
U.S. commodities would erode the farm sector's interest in food
aid. They doubt they could win as much congressional support
for their efforts solely on the principle that fighting famines is
important.”
* Wall Street Journal. Oct 26, 2005.
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Copyright 2006 Tim Feddersen
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An argument against direct purchases
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Bush administration has already reduced food aid
budget by 40% for 2006 budget, with an increasing
percentage of the remaining funds to be dedicated to
emergency response
Local purchase of food can have unintended
consequences:
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Even relatively small transactions can distort the local
economy, driving up commodity prices beyond the
reach of locals who were formally able to buy
Creates expectations among farmers for future
purchases, leading to a drop in prices the following
year due to oversupply
Copyright 2006 Tim Feddersen
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Final Project
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Your study group will be
assigned the role of developing
a strategic response to the Bush
administration proposal.
You will:

write a 10-12 page memo
to the executive director or
head of a stakeholder
group.
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A 10 minute presentation
you will make in class to the
other groups in an attempt
to persuade them to take
your position.
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USAid,
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OXFAM America, Raymond
Offenheiser, President
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Cargill, William Staley, CEO
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Catholic Relief Services,
Kenneth Hackett
Copyright 2006 Tim Feddersen
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