New Approach to Food Aid in Mozambique Shows Promise. Will Others Follow?
Bill Gates recently announced his foundation will give $66 million to a UN program that takes a new approach to fighting hunger. Under this program — which also drew a $9.1 million gift from Warren Buffett’s son, Howard — the countries that typically receive food aid will now become the suppliers of that food.
Here’s how the program, called Purchase for Progress, works: The World Food Programme uses its sizable buying power to guarantee purchase of crops from the local farmers of countries that typically receive food aid. In addition to these purchase guarantees, farmers receive better farming methods, higher-yield seeds, storage for crops, and help to transport produce to markets. Farmers can then use this guarantee as collateral to borrow from local banks. With these loans, farmers can buy better equipment, hire employees, and use more advanced technology to improve what they grow. The produce is supplied to the hungry within the same region the food is grown, which allows for the capital to remain in the local economy.
WFP recently signed the program’s first contract with a cooperative of 9,500 farmers in northern Mozambique. It guarantees purchase of cowpeas from local farms — cowpeas that in previous harvests had gone unsold. The arrangement gives farmers an incentive to invest in their operations, because they’re assured of a buyer for their harvest.
The WFP’s website tells the story of one farmer who made about US$50 by selling his cowpea surplus to the agency: “I used the money to buy school things for my children, dishes and clothes for my family and even some tools to improve my house,” said the farmer, Alfredo Muarapaz.
The Government of Mozambique’s support of this project has played an important role in its success, according to WFP spokesperson Jennifer Parmelee. Getting this same level of government support may be a challenge in the 20 other countries the program will operate in.
This new approach to curbing hunger comes at a good time. With the rising cost of fuel, a main component of fertilizer, the resources that farmers need are becoming increasingly expensive and scarce.
Let’s hope that the program’s success continues — and that Howard and Bill get their friends to donate, too.


Comments
Hold up, they are just now
Hold up, they are just now doing this? While it's depressing that it took them so long, its nice to hear that they are doing this now. It's a brilliant idea.
You cannot hide your writings from me, Bree, good job :) Though it reminds me how painfully little I know about Africa.
Purchase for Progress
The UN has come up with another great initiative to address the severe under-nutrition so many African countries are experiencing. The plan seems simple enough since giving incentives to locals will help boost their willingness to cooperate and participate in their country's agricultural development. However, government support is vital to the success of this program. More often than not, governments in the lowest GDP African countries are not investing in their country's infrastructure and development. Other factors are to be considered such as, the geographic limitations of these lands where arid development is significantly challenging. Nonetheless, it is not impossible. Even greater developed countries such as, India and China who are leading the world markets currently face severe under-nutrition and have hundreds of thousands of people who are facing severe hunger. Thus, if governments do not attempt to invest in their own lands and people, external support from the international community will not be sustainable.
An opportunity and a challenge
I, too, find it somewhat distressing that this project is considered 'ground-breaking' when it seems like a logical solution which should have been in place years ago. However, the weak infrastructure of many countries, particularly the lack of communication and transportation options, makes it clear why this is a project that may be easier said than done.
I certainly hope that governments see this initiative as a way to help the citizens while keeping an economic flow within the country's borders. It is hard to predict whether the support from the WFP will manage to create sustainable markets or whether the program would crumble entirely without proper management. It seems it is in the hands of the governments to ensure the lasting power of this project. Let's all hope they step up to the challenge!
good first steps
Finally! When AFRICARE announced last year that they had concluded that food aid to food insecure areas may actually worsen the problem, and that they would be ceasing these operations except in cases of severe famine, their decision sent ripples throughout the development community. At first blush, AFRICARE seemed to be making a dangerously brash statement by saying they would be reducing the amount of food they sent to undernourished regions. Don't we have a moral obligation to deliver food to people in need? And even though food aid may clearly be an imperfect solution, isn't it the least we can do in recognition of the global inequity between the haves and have nots in this world? AFRICARE said apparently not -- and they were right.
When I was travelling in West Africa in 2003, I had the opportunity to witness first-hand some of the negative impacts of food aid. In rural Guinea, where severe malnutrition is chronic, a regular supply of US-commodity grains steadily undermined local markets, driving down costs to a point where agriculture was not a viable income source for this subsistence village. As a result, what did many people do? They reduced local production. After all, why labor to grow crops you cannot sell while free food makes regular deliveries? Their decision made rational sense, but over the long term, a subsistence economy that is not producing its own food has little chance for survival -- except to continue receiving food aid.
Despite decades of this pattern of dependency playing out, AFRICARE's recognition of this dangerous cost of food aid *was* radical in the development community, particularly because the dominant discourse discourages recognizing the importance of local markets, instead stressing the poverty of a community in the context of a global economy. Political economists have long pointed out that famines are more often the result of crises in food distribution rather than food production, and nowhere has this been more true than in Africa, where numerous countries have weathered severe famines with fully stocked store shelves of grain no one could afford. Locals earned too little for the products they tried to sell on the global market, then could unafford the imports for sale in their village. Several other commenters have noted with surprise that the WFP's Purchase for Progress initiative is "ground-breaking" in any sense. It shouldn't be. It should be common sense. But when the predominant framework used to understand rural Third-World poverty suggests that marketing village-level production for commodity export and importing new products --supposedly creating a place in the global economy -- is the path out of poverty, then this program represents a complete reversal. There is an implict admission in WFP's program that global trade is not the solution to food insecurity, and that admission has dramatic repercussions beyond food aid. That's why it's taken so long for a program like this to evolve, and why it is ground-breaking after all.
But the good news is -- it's here. I agree with other posters that the question of government support will be critical, and again, the question here is whether the old way of doing things may be sufficiently questioned for policymakers to see the benefit of government intervention. After all, the U.S.' successful agriculture industry depends overwhelmingly on government support, and countries of the global South should be expected to provide the same. My main concern is using purchase guarantees as collateral with local banks. This sounds smooth, but as with any loan program for economically fragile households, the devil is in the details. Will these loans be targeted at local food autonomy, or back at non-local markets? What will the rates be on these loans? What role does indigenous farmer knowledge play in this system? Many questions remain unanswered, but the appearance of a major policy shift on food aid is extremely encouraging. Supporting local markets shows real promise for bottom-up poverty alleviation.
Food Aid vs Food Security
Great commentary by Daniel. Food security = access + availability + utilization. I learned and lived by this while working in Manica Province with Africare. Give people a dignified way to make a living and improve techniques through the provision of appropriate technology aids and it is amazing what can be done. All emergency plans should be followed on with a sustainability/transition plan. I am working on a project in Haiti now and the dependance created post earthquake will be close to impossible to break. Until NGOs start leaving, which is what is happening now - with no plans for how people will be able to survive once the aid stops.
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