Globalization and poverty

Type Book Section - Does food aid harm the poor? Household evidence
Title Globalization and poverty
Author(s)
Publication (Day/Month/Year) 2007
Page numbers 561-596
Publisher University of Chicago Press
City Chicago
Country/State USA
URL http://www.nber.org/chapters/c0109.pdf
Abstract
Food aid is supposed to provide relief for the poor. Yet, by increasing the supply of food, food aid may actually reduce prices and farmers’ incomes and ultimately discourage domestic production.1 In developing countries, since the poor tend to be farmers and concentrated in rural areas, most people assume that the negative impact of food aid will be felt disproportionately by the poor. However, most food aid is a by-product of policies designed to aid farmers in rich countries, by disposing of surplus agricultural commodities. Thus, far from being created to help the poor, these policies are actually part of the overall agricultural policies of the rich countries. Such policies have been severely criticized during the most recent round of World Trade Organization (WTO) negotiations, and many researchers claim that food aid policies are responsible for keeping the poor, poor.

Related studies

»
»