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June 5, 2009

GAO Report Highlights Costs of U.S. Food Aid Restrictions

Posted by Kimberly Ann Elliott in Food & Agriculture, Global Development Tags: , , , , ,

This post originally appeared on the Huffington Post on June 5, 2009.

According to a testimony before congress yesterday and a new Government Accountability Office report, congressional restrictions on U.S. food aid raise the costs of delivering it by as much as a third and delay it reaching hungry people by up to 100 days. When donors purchase food locally or regionally, it not only gets to needy people faster and more cheaply, it may also better match local preferences and nutrition needs. Yet, in the midst of last year’s global food price crisis, Congress passed a farm bill that continued the long-standing practice of requiring that food aid be purchased in the United States and that 75 percent of it be delivered by U.S.-flagged ships. Read More…

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March 2, 2009

Cash (or Food?) for Thought: The Debate on Cash versus Food Isn’t Over (Yet)

Posted by Jenny Aker in Food Crisis, Migration and Labor Mobility Tags:

This is a joint posting with Cindy Prieto
On February 13, 2009, the UN’s World Food Programme (WFP) began distributing food vouchers to 120,000 “cash-strapped residents” in Ouagadougou, Burkina Faso — representing almost 10 percent of the capital city’s population. The distribution program is part of WFP’s efforts to mitigate the impact of high food prices in the country, which have persisted after an abundant harvest. As the Country Director for WFP in Burkina Faso explained, “Sometimes it makes more sense to give people vouchers than bags of food.”

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November 3, 2008

Food Aid, With a Twist

Posted by Jenny Aker in Food Aid, Food Crisis, Global Development, Migration and Labor Mobility Tags: ,

This is a joint posting with Rebecca Schutte
Is purchasing food aid locally the answer to higher global food prices and the inefficiencies associated with imported food aid? The World Food Program (WFP), the Bill and Melinda Gates and Howard G. Buffett Foundations seem to think so. While donors and international organizations have been purchasing food aid in recipient countries for years, the idea got a new boost in late September with the “Purchase for Progress (P4P)” initiative. The idea is simple: Rather than import food aid from the U.S. or Europe, WFP will purchase food commodities for distribution within the same country or region. As Josette Sheeran, WFP executive director, explained, “Purchase for Progress is a win-win — we help our beneficiaries who have little or no food and we help local farmers who have little or no access to markets where they can sell their crops.” The program will be piloted in twenty-one countries in 2008/2009, fourteen of which are in sub-Saharan Africa.

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September 17, 2008

What Happened to Japan’s Rice Pledge?

Posted by Tom Slayton in Food Aid, Food Crisis, Global Development, Migration and Labor Mobility Tags: ,

Earlier this year, with the food crisis in the daily headlines, the world’s leaders made promises — first in Rome at an FAO gathering in June and then at the G-8 summit in Japan the following month — to make a concerted effort to provide relief for the world’s poor. Among the pledges was that of Prime Minister Fukuda that Japan was prepared “to release in the near future over 300,000 tons.” With the government holding 1.3 million tons of imported rice, my colleagues and I wrote that “it is time for Japan to quit stalling and show some real leadership by releasing its unwanted rice stocks.”

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August 8, 2008

Environmental Protection Agency Denies Request to Reduce Biofuels Mandate

Posted by Kimberly Ann Elliott in Food Crisis, Migration and Labor Mobility Tags:

Despite showing leadership in opposing a pork-laden farm bill, the administration failed to do so yesterday. EPA Administrator Stephen Johnson denied Texas Governor Rick Perry’s request to cut in half the government-mandated level for ethanol in gasoline to help reduce soaring corn prices. While debate continues over the exact contribution of biofuels to the recent global food price hikes, corn-based ethanol has clearly driven up the price of corn and Governor Perry is particularly concerned about the effect of rising feed prices on the state’s large livestock industry.

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July 8, 2008

Albright and Podesta Call for Rich Country Action on Food Crisis, Including Release of Japanese Rice Stockpile

Posted by Lawrence MacDonald in Agriculture, Food & Agriculture, Food Crisis, G8, Migration and Labor Mobility, News, Rural Development, Trade Tags: , , ,

Former US secretary of state Madeleine Albright and John Podesta, former chief of staff to President Clinton and CEO of the Center for American Progress, have urged rich world leaders assembled for the G8 summit in Japan to take action on the global food crisis, including rapid release of Japanese rice stockpiles imported mostly from the US. In an Op-Ed in today’s Boston Globe they write:

The food crisis must be a top priority at this week’s G8 summit. Agriculture continues to experience more trade distortions than any sector in the global economy. For its part, the developed world — particularly the United States, the European Union and Japan — must confront the global impact of our subsidies and tariffs on agricultural products. Barriers to trade between developing countries must also be reduced. The United States should redouble its diplomatic efforts with key food producing countries to discourage government and private sector export restrictions that encourage hoarding.
The evidence is clear that our global agricultural system is broken and that in our interdependent world, food security is a challenge we must tackle together. The actual release of Japan’s imported rice will be a welcome step toward ending the immediate crisis. But over the long term, getting the system right will require heavy political lifting, painstaking negotiations, and the modernization of agricultural policies that have not kept pace with globalization.

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July 2, 2008

President Sarkozy’s Compassion for the Poor and Hungry

Posted by Kimberly Ann Elliott in Agriculture, Food & Agriculture, Food Crisis, Globalization, Migration and Labor Mobility, News, Rural Development, Trade, World Trade Organization Tags: , ,

A report in the Financial Times by John Thornhill leads with a remarkable quote from French President Nicolas Sarkozy warning the EU that he would block a proposed World Trade Organization (WTO) agreement on agriculture that would reduce European production incentives:

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June 20, 2008

Japan Should Release Surplus Rice ahead of G8

Posted by Tom Slayton in Food & Agriculture Tags: , , ,

This posting is joint with Peter Timmer and Vijaya Ramachandran
Over the past few weeks, rice consumers in Africa and other developing countries have watched anxiously as world prices have fallen steadily, at least in part due to our insistence that Japan and other countries have stocks that can be released on world markets . It is now clear that the speculative bubble has burst — the “dynamic” in the market is bearish despite set-backs on individual policy fronts. The pressures on rice prices continue to be downward despite everything governments are doing to keep prices up.
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May 30, 2008

New GAO Report is Food for Thought — And Action

Posted by Rachel Nugent in Africa, Evaluation, Food Aid, Food Crisis, Migration and Labor Mobility, Regions, United Nations Tags: , , ,

A new GAO Report on international food security (International Food Security: Insufficient Efforts by Host Governments and Donors Threaten Progress to Halve Hunger in Sub-Saharan Africa by 2015) gets it almost completely right when it points to the feeble, self-defeating, and confused U.S. policies on world hunger. The report diplomatically states:

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May 19, 2008

Kudos to Tokyo and Washington on Rice Sales — Et Tu, Thailand and India?

Posted by Peter Timmer in Agriculture, Food & Agriculture, Food Crisis, Migration and Labor Mobility, News, Trade, World Trade Organization Tags: , ,

This post is joint with Tom Slayton, a rice trade expert and former editor of The Rice Trader
Today in Tokyo, Japan’s Vice Minister for Agriculture, Toshirou Shirasu, told reporters that Japan plans to export 200,000 tons of rice to the Philippines “as fast as possible.” This confirmed sale comes on top of 50,000 tons of Japanese rice previously under discussion. Even the anticipation of these sales had done much to take the speculative steam out of over-heated global rice markets, as we reported towards the end of last week (see “Rice Prices Fall After Congressional Hearings But Crisis Not Over Yet“), so with some sales now officially confirmed we can hope to see further easing of speculative pressures.

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May 15, 2008

Rice Prices Fall After Congressional Hearings But Crisis Not Over Yet

Posted by Peter Timmer in Agriculture, Aid Effectiveness, Food & Agriculture, Food Aid, Food Crisis, Global Health, Migration and Labor Mobility, Rural Development Tags: , ,

This post is joint with Tom Slayton, a rice trade expert and former editor of The Rice Trader
It has been a busy week in the rice markets following CGD’s release on Monday of our note about how to puncture a speculative price bubble that threatens millions of people with malnutrition and worse (see Unwanted Rice in Japan Can Solve the Rice Crisis–If Washington and Tokyo Act ). On Wednesday our proposal was discussed at hearings on the world food crisis in both the House and Senate.

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May 15, 2008

Democrats and the Farm Bill: So much for Changing How Washington Operates

Posted by Kimberly Ann Elliott in Agriculture, Food & Agriculture, Food Aid, Food Crisis, Migration and Labor Mobility Tags: ,

“Asked how she could justify paying so much money to wealthy farmers when food prices are rising and Democrats are calling for change in Washington, [House Speaker Nancy] Pelosi listed the bill’s nutrition and conservation spending.

“I justify it by saying this is the best farm bill I’ve ever voted on.” – San Francisco Chronicle, May 15, 2008, p. 1.

In fact, the article on the front page of Speaker Pelosi’s hometown newspaper highlights the many reasons that the farm bill passed by the House of Representatives is not a “very big step in the right direction,” as Pelosi also claimed. Senator Richard Lugar (R-IN) agreed that the farm bill “contains many worthwhile polices, including valuable investments in conservation and nutrition programs,” but he came down on the other side and was one of only 15 senators voting against the bill today. More than 300 House members voted in favor of the bill yesterday, enough to easily override President Bush’s expected—and well-deserved—veto. Reform champions Ron Kind (D-WI), Earl Blumenauer (D-WA) and 13 other brave souls in the majority also deserve kudos for bucking their leadership on this issue.

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May 6, 2008

Ethanol Opposition Makes for Strange Bedfellows

Posted by Lawrence MacDonald in Agriculture, Food & Agriculture, Food Crisis, Migration and Labor Mobility, News, Rural Development Tags: ,

Sam Loewenberg at Politico has an interesting story that describes the odd coalition that has emerged in opposition to ethanol subsidies — development and humanitarian NGOs, the livestock and food processing industries, and big oil. As Sam reports:

The headline-grabbing global food crisis has given the anti-ethanol crowd a rare opportunity to take up a legislative battle they thought they had lost. Industry has found an unlikely ally among several humanitarian groups, leaders of which hope that cutting back on ethanol will lower food prices.

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May 5, 2008

Peter Timmer Peels Back the Layers of Complexity in Global Food Crisis in University of Illinois Radio Interview

Posted by Lawrence MacDonald in Climate Change, Environment, Food Crisis, Global Warming, Human Rights, Migration and Labor Mobility Tags: ,

Still puzzled and concerned about the global food price crisis after reading Arvind Subramanian’s smart Q&A? CGD non-resident fellow Peter Timmer peels back the layers of complexity in a thoughtful online audio interview on WILL AM 580, the broadcasting service of the University of Illinois. Timmer, who estimated in an April 21 CGD Q&A that 10 million people could die prematurely as a result of the crisis, argues that the sharp spike in prices in the last six to eight months has a substantial speculative element. But he also warns that current yields are close to the technological frontier. “We are paying the price of two or three decades of neglect of agricultural research,” he says, adding that biofuel subsidies are a big part of the problem.

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May 1, 2008

President Bush Can and Should Do More to Address the Food Crisis: Let Japan Sell Its Rice Reserves

Posted by Peter Timmer in Food Aid, Food Crisis, Global Development, Migration and Labor Mobility Tags: , ,

This posting is joint with Vijaya Ramachandran

Today, President Bush called on Congress to provide another $770 million in food aid, in addition to the $200 million already allocated through the Department of Agriculture,in order "to keep our existing food aid programs robust."

There is no doubt that these additional funds are much needed to purchase and distribute food to those who are suffering greatly from the current spike in food prices. But the U.S. can and should do more. Specifically, the U.S. must allow Japan to sell, at full cost on Japanese books, the 1.5
million metric tons of rice that it has in storage. About 600,000 tons is
Thai and Vietnamese long-grain rice (high quality) and the rest is US medium
grain (good rice). All of the rice is in Japanese warehouses because of an
agreement with the World Trade Organization, and the U.S. as "cognizant
observer" of the rice agreement, would need to approve the sale of both
the
US and the Thai/Vietnamese rice. Japan currently cannot release this rice
to the World Food Program (or to the world market) without permission from
the U.S., and the Bush administration is yet to move on this.

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April 28, 2008

How NOT to Fix the Global Food Crisis — France Says Poor Countries Should Provide EU-Style Farm Subsidies, while U.S. Farm Bill Puts Vested Interests First

Posted by Kimberly Ann Elliott in Agriculture, Aid Effectiveness, Food & Agriculture, Food Aid, Food Crisis, Global Health, Human Rights, Migration and Labor Mobility, News, Trade Tags: , ,

And now for a really bad idea: according to the Financial Times Michel Barnier, France’s farm minister, told a food crisis summit in Berne that Africa and Latin America should adopt their own versions of Europe’s Common Agricultural Policy — massive trade-distorting subsidies — as a response to rising demand for food.

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April 21, 2008

Trade Policy for a New Deal on Hunger

Posted by Nancy Birdsall in Agriculture, Climate Change, Environment, Food & Agriculture, Food Aid, Food Crisis, Global Warming, Migration and Labor Mobility, News, Trade, World Bank Tags: , ,

This is a joint post with Arvind Subramanian
In a Q&A published today, CGD non-resident fellow Peter Timmer estimates that soaring global food prices and panicky starve-thy-neighbor rice export restrictions in Asia could lead to 10 million or more premature deaths in the region if the current high prices are passed along to poor rice consumers.

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April 11, 2008

The Global Food Crisis: Time for Action, Not Panic

Posted by Kimberly Ann Elliott in Climate Change, Environment, Food Aid, Food Crisis, Global Warming, Migration and Labor Mobility, News, United Nations, World Bank Tags: , , , ,

The New York Times yesterday (and Paul Krugman earlier in the week) called on rich countries to “step up to the plate” in confronting the food crisis in developing countries — in the short run by increasing their donations of food aid. and in the medium run by getting rid of economically inefficient, inequitable, and environmentally unsound subsidies for biofuels, especially corn-based ethanol.

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