An Additional Resource? A Global Perspective on Food Aid Flows in Relation to Development Assistance

Abstract

The origin of the provision of food aid to developing countries goes back to the 1950s when the United States of America came under pressure to dispose of huge surpluses for which no effective demand existed. For exporters, food aid became a desirable policy choice when the piled up stocks lost most of their market values. In these circumstances, transfer of resources in the form of commodities was seen as largely additional to financial aid. Since the early 1970s, however, world food markets have become tighter and most food commodities are no longer treated as if they were free goods. The establishment of special institutional arrangements for food aid has also raised questions about the concept of its additionality as a resource transfer.

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