Friday, 3 December 2010

Food prices and food aid

The WFP feels thousands of people. When food prices rise, as the FAO is predicting they will in the next few months, more people are hungry, so the WFP has more people to feed. At the same time, higher food prices mean that their funding will buy less food. More hungry people, less food aid to feed them. This is a serious problem, particularly because governments are increasingly unable to supply more funding to WFP when the crises that are happening are affecting the people 'back home' just as much.

Paul Collier suggests that aid groups like the WFP have to "programme in the risk" of rising food prices. One way of doing this would be donors linking their contributions to food prices - thereby ensuring that enough food is purchased regardless of the price. There must be many other ways to do it. Any ideas?

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