Use cash, rather than food aid, to avert famine – NGO

Cash should be used to replace food aid to help protect impoverished families from droughts and famine, Save the Children UK said on Tuesday. John Graham, who heads the UK charity in Ethiopia, told IRIN that if food was available in local markets then cash was a better alternative. His call came as the charity launched a US$1 million cash-for-work scheme funded by the US Agency for International Development (USAID). “There are two very positive aspects to this programme,” Graham said at the launch of the scheme as he welcomed the move by USAID, who have faced criticism for relying on US imported food aid. “The first is the use of cash instead of food, which we feel will stimulate the local economy,” he said. “The other major advantage is the provision of the full nutritional requirements of the beneficiaries.” His call also came as the Ethiopian government stressed the need to shift from food aid to cash as part of a US $3-billion rescue package to end food dependency in the country. This would mean a significant increase in development aid for Ethiopia, which currently receives US$960 million per annum. The ambitious project, which forms part of Ethiopia’s “New Coalition for Food Security”, aims to bring 15 million people out of a hand-to-mouth existence. The cash-for-work scheme – which replaces food handouts for work – aims to boost local markets and create demand for goods. It has been seen as a success because it plays on market forces. Although there are desperate food shortages in some areas, others often have large surpluses. This means that those who need food have too little money to buy it while those who produce a surplus cannot make any money because prices plummet. Bringing in large supplies of food aid from outside the country further distorts the market as farmers in surplus areas are unable to compete with free food being given away. Graham also stressed that cash was vital for families to supplement poor diets. “One important lesson we have re-learned this year is that unless we give people a full food basket then nutritional conditions, particularly of children, deteriorate rapidly,” he said. “We are giving people enough cash so that they should be able to meet their full nutritional needs.” The cash-for-work scheme is underway in two districts in South Wollo -northern Ethiopia - one of the areas hardest hit by chronic food shortages. Under the scheme, more than 100,000 people will receive payments of between US$2 to US$5 a month. They are expected to work in community-planned projects like protecting the local environment to help reduce long-term vulnerability.