Food aid, intra-regional trade and economics development In SADCC
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This paper focuses on two related Issues. The first is how food aid in general can be given without impeding domestic production. Since it is probably not certain that any policy measures can be totally effective the focus may be best on how to best minimize the negative Impact. The second issue to be examined is how food aid can be utilized to promote intra-regional trade. In addressing both issues we first outline briefly the major variables that determine the level of production, be they market forces or policy decisions. We then review the economic literature on the Impact of food aid on the recipient country, most of which was stimulated by the concern over the volume of PL480 transfers to India over a period of over ten years. These two approaches are then married to produce, as it were, suggestions on the empirical methods of managing food aid so that it does not Impede the progress toward meaningful (l.e. efficient) food self sufficiency at both the country and regional level. Literature on the subject has focused on food aid for development as distinct from emergency aid. The distinction could be considered academic. Isenman and Singer (1977) point out that the major purpose of food ald is to feed the hungry. To the extent this is true all food aid can therefore be considered emergency aid.