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Cash transfers and high food prices: Explaining outcomes on Ethiopia's Productive Safety Net Programme

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  • Sabates-Wheeler, Rachel
  • Devereux, Stephen

Abstract

An ongoing and highly politicised debate concerns the relative efficacy of cash transfers versus food aid. This paper aims to shed light on this debate, drawing on new empirical evidence from Ethiopia's Productive Safety Net Programme (PSNP). Our data derive from a two-wave panel survey conducted in 2006 and 2008. Ethiopia has experienced unprecedented rates of inflation since 2007, which have reduced the real purchasing power of PSNP cash payments. Our regression findings confirm that food transfers or 'cash plus food' packages are superior to cash transfers alone - they enable higher levels of income growth, livestock accumulation and self-reported food security. These results raise questions of fundamental importance to global humanitarian response and social protection policy. We draw out some implications for the design of social transfer programmes and describe some steps that could be taken to enable 'predictable transfers to meet predictable needs'.

Suggested Citation

  • Sabates-Wheeler, Rachel & Devereux, Stephen, 2010. "Cash transfers and high food prices: Explaining outcomes on Ethiopia's Productive Safety Net Programme," Food Policy, Elsevier, vol. 35(4), pages 274-285, August.
    • Handle: RePEc:eee:jfpoli:v:35:y:2010:i:4:p:274-285
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    References listed on IDEAS

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    1. Benson, Todd & Minot, Nicholas & Pender, John & Robles, Miguel & von Braun, Joachim, 2008. "Global food crises: Monitoring and assessing impact to inform policy responses," Food policy reports 19, International Food Policy Research Institute (IFPRI).
    2. repec:bla:devpol:v:24:y:2006:i:5:p:579-599 is not listed on IDEAS
    3. repec:bla:devpol:v:24:y:2006:i:5:p:601-624 is not listed on IDEAS
    4. repec:bla:eurcho:v:7:y:2008:i:specialissuecap:p:36-43 is not listed on IDEAS
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