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The Timeliness and Cost-Effectiveness of the Local and Regional Procurement of Food Aid

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  • Lentz, Erin C.
  • Passarelli, Simone
  • Barrett, Christopher B.

Abstract

Local and regional procurement (LRP) of food aid is often claimed to lead to quicker and more cost-effective response. We generate timeliness and cost-effectiveness estimates by comparing US-funded LRP activities in nine countries against in-kind, transoceanic food aid shipments from the US to the same countries during the same timeframe. Procuring food locally or distributing cash or vouchers results in a time savings of nearly 14weeks, a 62 percent gain. Cost-effectiveness varies significantly by commodity type. Procuring grains locally saved over 50 percent, on average, while local procurement of processed commodities was not always cost-effective.

Suggested Citation

  • Lentz, Erin C. & Passarelli, Simone & Barrett, Christopher B., 2013. "The Timeliness and Cost-Effectiveness of the Local and Regional Procurement of Food Aid," World Development, Elsevier, vol. 49(C), pages 9-18.
    • Handle: RePEc:eee:wdevel:v:49:y:2013:i:c:p:9-18
    DOI: 10.1016/j.worlddev.2013.01.017
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    References listed on IDEAS

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    1. Christopher Barrett & Robert Bell & Erin Lentz & Daniel Maxwell, 2009. "Market information and food insecurity response analysis," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 1(2), pages 151-168, June.
    2. Tschirley, David L. & del Castillo, Anne Marie, 2007. "Local and Regional Food Aid Procurement: An Assessment of Experience in Africa and Elements of Good Donor Practice," Food Security Collaborative Working Papers 54486, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Haggblade, Steven & Tschirley, David L., 2007. "Local and Regional Food Aid Procurement in Zambia," Food Security Collaborative Working Papers 54487, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Garg, Teevrat & Barrett, Christopher B. & Gómez, Miguel I. & Lentz, Erin C. & Violette, William J., 2013. "Market Prices and Food Aid Local and Regional Procurement and Distribution: A Multi-Country Analysis," World Development, Elsevier, vol. 49(C), pages 19-29.
    5. Tschirley, David L. & del Castillo, Anne Marie, 2007. "Local and Regional Food Aid Procurement: An Assessment of Experience in Africa and Elements of Good Donor Practice," Food Security International Development Working Papers 54562, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. Clay, Edward & Benson, Charlotte, 1990. "Aid for food : Acquisition of commodities in developing countries for food aid in the 1980s," Food Policy, Elsevier, vol. 15(1), pages 27-43, February.
    7. Elizabeth R. Bageant & Christopher B. Barrett & Erin C. Lentz, 2010. "Food Aid and Agricultural Cargo Preference," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(4), pages 624-641.
    8. Lentz, Erin C. & Barrett, Christopher B. & Gómez, Miguel I. & Maxwell, Daniel G., 2013. "On The Choice and Impacts of Innovative International Food Assistance Instruments," World Development, Elsevier, vol. 49(C), pages 1-8.
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    Cited by:

    1. Ryan Cardwell & Pascal L. Ghazalian, 2020. "The Effects of Untying International Food Assistance: The Case of Canada," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1056-1078, August.
    2. De Matteis, Alessandro & Ellis, Frank & Valdes, Ivan, 2017. "The relevance of market prices for the design of transfer programs in response to food insecurity," The Quarterly Review of Economics and Finance, Elsevier, vol. 66(C), pages 202-211.
    3. García Castillo, Jorge, 2024. "Donors want it faster, humanitarian organizations get it cheaper," World Development, Elsevier, vol. 177(C).
    4. Ferrière, Nathalie & Suwa-Eisenmann, Akiko, 2015. "Does Food Aid Disrupt Local Food Market? Evidence from Rural Ethiopia," World Development, Elsevier, vol. 76(C), pages 114-131.
    5. Lisa F. Clark, 2018. "Policy conflicts in global food assistance strategies: balancing local procurement and harmonization," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(1), pages 211-222, February.
    6. Zavale, Helder & Myers, Robert & Tschirley, David, 2015. "Market Level Effects of World Food Program Local and Regional Procurement of Food Aid in Africa," 2015 Conference, August 9-14, 2015, Milan, Italy 211862, International Association of Agricultural Economists.
    7. Harou, Aurélie P. & Upton, Joanna B. & Lentz, Erin C. & Barrett, Christopher B. & Gómez, Miguel I., 2013. "Tradeoffs or Synergies? Assessing Local and Regional Food Aid Procurement through Case Studies in Burkina Faso and Guatemala," World Development, Elsevier, vol. 49(C), pages 44-57.
    8. Ubilava, David, 2017. "The ENSO Effect and Asymmetries in Wheat Price Dynamics," World Development, Elsevier, vol. 96(C), pages 490-502.
    9. Amy Margolies & John Hoddinott, 2015. "Costing alternative transfer modalities," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 7(1), pages 1-16, March.
    10. Lara Cockx & Nathalie Francken, 2016. "Evolution and impact of EU aid for food and nutrition security: a review," Working Papers of Department of Economics, Leuven 540512, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    11. Lentz, Erin C. & Barrett, Christopher B., 2013. "The economics and nutritional impacts of food assistance policies and programs," Food Policy, Elsevier, vol. 42(C), pages 151-163.
    12. Maxwell, Daniel G. & Parker, John W. & Stobaugh, Heather C., 2013. "What Drives Program Choice in Food Security Crises? Examining the “Response Analysis” Question," World Development, Elsevier, vol. 49(C), pages 68-79.
    13. Moshtari, Mohammad & Altay, Nezih & Heikkilä, Jussi & Gonçalves, Paulo, 2021. "Procurement in humanitarian organizations: Body of knowledge and practitioner's challenges," International Journal of Production Economics, Elsevier, vol. 233(C).
    14. Upton, Joanna B., 2014. "Resolving the Puzzle of the Conditional Superiority of In-kind versus Cash Food Assistance: Evidence from Niger," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172942, Agricultural and Applied Economics Association.
    15. Lentz, Erin C. & Barrett, Christopher B. & Gómez, Miguel I. & Maxwell, Daniel G., 2013. "On The Choice and Impacts of Innovative International Food Assistance Instruments," World Development, Elsevier, vol. 49(C), pages 1-8.
    16. Alex Nikulkov & Christopher B Barrett & Andrew G Mude & Lawrence M Wein, 2016. "Assessing the Impact of U.S. Food Assistance Delivery Policies on Child Mortality in Northern Kenya," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-15, December.
    17. Evans, David K. & Popova, Anna, 2016. "Cost-Effectiveness Analysis in Development: Accounting for Local Costs and Noisy Impacts," World Development, Elsevier, vol. 77(C), pages 262-276.
    18. Janzen, Joseph, 2015. "The Effect of U.S. International Food Aid on Prices for Dry Peas and Lentils," 2015 Conference, August 9-14, 2015, Milan, Italy 211797, International Association of Agricultural Economists.
    19. Christopher B. Barrett, 2020. "Comment on “The Effects of Untying International Food Assistance: The Case of Canada”," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1079-1080, August.
    20. Tschirley, David & Myers, Robert & Zavale, Helder, 2014. "MSU/FSG Study of the Impact of WFP Local and Regional Food Aid Procurement on Markets, Households, and Food Value Chains," Food Security International Development Working Papers 184835, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    21. Mary, Sébastien & Mishra, Ashok K., 2020. "Humanitarian food aid and civil conflict," World Development, Elsevier, vol. 126(C).
    22. Upton, Joanna B. & Lentz, Erin C., 2016. "Finding Default? Understanding the drivers of default on contracts with farmers’ organizations under the World Food Programme Purchase for Progress Pilot," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235656, Agricultural and Applied Economics Association.
    23. Upton Joanna, 2018. "Working Paper 304 - The Use of Cash Versus Food Transfers in Eastern Niger," Working Paper Series 2430, African Development Bank.

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