Not just handouts - the aid that puts cash into the economy

[Gar-haye]

"So far the results look positive. Research on areas where they are in existence [voucher programs] shows food tends to last longer and the nutritional health of those receiving the aid is often better.

 

And even in the middle of a drought, those markets that used vouchers found business continued. In September, long before the rains had come, 2,682 quality goats and 14 male camels were slaughtered in Wajir to provide the three kilograms of meat that are given out to voucher recipients. Much livestock had died out in the area because of the drought but traders from outside were willing to bring in new stock as long as they could find a market to sell them in."

 

http://www.independent.co.uk/news/appeals/indy-appeal/independent-appeal-not-just-handouts--the-aid-that-puts-cash-into-the-economy-6282475.html#

[Raamsade]

Gar-Haye, this is a positive development but it is a drop in the bucket because WFP, which corners the Food Aid sector, procures the brunt of its food from farmers in the developed countries. Farmers in the developed countries are reliable suppliers who are buttressed by world class transportation system enabling swift movement of food if required, so WFP choice is sensible. But just imagine what just a fraction of that money, and we're talking about billions upon billions of dollars a year, can do for impoverished local markets.

[Gar-haye]

raamsade, yeah its a step in the right direction. what i like about this idea is the voucher system which negates the side effects of flooding the local markets with cash ( cash will drive up commodity prices). also it seems WFP is enabling local business to meet this new demands which kind shores up the whole local economy. surprisingly it seems they kind of trying to manage the market or resuscitate it if you like.