Development impact of US program food assistance : evidence from the AID evaluation literature

program food aid is provided on a loan or grant basis and is generally sold to generate local currency for developmental purposes. In FY 1988, such commodities, totaling 5.4 million MT, accounted for half of all food aid and 16% of economic assistance. This study, largely a synthesis of program evaluations, audits, and related studies, evaluates the development impact of this aid, with special attention to macroeconomic performance, the food sector, and program management. In general, program food aid appears to have a positive impact on the performance of recipient countries at the macroeconomic and sectoral level. However, the increasing emphasis on promoting policy reform has produced mixed results, with just over half of evaluations reporting an improved policy environment. Moreover, given the current program design, food aid is unlikely to have an immediate or direct impact on its primary target - the urban and rural poor. Serving primarily as a balance of payments support, program food aid has generally not added to the food supply available for consumption. Recommendations for program modification focus on (1) increasing the grant component to reduce the impact on future debt and maximize policy leverage and (2) encouraging the use of food aid-generated resources to alleviate the immediate negative impact of structural adjustment on the poor.