Food aid as a development resource in Nepal : a reassessment

The evaluation builds upon a previous assessment conducted in 1984. A case can be made that Nepal needs more food aid. Although the country remains relatively self-sufficient in terms of market demand for food, substantial numbers of people suffer from undernutrition, while others experience temporary declines in access to food arising from instability in production, food prices, or household income. Seasonal underemployment is prevalent where chronic food deficits are the most serious. Food for Work (FFW) projects could reduce undernutrition and mitigate the lack of transportation infrastructure, reforestation, irrigation, and other development resources. USAID/N should continue to provide Title II resources to the Dairy Development Corporation and to collaborate with the World Food Program on FFW for road construction. A Title I program in vegetable oil should also be explored. The Government of Nepal (GON) has made numerous requests to donors for specific food commodities and for expanded FFW assistance for roads and reforestation. However, GON implementation capabilities are strictly limited and are currently stretched very thin by a plethora of foreign aid donors and projects. To expand the use of food aid, the GON and donors will need to collaborate more effectively with external PVO's and local nongovernmental organizations, neither of which are currently involved or strongly interested in food assistance. Additional recommendations include the following. (1) Land distribution inequality is a root cause of chronic food insecurity and should be made a priority policy issue. (2) An in-depth study of Indian foodgrain pricing in relation to seasonal and regional price levels in Nepal should be carried out. (3) Assistance to the GON to strengthen collection and processing of agricultural statistics and its early warning system is needed. (4) A study of inter-district movements of food, seasonal migration of people, and adjustment strategies of food-deficit households and districts should be supported.