Food aid strategy for Haiti : maximizing developmental effectiveness

In the course of its analyses, the paper addresses some questions about the impact of the program to date. The report"s analyses of the levels of food aid, domestic production of grains, and price trends provide "no evidence of disincentives," an empirical finding which is not consistent with the general public perception of food aid held by many in Haiti. Edible oil imports under P.L. 480 play a "major nutritional role in Haiti" and have been a critical factor in the successful privatization moves. The authors argue that "disincentives" appears to be a "misunderstood term," proposing that disincentives should be interpreted within the context of possible ill effects of food aid on cost-reducing technologies, government pricing policies, and "consumer/human capital gains that may accrue to the economy." (Author abstract, from PN-ABD-893)