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Mr. Erwin H Tiongson, Mr. Benedict J. Clements, and Mr. Sanjeev Gupta
Global food aid is considered a critical consumption smoothing mechanism in many countries. However, its record of stabilizing consumption has been mixed. This paper examines the cyclical properties of food aid with respect to food availability in recipient countries, with a view to assessing its impact on consumption in some 150 developing countries and transition economies, covering 1970 to 2000. The results show that global food aid has been allocated to countries most in need. Food aid has also been countercyclical within countries with the greatest need. However, for most countries, food aid is not countercyclical. The amount of food aid provided is also insufficient to mitigate contemporaneous shortfalls in consumption. The results are robust to various specifications and filtering techniques and have important implications for macroeconomic and fiscal management.
Mr. Erwin H Tiongson, Mr. Benedict J. Clements, and Mr. Sanjeev Gupta

free or on highly concessional terms. Food accounts for at least 60 percent of total expenditures among poor households in some countries, and, as such, food availability is critical for food security ( van Holst Pellekaan (2001) ). For addressing emergencies, the IMF has a food financing facility. 6 In a number of countries with PRGF-supported programs, food aid is a significant component of foreign financing (e.g., São Tomé and Príncipe) and covers domestic consumption shortfalls (e.g., Chad, Ethiopia, The Gambia, and Rwanda). Counterpart funds generated by

Robert Cassen

would aid the planning of institutional needs and facilitate national decisions. This subject warrants a major conceptual effort. Food aid . Food aid has been much criticized: program food aid, for diminishing countries’ incentives to invest adequately in food production and for undermining food prices; project food aid, for general inefficiency, and for constructing physical assets (when it succeeds in doing so) that are not of general utility. Program food aid can be, and has been, successfully used without deleterious effects. Methods for avoiding market

Ridwan Ali and Barbara Pitkin

. Major issues and actions Immediate Pricing and marketing reforms Direct assistance to vulnerable groups Feeding programs Income transfers Self-targeting consumer subsidies Coupon systems Food rations Food- and fertilizer-for-work programs Food aid Early warning systems Long-term Pricing and marketing reforms Improve diet, sanitation, education Improve and expand primary health care services and water and sanitation systems Increase food availability Rehabilitate and

Vittorio Masoni and Joris J. C. Voorhoeve

1970–74. Food aid is provided entirely as a grant and consists mainly of cereals donated under the Food Aid Convention of 1967. Food provided outside the Convention consists mostly of dairy products. Most food aid goes to non-ACP states, but its geographical distribution varies from year to year. EEC food aid has been severely criticized for being too closely related to the needs of Europe’s agriculture, as if it were only a means to dispose of surpluses. To meet this objection, the Commission of the European Communities has proposed to program food aid on a

Boriana Yontcheva

1999. Concomitantly, the share of bilateral ODA transferred through NGO is also increasing. OECD data indicates that ODA from its DAC members channelled through NGOs has risen from 0.11 percent in 1982-83 to roughly 3 percent in 1994, reaching more than a billion USD. This figure can even be much higher for some bilateral aid agencies; for example 30 percent of Swedish development aid is conveyed by NGOs (OECD 1999). Emergency aid is a sector where NGOs gather a particularly significant share of public funding. According to the World Food Program, food aid

Mr. Sanjeev Gupta

- 119 . Canova , F. , 1999 . Does detrending matter for the determination of the reference cycle and the selection of turning points? Economic Journal 109 , 126 - 150 . Christiano , L. , Fitzgerald , T.J. , 1999 . The band pass filter , NBER Working Paper No. 7257 . Clay , E. , Dhiri , S. , Benson , C. , 1996 . Joint Evaluation of European Union Programme Food Aid . Overseas Development Institute , London . Colding , B. , Pinstrup-Andersen , P. , 2000 . Foreign aid as an aid instrument: past, present and future . In : Tarp

Boriana Yontcheva
This paper presents a dynamic game of strategic delegation between a principal and an agent. The principal can choose between two organizational designs: a traditional hierarchy where she retains authority over the choice of projects to be implemented or a delegation where she allows her agent to select the project. The key objectives of this model are to identify the long-run determinants of the principal’s choice and verify the impact of the authority allocation on the agent’s effort levels and on the principal’s payoffs. We apply the model to the relationships between institutional donors and nongovernmental organizations.
Duncan Ripley and C.A. Yandle

prohibited subsidized underselling, and provided only limited access to commercial markets for any exporting country not adhering to the agreement. In addition, stress was placed on specific provisions for the maintenance of commercial purchases by countries receiving wheat shipments under food aid programs. Food aid programs were financed in part by developed importing countries, including finance for purchases in developing exporting countries. Finally, exportable stocks could be reduced greatly in certain years through large sales to the U. S. S. R. and mainland China

International Monetary Fund
In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.