Food Aid in Kenya

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What are the long term effects on food aid in Kenya? It is rather unfortunate that African states rely on food aid in times of distress while they remain rich in land in resources. One would ask themselves where their tax payer’s money goes since all funds seem to disappear when the hunger rate increases. Though Africa finds international food aid very beneficial they tend to ignore the negative effects that of this humanitarian intervention. These common food aid problems that occur generally: • It is a donor-driven system • It promotes domestic interests of donor countries • It is a foreign policy tool • International institutions are driven by exporters • Development is not necessarily the objective. What then are the effects of food aid? • Local production and importation There is a risk that inflows of free food will negatively affect the incentives to maintain local production levels and in practice generate a dependency on food aid like what is currently taking place in Africa. Kenya has local producers in the farming sector though they tend to be ignored in times of famine because the government thrives from foreign aid and not local production. The same can be said for importation as well. • Market prices Food aid would also affect the prices set on local food commodities. This would lead to supermarkets competing for the lowest prices since free food is being provided for. This would lead to a negative decrease in demand of food commodities and unused supply that would contribute to store loss instead of profit. • Exchange rate Through the past month we have seem how much the exchange rate can the economy of Kenya. Any unpredicted increase or decrease can affect the transport sector and basic commodity sector. When a country is suffering from hunger, more food will come in, this food aid sent in

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