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The Impact of Food Subsidies on Global Policies and Societies

Explore the intricate web of food subsidies worldwide, from donor countries to developing nations, affecting various sectors like agriculture, industry, and politics. Discover how different subsidy strategies impact individuals and economies.

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The Impact of Food Subsidies on Global Policies and Societies

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  1. Policies that subsidize Food Consumption Text extracted from The World Food Problem Leathers and Foster, 2004 http://www.lastfirst.net/images/product/R004548.jpg

  2. Food Subsidies • Popularity of subsidies: • Donor countries • with burdensome surpluses • Donors • directly feed famine victims • Exporters • Farmers • Food distributors • Input suppliers • Shippers • Developing countries • Military • Industry • Politicians • Removal of food subsidies • Can result in riots http://www.uni-mainz.de/Organisationen/SORC/images/arbore/1foodaid2.jpg

  3. Marketwide food subsidies • Egypt • lowered the cost of food for everyone • Bread, flour, pulses, sugar, tea, cooking oil • kept undernutrition to minimum • Inefficiency • Waste • Bread used for livestock feed • Lower industry investment • Government money used to import food • Overconsumption of wheat • Government paid higher price than consumers would have • Up to 17% of Government budget used for subsidies http://www.ardia.net/dan/photos/egypt-al-bread%20II.jpg

  4. Subsidies for the needy • Income targeting • Sri Lanka restricted rice subsidies to low income households • Half of households qualified • Self-targeting • Subsidies on food with low demand • Cassava, yams, maize, sorghum, millet http://biology.queensu.ca/~arnoldh/sri%20market.jpg Sri Lanka market

  5. Subsidies for the needy • Supplemental Feeding • Direct distribution to pregnant women, infants • Positive results • Severely malnourished benefit most • Must be combined with health care • Problems • Food shared with non-target family members • Nutritional timing important for pregnancy, preschoolers http://gbgm-umc.org/umcor/photos/malawi/richardlord/balamanjasffeedingchildren.jpg

  6. Subsidies for the Needy • Ration Cards • Allow purchase of food at below market price • Food Stamps • Pay market price for food • Must buy food stamps • price varies with income • Food for Work • Often work to improve agricultural infrastructure http://www.humanitarianinfo.org/DPRK/mediacentre/photo%20gallery/Activities/Food/FoodAgriculture.asp Food for work project, North Korea

  7. Food Aid • Important in famine relief • Best if purchased in country • Problems with giving food: • Shipping costs high • 89% value of the food • Medical care more critical • Not self-sustaining • Food sometimes used as cash • Children don’t benefit • Depresses farm prices in country • Disincentive to agriculture Food aid for Indonesia Earthquake victims, 2005 http://www.iabc.or.id/photos_aceh.htm

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