Financial Times FT.com

Food aid less efficient than cash, says study

By Alan Beattie, World Trade Editor

Published: September 26 2005 22:58 | Last updated: September 26 2005 22:58

Shipping food rather than cash to disaster-hit poor countries cuts the benefit of such aid by a third, according to a new study that raises a fraught issue in world trade negotiations.

The study, published by the Organisation for Economic Co-operation and Development, the Paris-based intergovernmental think-tank, says that “tied” food aid, shipped as surpluses from the donor country's farmers, often arrives too late and is more expensive than buying it locally.

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