Evaluation of Food Aid Policy and Food Aid Management and Special Operations in Support of Food Security Food Aid Seminar Author: PARTICIP GmbH EUROPEAN COMMISSION, AIDCO Evaluation Unit H6 PARTICIP GmbH, Hildastrasse 66, D 79102 Freiburg/Germany, Phone: +49-761-790740, Fax: +49-761-7907490, E-mail: particip@particip.de; Internet: http://www.particip.de Brussels Branch Office: Avenue des Arts 50, B 1000 Brussels/Belgium, Phone: +32-2-5501160, Fax: +32-2-5501169 1
Ethiopia: Transition from Food Aid to Development Brussels November 25, 2004
I. Overview
I.1. Introduction Ethiopia one of the poorest countries in the world Relief food aid has remained the standard response mechanism to food insecurity Food aid is neither an effective nor an efficient means to tackle the wide spread problem of structural poverty and chronic food insecurity Government plans to address causality and effect of food insecurity in Ethiopia 2002 Food Security Strategy of the GoE is targeted mainly to the chronically food insecure moisture deficit and pastoral areas Donors including EC have been advocating a shift away from food aid towards developmental oriented food security programs An increasing amount and share of the resources provided under the EC Food Aid and Food Security Programme to Ethiopia have been in the form of food aid
I.2. Socio Economic Analysis of Ethiopia in Brief Ethiopia is a country in a permanent transition Ever since the transitional period several policies and strategies have been implemented Agriculture is the most important sector of the Ethiopian economy, The food production has significantly increased curing the last years In spite of the progress achieved, Ethiopia is still a leastdeveloped country ranked 170 out of 177 countries in the UNDP Human Development Index for 2004 In 2004, the Ethiopian Government, the UN and humanitarian partners appealed for US$ 85 million of nonfood assistance and 871,000 tonnes of food aid to meet humanitarian needs
II. Transition From Food Aid to Development
II.1. Drought and Hunger situations in Ethiopia Hunger is clearly a symptom of a deeper problem, that of poverty Ethiopia had been self-sufficient in major staple foods and was classified as net exporter of food grains till the late 1950s The most known and registered famine years were :1965, 1969, 1973, 1977, 1978, 1979, 1983, 1984, 1987, 1989, 1990, 1991, 1992, 2000, 2002 As much as 45 percent of the population is affected in drought years Thanks to the partnership of the government and other donor countries and multilateral organizations, it was possible to minimize the human loss and the disaster in general Pastoral areas of the country remain comparatively more vulnerable in general, with some areas pointing towards crises Food insecurity combined with poor health infrastructure and service delivery continues to manifest itself in growing epidemics The greatest concern in 2004 was the Somalia Region and Southern Oromia where October rains in 2003 was late, acute water shortage were reported in those areas
II.2. Role of food aid in emergency, rehabilitation and development Food aid from donor countries and multi-lateral organizations tackle hunger The role of food aid is reaching the poor explicitly. operations in Ethiopia include many development interventions, A food security action plan include emergency preparedness, safety nets relief to development, and broader economic growth interventions Local purchase another benefit offered by the multi lateral routes Role of Food aid in development activities
II. 3. Advantages and disadvantages of food aid at different levels Advantages Save lives and prevent mass migration Promotes Local purchase Develops information base for food markets and market prices Helps improve livelihoods in rural communities and households Improves pupils ability to concentrate in class Supporting Households, Women and Children Infected and Affected by HIV/AIDS Helps displaced people, assists refuges Helps as bridge to those households participating in Disadvantages the safety net Food aid for free or through food work projects that are best short term make-work projects has deepened the dependency syndrome. Served as a disincentive to farmers in surplus producing regions Emergency assistance has helped to mask the structural problems involved in such emergencies
II. 4. Government Polices and Strategies to transit from Food Aid to Development Economic Policies and Strategies (1991-95) The Ethiopian Economic Policy during the Transitional Period (November 1991); An Economic Development Strategy for Ethiopia (February 1994) Ethiopian People s Revolutionary Democratic Front (EPRDF) Five Year National Development Programme 1995-2000 (May1995) Sector Development Programs Roads, Education, Health, Energy and Water
Recent Economic Policies and Strategies Agricultural Development Lead Industrialization (ADLI) Emphasizes the development of the private sector and progressive withdrawal of the public sector from productive activities Components included encouragement of the private sector in agriculture, transport and exports I-PRSP/SDPRSP Consist of four building blocks ADLI and Food Security Judiciary and Civil Service Reform Governance, Decentralization and Empowerment Capacity Building in Public and Private Sectors
Recent Economic Policies and Strategies Contd. Rural Development Strategy: main objectives of the programme are as follows: RDS believes Agriculture Development comes through the following: Labor extensive utilization approach Proper use of agricultural land Compatible approach with different agroecological zones Integrated development strategy Building and using human resource capacity Preparation of development packages compatible with each situation Creating market-led agricultural development
Recent Economic Policies and Strategies Contd. Rural Development Strategy: Main objectives of the programme are as follows: Agriculture and rural-centered development is capable of ensuring rapid development and enables people to benefit from growth; RDS believes Agriculture Development comes through the following: Labor extensive utilization approach Proper use of agricultural land Compatible approach with different agro-ecological zones Integrated development strategy Building and using human resource capacity Creating market-led agricultural development Improving the rural finance system Encouraging Private investors to Participate in Agricultural Sector Development
Recent Economic Policies and Strategies Contd. Food Security Strategy Food Security may be defined as " access by all people at all times to sufficient food, in terms of quality, quantity, and diversity, for an active and healthy life without risk of loss of such access." Three main components: Support to economic growth and employment, Targeted entitlement and access programs to poor and vulnerable groups The development of capacity to cope with emergency situations Preparation Process (1996-2002) Food Security Strategy 2002: Three basic pillars: To increase the availability of food through increased domestic production To ensure access to food for food deficit households To strengthen emergency response capabilities
Recent Economic Policies and Strategies Contd. Food Security Strategy Contd. Essential Elements of the Strategy The development of irrigation is integral to the pursuit of food security Crating conditions for year-round agricultural activity Livestock development is an important component of the FSS. Increasing food security in the moisture deficit areas Interventions different for the drought prone and moisture deficit areas Disseminating appropriate technologies and products for dry land agriculture resettle farmers in suitable, under -utilized areas
Recent Economic Policies and Strategies Contd. Food Security Strategy Contd. Essential Elements of the Strategy Contd. Through resettlement program under-utilized land will be brought to economic use Communities responsibility for safeguarding natural resources Government will increases security of tenure through certification measures to strengthen the financial sector encourage the participation of private sector to improve the efficiency of the marketing and distribution system improvement in the provision of market information Strengthening farmers' cooperatives Improved livestock marketing facilities and dairy products
Recent Economic Policies and Strategies Contd. Food Security Strategy Contd. Essential Elements of the Strategy Contd. Increasing role in the import, distributing and trading of fertilizers by the private sector Multiplying seeds by the private and public sector Improved agricultural hand tools and implements expand the research network into agro-ecological zones Importation of agricultural technologies from other countries for the dry land and food insecure areas strengthen research in the development or adoption of improved tools and implements extensive construction of new roads, and rehabilitation of existing roads in rural areas
Recent Economic Policies and Strategies Contd. Safety net programs Safety net serves as a multi-annual source of funding for food security programs in food insecure communities safety net programs are meant to cover the food needs of 5.1 million chronically food insecure people Ethiopia's Productive Safety Net Program (PSNP) includes a community `public works' component aimed at developing communal infrastructure and assets in areas of chronic food shortage. The program will make food or cash payments for labor provided by community members in the implementation of the projects public works projects include hillside terracing, land reclamation, improvement of roads or bridges, improved access to water, or repair of health facilities, in pastoralist areas it includes projects such as development of water points, Agro-forestry, or initiatives related to livestock
Recent Economic Policies and Strategies Contd. Safety net programs Contd. Safety net system of the FSP will be targeted to those chronically food insecure households who live in the 214 woredas (districts) identified by the regions as being food insecure Funds allocated for Safety Nets will be guaranteed (Earmarked) with in the FSP budget line Safety net will consist of three core components: Labor- intensive public works, unconditional transfers
Recent Economic Policies and Strategies Contd. Safety net programs Contd. Government preference for the laborintensive public works component of the safety net Transitioning from Emergency Appeals to safety Nets The Safety Net, as part of the FSP will be "Phased-in" over 3 years When the safety net allocations are made to woredas, the corresponding number of households covered by those resources should be removed from the DPPC emergency appeal mechanism
Recent Economic Policies and Strategies Contd. Pastoralist Programs Pastoralists 11% of the population; occupy 52% of the driest and most marginal land areas. Basically depend on livestock for their livelihood Pastoral areas highest rates of poverty Access to education and health services extremely low Poor access to animal health services limited livestock marketing opportunities Development for pastoralists remains very limited
Recent Economic Policies and Strategies Contd. Pastoralist Programs Contd. Increasing interest of non-government actors in pastoral areas World Bank, with IFAD (not yet implemented), and planned and implemented programs by the FAO, ADB, UNDP, USAID and DFID Pastoralists have experienced considerable change over the past decades. Trends include an increase in agriculture, growth in the number of water points move from communal to individual land tenure Emerging government institutions and policies and strategies over the past 3 years has increased emphasis on long-term development in the emerging regions
Recent Economic Policies and Strategies Contd. Pastoralist Programs Contd. Measures to improve food security situation Strengthening an early warning system Encouragement of carefully researched diversification Identification and development of appropriate technology selection Encouragement and support of large scale commercial ranches Strengthening livestock marketing
III. Donors and Stakeholders response towards Government Strategies and Polices in transiting from Food Aid to Development
Donors and Stakeholders response towards Food Aid The third largest recipient of Official Development Assistance 1995-1998, received development assistance averaging 13.4% of Gross National Product (GNP) an average of US$13.4 per capita Largest donors to Ethiopia are The World Bank, the EC, USA, the African Development Bank and Japan accounting for slightly over 50% of all development assistance to Ethiopia The Commission is the second largest donor to Ethiopia (after the World Bank), providing annually 10-15% of all external assistance
Donors and Stakeholders response towards Food Aid Contd. March 2001, the main donors Un/USAID/ EU/UN EUE/WFP, reached a consensus of the following eleven points as Joint policy Statement (JPS) Establish a senior -level food security policy steering committee. Focus DPPC's mandate on emergency function (e.g. acute needs) Identify appropriate government institutions to mobilize and distribute resources for the chronic food insecure population Separating the Chronic from the Emergency needs Refine assessment methodology to distinguish between the chronic and acute food insecurity Crop and food needs assessments
Donors and Stakeholders response towards Food Aid Contd The GoE offsets food aid and food security assistance and contribute its own budgetary resources to DPPC appeals Food aid more productive for chronically vulnerable, while CFW alternatives should be considered whenever appropriate and feasible Food aid and food security expenditure should be included in the GoE budget ADLI should be evaluated against its impact on chronic food insecurity and poverty alleviation National and regional food security strategies need further development
Donors and Stakeholders response towards Food Aid Contd European Commission (EC) Integrated Food Security Programs (IFSP) Ethiopia is a major recipient of assistance under EC's food aid and food security Program (Budget line 7-200). The EC support comprises all instruments provided under Council Regulation 1292/96, such as food aid and food security interventions food security budgetary support (FSBS), technical assistance, direct aid as well as indirect aid channeled through WFP, ICRC and NGOs
Donors and Stakeholders Response towards Food Aid Contd European Commission (EC) Contd. EC food aid (435,000 tons pledged, 340,000 tons delivered by end of 2003) reached an unprecedented peak Food security is one of the key priority areas of intervention. Now the European Commission intends to address the problem of food insecurity through making a development-oriented food security facility available, rather than focusing on shortterm food aid
Donors and Stakeholders Response towards Food Aid Contd European Commission (EC) Contd. The Commission has allocated important quantities of food aid through NGO's Euronaid and WFP totaling 1.5 million MT A consensus has been reached on the negative effect of food aid on the overall food security situation of the country The European Union assists for different food security programs in Amhara, Oromia, and Tigray & SNNP amounting to 22 million Euro has been extended in three installment (9, 8, 5 million Euro) in Block grant In 2002, the EC approved a 25 million FSP that seeks to meet the EC political objectives
Donors and Stakeholders Response towards Food Aid Contd The FSP of EC The Ethiopian Government and the European Union signed a Memorandum of Understanding (MoU) in March 2003 for the implementation of the 2002 Food Security Program 22 million Euros (in foreign currency) will be allocated for private food importers Counter- value fund will be disbursed to finance priority food security activities 3 million Euros will be used for a technical assistance program
Donors and Stakeholders Response towards Food Aid Contd Flow of funds under the Food Security Program Foreign exchange transferred to the National Central Bank Counter-value funds deposited on a double signature account (DSA) at the Central Bank Transfer of funds from the DSA to the Central Treasury Account Funds used according to the national procedures (fungibility) Monitoring Issues, monitoring in the country, monitoring from HQ Disbursement procedures from the EC/HQ and counter value funds Release of funds to General Treasury Account Financing procedure and negative lists of expenditure interventions that are not eligible
Donors and Stakeholders response towards Food Aid Contd World Bank (WB) World Bank is supporting a food security project Following interventions are seen as priorities for World Bank: Increase substantially the productivity of farms in drought prone areas Risk of damaging soils and vegetation, and adding to already serious environmental problems Obtaining employment off the farm would be a more sustainable strategy Some form of irrigation will be important Require improved enabling environments for enterprises which are economically sustainable
Donors and Stakeholders response towards Food Aid Contd World Bank Projects Funds to communities / Kebeles _ the majority of the project Community-based child growth promotion Capacity building funds to woredas, Regions, and Federal Ministries for specific, project-related activities Investments in communications to ensure transparency Funds for communities Asset and income increasing funds Child growth promotion funds
Donors and Stakeholders response towards Food Aid Contd World Bank Projects Funds for communities Asset and income increasing funds Child growth promotion funds Block Grants to Woredas for Passing on the Communities
Donors and Stakeholders response towards Food Aid Contd World Bank Projects General guidelines for promoting the project and designing asset and income generating activities Woreda level workshop to promote and plan the food security and child Training of Woreda Development Committee Promotion of the project at the Kebele Level Processing and approval of community proposals Funds for preparations of proposals transferred to Kebele office Communities prepare simple proposals Kebele Food Security Committee collects and compiles proposals Accessing funds and implementation
Donors and Stakeholders response towards Food Aid Contd. World Bank Projects Contd. General guidelines for promoting the project and designing asset and income generating activities Contd. Institutional and implementation Arrangements A National Project Coordination Unit (NPCU) would be established at the federal level The Food Security Project will take the following steps to reflect women's interests in project planning and implementation: project will identify constraints on women's access to and control over resources inside and outside the home early in project implementation project will develop strategies, adopt mechanisms, and make special efforts to reach women directly Develop strategies and adopt mechanisms and special efforts to reach women directly
Donors and Stakeholders response towards Food Aid Contd World Food Programme (WFP) Involved in six projects targeting 5.4 million beneficiaries in 2004 The Relief Food Assistance to Small-scale Farmers and Drought-affected Pastoralists projects Protects household and community assets, before and after disasters through Employment- Generation Schemes (EGS) for able-bodied beneficiaries The Managing Environmental Resources to Enable Transition to More Sustainable Livelihoods (MERET) The Promoting Education through School Feeding
Donors and Stakeholders response towards Food Aid World Food Program (WFP) Contd. The Urban HIV/AIDS: Supporting Households, Women and Children Infected and Affected by HIV/AIDS objectives The Relief Food Assistance for Ethiopians Internally Displaced by the Ethiopia-Eritrea Border Conflict objective The Food Assistance for Refugees in Ethiopia and for Refugee Repatriation project objective U.S. Government contributed 1.2 million MT of food assistance (Over $ 550 million) to meet emergency food needs in Ethiopia, and $ 53 million for emergency health, nutrition, water, sanitation and agriculture and livelihoods interventions
Donors and Stakeholders response towards Food Aid Contd Others NGOs are also implementing a diverse range of projects and interventions in all the major pastoralist areas. The major sectors, in addition to relief provision, are in livestock health, water, agriculture, human health and education the reduction of post harvest losses and the emergency support to the present food situation
Donors and Stakeholders response towards Food Aid Contd Government of Ethiopia willingness to work with donors The regions are free to use the money The food security grant of the Federal Government is allocated to the regions on the basis of the number of food insecure people in each region The food security grant budget line is independent of other budget lines The government is eager to work together with donors and other members
IV. Results Achieved so far and Future Programs
Results Achieved so far and Future Programs Contd. The wide-ranging efforts to build sustainable and reliable economy have registered promising outcomes between 1993 and 1998. the annual a local production stood at an average growth of 6 percent decrease inflation 21 percent inflation rate during the previous regime to below five percent Measures control the fluctuation of foreign currency rate, easing the ill effects of the tax system on the economy, creating free market access to financial loans and human labor, charting out new investment law to create favorable situation to local and foreign investors, transferring many government organization to private ownership Ethiopia gets financial aid and loans from its bilateral and multilateral sources
Results Achieved so far and Future Programs Contd. 409 million USD was utilized to execute various programs like food security as well as rural development, infrastructure education, health, safe water, capacity building, and good governance During the 2001/2003, it was possible to secure 959 million USD annually through bilateral sources from some 18 donor countries to implement three to five year local programs The country got the advantage of debt relief amounting to 183 million USD from multilateral institutions like IMF, World Bank, IFAD and OPEC and Paris Clubs Activities carried out and achievements gained in agriculture and rural development included public mobilization around key policies and strategies Government disclosed that 18.9 per cent growth rate registered in the agriculture sector in 2003/04
Results Achieved so far and Future Programs Contd. According to figures confirmed by the latest information, the national economy has registered a growth rate of 11.6 percent over the current year 18.9 percent growth in agriculture, 6.9 percent in industry, and 7.6 percent from distribution of other services the education sector, the report conclude as the previous target of 65 percent primary education coverage by 2004/05., was met two years earlier by 2002/03 Increasing higher education in take capacity to 30,000 Primary education coverage has reached 68.5 per cent, and universities have admitted 25,000 new students in degree programs health sector has been the implementation of the health extension program