Calculating food-aid cost-effectiveness: Evidence from Ethiopia
Overview
These Notes are based on research carried out as part of a World Bank/World Food Programme study into food aid in Sub-Saharan Africa. The authors use economic analyses to establish a framework for considering the cost-effectiveness of food aid compared to financial aid, and they apply this framework to the Wollaita food aid project. Food aid is shown to be less cost-effective than financial aid if the cost/benefit analysis is confined to monetary considerations. Problems arise when trying to quantify other variables that may affect the analysis, for example nutritional costs/benefits and increased/decreased production (the Wolliata project is a food-for-work (FFW) scheme).
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