The BASIS Smart Development Pilot Project Agenda

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Information about The BASIS Smart Development Pilot Project Agenda

Published on March 10, 2016

Author: BASISinnovationlab


1. The BASIS Smart Development Pilot Project Agenda: Flexible Response to Food Insecurity:  Food Aid Programming and Impact In A New Era Christopher B. Barrett Cornell University Conference on “Escaping Poverty Traps:  Connecting the Chronically Poor to the Economic  Growth Agenda“, Washington, DC February 26, 2009

2. Increased flexibility • Food aid flows have been steadily  falling (14 to 5.9 MMT, 1988‐2007) • Food insecurity largely unchanged  worldwide, growing in poorest areas  • Donors and operational agencies  increasingly exploring cash transfers,  esp. post‐tsunami  • Food aid increasingly procured  locally/regionally  ‐ ~2/3 of non‐US  food aid now through LRP  Result: Both demand and supply side  pressures for increased flexibility in  programming options.

3. Increased flexibility With food insecurity response far less resource‐driven,  increased flexibility demands new tools and evidence. • Need ex ante  response analysis   to program in a context: ‐ Market Information for Food    Insecurity Response Analysis  (MIFIRA) approach • Also need ex post impact  evaluation of different responses

4. Which response to address food insecurity? Response analysis links identified  need with appropriate response. •If cash transfers: When? Where? Why? •If local/regional purchases:  When? Where? Why? •If transoceanic food aid:  When? Where? Why?  Must understand markets’ roles  in  addressing food security in order to  identify appropriate transfer form(s). Response analysis

5. Why the Form of Transfer Matters Getting the form of transfer right  helps livelihoods… – Households may sell food aid ‐ often at a deep discount ‐ to  purchase what they need – Yet, when markets function  poorly, cash is of limited value. … and minimizes harm to markets – Impact on markets depends on: • Volumes distributed/bought • Households’ demand • Seasonality • Type of transfer  • Local intermediary conduct  Response analysis

6. Response analysis The Market Information and Food Insecurity Response Analysis  (MIFIRA) framework, developed with and for CARE, fleshes out the decision tree tool from Barrett & Maxwell (2005).

7. 1. Are local markets functioning well?  1a. Are food insecure households well connected to local  markets? 1d. Do local traders behavecompetitively? 1c. How much additional food can traders supply at or near  current costs? 1b. How will local demand respond to transfers?  Excessive price increases  are expected 1e. Do food insecure households have a preference over the  form of aid they receive? No Yes Consider distributing at least some food or other  necessary goods Yes No or  mixed If some food is necessary, is sufficient food available  nearby to fill the gap? Consider distributing at least some cash Minimal price increases are  expected Cash or other non‐food  itemsMix Food Response analysis

8. 2. Is there sufficient food available nearby to fill the gap? Response analysis 2a. Where are viable prospective source options? 2c. Will local or regional purchases have larger disincentive affects on producer prices than transoceanic shipments? 2b. Will agency purchases drive up food prices excessively in source markets? Identify prospective source markets NoYes Consider local or regional purchasesConsider transoceanic shipments No Yes

9. Ex ante response analysis is necessary but not sufficient.  Also need ex post impact evaluation comparing among transfer  forms and sourcing options.   Key policy reason: Emergence of LRP options in US food aid  and substantial growth in cash/voucher transfer use by  various donors and NGOs. With partners, we are currently designing an evaluation of  three different options – cash, LRP food aid, transoceanic  food aid – in east Africa.   Objective 1: Develop and apply response analysis methods  (MIFIRA) to identify where LRP is appropriate.  9 Impact Evaluation

10. Objective 2:  Identify how recipient households’ welfare and  behaviors, as well as recipient community markets, respond to  different transfer forms.  • What differential impacts on household well‐being and  behavior arise due to transfer form? • What are the impacts due to differences, if any, in timeliness  or reduced interruption of delivery (e.g., reduced reliance on  injurious coping behaviors)? • What cost savings, if any, arise from cash or LRP and what  impact does this have at extensive (greater hh coverage) or  intensive (larger rations) margins? • What impact, if any, does cash or food have on recipient  community markets, in terms of prices, trader behavior and  investment, etc.? 10 Impact Evaluation

11. Objective 3: Identify how LRP source markets and suppliers  respond to LRP actions. • What are the price effects of LRP within source markets,  within the procurement marketshed, and in broader national  markets? • What, if anything, induced changes in contracting or logistical  practices and in capital investment, technology choice or  employment in response to LRP actions? • Are there differences between competitive tendering and  targeted/“soft” tendering from smallholder organizations, or  between emergency and non‐emergency situations? 11 Impact Evaluation

12. Objective 4: Generate evidence on the cumulative impacts of  LRP actions on both recipient and source communities. • Compare across transfer forms and sourcing options: – Household‐ and market‐level impacts in the recipient  communities, as well as – Market‐level and smallholder producer and trader impacts  in LRP source communities • What tradeoffs exist between recipient and source  community objectives?  How do local policies (e.g., strategic  grain reserves) and market conditions affect these tradeoffs  and likely cumulative impacts elsewhere? 12 Impact Evaluation

13. Increased flexibility in responding to food security raises  exciting new opportunities.  But need to develop new tools  and new evidence to use these effectively. • Response analysis for ex ante assessment of best  way to address food insecurity in a specific  time/place. • Impact evaluation to establish whether there are  differences among transfer forms or sourcing  options for recipient and source communities.   – Under what conditions are there tradeoffs or synergies  between relief and development?   Conclusion

14. Thanks for your time and interest!

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