The WFP’s Purchase for Progress has been called an innovation in food aid that promises to raise farmers incomes too. Yet, as the CGDev points out, there are unintended consequences that have been overlooked. What is the impact on the local consumer?
The World Food Programme received USD 76 million for its Purchase for Progress program. P4P holds substantial promise to raise farmers income in the South by purchasing locally. The true promise, however, is not that it will raise incomes, but that it can create better food markets. Question is, will P4P go far enough?
Current high food prices illustrate deep-rooted problems all along the agricultural supply chain, rather than simply demand-supply imbalances. Given its inefficiencies, it is best to bypass that system - and the WFP is in the enviable position of being able to do so.