4 Protecting the vulnerable from shocks
76. In the previous two chapters we saw that there
has been a progressive tightening of the balance between demand
for and supply of food, leading to food price shocks. In this
chapter we will consider the impacts of shocks on the poorest
and most vulnerable, and consider how best these impacts might
be reduced.
Social protection
77. When shocks occur, the poor may have to sell
their assets (e.g. livestock) in order to buy food. The loss of
their assets increases their vulnerability to future shocks. The
provision of social protection, including cash transfers and other
social insurance and social welfare schemes, seeks to reduce the
need for the poor to sell their assets.[235]
It can also contribute to food security in various other ways
such as helping households to save, invest in productive assets
and obtain better credit terms.[236]
At present, 60% of people in developing countries lack access
to social protection, including 75% of households in sub-Saharan
Africa.[237]
78. Social protection schemes often make a valuable
contribution to food security. In Brazil, the coupon-based Bolsa
Familia scheme played a key role in reducing hunger over a number
of years.[238] We recently
visited Ethiopia, where we heard about the Productive Safety Net
Programme (PSNP). This programme was seen as a key factor in mitigating
the impact of the 2011 Horn of Africa drought within Ethiopia.[239]
For further details about PSNP, see Box 3.
Box 3
Social protection: the Productive Safety Net Programme (PSNP) in Ethiopia
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During our visit to Ethiopia we were told about the Productive Safety Net Programme (PSNP). Under PSNP, beneficiary households receive a cash transfer of around 2,350 Birr per year, in return for contributing up to five days' labour per month on public works programmes, including construction of roads, schools and health posts. Construction of roads has provided villagers with better access to markets, allowing them to get a better price for their produce. The public works programmes have also including the fencing-off of water points to prevent contamination of water-supplies by livestock. This has led to declining prevalence of water-borne diseases.
PSNP also provides larger cash transfers to those who are unable to work (due to age, illness, disability or pregnancy). The first stage of PSNP, operational between 2005 and 2009, reached between 4 and 5 million beneficiaries per year; the second stage, operational since 2010, has reached on average 7.5 million beneficiaries per year. The scheme currently covers half of all rural Ethiopian districts.
PSNP is funded jointly by the Government of Ethiopia and ten donor organisations. The total cost of PSNP is £1.4 billion over the current (2010-14) five year phase, of which £210 million is provided by DFID.
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79. DFID plans to fund social protection in 15 countries
by 2014. This represents a significant increase since 2009, when
it was only funding social protection in nine countries,[240]
but nevertheless suggests that in 14 of the 29 countries in which
DFID is currently working bilaterally,[241]
it does not currently plan to fund social protection. In a recent
report, we expressed our regret that DFID was not supporting cash
transfers in Malawi.[242]
When shocks occur, social protection plays a vital role in
protecting the food security of the poorest. In 14 of the 29 countries
in which it has bilateral programmes DFID does not currently plan
to fund social protection. We ask the Department to explain the
thinking behind this.
Humanitarian assistance
80. When emergency interventions are needed to protect
food security, assistance can either be provided 'in kind' (food
aid) or via cash- and voucher-based schemes. WFP has traditionally
provided conventional food aid, but since 2008, has been using
cash and vouchers as well.[243]
WFP's spending on these schemes increased from £27 million
in 2009 to £134 million in 2011.[244]
Provided markets are functioning and beneficiaries are able to
access markets, WFP regards these schemes as superior to food
aid: they stimulate markets and allow beneficiaries to access
a greater choice and variety of foodstuffs (e.g. fresh fruit,
fresh vegetables, animal products). Moreover, conventional food
aid creates challenges of cost and supply.[245]
Where emergency interventions are needed to protect food security,
cash- and voucher-based schemes are preferable to in-kind food
aid provided markets are accessible and functioning. Where appropriate,
we recommend that DFID and its partner organisations favour cash-
and voucher-based schemes over in-kind food aid.
81. Where in-kind food assistance is required, there
are many advantages in purchasing food locally from developing
country suppliers. In his recent Budget, US President Barack Obama
announced that the US would scale up its procurement of food aid
from developing country suppliers.[246]
WFP, under its Purchase for Progress scheme, purchases its food
from producers in developing countries either directly from farmers'
organisations (through direct contracts, forward contracts or
'smallholder-friendly tenders') or from traders or NGOs who work
with smallholders.[247]
In Ethiopia, for example, WFP has signed forward delivery contracts
to the value of $12.3 million, with 16 co-operatives, whose total
combined membership is 500 000 smallholders. These contracts have
enabled the co-operatives to access bank loans; previously banks
were only willing to lend to exporters.[248]
The scheme is currently being piloted in 20 countries (Burkina
Faso, Democratic Republic of the Congo, Ethiopia, Ghana, Kenya,
Liberia, Malawi, Mali, Mozambique, Rwanda, Sierra Leone, South
Sudan, Tanzania, Uganda, Zambia, Afghanistan, El Salvador, Guatemala,
Honduras, Nicaragua).[249]
It is funded by a variety of donors, including DFID.[250]
An evaluation of the programme found that while there had been
some challenges, there had been many positive impacts.[251]
Ertharin Cousin, Executive Director of WFP, told us that she would
scale up the Purchase for Progress scheme 'in a heartbeat' if
donors were to make additional funds available.[252]
The Parliamentary Under-Secretary of State for International Development
described it as an 'amazing project,' and agreed to consider scaling
up DFID's support.[253]
WFP's 'Purchase for Progress' scheme has a double benefit:
it supports WFP's humanitarian work while also supporting local
economies in developing countries. We were pleased that the Parliamentary
Under-Secretary of State agreed to consider scaling up DFID's
support, and we reiterate our belief that this would be a wise
thing for DFID to do.
URBAN FOOD SECURITY
82. As we saw in Chapter 2, urbanisation is a key
issue: by 2020 86% of population growth is expected to occur in
large urban centres in developing countries. While peri-urban
agriculture can play an important role,[254]
urban areas tend to depend more on the market for their food (as
opposed to rural areas where a subsistence approach is more common),
so the impact of price spikes is particularly stark in urban areas.
Cash- and voucher-based schemes are especially appropriate in
urban areas, and innovative new methods of targeting might be
appropriate.[255] Given
that urban food insecurity is increasingly common, we urge DFID
to think give more consideration to how it provides social protection
in urban areas. Cash- and voucher-based schemes are especially
important in urban settings.
Emergency food stocks
83. In the previous chapter we discussed the role
of large-scale food stocks in reducing price volatility. Here
we are concerned with smaller-scale food stocks maintained for
humanitarian purposes. In his evidence Professor Stefan Dercon,
DFID's Chief Economist, expressed his support for humanitarian
food stocks, [256]
as did other witnesses, including Ertharin Cousin, Executive
Director of WFP and Daniel Gustafson, Deputy Director General
(Operations) of FAO.[257]
Professor Dercon argued that humanitarian food stocks should be
sufficient for three to four months.[258]
An important issue to consider is who should administer food stocks,
and where they should be stored. Professor Dercon argued that
management by individual countries was most desirable, as this
would give the countries concerned greater ownership of the policy.[259]
In terms of storage, IFPRI recommends that stocks be dispersed
across the Global South.[260]
Professors Dorward and Lang echoed this, with the latter underlining
the importance of 'spreading where those stocks are and what the
stocks are in.'[261]
The maintenance of food stocks for humanitarian purposes is
of critical importance. These stocks should be managed by individual
countries, as this gives the countries concerned greater ownership
of the policy. Stocks should be stored on a decentralised basis.
We recognise that some countries may lack the capacity to store
and manage stocks satisfactorily; in these cases, we recommend
that DFID support capacity building.
Nutrition
84. Having access to an adequate quantity of food
is not in itself a guarantee of food security if that food lacks
the requisite nutritional quality. Inadequate access to important
micronutrients (e.g. vitamins and minerals) gives rise to a phenomenon
known as undernutrition. (Undernutrition can also be used in a
more general sense, as an alternative term for hunger, but in
this report all references to undernutrition refer to micronutrient
deficiency.) Undernutrition is a common problem amongst the poor:
in situations where the poor cannot afford a balanced diet, the
first priority tends to be calorie-rich foods rather than nutritious
foods.[262]
85. A distinction is drawn between acute undernutrition
(transitory undernutrition, common during shocks) and chronic
(long-term, irreversible) undernutrition.[263]
Conventional wisdom states that nutrition is especially important
during the 1,000 day period between conception and a child's second
birthday;[264] moreover,
if chronic undernutrition can be prevented during this period,
the risk of acute undernutrition also falls significantly.[265]
The latest research indicates that the risk of stunting in children
is determined in part by maternal nutrition on the day of conception.[266]
86. Incidence of undernutrition is extremely high,
with over 30% of the world's population suffering.[267]
Undernutrition is profoundly damaging to both physical and mental
development. One of the most obvious effects is stunting. In 2010
over 170 million children under the age of five 26% of
all the world's childrensuffered from stunting (slowed
growth).[268] In countries
such as Ethiopia and Rwanda, over half of all children are stunted.[269]
Vitamin A deficiency, a consequence of a diet high in rice and
low in fruit and vegetables, affects between 100 million and 140
million children worldwide. As a consequence up to 250 000 children
lose their sight each year, with half of these dying within 12
months.[270] In addition
to its health implications, the scourge of undernutrition places
a severe constraint on economic development. Some claim that undernutrition
can reduce GDP by up to 10%.[271]
87. In this context, the importance of tackling undernutrition
is clear. WFP claims that initiatives to tackle chronic undernutrition
offer returns on investment of anything between 15:1 and 139:1.
WFP also argues that preventing undernutrition is significantly
more cost-effective than curing it.[272]
Micronutrient fortification represents a particularly effective
method of tackling undernutrition. In his written evidence, Sir
John Beddington extols the virtues of Quality Protein Maize (QPM):
compared to conventional maize, QPM contains nearly 100% more
usable protein.[273]
Efforts are currently underway to produce a number of other fortified
crops, including wheat and rice high in zinc; beans and millet
high in iron; and sweet potatoes and maize rich in beta-carotene,
a precursor to Vitamin A.[274]
WFP provides fortified Corn Soya-Blend to pregnant women and new
mothers, and argues that nutrition is especially important for
lactating mothers.[275]
For children under the age of six months WFP encourages exclusive
breastfeeding; for children between six months and two years,
supplemental feeding is the preferred approach.[276]
Undernutrition affects over 30% of the world's population,
and 26% of all the world's children suffer from stunting. We find
this quite shocking and wholly unacceptable. Undernutrition has
long-term health implications; more broadly, it also represents
a barrier to development. Combating the scourge of undernutrition
should be a top priority for the international community. We welcome
the forthcoming 'Nutrition for Growth' event, and urge participants
in the event to make substantive commitments.
88. There is a strong correlation between female
empowerment and child nutrition. If women are educated about nutrition
and have decision-making power, food production within communities
tends to be more varied and nutritious.[277]
Additionally, given the latest evidence on the causal relationship
between maternal nutrition on the day of conception and subsequent
stunting, there is a need to focus particularly on meeting the
nutritional requirements of all women of childbearing age.[278]
The importance of nutrition in the 1,000 day period between
conception and a child's second birthday is well-recognised, but
the latest evidence stresses the extent to which maternal nutrition
on the day of conception influences the risk of her child suffering
from stunting. Nutrition programmes should therefore focus on
meeting the nutritional requirements of all women of childbearing
age.
89. There are a number of major international initiatives
to tackle undernutrition. Perhaps the most prominent is the Scaling
Up Nutrition (SUN) initiative, which brings together governments,
the private sector, academia, civil society organisations (CSOs)
and the UN. Its aim is to support the development of country-owned
strategies on undernutrition,[279]
with a focus on innovation and on the critical 1,000 day period
between conception and a child's second birthday.[280]
Other important initiatives include Renewed Efforts to Address
Child Hunger and Undernutrition (REACH).[281]
90. DFID currently has bilateral nutrition programmes
in 16 countries. We asked the Department whether it planned to
increase its number of bilateral nutrition programmes; we were
told that its future plans on nutrition would be announced at
the 'Nutrition for Growth' event on 8 June 2013.[282]
Asked whether he thought DFID had enough bilateral nutrition programmes,
Marc van Ameringen, Executive Director of GAIN, said that it 'definitely'
did not.[283] Ertharin
Cousin, Executive Director of WFP, argued that DFID could plausibly
operate bilateral nutrition programmes in any country which has
committed itself to fighting undernutrition (i.e. committed to
the Scaling Up Nutrition initiative):[284]
currently 35 countries have done so.[285]
At the 'Nutrition for Growth' event on 8 June 2013, DFID should
launch additional bilateral nutrition programmes. The Executive
Director of WFP suggested to us that DFID could operate bilateral
nutrition programmes in any country which has committed to the
Scaling Up Nutrition (SUN) initiative: we accept that this is
unrealistic, since it would include a number of countries in which
DFID has no bilateral presence. However in four SUN countries
(Ghana, Kyrgyzstan, Rwanda and Sierra Leone), DFID has a bilateral
presence but does not have a bilateral nutrition programme. In
these countries, bilateral nutrition programmes should be launched.,
with a particular focus on nutrition during pregnancy and early
years.
Adaptation to extreme weather
events
91. Extreme weather events are a major threat to
the vulnerable. Climate change will exacerbate the situation.[286]
Dry areas will become dryer while wet areas will become wetter,
leading to more droughts and more floods.[287]
Oxfam argues that extreme weather events could cause short-term
price increases equivalent to two decades' worth of gradual price
increases.[288] In
view of this, it follows that climate change adaptation and disaster
risk reduction are of the utmost importance. WFP emphasises that
responses to extreme weather events should be proactive rather
than reactive. It praises the UK Government for its work on this,
and also praises the work of the Inter-Governmental Authority
for Development (IGAD) Regional Disaster Resilience and Sustainability
Platform during the 2011 famine in the Horn of Africa: under this
platform, national governments focused on incorporating resilience
into their national planning frameworks.[289]
92. There is widespread agreement that forecasting
is crucial for disaster risk reduction: Geographic Information
Systems can play a key role in this.[290]
Professor Tim Benton, of the University of Leeds, highlights
the role of remote sensing in predicting yields, and the importance
of using models that are able to heed such predictions. He also
stresses the potential of improved long-term forecasts and of
predicting and mapping levels of pest infestation.[291]
Climate change and disaster risk reduction are of the utmost
importance for food security, and it is important that the UK
maintain its current proactive approach to these matters. Forecasting
tools such as remote sensing also have an important role to play.
93. Forecasting is clearly of little use if actors
are unable or unwilling to respond appropriately to forecasts.
In the case of the 2011 famine in Somalia, forecasting was perfectly
adequate.[292] In his
evidence to us Daniel Gustafson, Deputy Director General (Operations)
of FAO, recognised certain shortcomings in FAO's own advocacy
work following the forecasts; he also argued that other institutions
failed to act in response to forecasts. Ertharin Cousin, Executive
Director of WFP, took a slightly different view, arguing that
the central problem was the difficulty in gaining access to al-Shabbab-controlled
areas, particularly for multilaterals and especially for WFP.[293]
While forecasting is important in itself, ensuring adequate
responses to forecasts is equally crucial, and this should be
a priority for the international community. We recommend that
DFID ensure appropriate accountability mechanisms are in place
for triggering, escalating, recording and justifying responses
to forecasts. The international response to the 2011 Somalia famine
was inadequate. This was due to a variety of factors: we recognise
the inherent difficulties in operating in insecure environments
such as Somalia, but this does not absolve the international community
entirely. We commend FAO for recognising certain shortcomings
in its own advocacy work. More broadly, there is some disagreement
as to whether agencies responded to forecasts as promptly as they
should have done. DFID should press relevant actors to ensure
that these allegations are fully investigated, with a view to
minimising the risk of any such situation occurring in future.
235 Q 34; Ev w26-27 Back
236
Ev w27 Back
237
Ev 85 Back
238
Ev w17 Back
239
Rob Bailey, Managing Famine Risk (Chatham House, 2013),
p 33 Back
240
Ev 100 Back
241
"Department for International Development: What we do",
Inside Government, www.gov.uk Back
242
International Development Committee, Fifth Report of Session 2012-13,
The Development Situation in Malawi, HC 118, Para 34
Back
243
UN WFP, Revolution: From Food Aid to Food Assistance, 2010,
p 4 Back
244
Ev 87 Back
245
Ev 87 Back
246
Executive Office of the President of the United States, Budget
of the U.S. Government: Fiscal Year 2014, p 133 Back
247
"P4P Overview", UN WFP, www.wfp.org Back
248
Ev 90 Back
249
"P4P Overview", UN WFP, www.wfp.org Back
250
Ev 90; "P4P Overview", UN WFP, www.wfp.org Back
251
UN WFP, WFP 2008 - 2013 Purchase for Progress (P4P) Initiative:
A Strategic Evaluation (mid-term), October 2011 Back
252
Q 85 Back
253
Q 207 Back
254
UN FAO, Profitability and sustainability of urban and peri-urban
agriculture, 2007 Back
255
Ev 86 Back
256
Q 203 Back
257
Q 87 Back
258
Q 203 Back
259
Q 206 Back
260
Ev w18 Back
261
Q 58 Back
262
Q 34 Back
263
Ev 98 Back
264
Ev 55 Back
265
Ev 88 Back
266
Q 81 Back
267
Ev w47. It should be noted that as well as referring to micronutrient
deficiency, undernutrition is sometimes used as an alternative
term for hunger. Throughout this report, however, 'undernutrition'
refers to micronutrient deficiency. Back
268
Ev w47 Back
269
Ev w16 Back
270
Ev 93 Back
271
Ev 59 Back
272
Ev 88 Back
273
Ev 94 Back
274
Ev 94 Back
275
Ev 88 Back
276
Q 79 Back
277
Q 79 Back
278
Q 81 Back
279
Q 79 Back
280
Ev 89 Back
281
Ev 89 Back
282
Ev 107 Back
283
Q 80 Back
284
Q 80 Back
285
"SUN Countries", Scaling Up Nutrition, scalingupnutrition.org
Back
286
Ev 63 Back
287
Ev w101 Back
288
Ev 63 Back
289
Ev 89-90 Back
290
Ev 88 Back
291
Ev w90 Back
292
Q 100 Back
293
Q 101 Back
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