CASE STUDY: Economic Aid in Africa

Mali Chad

Ethiopia

MALI (Country Profile)Official Name: Republique de MaliCapital City: Bamako (pop. 1 million)Government Type: RepublicGeographical Location: Western Africa,

southwest of AlgeriaClimate: Semitropical in the south; Arid in the

northPopulation: 14.5 million (approx. as of June

2013)Agricultural Products: Cotton, millet, rice,

corn, vegetables, peanuts, cattle, sheep, goats

GDP per capital: $1084/ year

Official Name: Republique du TchadCapital City: N’DjamenaGovernment Type: Presidential RepublicGeographical Location: Central Africa, South

of LibyaClimate: Tropical in Southern Area; Arid in

Northern AreaPopulation: 10 million (approx. as of July 2012)Agricultural Products: Cotton, sorghum,

millet, peanuts, rice, potatoes, manioc (tapioca), cattle, camels

GDP per capital: $2000/ year

CHAD (Country Profile)

Official Name: Federal Democratic Republic of Ethiopia

Capital City: Addis AbabaGovernment Type: Federal RepublicGeographical Location: Eastern Africa, West of

SomaliaClimate: Tropical monsoon with wide

topographic-induced variationPopulation: 91 million (approx. as of July 2012)Agricultural Products: Cereals. Pulses, coffee,

oilseed, cotton, sugarcane, potatoes, khat, cut flowers, hides, cattle, fish

GDP per capital: $1200/ year

ETHIOPIA (Country Profile)

Income and Poverty

  Sub-Saharan Africa European Union    

Income per year and person

$2,041 (€1540) $27,555 (€20794)

Income per day and person

$5.6 (€4.23) $75.5 (€56.98)

Agri-value added per year and person

$318 (€240) $17,781 (€13,418)

Share of population with less than $2

73 per cent -

Share of population with less than $1.25

51 per cent -

Share of income spent on food

55 to 70 per cent (estimation) 12 per cent

Comparison of income, agricultural value added, extreme poverty and income spent on food in Sub-Saharan Africa and the European UnionAverage USD-Euro exchange rate (US-Dollar ($)/Euro (€)) in 2010: 1,325129423 (Source: www.OANDA.com)

“In summer 2011, a severe hunger crisis struck the Sahel region of Africa. Several million Africans in Chad, Mali

and Ethiopia were dependent on foreign food aid. Persistent drought, sharply increasing prices for staple

food and regional conflicts had caused a collapse of regional food supply.” - News Reporter from the UN

Natural DisastersWarPoverty TrapsAgricultural InfrastructureOver-exploitation of Environment

What Causes Hunger?

The World Food Programme (WFP) is the world's largest humanitarian agency. In 2012, WFP fed more than 97.2 million people in 80 countries and allowed 24.7 million children to take part in school feeding initiatives.

World Food Programme

World Food Programme

BEFORE AFTER

•The 2011 government nutrition survey (called a SMART) reported 150,000 acutely malnourished children, and MSF estimates that aid agencies and the government cared for 30,000 of them.

•Malnutrition in Chad is responsible for more than half of under-five deaths due to lack of preventive and primary health care, including maternal and child health care, cyclical droughts as well as difficult access to food and safe drinking water

•More than 330,000 children were given appropriate food aid and provided health care necessities, reducing rate of malnourishment by 10% in Mali

•Chad has recently benefited from the continuing project of the UN which includes not only immediate food aid to those who are affected, but also free health care services to children and pregnant women

Before & After Food Aid Given by WFP

BEFORE AFTER

•National data from 1999-2000 found that wasting (acute malnutrition) and stunting (chronic malnutrition) in children aged six to fifty-nine months were 9.6 and 56.7 percent, respectively in Ethiopia

•WFP’s school meals programme has benefitted millions of school children across Ethiopia over the last 19 years and currently serves some 650,000 students in 1,800 schools in different parts of the country

Before & After Food Aid Given by WFP

Providing nutritious food to women when they are pregnant or breast-feeding – and to children under the age of two – ensures children can develop healthy minds and bodies.

Providing emergency food rations after a man-made or natural disaster can save thousands of lives. It can also safeguard the physical and mental development of children by preventing malnutrition.

Providing training and support to smallholder farmers and helping them connect better to markets allows communities to develop more robust food production systems.

Advantages of WFP’s Food Aid Projects

Providing free meals for children in school means they get the food they need to concentrate on their lessons. It also means they stay in school, which will help them escape poverty and hunger.

When there is food in the markets, but poor people simply can’t afford it, providing food vouchers help ensure vulnerable families get the food they need. They also help the local economy.

Advantages of WFP’s Food Aid Projects

Opportunity cost of expenditure for food aid is the other welfare projects used for other countries aside from Africa

Food supply goes down as much people are now dependent on food aid rather than owning their own property and going into the agricultural business

Rise of Fuel Costs = Reduced amount of food aid = People are left hungry

Disadvantages of WFP’s Food Aid Projects

“We are for food aid because eradicating food aid cannot be an option since it provides

immediate assistance for those countries who are affected by uncontrollable disasters and

political unresolved issues. However it’s drawbacks include hindrance to economic

growth since there is no labour productivity therefore no contribution to the food supply.”

Conclusion

Other countries remain

dependent to food aid due to low output

therefore low GDP

Some African

countries cut their dependency on

food aid and were able to

increase their GDP