121. Food Aid and Informal Insurance
- Author:
- Stefan Dercon and Pramila Krishnan
- Publication Date:
- 01-2003
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- Households in developing countries use a variety of informal mechanisms to cope with risk, including mutual support and risk-sharing. These mechanisms cannot avoid that they remain vulnerable to shocks. Public programs in the form of food aid distribution and food-for-work programs are meant to protect vulnerable households from consumption and nutrition downturns by providing a safety net. In this paper we look into the extent to which food aid helps to smooth consumption by reducing the impact of negative shocks, taking into account informal risk-sharing arrangements. Using panel data from Ethiopia, we find that despite relatively poor targeting of the food aid, the programs contribute to better consumption outcomes, largely via intra-village risk sharing.
- Topic:
- Development, Non-Governmental Organization, Poverty, and Third World
- Political Geography:
- Africa and Ethiopia