Skip to main content

Food Aid: Improving Economic and Market Development Impact in African Countries

NSIAD-88-55 Published: Dec 21, 1987. Publicly Released: Dec 21, 1987.
Jump To:
Skip to Highlights

Highlights

In response to a congressional request, GAO examined the economic and market development impact of Public Law 83-480 food aid to four African countries.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
If Congress concludes that local currencies should be used to some extent to support community and rural development projects which do not include a direct feeding component, it should direct that such use be made. Congress should also include safeguards to ensure that traditional humanitarian feeding programs receive priority in the use of available resources. Congress should further consider amending sections 202, 206, and 207 of Title II, making the provisions expressly applicable to cooperatives as well as PVO.
Closed – Implemented
AID is awaiting any amendments to sections 202, 206, and 207 of Title II. At that time, AID will review its procedures and programming regulations in order to develop measures to meet the amendments. P.L. 480 legislation has been amended to include all of the above.

Recommendations for Executive Action

Agency Affected Recommendation Status
U.S. Agency for International Development The Administrator, AID, should improve oversight of the Title I programs by ensuring, during the Washington review of draft Title I agreements, that they: (1) include specific and measurable self-help measures which directly contribute to economic development; (2) specify local currency uses; and (3) include time frames for routine progress consultations with recipient governments.
Closed – Implemented
AID has taken action to improve oversight of the Title I programs. The review of each draft Title I agreement now ensures that they include specific and measurable self-help measures, specify local currency uses, and include timeframes for consultation.
U.S. Agency for International Development The Administrator, AID, should improve oversight of the Title I programs by increasing missions' attention to the oversight of the program, such as reallocating existing mission staff, funding monitoring activities with Title-I-generated local currencies, and using short-term consultants to evaluate self-help measure implementation and local currency projects.
Closed – Implemented
AID has developed and provided missions with copies of a food and management plan which will enable them to systematically review its food and management responsibilities, identify weaknesses, and develop plans for corrective action.
U.S. Agency for International Development The Administrator, AID, should improve oversight of the Title I programs by ensuring that missions: (1) verify and document recipient-government implementation of self-help and local currency provisions; (2) submit well-documented, interim and annual analyses of recipient governments' implementation of self-help programs; and (3) define the specific duties of, and the relationships between, offices and individuals responsible for program design and monitoring, including mission controllers.
Closed – Implemented
The new food aid management plans are helping missions to explicitly define who is responsible for managing each element of a food aid program, thereby increasing accountability. Missions are required to submit reports documenting governments implementation of self-help measures.
U.S. Agency for International Development The Administrator, AID, should improve oversight of PVO Title II programs through assisting PVO to improve their operational plans and comply with operational plan guidance by: (1) providing them with technical assistance in preparing plans; (2) circulating to missions and PVO copies of plans that comply with operational plan guidance; (3) providing PVO with more specific criteria and a format for reporting financial information; and (4) requiring missions to be more actively involved in reviewing plans, providing them with a format for evaluating the plans' adherence to guidance and requiring mission analyses prior to AID, Washington's approval.
Closed – Implemented
AID regulation has been revised to include all of the areas above. AID is also providing PVO with grants to strengthen their design of food aid programs.
U.S. Agency for International Development The Administrator, AID, should improve oversight of PVO Title II programs through clarifying mission oversight responsibilities, including: (1) requiring them to submit analyses of PVO annual reports on their progress toward operational plan objectives and to review management of PVO programs periodically; (2) specifying data that missions would routinely request from PVO to document the scope and results of projects; and (3) defining mission responsibilities for monitoring PVO use of grant funds and achievements of benefits.
Closed – Implemented
AID sent out worldwide guidance for FY 1990 instructing missions to submit progress reports identifying program objectives and achievements, and this requirement is included in AID Regulation II and in the new draft of Handbook 9. The new food aid management plan should assist missions to better define monitoring responsibilities.
U.S. Agency for International Development The Administrator, AID, should include in the field manual for Title II sales projects a requirement that missions review and approve PVO sales agreements with local buyers and periodically review local currency deposits and uses.
Closed – Implemented
AID is developing a Food and Field Manual for Title II sales projects, which should include provisions to address this recommendation. The new AID Monetization Field Manual includes provisions that address this recommendation.
U.S. Agency for International Development The Administrator, AID, should assess a sample of Title II local currency projects in fiscal year (FY) 1988 to ensure that sales are being properly administered and local currencies are being used as intended.
Closed – Implemented
AID has prepared a report to Congress on uses of Title II local currency in FY 1988 and 1989.

Full Report

Office of Public Affairs

Topics

Agricultural assistanceAgricultural policiesForeign economic assistanceForeign trade policiesFunds managementInternational food programsProgram managementReporting requirementsAgricultural commoditiesEconomic development