The Timeliness and Cost-Effectiveness of the Local and Regional Procurement of Food Aid

Posted: 10 Jul 2015

See all articles by Erin Lentz

Erin Lentz

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs

Simone Passarelli

Cornell University

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Date Written: September 2013

Abstract

Local and regional procurement (LRP) of food aid is often claimed to lead to quicker and more cost-effective response. We generate timeliness and cost-effectiveness estimates by comparing US-funded LRP activities in nine countries against in-kind, transoceanic food aid shipments from the US to the same countries during the same timeframe. Procuring food locally or distributing cash or vouchers results in a time savings of nearly 14 weeks, a 62 percent gain.

Cost-effectiveness varies significantly by commodity type. Procuring grains locally saved over 50 percent, on average, while local procurement of processed commodities was not always cost-effective.

Keywords: Emergency response, Food assistance, Foreign aid, Humanitarian aid

Suggested Citation

Lentz, Erin and Passarelli, Simone and Barrett, Christopher B., The Timeliness and Cost-Effectiveness of the Local and Regional Procurement of Food Aid (September 2013). Available at SSRN: https://ssrn.com/abstract=2628775

Erin Lentz

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs ( email )

2300 Red River St., Stop E2700
PO Box Y
Austin, TX 78713
United States

Simone Passarelli

Cornell University ( email )

Ithaca, NY 14853
United States

Christopher B. Barrett (Contact Author)

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

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