Malnutrition And Food Aid Programs: A Case Study From Guatemala Page: 55
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the Sahel during the early 1970's noted several problems. Transporta-
tion, administration and overhead costs were included as part of the
donated aid, and, since the aid had to be transported in American ships
and the money went toward the purchase of American commodities and to
pay American salaries, most of the aid (monetarily), therefore, actually
remained in the United States. The food products, however, were de-
livered to a country in need and to say that most of the "aid remained"
in the U. S. is not to recognize that food was actually transferred
under extremely favorable economic conditions.
As can be seen in the above discussion, the economic issues de-
scribed are very complicated and interrelated. In essence, the outcome
of the impact of food aid in terms of payment and currency transfers
and the balance of payments are strongly influenced by the terms of
agreement between donor and recipient. It should be recognized, how-
ever, that the terms of food aid are sometimes more favorable to the
donor than to the recipient.
Market Creation and Dependency
In the 1975 version of the Food For Peace Act under the title of
"Food Aid to Poor Countries," the bill reads:
In furnishing food aid under this Act, the President
shall...assure that allocation of commodities or con-
cessinal financing is based upon the potential for ex-
panding markets for America's abundance abroad.
This clearly points out that one of its objectives is to create new
markets for American agricultural commodities (Lappe and Collins 1977).
Furthermore, Cleaver (1972) states that food aid creates a depen-
dency relationship between the recipient country and the donor in at
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Rodeheaver, Daniel Gilbert, 1954-; Bates, Frederick L. & Murphy, Arthur D. Malnutrition And Food Aid Programs: A Case Study From Guatemala, report, May 1982; (digital.library.unt.edu/ark:/67531/metadc84342/m1/68/: accessed February 25, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT College of Public Affairs and Community Service.