The Problem With Food Aid

Planet Money and Frontline report on the distorting effects of foreign food aid on local food economies, particularly in Haiti. People don’t buy rice when they can get it for free, which squeezes out local vendors and small wholesalers and, over the long-run, can destroy a country’s local food supply chain for years. Many NGO’s now provide food vouchers or money instead of food, although this can lead to inflation.[%comments]