In the past food subsidies have been the go-to method of ensuring that citizens in developing countries in developing countries. However, it is difficult for many of these governments in developing countries to maintain these subsidies, and the money can often go to the wrong people. Studies have shown that food vouchers may be a more viable option for these developing countries. Researchers at the International Food Policy Research Institute composed a new paper that analyzed the results of an experience that World Food Programme had conducted in Ecuador. The study found handouts to be the least effective. They were three times as expensive as voucher in boosting calorie intake by 15%, and four times more costly in enriching the quality of diet. The vouchers encouraged Ecuadorians to buy healthier foods because of the restrictions on the vouchers.
http://www.economist.com/news/finance-and-economics/21596987-why-food-vouchers-are-policy-worth-considering-developing-countries-feeding
3 comments:
I think that vouchers are probably the best way for governments to regulate who receives assistance and what they are able to purchase. Vouchers allow for a more structured agreement and policy. Caloric intake is not necessarily the best way to monitor the progress, but I think that the vouchers would be a better tracking tool for researchers. If vouchers were stamped/coded to reflect what was purchased, then governments could keep track and control over eating habits. Using the results of the research in Ecuador, it is clear that vouchers are also a smarter and more cost effective way to aid these developing nations.
Handing out vouchers makes the most sense to do. They allow the people to go to the store when they need to, so the food would less likely go bad unlike handing out the food. The people that receive cash may not buy the healthy food. Healthy food tends to be more expensive, and they want to buy the most food possible with they money they have. The vouchers will allow them get the nutritions they need and to make sure the money is spent on food.
I agree that provision of vouchers is the most effective way too because people can use vouchers whenever you need something and it doesn't allow people to buy anything other than necessities such as cigarettes and alcohol.
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