The domestic determinants of US food aid policy

Abstract

This study presents empirical analysis of US food aid flows as evidence of the strong and stable relationship between commodity producer interests and policy-makers during a 35 yr period. Whereas most foreign aid research centers on the distribution of aid among recipient countries, this study focuses on the determinants of the supply of food aid made available by the donor country. I conduct time series regression analysis of total US food aid shipments, as well as separate analyses of two key commodities, wheat and rice. Several key findings emerge: (1) There is a consistent relationship between commodity producer interests and US food aid policy. (2) There is a strong relationship between commodity stocks and food aid shipments, especially during the years when stocks were the greatest. (3) US food aid policy-making is highly incremental. These findings, taken together with the lack of a strong relationship between grain production in poor countries and US food aid shipments, belie official rhetoric emphasizing the growing humanitarian objectives of the program over time. In the case of rice, I find a strong relationship between aid flows and US involvement in the Vietnam War.