This study provides a detailed look into two food aid issues: first, a comparison of the relative costs of providing in-kind with cash contributions; second, the inherent costs involved in tying food aid. The findings of this study show that, in most circumstances, financial aid rather than food aid in-kind is the preferable option, not only for providing project assistance or budgetary support for general development, but even for the distribution of food. We learn that in many food-deficit situations, local procurement is not always a feasible option. In conclusion, context-specific rationale is always required for relying on food aid in kind in preference to financial aid.
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