Implications of Economic Policy for Food Security : A Training Manual

Introduction to the Manual

Food security, assuring to all human beings the physical and economic access to the basic foods they need, is a broad, cross-cutting issue which has implications for a number of different sectors in the economy. Food security is often associated with food self-sufficiency and the need to grow more food. However, in reality it has much stronger links with issues of poverty, employment and income generation. For low income economies, where a large percentage of the population live in rural areas and depend on agriculture for their income, increasing food production may be an important element in increasing food security, but only because it increases small farmer income. In this manual, we set out a framework for assessing food security in an economy, and develop a model for evaluating the impact of economic policy measures, and in particular the package of policy measures often referred to as adjustment policy, on food security in a country.

This manual has been produced as part of FAO's overall commitment to providing training materials in food and agricultural policy analysis. In particular, FAO sees the need to improve the capabilities of agencies dealing in both food and agricultural policy and macro-economic policy in understanding and allowing for the cross relationships of macro- and sectoral policies and to assess their impact on the rural population.

This manual differs from other approaches to agricultural policy analysis, in so far as it does not primarily address such issues as policy impact on the functioning of agricultural markets, or the trade-off between different policy goals. Here, we are interested in how policy measures, undertaken for macro-economic objectives, affect the availability and access to food at the individual and household level. We also examine options for improving food security in the short-term which are consistent with longer-term macro-economic stability.

The manual is being published shortly after the World Food Summit, held in Rome at FAO headquarters, in November 1996. It is hoped that the World Food Summit will give renewed impetus to tackling issues of food security and that this manual will prove a useful tool in improving understanding of a complex, multi-sectoral issue.

The manual is not addressed directly to policy makers. The material contained within it is of a fairly technical nature and is aimed rather at policy analysts, those who have to prepare policy briefs and background papers to inform decision makers, particularly those working in agencies, whether governmental or non-governmental, which deal with food issues. The manual could also be useful in sensitising economists, in finance ministries or central banks, dealing with macro-policy issues having implications on food security. To get most benefit from the use of the manual, some prior knowledge of economics and policy analysis is desirable.

The manual falls into two main sections. The first, containing Chapters 1 through 3, sets out the basic framework within which food security is addressed. Chapter 1 discusses the major concepts used when analysing food security, examines recent trends in the world food economy, links food security with other major policy objectives such as poverty alleviation and environmental protection, and discusses the connection between food security and self-sufficiency. Chapter 2 looks at the various ways in which food consumption and nutritional status can be measured, to give an estimate of the extent of food insecurity. This is specifically written for an audience which has not previously been exposed to nutritional data. Chapter 3 uses the concept of the food chain to outline the connections between the food system and food security. Seasonal patterns in food security and changes in the food system in response to stress are also examined, as is the structure and role of a food security monitoring system.

Chapters 4 through 6 deal explicitly with the impact of economic policy on food security. In Chapter 4, a model is developed to analyse the impact of changes in macro-economic policy of the food system and food security. A number of technical annexes contain the relevant theoretical material. The chapter traces through the impact, firstly of a devaluation and then of other elements in an adjustment programme, on the food security of vulnerable groups. In Chapter 5, possible domestic policy interventions to improve food security are explored. These include demand and supply based approaches, and targeted interventions. Chapter 6 looks at international policy interventions, particularly food aid, and their potential role in improving food security. The outcome of the World Food Summit is presented.

Each chapter contains "activities" and exercises linked to the material contained in the text, for use in workshops and training courses.

The manual contains more material than is likely to be used at any individual course or seminar. The authors estimate that satisfactory presentation of the full contents of the text, along with practical sessions for the exercises, would require a period of about four weeks. However, the material could be incorporated in training courses on topics such as food policy analysis or the impact of structural adjustment. A course organiser would have to decide which of the topics contained in the manual were most appropriate for the purposes of the course, and use the manual accordingly. Many of the topics can stand alone, along with their respective activities and exercises. In all cases, participants in the training courses should be encouraged to read through the manual in their own time, to gain a broader perspective on the issues contained. Additional reading material is identified at the beginning of each chapter.

In April 1996, FAO held an expert consultation in Rome on the first draft of the manual. This was attended by FAO staff members, particularly with an interest in training, and academic specialists in the area. The recommendations of this expert consultation provided a very useful input into the subsequent revision of the manual. This was then field-tested in Turkey, in October 1996, at an FAO Near East Regional Training Seminar on Food and Agricultural Policy Analysis. This provided the authors with a first-hand opportunity to identify any problems, particularly with the structure of the various activities. As a result of this, further modifications were made to the text. It was clear from the field test that the exercises were most effective when they were carried out with a specific country in mind, preferably the country from which the participants came. This gave participants the opportunity to operationalise the various concepts in a concrete way, and facilitated their understanding.