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WFP: Cash roll-out to help hunger hot spots

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Tuesday, August 12, 2008

Rome (WFP) - As nearly one billion poor people worldwide struggle to survive the unrelenting global high food and fuel price crisis, WFP announced today the roll-out of a US$214 million package directed at 16 hunger hotspots.

It is essential to launch a bold new set of responses to stem a full-blown hunger and nutritional crisis
Josette Sheeran, WFP Executive Director
“With hunger on the rise, we are doing our best to stream incoming contributions to the people most in need in Africa, Asia and the Caribbean,” said WFP Executive Director, Josette Sheeran. “It is essential to launch a bold new set of responses to stem a full-blown hunger and nutritional crisis.”

The $214 million will provide critical assistance by:

Increased cost of food

The increased cost of food has had a direct impact on WFP, the world’s largest humanitarian agency. Operational costs have ballooned, and the organization’s base budget – the funding required to reach 90 million people worldwide in 2008 – has risen from $3.1 billion to nearly $6 billion. So far, the voluntarily-funded agency has raised about half of its budget for this year.

Sheeran noted that impoverished families that already spend more than 60 per cent of their income on food are eating less, buying less nutritious foods, cutting out education and healthcare, and taking on more debt.

Food prices are not abating, and the world’s most vulnerable have exhausted their coping strategies
Josette Sheeran, WFP Executive Director
“Food prices are not abating, and the world’s most vulnerable have exhausted their coping strategies,” said Sheeran. “Our action plan is targeted and customized to help the most vulnerable meet their urgent needs.”

Ramping up assistance

With $104 million, WFP has been ramping up food assistance to support more than 11 million people in 14 countries particularly hard-hit by high food prices (see below). This includes help to urban areas where food is unaffordable and there is risk of discontent, such as in Afghanistan, Haiti, Liberia, and Mozambique. School feeding programmes have been expanded and malnourished women and children are receiving additional nutritional care.

Voucher programmes have been accelerated in countries like Djibouti and cash transfers -- some targeting urban youth – are starting in Liberia, Ghana, Nepal and elsewhere.

Horn of Africa

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In addition, in the Horn of Africa, where the effects of drought and insecurity have been compounded by high prices, WFP is also ramping up assistance by providing $110 million which includes funds from its emergency reserves, to meet urgent food needs including supplementary feeding programmes for malnourished children. In Ethiopia, more than ten million people are affected by drought, which has struck large sections of the country. The government has had to draw down the country’s critical food reserves to cope with high prices. Retail prices for white maize, the cereal consumed most widely by the poor, have trebled in some places compared to last year.

In Somalia, where political instability is a key factor, WFP must more than double the amount of food it delivers through the coming months, to reach 2.4 million people by December. The suffering and destitution of millions is a result of insecurity, drought, a succession of poor or failed harvests, a weak Somali shilling and rising food and fuel prices. Parts of the country risk a disaster similar to the famine years of 1992-1993.

Donor response

While the needs are immense, current donor response to WFP appeals for additional funds, including a historic half-billion donation by the Saudi government earlier this year, are allowing WFP to meet many of the new challenges. Today’s package of $214 million includes projects specifically designed to mitigate the direct effects of higher prices on the population. In June, during the World Food Security conference in Rome, WFP announced a $1.2 billion cash package for 62 countries hit by high food prices.

WFP Cash Package Roll-out:

($104 million; in addition to $110 million for the Horn of Africa as per the press release)

Djibouti: The country imports almost 100 per cent of its food requirements and is drought-prone. WFP will provide a general monthly food ration to 140,500 targeted beneficiaries in urban and rural areas, and will give highly nutritious food to 5,500 young children at particular risk of malnutrition. ($5 million).

Source: WFP, August 12, 2008