The Development of Food Aid

MAC/WFY

Page-85

0230_553559_13_cha09

At the same time, a change in attitude toward agricultural surpluses was taking
place, from `surpluses disposal' to using surpluses to meet nutritional needs and
assist economic development in the developing countries. In a landmark study,
a CSD ad hoc group noted that `the most significant change is that instead of
contending with unintentional surpluses, the thinking is now directed more
toward the planned use of existing and future surpluses for meeting new demands
arising in many developing countries' (FAO, 1963c, p. 17). As a corollary, thinking
in some quarters was also directed toward the deliberate over-production (as
related to current effective demand) of agricultural commodities either as a
consequence of internal agricultural policies or to make supplies available for non-
commercial uses. At the same time, there were indications that some countries
were making a conscious effort to avoid production of excessive surpluses.

A close interrelation existed between changes in the methods of surplus disposal

and changes of attitude toward the accumulation of stocks in excess of normal
commercial demand. The pressure and cost of mounting supplies resulted in the
advocacy of stricter production controls and in the hastening of the search for
larger market outlets, both commercial and concessional. On the other hand,
increasing realization of the possibility of using surpluses as an adjunct to bilateral
or multilateral aid programmes modified thought in some countries about the
need for rigid reduction in output.

The CSD group analysed four aspects of the changing attitude towards

agricultural surpluses. First, the production of surpluses, their causes and motives,
and the change from unintentional over-production to supply management
involving some over-production in excess of commercial demand and, by some
governments, acceptance of over-supply. To meet the problem, emphasis was
placed on the desirability of increasing world distribution and consumption
which, together with adjusted national policies, would gradually result in the elim-
ination of surpluses. With the emergence of substantial stocks in North America,
despite the imposition of control on the area planted under several major crops,
attention was turned to the utilization of surplus foods to the best advantage for
producing and receiving countries. This tended to take some of the pressure off
efforts to deal with the causes of surpluses, which would involve difficult polit-
ical choices. However, the high cost of acquiring, storing and handling growing

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Useful links	The Development of Food Aid MAC/WFY Page-85 0230_553559_13_cha09 9 The Development of Food Aid At the same time, a change in attitude toward agricultural surpluses was taking place, from `surpluses disposal' to using surpluses to meet nutritional needs and assist economic development in the developing countries. In a landmark study, a CSD ad hoc group noted that `the most significant change is that instead of contending with unintentional surpluses, the thinking is now directed more toward the planned use of existing and future surpluses for meeting new demands arising in many developing countries' (FAO, 1963c, p. 17). As a corollary, thinking in some quarters was also directed toward the deliberate over-production (as related to current effective demand) of agricultural commodities either as a consequence of internal agricultural policies or to make supplies available for non- commercial uses. At the same time, there were indications that some countries were making a conscious effort to avoid production of excessive surpluses. A close interrelation existed between changes in the methods of surplus disposal and changes of attitude toward the accumulation of stocks in excess of normal commercial demand. The pressure and cost of mounting supplies resulted in the advocacy of stricter production controls and in the hastening of the search for larger market outlets, both commercial and concessional. On the other hand, increasing realization of the possibility of using surpluses as an adjunct to bilateral or multilateral aid programmes modified thought in some countries about the need for rigid reduction in output. The CSD group analysed four aspects of the changing attitude towards agricultural surpluses. First, the production of surpluses, their causes and motives, and the change from unintentional over-production to supply management involving some over-production in excess of commercial demand and, by some governments, acceptance of over-supply. To meet the problem, emphasis was placed on the desirability of increasing world distribution and consumption which, together with adjusted national policies, would gradually result in the elim- ination of surpluses. With the emergence of substantial stocks in North America, despite the imposition of control on the area planted under several major crops, attention was turned to the utilization of surplus foods to the best advantage for producing and receiving countries. This tended to take some of the pressure off efforts to deal with the causes of surpluses, which would involve difficult polit- ical choices. However, the high cost of acquiring, storing and handling growing 85 back to top Next page
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