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US food aid seen squeezed by Bush budget: NGOs

Posted on: Tuesday, 31 January 2006, 14:05 CST

By Sophie Walker

WASHINGTON (Reuters) - President George W. Bush will not ask Congress to increase U.S. food aid when he presents his 2007 budget next week and some countries will be cut from donation programs to make funds go further, NGO sources said on Tuesday.

Bush is likely to ask for $1.15 billion in food aid donations, the same as this year and down some $500 million from 2003, said sources in nongovernmental organizations that combat hunger. The fiscal 2007 budget will be released next week.

"To fund the program adequately, $2 billion is needed, so a targeted program for vulnerable populations will continue, even while emergency needs continue to require about $1.5 billion each year," Ellen Levinson, executive director of the Washington-based Coalition for Food Aid, told Reuters.

"The upshot is that US AID is making plans to eliminate about 17 countries out of 32 for the food aid programs," added Levinson, whose coalition represents 16 nongovernmental organizations.

America is the largest provider of food aid to poor nations, supplying about half. The issue blew up into a dispute between United States and European Union trade officials at a World Trade Organization meeting last month, when the EU insisted the United States move to cash from commodities resources.

The United States currently sends donations to developing countries in the form of its own domestic corn, wheat and other commodities. The European Union argues that cash is quicker and less likely to affect the delicate balance of local trade.

In last year's budget, Bush proposed cutting the nation's major donation program to $885 million and putting $300 million into an emergency famine fund, which would be spent on buying food locally in disaster areas.

Following an angry response from Congress -- which refused to transfer the money -- he is expected this time around to propose that of the $1.15 billion, up to 25 percent be allowed for overseas purchases of food for emergencies.

"The administration is taking a different strategy because it got a lot of flak last year for trying to decimate an existing program that's successful and has a lot of support," Levinson said.

"Our view is, let's not get taken over by the distraction this year of how much is cash purchase. It is very dangerous for the WTO to get involved; the trade negotiators are not experts in this field," she said.

"Let's focus on the bigger issue -- the big fight in a time of tight budget of getting adequate funding."

Of the 17 countries to be eliminated from food aid programs, 10 will be in Africa, Levinson said, including countries where U.S. food aid is part of integrated development programs including HIV/AIDS, mother and child health care and food for education.

"Eliminating 17 countries is something we don't accept as a good solution, but if Congress doesn't provide the money and the U.S. keeps being the one who has to keep providing the money for emergencies, this is the squeeze place," she said.

Source: REUTERS

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