Summary

The Agricultural Development and Trade Act of 1990 gives the Agency for International Development (AID) responsibility for managing agricultural commodity assistance to foreign countries. This report evaluates two programs run by AID--the Emergency and Private Assistance Program and Food for Development Program. GAO reviews (1) the uses of commodities provided under titles II and III of the act and local currencies generated by the sale of commodities; (2) the impact of the assistance on enhancing food security; and (3) AID's management of the programs, particularly in safeguarding financial resources generated under the programs.

GAO found that: (1) AID is authorized to use agricultural commodities programs for emergency relief, school feeding, food-for-work, and economic development programs; (2) in 1992, AID distributed 1.9 million metric tons of agricultural commodities valued at $467 million to 68 countries worldwide; (3) although the amount of emergency relief has increased, AID has not adequately defined when emergencies exist or used its authority to procure and ship assistance quickly; (4) under the title III program, AID distributed 1.6 million metric tons of commodities valued at $240 million to 14 countries; (5) local currencies generated by title II and III programs support food distribution programs, specific development projects, and the general budget; (6) commodity assistance implementation has varied because AID does not have sufficient guidance on how food aid programs should be developed to enhance food security; (7) AID cannot adequately assess the impact of its commodity programs on recipient countries because it has not systematically collected relevant data, developed appropriate assessment methodologies, or reached agreements between its internal agencies on how food aid programs should be administered; and (8) problems that impede effective food aid program management include disagreements over food aid policy, outdated and unclear operational guidance, inadequate staff management expertise, and the lack of accountability over food aid resources.