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Monetization of U.S. in-kind food aid is the sale of food commodities purchased in and shipped from the United States and sold for local currency in a recipient country by "cooperating sponsors", which are typically U.S.-based non-governmental organizations (NGOs) or recipient governments. In the case of the monetization of U.S. food aid, the U.S. provides food commodities for free or under favorable terms to a cooperating sponsor, which could be a recipient country’s government or an NGO working there. The recipient organization sells the commodities to local processors or traders who turn around and sell the commodity on the market in raw or processed form. Proceeds from the sale to the processors or traders support technical assistance projects or public infrastructure investments in the same country, or in the case of third-party monetization, another country in the region. Money can also be used in “targeted monetization”, where the cooperating sponsor sells small quantities with the purpose of developing the market, reducing market volatility, or improving food access. According to a study by Barrett and Lentz, monetization in the United States is driven by the "iron triangle" of producers and processors, the U.S. shipping industry, and NGOs. Producers and processors supply almost all of the procurements of U.S. food aid through the USDA on behalf of USAID.〔 Furthermore, U.S. law requires 75% of nonemergency food commodity tonnage be purchased, bagged, or processed, which provides U.S. companies with business. The law requires 50% of Title II grains to be bagged in the U.S. and 75% of U.S. food aid must ship on U.S. flag carrier vessels.〔 Many NGOs also favor monetization because aid through monetization funds their programs.〔 Monetization of food aid is controversial. Critics claim it carries the risks of other types of food aid, which include displacing imports and disruption of local markets. These issues have brought a number of objectors, including the WTO, U.S. commercial exporters, and recipient country producers and traders. The United Nations Food and Agriculture Organization also called for an end to monetization in ''The State of Food and Agriculture'' report in 2006, alleging monetized food aid represents over 30% of project food aid globally and is "often a dangerous way of destroying local farm prices." Additionally, monetization has been labeled “inefficient” by a number of analyses, including that of the Government Accountability Office (GAO). For these reasons, some NGOs, such as CARE, have decided to reduce or forgo monetization in the future.〔 ==Background== Monetization of food aid is almost solely a practice of the United States and U.S.-based NGOs. The World Food Programme and European donors have discontinued most programs that provide food for monetization, while the United States government requires monetization by law. The Food Security Act of 1985 introduced this requirement by allowing “cooperating sponsors” to cover administrative costs through the sale of United States in-kind food donations. In 1988, Title II PL 480 expanded to cover development projects as well, and non-emergency funding through monetization had a minimum level of 10%, which increased to 15% with the 1996 Farm Bill.〔 Additionally, it allowed for third-party monetization, which means food aid can be sold in one county to generate money to finance emergency or development programs in another country. The Food for Progress Program and the McGovern-Dole International Food for Education and Child Nutrition Program also allow for monetization.〔 According to the Food for Peace Monetization Field Manual Title II food aid has two objectives, :''First, Title II food aid monetization is programmed to enhance food security. Second, Title II food aid is used by a CS (sponsor ) to generate foreign currency to support development activities.'' :''Monetization offers the potential to improve the marketing of food to permit greater access to those who are food insecure. Indeed, there is an important direct link between food security and how food aid is monetized. The process of monetizing can be used to promote low-cost, competitive food markets by encouraging investment in transportation, infrastructure and human capital (traders, entrepreneurs). In essence, food aid monetization can enhance long-term food security by encouraging the development of competitive food marketing systems that have built-in incentives to provide the poor with affordable staple foods.〔'' The United States reinforced its dedication to food aid and monetization for nonemergency development through the 2008 Farm Bill. This bill enacted hard earmarks for the first time, setting annual minimum commitments for nonemergency Title II programs: $375 million in FY2009, $400 million in FY2010, $425 million in FY2011, $450 million in FY2012(Sect. 3021). However, a provision in the same bill (Sect. 3008) raised the cap on funding under Section 202(e), which allows cash resources to be “made available to Cooperating Sponsors for establishing new programs and meeting the specific administrative, management, and personnel costs of programs”(7 USC 1722(e)). Previously, the law restricted this funding to "not less than 5 percent nor more than 10 percent." The 2008 Farm Bill raised those values to 7.5 and 13 respectively and expanded the list of uses for those funds, giving the Office of Food for Peace greater flexibility to provide cash to cooperating sponsors when monetization would not be appropriate. Since the introduction and subsequent changes of Title II, non-emergency food aid and the number of cooperating sponsors, most of which are US-based NGOs, have increased. Monetization of food aid was originally intended to help agencies cover the cost of distribution of food and implementation of food-based development programs. However, monetization has since become much more prevalent as more organizations enter the field and existing cooperating sponsors expand their programs. Programs have also become inclusive of other activities such as maternal and child health.〔 According to a 2007 report from the United States Government Accountability Office, while the minimum level of nonemergency funding through monetization is 15%, it reached almost 70% in 2001. It declined to around 50% in 2005, likely due to the Office of Management and Budget's (OMB) recommendation to decrease monetization and due to the increasing demand for emergency food aid. In a report prepared by Mendez England and Associates for the U.S. Office of Food for Peace, monetization of Title II food aid increased from 1987 with $21 million and five cooperating sponsors in 19 countries to 1994 with $80 million and 43 projects in 24 countries. Between FY1999 and 2005, the overall contribution of monetized food aid could conservatively be as large as $900 million in support of projects with the assumption of a 60% recovery rate from the delivered commodities. This could be as high as $1.2 billion with an 80% recovery rate from US monetized Title II food aid.〔 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Monetization of U.S. in-kind food aid」の詳細全文を読む スポンサード リンク
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