Below is a link to the least developed country (LDC) Group submission on food aid. Please note in particular the reference to the possibility for monetisation 'under exceptional circumstances, to fund activities that are directly related to the delivery of the food aid to, or facilitating procurement of agriculture inputs, where necessary by the final recipients.' Monetisation is when NGOs sell food aid on local markets to generate funds for development projects. In this regard, the LDC Group may be concerned not to give up on the resource transfer potential that comes from monetisation. Input supply is a huge problem. In many cases, WB and IMF conditionalities have forced LDC to cutback on spending for inputs. Many LDCs just don't have enough cash and given there being no sign of a sudden change in that situation, monetized food aid may seem like a necessary evil to many of these countries.
Submission by LDC Group on Food Aid, March 2006:
http://www.tradeobservatory.org/library.cfm?refid=80374
