Wednesday, August 26, 2009

What is PL 480 Programme?

What is PL 480 Programme?
- the full name is Public Law 480 also known as "Food for Peace" is a funding avenue by which US food can be used for Overseas Aid.

- the full name = Public Law 480 is " Agricultural Trade Development Assistence Act", signed on Law on july 10, 1954 by President Dwight D Eisenhower.

- in 1961, president John F.Kennedy renamed it as "Food For Peace".

- it has 4 parts:
Title 1
Title 2
Title 3
Title 5

- PURPOSE OF PL 480 PROGRAMME :
  • combat world hunger & malnutrition
  • promote sustainable development including agricultural development.
  • expand international trade
  • develop & expand market for US Agriculture commodities & products.
  • foster private enterprise & democratic participation.
EXPLANATION OF THE ABOVE TITLES:
TITLE 1 IS TRADE & DEVELOPMENT ASSISTENCE
(managed by USDA):
- it allows concessional sales of agriculture products to friendly developing nations, either by government to government or government to private activities.

- concessional terms are very favourable it can be long term credit upto 30 years, with no minimum repayment for 10 years, grace period for payment of principle upto 5 years at low interest of 2-4%.

- programme is flexible & allow facilitate collaboration with international bodies such as world bank in support of development programme.

PRIORITIES GIVEN ARE:

  • countries with little foreign exchange
  • countries with food security problems
  • program with alleviate poverty as the core.
  • countries with agriculture developmental needs.
  • receipent's countries must also demostrate potential to become commercial markets for US Agri Products.
TITLE 2 IS EMERGENCY & DEVELOPMENT ASSISTENCE PROGRAM (managed by USAID) :

- main use is -- allow donation of US agri products meet humanitarian food needs, emergency & non-emergency food aid activities support broader USAID.

RECIPANTS CAN BE ANY OF FOLLOWING :
  • PVO = Private Voluntary Organisation
  • NGO = Non Government Organisation
  • IO = International Organisation & World Food Programme.
for non-emergency aid title 2 can be often to be in support :
- development food aid (non-emergency)
- health & nutrition program
- agriculture (food-for-work, food-for-agriculture)
- educational programe
- humanitarian relief
- vulenrable population
- micro enterprise development

TITLE 3 IS FOOD FOR DEVELOPMENT
(manage by USAID) :
- it is a government to government grants to least developed countries.
- aim at addressing food & nutrition problem, countries most in need of food to enhance long term food security.

PROGRAMMAS ARE:
  • privatisation of food market
  • attract poor children to school
  • address chromic food short fall.
  • infrastructure development - Roads.
TITLE 5 IS FARMER TO FARMER (managed by USAID) :
- established in 1986, re-authorised by 1996 Farm Bill Act.
- it is not a food program, but a short term technical assistance by linking american volunter farmer with developing countries farmers.

- program was established aimed mainly at the NIS of ex Soviet Union.