Tuesday, April 13, 2004

Well guess what..

I was reading some stuff in the internet and read this form a report form the GAO.

and I quote:

After the CPA transfers responsibility for the food distribution system to the Iraqi provisional government in July 2004, the government will have to decide whether to continue , reform, or eliminate the current system. Documents for the Ministries of Trade and Finance indicate that the annual cost of maintaining the system is as high as $5 billion, or about 25 percent of the total government expenditures. In 2005 and 2006, expenditures for food will be almost as much as all expenditures for capital projects. According to a September 2003 joint U.N. and World Bank needs assessment of Iraq, the food subsidy, given out as a monthly ration to the entire population, staved off mass starvation during the time of the sanctions, but at the same time it disrupted the market for food grains produced locally. The agricultural sector had little incentive to produce crops in the absence of a promising market. However, the Iraqi government may find it politically difficult to scale back the food distribution system with 60 percent of the population relying on monthly rations as their primary source or nutrition. WFP is completing a vulnerability assessment that Iraq could use to make future decision on the food security programs and better target food items to those most in need.

Just thought that I would pass that along.


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