The Evaluation of the Impacts of Title II Monetization Programs for Wheat and Crude Edible Oils in Mozambique, 1997-2007

From 1997-2007, the United States Agency for International Development (USAID) Title II monetization programs sold more than US$200 million of food aid wheat and unrefined vegetable oils in Mozambique. This research has three objectives: 1) to document the lessons learned from past monetization programs in Mozambique; 2) to identify the intended and unintended effects of monetization in Mozambique; and 3) to document indirect successes as a result of using monetization in Mozambique, if any. Monetization programs in Mozambique prior to 1997 demonstrated positive effects on market development and contributed to food security in a critical period. During later periods, the monetized food aid displayed the negative effects of uncoordinated food aid deliveries and arrival of quantities beyond absorptive capacity, depressing prices for locally produced staples and adding to market price volatility.