Why should governments and NGOs consider switching from food transfers to cash transfers?

Question

Quizplus · Accepted Answer

Distributing food can discourage development by either driving down local food prices (due to competition with free food), or driving up local food prices (due to increased demand). Both scenarios can negatively impact local agricultural production and discourage local farmers from growing and selling their own crops. Cash transfers, on the other hand, allow individuals to purchase the food they need, while also supporting local markets and promoting agricultural development. They also help reduce the potential for corruption that can occur with food transfers.

Why Should Governments and NGOs Consider Switching from Food Transfers