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UNCLASSIFIED
CONFIDENTIAL-
SYSTEM II
91256
THE WHITE HOUSE
WASHINGTON
January 3, 1985
NATIONAL SECURITY DECISION
DIRECTIVE NUMBER 156
U.S. THIRD WORLD FOOD AID:
A "FOOD FOR PROGRESS" PROGRAM (U)
NSSD 1-84 established the terms of reference for a study aimed
at producing new, effective initiatives to address Third World
hunger problems; that is, both emergency situations and
long-term problems, and how U.S. and donor country food aid
programs affect these cases. The NSSD 1-84 study of emergency
food aid was completed in July 1984 and resulted in a
ten-point program to better respond to grave food crises, as
articulated in NSDD 143. Today's food emergency reemphasizes
the need to tackle the underlying structural problems of
agricultural stagnation in the Third World. (U)
The study of non-emergency food aid has focused on how U.S.
food aid could be used as an incentive for Third World coun-
tries to increase their food production through agricultural
reform, noting that an adequate agricultural sector is a
prerequisite for development in Third World countries. This
study has considered the economic and political conditions in
many Third World countries experiencing chronic food short-
ages. (U)
Socialist economic systems, prevalent in underdeveloped
countries, have failed to achieve economic growth. As a
result of this, and insufficient aid by the USSR, an increas-
ing number of Third World countries once dominated by the
12/7/92
socialist model are experimenting with free market approaches.
(C)
under provisions of E.O. 12356
by S. Tilley, National Security Council
There are currently two major programs designed to support
economic and agricultural policy changes in Africa:
Declassified/Released on
O
The African Economic Policy Initiative, a 5-year, $500
million program intended to support economic reform in
Africa. First-year funding of $75 million was provided
by the Congress in the Economic Support Fund in 1985. (U)
Title III of the P.L. 480 food aid program, which has
thus far not generated meaningful agricultural policy
reform in Africa. (U)
In response to this policy context, the United States Govern-
ment will begin a new foreign aid initiative to be called
2
UNIT
IDENTIAL
UNCLASSIFIED
"Food for Progress." This initiative will use American food
resources to support key Third World countries which have made
commitments to agricultural policy change in four basic areas:
-- agricultural price policy;
-- marketing reform and liberalization;
-- input supply and distribution policy; and
-- private sector involvement.
American resources will support the implementation of policy
changes over a medium-term transition period in Third World
countries -- initially those in Sub-Saharan Africa. This
judicious use of aid -- on a multi-year basis -- will reduce
the political risks to leaders of Third World countries
committed to undertaking agricultural reform during a
transition period of economic hardship. This initiative will
be designed to increase the USG's ability to vary annual food
deliveries in accordance with the changing needs and
performance of recipient countries. tex
The "Food for Progress" initiative's initial duration will be
4 years. The program's composition will be up to 500,000
metric tons of grain per year to be dispersed to six to eight
Sub-Saharan African countries in the first year of the
program. Country selection criteria will be based, in part,
on the decision analysis methodology developed by the NSSD
1-84 study group. This methodology will also be used to help
determine those policy changes within a country to which "Food
for Progress" will be targeted as an instrument for change.
In contrast with other existing aid programs with comprehen-
sive and multiple objectives, this initiative will have as its
sole objective the achievement of agricultural policy reform
in Third World countries. "Food for Progress" may benefit
from co-financing with the World Bank and other financial
institutions. (U)
The NSC staff will chair, and OPD will vice-chair, an inter-
agency group with representatives from State, Treasury, USDA,
DOT, OMB, CIA, CEA, AID, the Peace Corps, and the White House
Congressional Affairs Office to further define the "Food for
Progress" initiative and to develop an appropriate implementa-
tion plan for this initiative. (U)
Priority consideration will be given to implementing this
initiative within current programs and budgets. Prompt and
positive Congressional action, however, is to be considered a
significant concern in preparing the final implementation
action -- which may include changes in existing laws and
authorities or new legislation. Implementation of "Food for
Progress" through use of a Section 416 mechanism or as part of
UNCLASSIFIED
CONFIDENTIAL
UNCLASSIFIED
LUM
UNCLASSIFIED
the PL 480 program will be considered by the interagency
group. (U)
This interagency group will also consider and report on the
following related subjects:
-- Certification of the NSSD 1-84 working group's
country eligibility criteria and resource response
analysis for recipient countries, or appropriate
options.
:
Administrative and programmatic details with regard
to "Food for Progress.
=
(C)
The interagency group should forward the implementation plan,
with options as appropriate, to the Assistant to the President
for National Security Affairs 20 working days from the date of
this memorandum, noting agency and Congressional views. This
implementation plan will be decided upon through the NSC and
budget process. (U)
UNCLASSIFIED
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"ocrText": "UNCLASSIFIED\nCONFIDENTIAL-\nSYSTEM II\n91256\nTHE WHITE HOUSE\nWASHINGTON\nJanuary 3, 1985\nNATIONAL SECURITY DECISION\nDIRECTIVE NUMBER 156\nU.S. THIRD WORLD FOOD AID:\nA \"FOOD FOR PROGRESS\" PROGRAM (U)\nNSSD 1-84 established the terms of reference for a study aimed\nat producing new, effective initiatives to address Third World\nhunger problems; that is, both emergency situations and\nlong-term problems, and how U.S. and donor country food aid\nprograms affect these cases. The NSSD 1-84 study of emergency\nfood aid was completed in July 1984 and resulted in a\nten-point program to better respond to grave food crises, as\narticulated in NSDD 143. Today's food emergency reemphasizes\nthe need to tackle the underlying structural problems of\nagricultural stagnation in the Third World. (U)\nThe study of non-emergency food aid has focused on how U.S.\nfood aid could be used as an incentive for Third World coun-\ntries to increase their food production through agricultural\nreform, noting that an adequate agricultural sector is a\nprerequisite for development in Third World countries. This\nstudy has considered the economic and political conditions in\nmany Third World countries experiencing chronic food short-\nages. (U)\nSocialist economic systems, prevalent in underdeveloped\ncountries, have failed to achieve economic growth. As a\nresult of this, and insufficient aid by the USSR, an increas-\ning number of Third World countries once dominated by the\n12/7/92\nsocialist model are experimenting with free market approaches.\n(C)\nunder provisions of E.O. 12356\nby S. Tilley, National Security Council\nThere are currently two major programs designed to support\neconomic and agricultural policy changes in Africa:\nDeclassified/Released on\nO\nThe African Economic Policy Initiative, a 5-year, $500\nmillion program intended to support economic reform in\nAfrica. First-year funding of $75 million was provided\nby the Congress in the Economic Support Fund in 1985. (U)\nTitle III of the P.L. 480 food aid program, which has\nthus far not generated meaningful agricultural policy\nreform in Africa. (U)\nIn response to this policy context, the United States Govern-\nment will begin a new foreign aid initiative to be called\n2\nUNIT\nIDENTIAL\nUNCLASSIFIED\n\"Food for Progress.\" This initiative will use American food\nresources to support key Third World countries which have made\ncommitments to agricultural policy change in four basic areas:\n-- agricultural price policy;\n-- marketing reform and liberalization;\n-- input supply and distribution policy; and\n-- private sector involvement.\nAmerican resources will support the implementation of policy\nchanges over a medium-term transition period in Third World\ncountries -- initially those in Sub-Saharan Africa. This\njudicious use of aid -- on a multi-year basis -- will reduce\nthe political risks to leaders of Third World countries\ncommitted to undertaking agricultural reform during a\ntransition period of economic hardship. This initiative will\nbe designed to increase the USG's ability to vary annual food\ndeliveries in accordance with the changing needs and\nperformance of recipient countries. tex\nThe \"Food for Progress\" initiative's initial duration will be\n4 years. The program's composition will be up to 500,000\nmetric tons of grain per year to be dispersed to six to eight\nSub-Saharan African countries in the first year of the\nprogram. Country selection criteria will be based, in part,\non the decision analysis methodology developed by the NSSD\n1-84 study group. This methodology will also be used to help\ndetermine those policy changes within a country to which \"Food\nfor Progress\" will be targeted as an instrument for change.\nIn contrast with other existing aid programs with comprehen-\nsive and multiple objectives, this initiative will have as its\nsole objective the achievement of agricultural policy reform\nin Third World countries. \"Food for Progress\" may benefit\nfrom co-financing with the World Bank and other financial\ninstitutions. (U)\nThe NSC staff will chair, and OPD will vice-chair, an inter-\nagency group with representatives from State, Treasury, USDA,\nDOT, OMB, CIA, CEA, AID, the Peace Corps, and the White House\nCongressional Affairs Office to further define the \"Food for\nProgress\" initiative and to develop an appropriate implementa-\ntion plan for this initiative. (U)\nPriority consideration will be given to implementing this\ninitiative within current programs and budgets. Prompt and\npositive Congressional action, however, is to be considered a\nsignificant concern in preparing the final implementation\naction -- which may include changes in existing laws and\nauthorities or new legislation. Implementation of \"Food for\nProgress\" through use of a Section 416 mechanism or as part of\nUNCLASSIFIED\nCONFIDENTIAL\nUNCLASSIFIED\nLUM\nUNCLASSIFIED\nthe PL 480 program will be considered by the interagency\ngroup. (U)\nThis interagency group will also consider and report on the\nfollowing related subjects:\n-- Certification of the NSSD 1-84 working group's\ncountry eligibility criteria and resource response\nanalysis for recipient countries, or appropriate\noptions.\n:\nAdministrative and programmatic details with regard\nto \"Food for Progress.\n=\n(C)\nThe interagency group should forward the implementation plan,\nwith options as appropriate, to the Assistant to the President\nfor National Security Affairs 20 working days from the date of\nthis memorandum, noting agency and Congressional views. This\nimplementation plan will be decided upon through the NSC and\nbudget process. (U)\nUNCLASSIFIED"
}