--AIDS organisation manager, December 2009 (New York Times)
Gates, Sheeran explained, was going to help the WFP expand its program of local purchasing to small farmers and grain traders in the farther reaches of their client nations. Such purchases, as logistically difficult as they might be, would increase and support the agricultural efforts of these so-called smallholders. “This is the next wave of the story,” said Sheeran.
Grain purchases from small farmers and traders would put cash into the hands of hundreds of thousands of people and encourage farmers to plant and harvest more and more food. In addition, the WFP would put these farmers in contact with other groups, who would in turn help them acquire better seeds, fertilizers, and pesticides, more advanced irrigation systems, larger warehouse facilities, and improved access to roads. Thus could a poverty-stricken peasant move from being a recipient of food aid one year, to creating a bit of surplus the next, to making a profitable business out of it a few years down the line—and supplying food for others.
In order to realize these plans, the World Food Program would guarantee a market where none might now exist. They would do so, in part, by “forward contracting,” whereby the WFP would promise to purchase a certain amount of a farmer’s output, at a certain price, either one, two, or three years down the line. Such guarantees would give small farmers the incentive to plant more crops, since they could count on an eventual market for their goods. A WFP contract might even help farmers get credit from the local bank, or perhaps a bit of crop insurance.
Josette Sheeran told me the acronym for her pilot program: P4P, which stands for Purchase for Progress. The $76 million program would be funded by the Howard G. Buffet Foundation, the Bill and Melinda Gates Foundation, and the government of Belgium. In its first year of forward contracting, P4P would commit the World Food Program to purchasing 40,000 tons of food from 350,000 small farmers. “We are studying a proposal with Bill Gates on a way to do the contract,” Sheeran said.
[...]
Bill Gates. Why, despite our spending more money than had ever been spent to solve the problem of world hunger, and why, despite everybody’s best efforts to reconceptualize the problem—why were more and more people going hungry? Perhaps Gates would consider the paradox that our efforts might be exacerbating the problem, that all we were doing was wrong. Obviously, this was not the kind of thing I could vet beforehand with a publicist, or send over to media@gatesfoundation.org expecting a response. The nature of the question seemed to defy reason. Which was why I went to visit Amartya Sen.