Chapter 3


stabilise prices. In others, it was to ensure that profits from export crops remained in the
country and did not accrue to transnational corporations (though frequently these profits
went into government coffers rather than into the pockets of producers). Economies of scale
in marketing were a major justification for setting up these large operations.

As the tide turned against state intervention in markets, so parastatals fell from favour. They
were seen as too political in their function, many of them were inefficient and made massive
losses and their presence in the market distorted incentives for private sector operation. Over
the past decade, considerable attention has been focused on how to privatise the operation of
parastatals in such a way as to encourage private sector activities, while protecting
consumers and producers from transitory disruptions.

3.3.4 Local and community organizations

Households are usually embedded in local communities which play a highly important role
in ensuring social security of their community members, specifically in rural areas. These
local communities provide social security in many respects, including food security. This can
occur at various levels from spontaneous actions of neighbourhood support if a family or a
member of the community suffers destitution up to different forms of community based
social security institutions.

The principal advantage of community structures is their close relation to the community
members. The community is best aware of its members suffering destitution and able to
respond spontaneously. These capacities can and should be used in implementing targeted
policy interventions to improve food security in various ways:

* Identification of the people in need for food assistance,
* Determination of the type and volume of assistance needed,
* Distribution to the beneficiaries (e.g. through community fair price shops, community
 kitchens, schools, health centres).

 Communities can also take an important role in organising agricultural activity, such as the
 management of local irrigation schemes, the digging of shallow wells and the management
 of village seed banks. In some countries, community credit schemes are also important.
 Again, the great advantage of these community operations is the extent to which they can
 develop to meet local needs. The transactions costs of policing programmes are much lower,
 because there is greater knowledge of participants. Also it can be possible to mobilise
 resources at a local level because people see clearly the benefits to themselves if projects go
 ahead, whereas there is less immediacy with projects organised and operated from the
 national level.

 3.3.5 Non-governmental organizations (NGOs)

 NGOs offer a potential vehicle for supporting or complementing public sector measures in
 achieving food security objectives. They have an especially important role in countries with
 weak infrastructure and low administrative capacities. Due to their presence in the field and
 their decentralised approaches, NGOs may play a particularly effective role in providing