Monetization
Monetization is a system whereby commodities are sold on local or regional markets to generate cash resources for program implementation, and is built around two objectives: enhancing food security and generating foreign currency to support development activities. Title II monetization must address three important objectives: generate the maximum amount of foreign currency funds for Title II food security activities, enhance household access to food and encourage the development of competitive food marketing systems. These objectives rely on the principle that food aid monetization must attempt to ‘do no harm’ to producers’ incentives, fragile local food markets and low-income consumers. Proceeds from the sale of Title II commodities are used to implement a number of activities, including growth monitoring and behavior change, community capacity building and agricultural extension services.
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