350 Test 3

Challenges in reducing malnutrition pt 2

Condition C2 (all individuals having a purchasing power that is high enough to allow for a nutritious diet) is currently not satisfied everywhere. Undernutrition is much more prevalent among the poor In extreme cases, famine can arise without a food shortage (see Sen). Solution: Take steps that would increase the food purchasing power of the poor Food purchasing power = (household income)/(price of food) = the maximum amount of food a household can afford to acquire. Increasing the food purchasing power of the poor can be done by taking steps that increase the income of the poor througheconomicdevelopment through income/resource transfers toward the poor. By taking steps that reduce the price of food for the poor throughpricingpolicy.

2010 poverty lines

$11,139- Individual person $22,314- family of four the poverty rate in Wisconsin has increased by more 8.0 than 50% over 6.0 Wisconsin U.S. in the past decade -2 in 5 households with single mother are poor

food insecurity stats

- 1 in 9 food insecure - 7% have food insecure children

Biotechnology: Converting C3 plants to C4:

- C4plantsaremoreenergyefficientthanC3plants - Example: Turn rice, a C3 plant, into a C4 plant. - Potentially, C4 rice could produce up to 50% more grain and be able to do it with less water and nutrients. - In a project funded by the Gates Foundation, researchers at the International Rice Research Institute (IRRI) have identified genes needed for C4 photosynthesis in rice and are now looking towards developing a prototype C4 rice plant. - As rice is the world's most important human food - it is the staple food for more than half the planet - having rice that is more efficient at converting sunlight into grain could have significant global benefits towards improving food security.

What proportion of adults are currently obese in the US?

1 in 3 In the world, -1.4 billion adults are overweight -500 million adults are obese (about 1 in 10).

Food Pricing Policies: L&F, chapters 19 and 21 Two types of government food pricing policies have been commonly used:

1. Subsidizing consumption by reducing the price of food on domestic markets • More common in developing countries. • Lowering the price of food increases the food purchasing power of non-farm households (this is called "urban bias"). • This contributes to improving the ability of non-farm households to feed themselves. • But a lower price of food provides a disincentive for domestic farmers to produce more food. 2. Subsidizing food production by increasing the price paid to farmers • More common in developed countries. • The subsidies to agriculture in developed countries amount to about $1 billion a day. • Such subsidies help increase income of rural households in developed countries.. • But the subsidies to agriculture in developed countries make it difficult for farmers in developing countries to compete and produce more food. In either case, - The subsidies do not target the poor or malnourished. - Someone must pay the cost of these subsidies. Economists argue that food pricing policies are inefficient ways to improve food security...

• In the US definition of the poverty line, what proportion of household income is assumed to be spent on food when household income is equal to the poverty line?

1/3 • The evaluation of the US poverty line was proposed in the 1960's by Mollie Orshansky, an economist working for the Social Security Administration. • For a household of a given size, the US poverty line is defined as follows: 1. Ask a nutritionist to identify a balanced diet for the household 2. Find the actual cost of this balance diet (at grocery store prices) 3. Multiply this cost by 3 to obtain the poverty line for this household. • This last step was motivated as follows - The share of household income spent on food typically declines with income. - Orshansky estimated that the poorest households that can afford to pay for a balanced diet spend about 1/3 of their after-tax income on food. • This defines a nutrition-based evaluation of the US poverty line. - The poverty line can automatically adjust to changes in family size/composition and changes in food prices - It does not change with tastes and preferences - Although the "multiplication by 3" has been criticized for being "crude", it has been difficult to develop a consensus on a better formula...

• The current rate of food insecurity among US households is about

15%

• The current poverty rate in the US is about

15% • Number of poor (head count): number of people in households with income below the poverty line. - In 2011, 46 million people lived in poverty in the US - This has grown by 9 million since 2007 (when there were 37 million poor in the US). • Poverty rate: proportion of people living in households with an income below the poverty line. - In 2012, the US poverty rate was about 15 percent. • In the US, the number of poor as well as the poverty rate tend to rise - during recessions (when income declines, e.g. after 2008) - when food prices rise.

• What proportion of the US population benefited from the Food Stamp Program/SNAP in2012?

15% • SNAP Budget cost: $80 billion in 2011 (up from $38 billion in 2007). • SNAP targets poor households (below the poverty line) • Through the use of electronic benefit transfer cards, SNAP provides subsidies on food purchases for poor households. It increases the low-income recipients' food purchasing power. • The food subsidies increase with poverty (as measured by the difference between the poverty line and household income). • In 2011, SNAP was used by 45 million individuals (14.4 % of the US population) in 21 million households. • SNAP is the largest domestic Food Program.

What proportion of adults are currently overweight in the US?

2 in 3

What has been the annual average increase in US corn yield over the last 50 years:

3% a year • Hybrid vigor exists when cross-breeding between different varieties improves plant productivity. • Corn hybrids have been found to - make more efficient use of applied fertilizer - be more resistant to some insects and diseases - generate higher and more stable corn yield.

In Mexico, Progresa/Oportunidades tried to...

A. Reduce poverty B. Improve nutrition C. Increase education 1. Careful targeting to the extreme poor 2. Money goes to female head of household 3. Fixed amount of cash to allow more food purchases 4. Basic health care mandatory 5. Additional grants conditional on children's school attendance 6. Nutritional supplements for young children 7. Benefit ceiling to encourage family to overcome poverty and control family size 8. No tax on earnings in order to avoid disincentives for working 9. Evaluationdesignedinfromthestart • A Mexican program started in 1997 • Principal Goal: Permanently increase the capabilities of individuals in extreme poverty • by improving the conditions of health, education (esp. girls), and nutrition, • particularly for children and mothers.

Selection bias can arise in program evaluation when

A. There are factors that are unobservable to the program evaluator B. These unobservable factors are related to program participation decisions C. These unobservable factors affect program performance • Typically, not all individuals who are targeted for a program decide to participate: there is self-selection in the program. • When some of the "other factors X" are unobservable to the program evaluator, this can create a selection problem.

The cost of obesity in the US amounts to

Cost of obesity •Obesity in the US accounts for -an estimated 300,000 premature deaths a year -more than $100 billion cost a year (including medical expenses and indirect cost). •If current obesity trends continue, obesity -related medical costs alone could reach $900 billion in 2030, or about 17% of US health expenditures. •Obesity prevention programs can help reduce the cost of obesity -related diseases.

Economic development

Economic development is the process associated with improvements in human welfare -Economic welfare: measured by income and income growth •For individuals, households, or nations -Human development: reflecting income, health, education, and other factors associated with human welfare •For individuals, households, or nations.

Effects of obesity

Except in extreme cases, overeating has little effects on individual health in the short term. •The effects of overeating are mostly in the long term:Increases in BMI contribute to significant increases in the risk that individuals face chronic diseases such as: -cardiovascular diseases (mainly heart disease and stroke),which are a leading cause of death; -Diabetes(high blood sugar), with long-term complicationsincludingcardiovascular disease, renal failure andretinal damage; -musculoskeletal disorders (especially osteoarthritis -a highly disabling degenerative disease of the joints); -some cancers (endometrial, breast, and colon). •In the long term obesity has important adverse effects: -It reduces the quality of life (by making some activities more difficult) -It reduces labor productivity(by increasing absenteeism) -It increases morbidity(by increasing the risk of some chronic diseases and disorders) •this increases the cost of health care -It tends to increase mortality: •obesity reduces life expectancy by 6-7 years •severe obesity reduces life expectancy by 10 years .

Lack of economic development causes undernutrition

Lack of economic development causes undernutrition •Lack of economic development is often associated with low income •For a household, low income implies a lower food -purchasing capacity. •When income is very low, individuals may not be able to afford a nutritious diet •In this case,low income is a major cause of undernutrition .

Mexico demographic

Mexico: High Aggregate Indicators but High Inequality and Poverty • A Middle Income country - Income/capita=$15,300 in 2012 • High Human development index = .829 • 3,250 calories per capita per day in 2005- 2007 • But income distribution is very unequal: - High Gini Coefficient = .48 in 2008 • High poverty rate: 51.3% of the population is below the poverty line in 2010.

Obesity assessment

Obesity assessment •Obesity is associated with overnutrition •Individual obesity for adults is typically evaluated based on the Body Mass Index (BMI): BMI = weight/(square of height), where weight is measured in kilograms and height is measured in meters. •The following classification is commonly used: -BMI less than 18.5 = underweight -BMI between 18.5 and 25 = normal weight -BMI greater than 25 = overweight -BMI greater than 30 = obese •BMI greater than 35 = severely obese •BMI greater than 40 = morbidly obese

How did they target CCT area/ population

Stage 1: Localities were selected based on a "marginality index" obtained from the national census. • 76,000 localities (out of over 100,000 surveyed) were identified as highly marginal, but • eligible localities were limited to those having a primary school, a secondary school, and a health clinic since these were critical for building human capital, • which left only 48,500. • (Were poorest communities excluded?) • Stage 2: Households within the eligible localities were selected based on a poverty index derived from information gathered by a household questionnaire on - total family income minus income earned by children and - non-income variables that differentiate between the poor and nonpoor, e.g., tin roof? • Stage 3: Household selection was refined through community meetings at which the community's knowledge of its families could be tapped to add or delete households. • Self-targeting used in urban areas - individuals visit Oportunidades neighborhood "module," ask to be included, staff then visits home

Obesity Summary

Summary •Obesity occurs when people get in the habit of "eating too much" -When calories absorbed exceed calories burnt, the difference is stored in the body in the form of fat and the individual gains weight -Obesity arises when an individual overeats regularly. -Obese Individuals can lack "self control": they overeat when they perceive thatthe short term benefit of eating outweigh the long term cost of obesity. •Obesity is a chronic (long-term) disease, with adverse long-term consequences for individual health. •Obesity is an epidemic in the United States (and it is a rising problem in many other countries) -More than two-thirds of Americans are overweight, including at least one in five children.About one -third are obese. -The incidence of obesity can vary a lot across socio-economic groups. •Obesity has a large social cost: more than $100 billion a year in the US. •Obesity is preventable: it is a leading cause of preventable deaths in the United States.

A "false negative" occurs in program evaluation when a program

The performance deteriorates but this is due to other factors X (and NOT due to the program P, which has positive effects on performance) • These examples stress the importance of controlling for the effects of "other factors X" in program evaluation.

A "false positive" occurs in program evaluation when a program is seen to

The performance improves but this is due to other factors X (and NOT due to the program P, which has negative effects on performance)

Colorado is the state exhibiting the lowest adult obesity rate in the US.

true

(International Covenant on Economic, Social and Cultural Rights).

• 160 countries have now ratified the ICESCR (International Covenant on Economic, Social and Cultural Rights). • The US signed the ICESCR Covenant in 1979, but has not ratified it (yet). - While there is general agreement that the ICESCR Covenant sets desirable social goals, some argue that these desirable goals are not "rights". - What is a "right" can sometimes be controversial and subject to debate...

Policy Targeting

• A major issue in evaluating any food policy is: - Is it contributing to reducing malnutrition? • A significant part of undernutrition is associated with poverty: - Households with a low income and low food purchasing power are most likely to suffer from undernutrition. • It means that a desirable characteristic of any food and nutrition policy is targeting: - Targeting low-income individuals is necessary if a particular policy wants to reduce undernutrition issues. - The more effective nutrition policies target the individuals who are most likely to suffer from malnutrition.

CCT EDUCATION PROGRAM

• Additional grants for each child in school from 3rd grade to 11th grade • $10.50/month in 3rd grade to $21.00 in 6th; same for boys and girls through 6th grade • Greater payment for girls in school from middle school onward • 7th: $30.50 boys; $32.00 girl • 11th: $58.00 boys; $66.00 girls • If child misses more than three school days in a month without good excuse, family does not get grant that month • Higher grant for girls in secondary school addresses fact of girls' lower enrollment and higher dropout rate • Recall long run benefits from more education for girls: better child care, less child malnutrition, and lower fertility

The WIC Program

• Budget cost: $6.6 billion in 2012 • The WIC Program targets -pregnant,postpartum and breast feeding women,infants,and childrenupto age five - members of poor households. - applicants must be individually determined to be at "nutritional risk" by a health professional. • In support of low-income women, infants and children, the WIC Program provides - supplemental, nutrient-rich foods specific to the participant's eligibility category and medical needs (for example, foods specifically recommended for an anemic pregnant woman) - nutrition education and counseling; - breastfeeding promotion. • In 2010, 9.2 million individuals participated in the WIC program - 4.9 million (53%) were children - 2.2 million (24%) were infants - 2.1 million (23%) were women.

The School Lunch Program

• Budgetcost:$10.2billionin2012 • TheSchoolBreakfastProgramtargetsschool children - Children from poor households are offered subsidized lunch at school. - The subsidies increase with the household poverty status. • In2010,31.7millionstudentsparticipatedinthe School Lunch Program:

The School Breakfast Program

• Budgetcost:$3.3billionin2012 • TheSchoolBreakfastProgramtargetsschool children - children from poor households are offered subsidized breakfast at school. - The subsidies increase with the household poverty status. • In2010,11.7millionstudentsparticipatedinthe School breakfast program:

Challenges in reducing malnutrition pt 1

• Condition C1b (there must be enough food available daily in the neighborhood where each individual lives) is not satisfied everywhere. - This is a problem in regions with poor infrastructure and experiencing adverse shocks to food supply (e.g., a severe drought in Africa) • This identifies a need for emergency response to provide food to particular locations in a timely manner • Which institutions are most effective in providing emergency response on a timely basis? Is it local institution? government? Or a NGO (non- government organization)? - This can be a problem in "food deserts" in urban areas. - This is usually not a problem in regions with good infrastructure. • In a globalized economy, food markets work "reasonably well" • Markets can move food from food-surplus areas to food-deficit areas in a timely manner.

Challenges in reducing malnutrition pt 3

• Condition C3 (all individuals being willing to consume a nutritious diet) is currently not satisfied. • The current obesity epidemic is not due to food shortage - Obese individuals have the option of reducing their current food consumption and using part of the saving toward consuming a more nutritious diet. • While more common in developed countries, obesity is a rising problem around the world... • Having access to a more nutritious diet can be problematic for some consumers • Solutions: - Improving the quality and variety of food available to consumers. - Improving nutrition education to nudge individuals toward consuming a more nutritious diet.

CCT def

• Conditional cash transfer (CCT) programs are welfare programs that make cash payments to individuals conditional upon the receivers' actions (e.g., children attending schools, getting regular check- ups at the doctor's office, ...)

CCT EDUCATION benefits

• Enrollment rates increased at all levels; more for girls than boys • Total number of years in school increased • Children started school at younger ages • Children repeated grades less often • Drop out rate declined • Previous dropouts returned • Child labor participation declined, more for boys (15-25%), who had higher rates before • No impact on time devoted to studies nor on achievement tests, but teachers say they are doing better • No degeneration of school quality despite higher enrollment

Examples of malnutrition policy controversies and contradictions

• Example 1: The right to food does not imply an obligation for a government to provide food to anyone who wants it. - If so, what are the obligations implied by the right to food? Example 2: Slavery versus the right to be free. - Slavery is currently outlawed in all countries. • Slavery is seen as inconsistent with economic development. - But the number of slaves today may be between 12 and 30 million. - In India: 10-20 million people are bounded labor • working in slave-like conditions in order to pay off debts • most of them are "untouchables" (the lowest cast). - In Africa: slavery still exists (in Mauritania, Sudan, ...) - In Haiti: • a "restavec" is a child who is being sold by very poor parents to stay and work in another family without pay. • About 300,000 restavecs in Haiti today • Current price: $50-100 for one restavec.

CCT NUTRITION PROGRAM

• Fixed monthly grant of about $15.50 intended to allow more food purchases • Plus nutritional supplements for children age 4 months to 2 years; also for children 2 - 4 if show malnutrition; and for pregnant and lactating women • Supplements for children contain 20% of calorie requirements and 100% of micronutrients • Mothers get them at monthly health care visits; chocolate, vanilla, banana; well accepted; one year storage life Monthly grant (for food) is conditional on completing the following required health care visits: • • During pregnancy (5 visits), immediately postpartum (2); and lactation (1) For children • • age 5-16 (2 per year) For adults - Annual checkups required - - - For family: Required attendance at classes about health, hygiene, and nutrition age 0-2 (11 visits + monthly weight/height checks) age 2-4 (3 per year) 16

Food Aid: L&F, chapter 19, p. 320-322

• Foodaidismotivatedtohelpindividualsfacing food shortages. - Food aid typically involves subsidized food that is sold (or given away) by food exporting countries (e.g., the US). - Food aid is useful in reducing the short term adverse effects of disasters or conflicts on malnutrition. - However, food aid is not always well administered or timely (e.g., the case of Haiti). - Economists recommend that food aid should not be used as a permanent source of food in developing countries.

Evaluation of Food assistance programs

• Foodandnutritionprogramshavemadesevere hunger in America rare. • TheFoodStampProgram/SNAPhashelpedpoor families and individuals purchase an adequate diet. - It has greatly reduced the incidence of severe undernutrition problems in the US. • TheFoodStampProgram/SNAPisreasonably efficient in making food affordable to poor households: - SNAP's "error rate" (measuring both "underpayment" and "overpayment") is less than 6%. • WICandschoolmealprogramsincreasechildren's intake of some key nutrients. • The WIC program enhances nutrition of its participants, improves birth outcomes and reduces health care costs. - The WIC program is precisely targeted to improve key nutrient intake of poor individuals identified to be at nutritional risk. - WIC participants receive subsidies only on selected nutrient-rich foods. - The WIC program generates significant improvements in the nutritional status of its participants. • In contrast with WIC, the other US Food programs (i.e., SNAP, School Breakfast and Food Lunch) do not restrict the type of subsidized food that is being purchased/consumed. - As a result, these programs do not necessarily imply a move toward a more balanced diet - Forexample,theycanincreasetheconsumptionofhigh-caloriefoods (in which case they could contribute to increases in obesity). - Many participants in SNAP do not increase their consumption of vegetables... • Finally, many US households that participate in food and nutrition assistance programs still struggle to make ends meet...

Why create malnutrition policy

• Good nutrition is an integral part of economic development • Economic development has many components - Economic growth: Increasing aggregate income - Improved justice, fairness and equity - Improved happiness • Food as a right can be seen as part of a broad set of human rights. - In 1948, the United Nations adopted the Universal Declaration of Human Rights. - In 1966, The United Nations adopted the International Covenant on Economic, Social and Cultural Rights (ICESCR) - Article 11 of the ICESCR recognizes "the right of every individual to an adequate standard of living, including the right to adequate food, clothing and housing". - The right to adequate food means "the availability of food in quantity and quality sufficient to satisfy the dietary needs of individuals". - The right to food implies an obligation for society to "take steps" to eliminate individual and world hunger.

Who is at risk for food insecurity?

• Groups at higher-than-average risk of food insecurity nationally: - Householdswithincomes below FPL - Singleheadedhouseholdswith children - Black households - Hispanichouseholds • Poverty is the most important predictor of food insecurity...and yet - More than half of poor households are not food insecure - More than half of food insecure households are not poor

Food Security

• Households are classified as exhibiting - "food insecurity" if they have difficulty at some time during the year providing enough food for all their members due to a lack of resources, - "very low food security" if the food intake of some household members was reduced and normal eating patterns were disrupted due to limited resources. • In 2010, - 14.5 % of US households (17.2 million households) were food insecure. - 5.4 % of U.S. households (6.4 million households) had very low food security. - Children were food insecure in 9.8 % of households with children (3.9 million households). - More than 60 % of food-insecure US households participated in Federal food and nutrition programs.

Improving Resource Equity

• Improving equity requires some transfers of resources/income among individuals - These transfers are typically from "the rich" to "the poor". • Some of these transfers are treated as obligations. Examples: - Obligation for parents to feed their children - Obligation to pay taxes (the US 16-th amendment, ratified in 1913). • But other transfers are treated as voluntary. Examples: - Philanthropy: voluntary actions of individuals contributing to the good of society. • The Bill and Melinda Gates Foundation (with a current endowment of $36 billion) has for primary aim to "enhance healthcare and reduce extreme poverty in the world". - Volunteering to help the poor • in your neighborhood • aroundtheworld. • The institutions involved in managing transfers of resources/income vary over time and across countries. • In developing countries : The role of families and local institutions is typically stronger - Extended families are more common - Reliance on remittances from family members working elsewhere is more important - Conflict resolutions and crisis (e.g., due to drought) are often managed at the village level (see Watts) - Government plays less of a role in managing "social safety nets". • In developed countries: The role of government and centralized institutions is typically stronger - Self-reliant nuclear families are more common - Conflict resolutions are managed formally by the Courts - Government plays a greater role in managing "social safety nets".

CCT NUTRITION BENEFITS

• Median food expenditures increased 11%, mainly for fruits, vegetables, meat, and dairy • No evidence that nutritional supplements crowded out calories from other foods • Reduced probability of stunting • 16% (1 cm) annual increase in growth rate for children 12 - 36 months • Incidence of illness declined 20-25% for children 0 - 5 • Prevalence of anemia declined 19% for children 2 - 4 • Adult health status improved

CCT Summary

• Mexico's Progresa/Oportunidades has given important lessons to the world • Targeting the poor together with conditionality of cash payments can help improve - the productive capacity of the poor - the effectiveness of welfare programs in reducing poverty and malnutrition, and in stimulating economic development • Effective monitoring and evaluation system is also important • Other Conditional Cash Transfers (CCT) have been implemented around the world (Latin America, Africa, Asia)

OVERAL CCT Benefits

• More education, less stunting, and better health are projected to produce greater household income streams in the future • Discounting that income stream back to present value shows a return of 7.4 pesos for every 1 peso spent by the program • MuchhigherthanotherMexicanprogramssuch as subsidized tortillas, subsidized milk, and aid to farmers harmed by NAFTA

The Efficiency of Catching Solar Energy

• Most of the energy coming to earth is solar energy. • Photosynthesis in plants and algae captures a fraction of solar energy and transformed it into chemical energy : {water + CO2 + solar energy} gives {oxygen + carbohydrates} • The efficiency of transforming solar energy into chemical energy varies with each plant: - 0.1-2% for typical plants - 1-2% for typical crops - 7-8 % for sugar cane (the most efficient plant). • On average, the photosynthesis efficiency of earth is about 1%. • Most crop plants store about 0.2-0.5 % of the sunlight into food products.

Biotechnology

• Natural selection is a natural process of selecting the genes that provide a living organism "improved fitness" to its environment. • Selective breeding is a form of genetic selection that select organisms with genes that contribute to "improved performance". - The selection is limited to genes already present in the organisms. • Biotechnology has developed rapidly since 1990. • Using genetic engineering, biotechnology has transferred genes across species to produce genetically modified organisms (GMO). • The genes used in biotechnology are typically patented by the biotech firms that develop it. • Beingpatented,geneticallymodified(GM)seedsare "owned" by the biotech firms - Farmers loose their ability to save and multiply seeds from their GM crops. • The production of GM crops has been growing fast since 1995 - in 2010, 15 million farmers grew biotech crops in 29 countries. - 85% of US corn and 92% of US soybean are now GM. - 6.5 million farmers in China and 6.3 million farmers in India grow biotech crops (mostly GM cotton).

Program Evaluation

• Program evaluation involves assessing the effectiveness of a program or policy to reach particular goals. • The program/policy goals are typically measured by some performance indicator, denoted by Y (e.g., nutritional achievement)

Improving photosynthetic efficiency to produce food

• Selecting plants that have a high energy efficiency: - Thisstartedwiththeriseofagriculture10,000yearsago. • Managing plants to increase their energy efficiency: - Use genetic selection to select genes that make plants more efficient at using soil nutrients and more resistant to pests and diseases - Improve soil fertility - Reduce weed infestation, thus making it easier for the plant to have access to water and soil nutrients. - Use irrigation to make water available to the plant in a timely manner - Use fertilizers to make more soil nutrients available to the plant in a timely manner - Reduce disease and pest damages.

short and long term prospects of GMO's

• Short run prospects look reasonably good - There is enough food to feed every human being now - Dealing effectively with poverty and income distribution issues remains a significant policy challenge at all levels • Longer run prospects: - Technological innovations offer some good prospects to feed the growing world population - But these prospects will depend on funding of Agricultural Research and Development (by the private sector as well as the public sector) - Are the evolving technologies and agro-ecological practices going to be sustainable? - Finally, there is much uncertainty about the effects of climate change...

what were the negative effects of targeting

• Some of the poor were wrongly excluded due to operational problems in household survey - Nobody home and no return visit - Respondent did not know household situation - Enumerator did not know local language - People distrustful, tired of surveys - People over-reported out of shame • Tensions and divisions in community because some selected and some not; some communities want everyone treated alike • Why target? - Reduce costs to government (see earlier slide) - Avoid regressive programs: • In many programs, the poorest 40% were getting less than 40% of the benefits • In the best targeted programs, the poor get a large share of the benefits • The benefit/cost (saving/cost) calculation depends on - (1) how costly the targeting is (and its frequency); - (3) how big the payments are. - (2) how high the poverty rate is (i.e., how many nonpoor could be excluded by good targeting? The more excluded, the more the savings.); - Extreme poverty rate is less than 50%, even in rural areas, so not targeting would have included a great many who were not extremely poor, thereby increasing program costs a great deal

Green Revolution

• The Green Revolution describes a seriesof agricultural innovations that took place during the period 1960-1980. • It started in the early 1960's with the creation of - CIMMYT (the International Maize and Wheat Improvement Center) in Mexico, funded by the Rockefeller Foundation - IRRI (the International Rice Research Institute) in the Philippines, funded by the Ford and Rockefeller Foundations. • Geneticists at CIMMIT and IRRI used genetic selection to create new varieties of wheat and rice (e.g., IR8 rice) that - makemoreefficientuseofappliedfertilizer - are more resistant to some insects and diseases - generatehigherandmorestableyields. • The new varieties contributed to large increases in wheat yield in Mexico and rice yield in Asia. • The timing of the Green revolution coincided with a period of rapid population growth (e.g., in India) • But Africa did not benefit from the Green Revolution - IRRI and CIMMIT's geneticists did not focus on African crops...

Food desert

• The HFFI working group defines a food desert as a low- income census tract where a substantial number or share of residents has low access to a supermarket or large grocery store: - To qualify as a "low-income community," a census tract must have either: 1) a poverty rate of 20 percent or higher, OR 2) a median family income at or below 80 percent of the area's median family income; - To qualify as a "low-access community," at least 500 people and/or at least 33 percent of the census tract's population must reside more than one mile from a supermarket or large grocery store (for rural census tracts, the distance is more than 10 miles).

Summary

• There is broad consensus that reducing malnutrition is desirable anywhere in the world. • Currently, there is enough food available to feed every individual in the world. - But will that remain true in the future (as the world population continues to rise)? • Some key policy issues are: - In emergency situations, there is a need for a timely response to provide food to people facing adverse shocks to their food supply. - There is a need to increase the food purchasing power of the poor • Through economic development • Through income/resource transfers • Through food pricing policy - There is a need to improve nutrition education. • But which policies are most effective? • And which institutions are most appropriate to implement these policies? - local institutions, philanthropic institutions, NGO, governments...

US Food Programs

• While the US food programs have a history that goes back to the 1930's, their growth took place mostly after 1960. • The US food programs are federal government programs providing food assistance/subsidies to US households or individuals facing poverty • Total budget cost of all US food assistance programs: $103 billion in 2011 (up from $54 billion in 2007). • The main programs are: - The Food Stamp Program now called the Supplemental Nutrition Assistance Program (SNAP) that targets all poor households. - The School Breakfast Program that provides subsidized breakfast to school children from poor households -TheNationalSchoolLunchProgramthatprovidessubsidizedlunchto school children from poor households -TheSpecialSupplementalNutritionProgramforWomen,Infants,and Children (WIC) that targets low-income women, infants, and children (under the age of five) that are identified at being at "nutritional risk".

Population Policies: L&F, chapter 18

• World population growth has been falling since the 1970's (due to a reduction in fertility rates in many countries). • A rising population is a key factor increasing the demand for food. • Thus, any reduction in the fertility rate 1. contributes to decreasing the demand for food, making it easier to improve the nutritional status of living individuals 2. contributes to the aging of the population. • Point #1 has been used to motivate policies that reduce the fertility rate - Example: China's "one-child per couple" policy. - Example: subsidizing family planning in parts of Africa • Point #2 has been used to motivate policies that stimulate the fertility rate - Example: France's policy to subsidize children.

Malnutrition and Economic Development

•Economic development is the process associated with improvements in human welfare. -Economic development is often associated with higher income. •Nutrition and economic development are closely linked -Undernutrition is more common in developing countries -The incidence of undernutrition is lower in developed countries •Causality goes both ways between undernutrition and low level of economic development -undernutrition prevents economic development -Lack of economic development causes undernutrition

Economic welfare

•Economic efficiency : when resources are used to maximize aggregate welfare -Aggregate economic welfare for a group of people is measured by the value of all goods they consume •At the national level, this is measured as the Gross Domestic Product (GDP) -For a given country, GDP per capita is a measure of the average income of people in the country.

Undernutrition prevents economic development

•Individual undernutrition: -Has adverse effects on labor productivity •Decline in physical capacities •Increase in absenteeism -Increases the incidence of diseases (under a weakened immune system) •Increased morbidity reduces the quality of life -Increases medical expenses (from increased incidence of diseases) -Has adverse effects on cognitive abilities (from slower mental development) •Reduced innovation and entrepreneurship -Increases mortality (from increased incidence of diseases, or from starvation under extreme undernutrition) •The resources used in raising and training the individuals who die prematurely are "wasted" --These adverse effects of individual undernutrition mean a lower capacity to generate income -In the short term (e.g., decreased capacity to work during the hungry season) -In the longer term •Some of the effects of malnutrition are chronic and can last a lifetime (e.g., the irreversible effects of blindness) •Many effects of infant malnutrition are long term (e.g., the effects of stunting on physical and mental development) •The effects of malnutrition can be across generations (e.g., when malnourished mothers have children with low birth weight) •These longer term adverse effects can be quite large .•These adverse effects of individual undernutrition imply lower income, a lower quality of life, and lower human welfare

Ideas for solving food insecurity

•More jobs and better wages •Affordable housing initiatives •Ensuring access to income safety net programs •Subsidizing competing costs (childcare, home heating, etc) •SNAP outreach •Breakfast in schools •Better breakfast programs in schools •Sponsors for summer food programs •Bring supermarkets or other affordable outlets to food desserts •Work to get healthier foods in stores •Farmers markets in low income areas •Expanded hours at pantries •Located where most needed •More/healthier foods •Link pantries to gardens and growers •Mobile pantries

causes of obesity

•The rise in obesity has been associated with -an increased intake of energy -dense foods that are high in fat,salt and sugars but low in vitamins, minerals and othermicronutrients -a decrease in physical activity due to the increasingly sedentary nature of many forms of work, changing modes of transportation, and increasing urbanization •The obesity rate has been increasing both within and across countries. -The US has the highest obesity rate among OECD countries, and the rate is still rising. •The increase in obesity varies across socio-economic groups (children, the poor, women, ...) -The highest rate of obesity in the US is among non -hispanic black women (42 %) •Low income is NOT a key contributor to the rise of obesity -Obese people always have the option of reducing their current food intake, thus increasing their purchasing power to buy other goods (including more nutritious food). •While obesity can arise at all income levels, it can also affect low income individuals -In developing countries -In the US, native Americans are on the low-end of the income scale, yet they exhibit a high obesity rate.

SNAP/ Food share

•around 134 a month In 2010, 17% of households in WI participated in FoodShare • 14% of FoodShare recipients are children <4yrs • 50% of FS recipients <22yrs 42% of students in WI's public schools qualify for free or reduced price meals