Policy Approaches to Undernutrition Text extracted from The World Food Problem Leathers and Foster, 2004 http://www.lastfirst.net/images/product/R004548.jpg.
Download ReportTranscript Policy Approaches to Undernutrition Text extracted from The World Food Problem Leathers and Foster, 2004 http://www.lastfirst.net/images/product/R004548.jpg.
Policy Approaches to Undernutrition
Text extracted from
The World Food Problem
Leathers and Foster, 2004 http://www.lastfirst.net/images/product/R004548.jpg
Ethics: Pope John Paul II
• • • “Contrasts between poverty and wealth are intolerable for humanity” “It is the task of nations, their leaders, their economic powers and all people of goodwill to seek every opportunity for a more equitable sharing of resources” – Example of
Beneficence
• Personal moral duty to help the poor http://schoolnet.gov.mt/liceovassalli/mav/MAV%20Zones/Students/Essays/Pope%20John%20Paul%20II.jpg
Ethics: Right to Food?
United Nations • • Right to Food – Included in International Covenant on Economic, Social and Cultural Rights – Adopted by UN – Signed by 85 countries Now must address hunger issue – to protect fundamental rights of society – Don’t need to feel personal moral duty to help the poor http://orrinwoodward.blogharbor.com/United%20Nations%20Assembly.jpg
Ethics: Right to Food?
• • • • • Rights taken very seriously Absolute entitlement Non-negotiable Would require government to act to prevent hunger Conflict with property rights?
Feeding orphans, Yemen http://www.yobserver.com/uploads/1/orphans5.jpg
Economist’s Questions
• • What is the appropriate policy for society as a whole?
How can government best manipulate human greed to achieve its policy objectives?
http://neweconomist.blogs.com/photos/uncategorized/20061110_inside_the_economists_mind_cove.gif
How to Move Society Forward
Government Manipulate self-interest to achieve policy goals Economy Capitalism Ideology Self-interest
Economics Policy Decisions
Three Gorges Dam, China http://www.thelightisgreen.com/China%20Three%20Gorges%20Dam%2001.jpg
• • • • Every action has costs and benefits Marginal costs and benefits – For 1% increase in cost, what is the increase in benefits?
Ideal decision: where marginal costs = marginal benefits Free market will allocate resources optimally, but – Without concern for • • Social costs Environmental costs – Can everything be put in dollar terms?
Externalities
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• Costs and benefits sometimes go to people outside the market transaction – Should wealthy benefit from costs borne • By the poor?
– Exploitation = externality • By the environment?
– Exploitation = externality – To feed hungry has indirect benefit to wealthy • • We feel better = externality No market for this
Every action has costs and benefits
• How much would you pay for… – A human life?
• Speed limit 10 MPH?
• Nutrition for every man, woman, and child?
– Food without pesticide residue?
– No pollution?
– Freedom?
– Fair trade?
http://www.superkidsnutrition.com/app_themes/sba_nutrition/images/NA_ProtectSelfFromPesticides.jpg
Harnessing greed in policy
• • • Economic incentives – Can make it more expensive • To have children • To degrade the environment – Need property rights Production increases with reward – If we eat less: • other countries won’t benefit • Farmers will produce less As demand increases – efficiency increases • • Products made available more cheaply Alternatives found http://sheepwaker.tripod.com/greed.jpg
Policy to reduce undernutrition?
• • 250 Calories/day would erase Calorie deficit of hungry – Cost 35 cents/day/person – = $6,400 invested at 2% interest – Value of Human Life?
For 800 million people, this policy would – Increase food prices – Increase environmental costs of food production http://www.pbs.org/newshour/images/africa/july-dec07/1126_somalia_bhead2.jpg
Policies to raise incomes of poor
http://www.alliance2015.org/var/news/storage/images/galleries/world_poverty_map/245 2-1-eng-GB/world_poverty_map.jpg
• • Redistribute income from rich to poor – Rationale: declining marginal utility of income • Rich don’t benefit from a dollar spent as much as poor do – But should incomes be equalized?
Improve rate of economic growth – Is Globalization beneficial to developing nations?
Policies to reduce price of food
• • Population reduction – Demand will rise slower – Food prices will rise slower Increasing supply – Research investment – Loans to farmers http://farm3.static.flickr.com/2300/2198720003_b56c80b97c_o.jpg
Policies to reduce cost of food
• • Price supports • Sell food to consumers • Subsidies to farmers – Both reduce economic efficiency – Therefore distortionary Corrective price policies – Example: correcting distortions that reduce food output
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Aid Policies
• • • • Aid can help – If targeted to poor • Example: School feeding – In emergencies Aid can hurt – If wealthy elites profit from it • makes the problem worse Often designed to further our national and trade interests Directed mainly at political allies – not hungry nations
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Aid Policies
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• • • Have been used as a lever – to impose “structural adjustment” on foreign trade policies If foreign countries do not open up markets – or reduce subsidies as directed by U.S.
• Aid may stop Designed to create new markets – foster dependence on U.S. grain • Korea
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Aid Policies
• • • When aid is given as free grain – undermines prices for farmers – driving them out of business Military aid can lead to armed conflicts – that generate hungry people Well-off divert aid to help themselves – further widening gap between haves and have-nots
U.S.Agency for International Development (USAID)
USAID in Uganda • • • • Started with Marshall Plan after WWII Principal U.S. foreign aid agency to help countries: – Recover from disaster – Escape poverty – Democratic reforms Partnership with – 3,500 U.S. businesses – 3,000 Organizations $8.8 Billion
U.S. Foreign Aid
• • • • U.S. gave $28 billion (2007) Largest Donor in world Less generous based on capacity to give (GNP) < 0.22% Federal Budget – Majority think U.S. Aid is 20X more http://news.bbc.co.uk/nol/shared/spl/hi/pop_ups/05/business_aid_and_development/img/1.jpg
U.S. Foreign Aid Budget
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U.S. Generosity
http://photos.state.gov/libraries/usinfo-photo/39/week_4_0507/052507 AidChart_en_200.jpg
• • • 2007 Government Aid: – $28 billion 2007 Private giving – $93 billion • $61 billion: private payments to family members 2007 Private Lending, Investment – $69 billion
Third World Debt
• • • Forgiving third-world debt – would help countries become self-sufficient Honduras annual debt payments – exceed amount spent on health and education combined Total debt payments – greater than foreign aid and foreign investment combined http://bloodbankers.typepad.com/submerging_markets/chart_intro.1.%20Growth%20of%20the%20Debt.jpg
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