The Journal of Nutrition Supplement: The Impact of Climate Change, the Economic Crisis, and the Increase in Food Prices on Malnutrition High Food Prices and the Global Financial Crisis Have Reduced Access to Nutritious Food and Worsened Nutritional Status and Health1,2 Henk-Jan Brinkman,3* Saskia de Pee,3,5 Issa Sanogo,4 Ludovic Subran,6 and Martin W. Bloem3,5,7 3 Policy, Planning and Strategy Division and 4Programme Design and Support Division, World Food Programme, Rome 00148, Italy; Friedman School of Nutrition Science and Policy, Tufts University, Boston, MA 02111; 6Agriculture and Rural Development, World Bank, Washington, DC 20433; and 7Bloomberg School of Public Health, Johns Hopkins University, Baltimore, MD 21205 5 Abstract A global economic and financial crisis is engulfing the developing world, coming on top of high food and fuel prices. This paper assesses the impact of the crises on food consumption, nutrition, and health. Several methods were applied, consumption score (FCS), reflecting diet frequency and diversity, and a review of the impact of such dietary changes on nutritional status and health. The cost of the food basket increased in several countries, forcing households to reduce quality and quantity of food consumed. The FCS, which is a measure of diet diversity, is negatively correlated with food prices. Simulations show that energy consumption declined during 2006–2010 in nearly all developing regions, resulting potentially in an additional 457 million people (of 4.5 billion) at risk of being hungry and many more unable to afford the dietary quality required to perform, develop, and grow well. As a result of the crises, large numbers of vulnerable households have reduced the quality and quantity of foods they consume and are at risk of increased malnutrition. Population groups most affected are those with the highest requirements, including young children, pregnant and lactating women, and the chronically ill (particularly people with HIV/AIDS and tuberculosis). Because undernutrition during the first 2 y of life has life-long consequences, even short-term price rises will have long-term effects. Thus, measures to mitigate the impact of the crises are urgently required. J. Nutr. 140: 153S–161S, 2010. Introduction The world has faced higher food and fuel prices in recent years, particularly since 2005. Between 2000 and its peak in 2008, the FAO cereal price index more than tripled. The increase in cereal Published in a supplement to The Journal of Nutrition. Presented at the workshop “The Impact of Climate Change, the Economic Crisis, and the Increase in Food Prices on Malnutrition,” held in Castel Gandolfo, Italy, January 25, 2009. The workshop was organized by Martin W. Bloem, United Nations World Food Programme, Rome, Italy; Klaus Kraemer, Sight and Life, Basel, Switzerland; and Richard D. Semba, Johns Hopkins University School of Medicine, and with the support of an educational grant from Sight and Life, Basel, Switzerland. Supplement contents are solely the responsibility of the authors and do not necessarily represent the official views of the organization that they are affiliated with. Publication costs for this supplement were defrayed in part by the payment of page charges. This publication must therefore be hereby marked "advertisement" in accordance with 18 USC section 1734 solely to indicate this fact. Supplement Coordinator disclosures: Martin Bloem, Klaus Kraemer, and Richard Semba have no relationships to disclose. Supplement Guest Editor disclosures: A. Catharine Ross and Richard Semba have no relationships to disclose. The opinions expressed in this publication are those of the authors and are not attributable to the sponsors or the publisher, Editor, or Editorial Board of The Journal of Nutrition. 2 H-J. Brinkman, S. de Pee, I. Sanogo, L. Subran, and M. W. Bloem, no conflicts of interest. * To whom correspondence should be addressed. E-mail: henk-jan.brinkman@ wfp.org. 1 0022-3166/08 $8.00 ã 2010 American Society for Nutrition. First published online November 25, 2009; doi:10.3945/jn.109.110767. prices has led to a reduction in the quality and the quantity of food consumed among vulnerable households who spend a large share of their income on food and have few coping mechanisms at their disposal (1). Vulnerable populations switch to cheaper food that fills their stomachs but is less nutritious. When nutritional needs are not met, people become prone to illness, perform worse at school, and have lower productivity. Even 6 mo of inadequate nutrition before the age of 2 y has important long-term consequences due to its largely irreversible effects on an individual’s physical and mental development and future potential (2). This affects not only the individual, and offspring, but also the longer-term growth prospects of the country. Survey evidence suggests that households have reduced the quantity and quality of food consumed in the face of higher food prices. High food prices have eroded coping capacities of many households and countries across the developing world. On top of that, they are now facing a global financial crisis. Direct confirmation that hunger, malnutrition, and nutritional status have broadened and deepened in 2007 and 2008 as a result of high food prices is circumstantial (3). Because direct and real-time evidence on food consumption is difficult to gather, we use a number of different methods to assess the relationship of changes of food prices and income with food 153S Downloaded from jn.nutrition.org by guest on April 11, 2012 including risk analysis using the cost of the food basket, assessment surveys, simulations, regression analysis using a food consumption and food access and discuss existing research on the impact of these changes on nutritional status and health. Channels of impact: a framework High food prices The population groups most vulnerable to high food prices are those who spend a large share of their income on food, buy more food than they sell (net buyers), and have few coping strategies at their disposal. These groups include the urban poor, rural landless, pastoralists, and many small-scale farmers. Poor families in developing countries spend between 50 and 80% of their incomes on food. In many countries, the middle class are at risk as well. For a middle-class family spending a total of US$6 to $10 per capita per day, food still accounts for 35 to 65% of expenditures. In most developing countries, .80% of the population lives on ,US$10 per capita per day (4). High food prices are, therefore, likely to affect the majority of the population in developing countries. It is often assumed that farmers would benefit from higher food prices, but only a minority of farmers, typically ,20%, produce enough surplus to be categorized as net sellers (5,6). Farmers sell food crops even when their harvest will not be sufficient for their own consumption needs for the year. They sell for a low price at harvest time and buy at a high price during the lean season because they need cash, have no storage capacity, and lack financial services. They have no option other than selling their only liquid asset: the cereals harvested (7). The fact that most households are net buyers implies that most of them may be adversely affected by high food prices. Global financial crisis The financial crisis started in the US but quickly spread to Europe and developing countries. Developing countries are facing slower economic growth, a steep fall in exports, a decline in foreign capital, lower remittances, lower tourism revenues, depreciating exchange rates (making food imports more expensive) and, possibly, less aid. This is leading to job losses of 154S Supplement FIGURE 1 Framework for the analysis of malnutrition. Adapted with permission from UNICEF (36). possibly 50 million (8). Government budgets in developing countries are also under pressure, which could translate into lower expenditures on social protection and government services. This could affect malnutrition through lower subsidies or higher taxes on food and fuel and through the health, water, and sanitation sectors. One positive aspect of the global financial and economic crisis is that international food and fuel prices have declined, although less so at national levels. The FAO food and cereal price indices declined by about one-third between June and December 2008. Slower demand growth, alleviation of weatherrelated supply constraints, easing of export restrictions, lower transport costs, and a stronger dollar have contributed to lower food prices. Yet food prices are still high and are expected to remain relatively high because of structural factors, such as low stocks, low productivity growth, climate change, and demand for biofuels (6). The FAO Cereal Price Index in January 2009 was still 80% above the 2005 level and double the 2000 level. Impact on food consumption We make a distinction between an impact assessment and a risk analysis of impact. Risk refers to the probability of food insecurity resulting from interactions between hazards and vulnerable conditions. Vulnerability is a function of exposure to a hazard and the capacity to mitigate and cope with the hazard’s effects. Risk analysis can be conducted ex ante using secondary data. An advantage is that specific effects, such as high food prices, can be isolated. It does not, however, account for coping strategies. Impact assessments use primary data and are conducted ex post. They account for all factors that might influence food security, including the capacity to cope with shocks, and, therefore, isolating specific causes can be difficult. High food prices Direct observation of food consumption in terms of grams is difficult and expensive and not feasible for a large number of countries in a relatively short time span (9). The challenge lies in getting cost-efficient monitoring tools for food access at the household level that complement food availability aggregates and do not require data-intensive household surveys. Indicators Downloaded from jn.nutrition.org by guest on April 11, 2012 Malnutrition is a complex phenomenon with multiple causes. Food access is one of them. Other factors are caring practices and health care and environment. High food prices and the global financial crisis have affected several underlying factors of malnutrition. This is illustrated in Figure 1, which is adapted from the original framework for causes of malnutrition developed by the United Nations Children’s Fund. Separating the different causes and quantifying the impact of high food prices and the global financial crisis on malnutrition is not easy. In this paper, we focused on the direct link between prices and incomes on the one hand and food consumption and nutrition on the other hand. Food access is determined by income and the prices of foods. High food prices have reduced food access for net buyers and the financial crisis is largely affecting the income component of food access through job losses and reduced pay. The transmission of the crises to developing countries depends on vulnerability factors. International prices do not translate into local prices on a one-to-one basis. The transmission is influenced by several factors, including the percentage of food that is imported and the ability of governments to change taxes and/or subsidies (6). Regarding the global financial crisis, countries highly dependent on exports to developed countries, capital flows, and remittances are likely to be more vulnerable. TABLE 1 The impact of high food prices on the cost of a food basket in 20081 Increase in the cost of the food basket, % Compared with last year Countries A Niger Senegal Ethiopia Cambodia Indonesia Nepal Energy share, % B Millet Sorghum Imported rice Maize Imported rice Millet Sorghum Maize Maize Wheat Sorghum Rice Cheaper rice Rice Wheat Maize Sorghum Bean Rice C 48 12 8 2 32 10 4 4 21 18 10 69 50 37 14 31 6 5 4 Price change,2 % D 31 39 36 72 90 5 1 13 194 123 203 88 8 37 41 27 9 5 48 E 21 23 39 57 99 27 6 37 234 145 199 135 41 60 71 27 29 44 91 Contribution by commodity F = C×D 15 5 3 1 29 1 0 1 41 22 20 60 4 14 6 22 1 0 2 Countries, n Food basket3 G 24 30 83 60 4 19 1 Simple average Contribution by commodity H = C×E 10 3 3 1 32 3 0 1 49 26 20 93 21 22 10 8 2 2 4 Food basket3 I 17 36 95 93 21 32 16 Simple average West and Central Africa 8 20 20 East and Southern Africa 14 57 68 Asia 11 23 45 2 21 30 35 36 48 Latin America Total 1 Based on WFP (37). Latest quarter over same quarter last year (column D) and latest quarter over same quarter last 5 y (column E). 3 Price impact on the cost of the food basket: low (,5%); moderate (5–10%); high (10–20%); very high (.20%). 2 need to reflect food and nutritional status and be sensitive to covariant shocks, such as economic crises. Good indicators could trigger preventive measures and avoid irreversible damage and the need for high cost of therapeutic feeding. To assess the impact of high food prices on food consumption, the World Food Programme (WFP)8 has used a number of proxy measures. One of them is based on the increase of the cost of the food basket. WFP regularly calculates changes in the costs of food baskets in 35 countries (10), based on a weighted average of price changes, using the energy contributions to the food basket as weights. Households with diverse energy sources are likely to be less affected by price increases than households with a single source, because households can substitute toward cheaper food items unless significant price increases affect all the commodities in the food basket. Increases in the cost of the food basket should be interpreted as risks faced by households, because they do not capture long-term and indirect impacts and coping capacities of different households. For instance, substitution and income effects due to price changes are disregarded. Table 1 illustrates the method for selected countries and for geographical regions. It shows that on average the cost of the food basket, using prices for the latest available quarter in 2008, is 36% higher than for 8 Abbreviations used: FCS, food consumption score; GDP, gross domestic product; WFP, World Food Programme. the same quarter in 2007. The cost of the food basket is 48% more expensive compared with the previous 5 y, varying between 20% in West and Central Africa to 68% in East and Southern Africa. WFP also conducted several household-level food security assessments in 2008 to assess the impact of high food prices. The objective of the assessments was to determine whether countryspecific food price increases were leading to significant changes in the food security status of the households. WFP assessments found widespread evidence of reductions in the quality and quantity of food consumed. The country-specific findings are summarized in Table 2. The assessments also found some evidence of reductions in health care visits or health expenditures, increased school drop-outs, or sale of economic assets (1). Another proxy used by WFP is the Food Consumption Score (FCS), which is used to measure the diversity and frequency of food consumed within a 7-d recall period. Derived from the Food and Nutrition Technical Assistance Dietary Diversity Score (11), the higher the score, the better the diet and the more food secure is the household. This indicator has been validated as a good measure to capture food and nutrition security in various contexts (12–14) but still presents some challenges, such as clustering around thresholds, seasonality, and intra-household distribution (15). High food prices, financial crisis, food, and nutrition 155S Downloaded from jn.nutrition.org by guest on April 11, 2012 El Salvador Main staple food Compared with last 5 y TABLE 2 Food prices and the impact on food expenditures and food consumption1 Country (period of assessment) Coverage Extent of price increases Cambodia (April 2008) National (desk review) Rural and urban Nepal (April–May 2008) Rural Wheat prices increased by ~200% in main urban areas (May 2007–May 2008) The price of rice increased by 100%, meat by 50–70%, and fish and vegetables by 20–30% (May 2007–May 2008) Deterioration of the terms of trade (wage/price coarse rice) by ~15% in mountains and hills and 9% in Terai Food prices increased less in urban than rural areas. The deterioration of the terms of trade is lower in urban areas (7%) than rural areas Asia Afghanistan (Jan–July 2008) Urban Pakistan (June 2008) Rural Limited pass-through effects of global prices Terms of trade (wage rate/wheat price) deterioration Palestine (April 2008) Africa Benin (July 2008) National The consumer food price index rose by ~15% and wheat flour prices increased by ~70% (March 20072April 2008) National In real terms, maize price (the main staple) increased by 197%, rice price by 20%, and sorghum prices by 76% (July 2007–July 2008) The price of a basket of basic food items increased by 23% (December 2007– April 2008) Burkina Faso (June–July 2008) Urban Burundi (June–July 2008) Urban Djibouti (May 2008) Rural Ethiopia (July 2008) Urban (in and around the capital) Guinea (May 2008) Rural Kenya (July 2008) Urban (Conakry) Urban and rural Lesotho (June 2008) Urban Prices for beans increased year-on-year by 40%; cassava and sweet potatoes prices remained stable (July 2007–June 2008) 50–63% received less purchasing power compared with 1 y ago due to increased food and petrol prices Wheat, teff, and rice prices increased by ~100% in 1 y; maize prices by ~180%, meat prices by 50%, vegetables by 60%, sugar by ~40%, and cooking oil by ~60% Proportion of HH2 with a poor food consumption increased 16% compared with 2006 data 34% of farmers produce a surplus of rice. Their incomes increased. About 50% of HH reported cutting back on food to cope with higher prices. Higher food prices result in worse FCS among the poor and extreme poor, increased debts and lower quality of diets, sales of assets, and taking children out of school. The use of coping strategies in urban settings is less than in rural areas, although urban HH tend to reduce the size and the frequency of meals more often than rural HH. The poorest quintile spends 13% more on food than 2 y ago. The richest quintile spends 5% more. Food expenditure rose by 10% and total expenditure by 4% in rural areas Increased number of undernourished (,1700 kcal)3 rural population from 25% in 2006 to 30% in 2008 Increased number of undernourished (,1700 kcal) urban population from 21% in 2006 to 27% in 2008 50% of HH decreased food expenditures by reducing the quality, mainly meat and milk (89%) and the quantity (76%) Reduced number of meals in the rural areas of Borgou and Alibori region Increased food expenditures from 50 to 75% within 1 y Reduced the number of meals and diet diversity and expenditures on health and hygiene Nutritional situation of the most vulnerable deteriorated; increased number of children in feeding centers 95% of HH indicated an increase of their food expenditures The most commonly reported shock, by 83% of the HH, was unusually high food prices 15% of Gs reduced the quantity of food or/and reduced overall (including food) expenditures The share of poor FCS went up by as many as 10% points; the share of borderline FCS increased up to 15% points, equivalent to a decrease of the share of acceptable food consumption group since 2006 Between January and July 2008, urban population with good FCS decreased from 64 to 40% Those with very poor FCS increased from 3% in January 2008 to 5% in July 2008 FCS among income groups relying on pensions and allowances fell by 16% 36% of cash-croppers were usually severely food insecure Double-digit inflation rate over the last 5 y 156S Supplement Pastoralists faced terms of trade deterioration Terms of trade (wage/food prices) decreased by 50% in urban settings Vegetable oil prices increased by 100% and 1 kg of maize by 59% (March–July 2007) 29% HH reduced number of meal and 87% reduced quantity of meal Pastoralist population living below the food poverty line rose by 23% (from December 2007) to 75% in June 2008 Poor people were resorting to diet changes and reduction in frequency and composition of meals Expenditure for food and fuel increased. Most commonly, HH ate less preferred food and reduced the amount of food eaten and number of meals (Continued) Downloaded from jn.nutrition.org by guest on April 11, 2012 Urban Impacts on food consumption TABLE 2 Continued Country (period of assessment) Coverage Extent of price increases Impacts on food consumption Liberia (June–July 2008) National Double-digit and increasing inflation (13.4% in 2008) Uganda (May 2008) National A 10% increase of all food prices results in 5.5% decline in HH purchasing power All livelihood groups ate less preferred food, substituting cassava for rice HH spent more on food commodities (50–86%) and less on higher quality food commodities, in particular protein sources, and vegetables in urban areas Increased rate of severely food-insecure HH in poor neighborhoods from 4% in December 2006 to 8% in June 2008 in urban areas Decrease of the proportion of people with good food consumption from 64 to 40% in urban areas About 50% of food needs covered by own production Large declines in HH income led to small reductions in diet diversity Latin America El Salvador (May 2008) National Guatemala (May 2008) Honduras (May 2008) Nicaragua (May 2008) National National National Maize prices increased by 19%, sorghum by 31%, beans by 64%, and rice by 66% (July 2007–July 2008) Not available Not available Not available Food consumption among the poorest families decreased 87% of poor HH reduced both the quality and quantity of their food consumption Food consumption among the poorest families reduced by 6% Food consumption among the poorest families reduced by 8% Food consumption among the poorest families reduced by up to 26% 1 The WFP and partners run pilots of market and food security monitoring systems in Haiti, Nepal, and Niger, which yield FCS from household surveys and price data (as collected in the nearest market) (Table 3). We examined the correlation between food prices and the FCS. The model links changes in FCS at household level to changes in prices of food (both in logarithm) and other variables: ln FCSi ¼ a þ b ln Pricei þ + dk 1Iki þ k2Rounds þ + ml Zli þ ei + uj 1Iji j2Zones i ¼ 1:::n; l2HH where Price is the price of the main food staple (or an index) experienced by each household, 1I are dummy variables for k rounds and j zones, and Z is the household characteristics available for each dataset. Ordinary least square estimates are summarized in Table 4. The 3 countries had negative elasticities ranging from 20.05 to 20.23. Thus, a 100% increase in food prices would result in a reduction of the FCS of 5–23%, other factors held constant. This is plausible but perhaps on the low side given the high share of food in household expenditures, the size of income, and price elasticities in developing countries (Table 5) and the evidence that households first reduce the diet’s quality (see below). It is important to note that the Niger data cover 7 mo in 2007, before the main price hikes, but show the importance of seasonality in food access (3). The lean season in Niger (May to September) is marked with high increases in food prices and reduced diet quality. Koumou and Subran (16) also found a substantial correlation between high food prices and risk to food and nutrition insecurity using FCS and household expenditures and consumption of less nutritious foodstuffs. Global financial crisis In early 2009, it was too early to have a full picture of the impact of the global financial crisis on food consumption and nutrition. The crisis is unfolding rapidly with negative information about exports, employment, and growth appearing in news reports on a nearly daily basis. Many economists expect that this will be the longest and deepest recession since the Great Depression of the 1930s. We employed a simple simulation to assess the potential impact on food consumption. The simulations were based on the following equation: C ¼ Y × ey þ P × e p ; where C = percentage change in energy consumption; Y = percentage change in gross domestic product (GDP) per capita; P = percentage change in real food prices; ey = price elasticity; and ep = income elasticity. We estimated the number of people falling below the minimum dietary energy consumption based on the assumption that energy consumption follows a lognormal distribution, which is defined by the mean and CV. The CV is assumed to remain constant. Average and minimum required energy consumption are from FAO. Elasticities are unweighted regional averages based on national estimates from the USDA, Economic Research Service. Price changes are based on the FAO Food Price Index, deflated by the consumer price index for the United States. Food prices are assumed to decline by 7% in 2009 and by 2.5% in 2010, which is in line with several major forecasts. The consumer price index forecast for 2009 and 2010 are from (17). Global food prices are assumed to prevail at the regional levels as well, which are in line with, or even at the lower end of, actual increases for regions (Table 1). Changes in GDP per capita are based on taking the pessimistic forecast for 2009 from (18) and assuming that percentage point change in growth in 2009 is continuing in 2010, which is a very pessimistic scenario. The results show that nearly all developing regions would suffer from a decline in energy consumption between 2005 and 2010, potentially causing an additional 450 million people to become hungry, as a result of high food prices and poor growth High food prices, financial crisis, food, and nutrition 157S Downloaded from jn.nutrition.org by guest on April 11, 2012 Source: WFP assessments (38). HH, Household. 3 1 kcal = 4.184 kJ. 2 TABLE 3 Country Haiti Nepal Niger 1 2 Food security monitoring characteristics1 Dates and rounds HH and zoning 2 Price variable Comments on the modeling January, June, and September 2006 January, June, and September 2007 February 2008 July–September 2008 October–December 2008 517 HH in 5 villages (Acul Samedi, Ferrier, Beau Roc, Grison Garde, and Dupity) Rice Village effects were not significant certainly due to good market integration. Coping Strategy Index was used to capture main HH characteristics. 600 HH in 3 zones (Mountains, Terai, and Hill districts) Weighted commodity index June, August, November, and December 2007 4376 HH in 357 villages Millet No round dummy (2 rounds only). Wealth groups determined by: ownership of assets (financial, human, HH, and agricultural). Agroecological zones are pastoral, agricultural, and agropastoral. Ownership of livestock and food stocks was used as a wealth proxy. Source: WFP and WFP/Nepal Development Research Institute, 2008. HH, Household. increasing susceptibility to infections, micronutrient deficiencies slow cognitive development and growth, contributing to poorer school performance and reduced work productivity. Infections, including diarrhea, increase nutrient losses and reduce appetite, thus further aggravating micronutrient deficiencies (2,20). When households also reduce the size or number of meals, they will likely suffer deficiencies in macronutrients and energy, which leads to thinness among adolescents and adults, child TABLE 4 Regression results: food prices have a negative effect on the diversity and frequency of food consumption Impact on nutrition Child malnutrition is a major underlying cause of mortality worldwide, accounting for an estimated 2.2 million under-5 child deaths annually (20). For example, in southeast Asia, multiple micronutrient deficiencies and chronic malnutrition occur in roughly one-third to one-half of preschool children. Although the Millennium Development Goal 4 calls for a reduction in under-5 child mortality by two-thirds between 1990 and 2015 and Goal 1 for a 50% reduction of underweight, higher food prices threaten to undo much of the progress made toward achieving these goals. As discussed above, households reduce both dietary diversity as well as energy intake in response to increased food prices and reduced income. First, the consumption of more expensive food items is reduced, followed by a reduction of the size and frequency of meals. Within families, adults (particularly women) may prioritize their children’s food consumption over their own (21). The larger the proportion of total expenditure that was already spent on food, the greater the implications of food price and affordability changes on consumption and nutritional status. The decreased purchase of more expensive foods typically equates to consumption of fewer nutrient-dense foods, such as animal source foods (meat, poultry, eggs, fish, milk), fruits, and vegetables. When the “savings” brought about by this coping strategy are insufficient, households may also reduce expenditure on basic foods, such as sugar, oil, salt, and staples. Hence, the intake of specific nutrients, in particular micronutrients, is reduced before energy intake is reduced. This causes increased prevalence and severity of micronutrient deficiencies (22–25). Deterioration in micronutrient status and health may progress rapidly as food consumption changes. In addition to 158S Supplement Intercept Prices Rounds Round 1 Round 2 Round 3 Round 4 Round 5 Round 6 Round 7 Zones Zone 1 Zone 2 Zone 3 HH2 characteristics Female head of HH Children in HH, n Elderly in HH, n No food stocks Yes livestock No land Coping strategy index Model fitting R2 Observations, n Haiti Nepal Niger 2.90***1 20.23** 4.09*** 20.05* NA 4.13*** 20.08*** 20.01*** 0.01*** 0.04*** Reference — — — Reference 0.08** 0.08** 0.18*** 0.21*** 0.21*** 20.45 NS NI Reference 20.32*** 20.19*** Reference 20.19*** 20.07*** NA NI NI NI NA NA 20.01*** 20.10* NA NA NA NA 0.19*** NI NA NA NA 0.18*** 0.22*** NA NA 0.2 517 0.12 651 0.16 4376 1 *Significant at 10%, ** at 5%, *** at 1%. NS, Not significant; NA, not available; NI, variables not included in the final model after standard model selection procedures, including significance of coefficients and overall quality of the model. Reference is the modality chosen as a reference for estimation purposes. For Nepal, only extreme poor, poor, urban poor, and lower-middle income households were included. 2 HH, Household. Downloaded from jn.nutrition.org by guest on April 11, 2012 in GDP per capita (Table 5). East Asia is the exception because of high GDP growth compensating for high food prices. This is in addition to the 848 million people being undernourished in 2003–2005. These numbers should be interpreted with caution. They do not pertain to actual changes. They do not incorporate the effects of coping strategies. Moreover, we know from various studies (9,19) that households first reduce the quality of food intake before they reduce the quantity of calories. Therefore, the numbers reflect a potential, perhaps maximum, risk. TABLE 5 Projected changes in food consumption by region of the developing world as a result of changes in food prices and incomes, 2006–20101 Country Africa East Asia South Asia Western Asia Latin America and Caribbean Developing world 1 Price elasticity of demand for food Income elasticity of demand for food Real food price increase 2006–2010 GDP per capita growth 2006–2010 Food consumption change as result of price and income changes, % 2006–2010 20.56 20.48 20.57 20.48 20.48 0.69 0.59 0.70 0.59 0.58 37 37 37 37 37 21 32 21 4 4 221.3 1.0 26.8 215.4 215.7 Population, millions 2005 Additional hungry population, millions 2006–2010 769 1395 1562 195 541 4463 239 0 111 21 87 457 Source: Authors’ calculation (see details in text). able for targeted populations, and provide social protection to vulnerable populations (6,32). In addition to short-term nutritional support to young children, which requires special highly nutritious commodities that can complement the daily diet (26), efforts to prevent malnutrition also need to be aimed at pregnant women and mothers, enabling them to adequately feed and care for their children, i.e. exclusive breast-feeding for the first 6 mo of life followed by appropriate complementary feeding. Potential interventions encompass a range of tools, including market-based and nonmarket–based interventions. Because each setting will experience different effects of food price increases and have different resources to respond, planners must account for contextual factors when deciding upon which interventions to utilize. Irrespective of whether the modality consists of food assistance or conditional cash transfer programs augmented with vouchers, or a creative combination of the 2, adequate access to micronutrients should be assured (33). Future work should involve the establishment of effective surveillance systems to monitor changes in the vulnerability and food security of populations over time. Investments in nutrition are among the most cost-effective interventions, which not only affects the individual but also the growth prospects of the country because of the high cost of hunger (34) and the high benefit:cost ratios (35). Acknowledgments We thank Farzad Kapadia for excellent research assistance, WFP’s staff members specifically, Siemon Hollema, Koffi Akakpo, Vivien Knips, and Jean-Carel Norceide for assistance with the data and Jan Delbaere for running the original regression for Niger. The views expressed in this article do not necessarily represent the official position of the institutions the authors are associated with. The authors are solely responsible of any errors or omissions. H.J.B. conceptualized the paper; H. J.B. wrote the paper, based on inputs of S.d.P., I.S., and L.S.; S. d.P. I.S., L.S., and M.W.B. thoroughly reviewed and made suggestions for revisions of the paper. All authors read and approved the final manuscript. Other articles in this supplement include (39–52). Conclusion Early childhood is a window of opportunity for shaping a generation’s future health, and earning potential (2,20). The temporary nature of this window suggests that even short-term price rises will have long-term effects if unmitigated. Various instruments exist, with varying degrees of efficiency and effectiveness, to stabilize food prices, make food more afford- Literature Cited 1. Sanogo I. Global food price crisis and household hunger: a review of recent food security assessments findings. Humanitarian Exchange Magazine 2009 [cited 2009 Aug 25]. Available from: http://www. odihpn.org/report.asp?id=2988. High food prices, financial crisis, food, and nutrition 159S Downloaded from jn.nutrition.org by guest on April 11, 2012 underweight, and increased risk of acute malnutrition among young children (19,26,27). Analysis of surveillance data collected in Bangladesh between 1992 and 2000 showed that when rice prices increased, rice consumption remained unchanged, but child underweight increased. This was explained by the fact that a higher expenditure on rice, in response to its increased price, was accompanied by lower nonrice food expenditure, i.e. decreased diet quality (19). A recent analysis of data collected subsequently (2000–2005) extends these findings. It showed that households with higher expenditures on rice and lower expenditures on nonrice foods have an increased odds of child stunting and chronic energy deficiency among mothers (28). Another very recent study in Bangladesh stated that the observed weight-forheight Z-score changes between 2006 and 2008 translated into an increase in the prevalence of wasting of 5.5% in the age range 24–59 mo in rural areas of Bangladesh. In the urban sample, the corresponding increase is 6.7% for the 24–59 mo age group. The increase in wasting was much more pronounced for households among the moderate poor and moderate nonpoor (3rd and 4th quintiles) (29). Surveillance data from Indonesia have shown that during the economic crisis of the late 1990s, the urban poor were hardest hit and the first consequence was a marked increase of childhood anemia (22,30). Analysis of data collected between 1999 and 2003 found that the risk of child stunting was related to expenditures on nongrain foods, in particular animal source foods (31), which further confirms the fact that nutritional status is strongly related to dietary diversity as it reflects dietary quality. 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