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Unlocking human potential
Economic impact through nutrition
Anthony Hehir
Director - Nutrition Improvement Program
Bogotá, 14 May 2015
Page 1
Innovative financing & new business models
“No I didn’t attend - I work in research.”
“Not interesting – its not about nutrition.”
“No - nutrition topics are more important.”
Page 2
The vicious cycle of income poverty
Source: World Bank
Malnutrition, Micronutrient deficiencies
Income poverty
Low food
intake
Frequent
infections
Hard physical
labor
Frequent
pregnancies
Large
families
Poor cognitive
development
and schooling
= indirect loss
in productivity
Increased health
care costs and
illnesses =
loss in resources
Poor physical
status = direct
loss in
productivity
Page 3
The vicious cycle of income poverty
Page
The vicious cycle of income poverty
4 Darnton-Hill et al, 2005
Percentage of estimated loss in GNP due to iron deficiency
Page 5
Copenhagen Consensus
The Copenhagen Consensus exercise started in 2004 and continued
in 2008 and 2012 as a simple but untested idea of prioritizing
global opportunities of the world’s biggest
problems and their solutions.
Imagine you had $75bn to donate to
worthwhile causes.
What would you do, and where
should we start?
Page 6
Copenhagen Consensus 2004, 2008, 2012
2004 2008 2012
1 Control HIV/AIDS Micronutrient supplements for
children (A and zinc)
Bundled micronutrient interventions
2 Provide micronutrients The Doha development agenda (lower
trade barriers)
Malaria combination treatment
3 Trade liberalization Micronutrient fortification (iron and
salt iodization)
Childhood immunization coverage
4 Control of malaria Expanded immunization coverage for
children
TB treatment
5 New agricultural technologies to
increase yields
Biofortification R&D to increase crop yields
6 Small scale water technologies for
livelihoods
Deworming and other nutrition
programs at school
Effective early warning systems
against natural disasters
7 Community-managed water supply
and sanitation
Lowering the price of schooling Surgical capacity
8 Rx on water productivity in food
production
Increase and improve girls’ schooling Hepatitis B immunizations
9 Lowering cost of starting new
business
Community-based nutrition
promotion
Low cost drugs for acute heart
attacks in poorer nations
10 Lowering migration barriers for
skilled workers
Provide support for women’s
reproductive role
Salt reduction campaign
Page
Best long-term investments to fight hunger and malnutrition:
1. Acceleration of agricultural yield
enhancements
2. Market innovations that reduce hunger
3. Bundled Interventions that reduce
micronutrient malnutrition and reduce
prevalence of stunting
Copenhagen Consensus 2012
Page
1. Accelerating agricultural yield
enhancements
• We need 2100kCal/person/day
• We produce 2796kCal/person/day
8
 Food production
(Research for yields and tolerance)
 Food prices and  affordability
Buffer against climate change
By 2050:
- Rapeseed oil 68% cheaper
- Rice 25% cheaper
- Hunger 63% less
ROI 16 : 1
Page
Dual approach to improve economic conditions:
• Provide market information
through cellphones
• Reduce barriers to fertilizer access
• 5 countries & 4 companies control >50%
world’s fertilizer production
• Invest in local fertilizer production capacity
2. Market innovations that reduce
hunger
9
• 80% of global hungry live in rural areas
• 50% of those are smallholders
9
ROI 8.4 : 1
ROI 6.5 : 1
Page
3. Interventions to fight hunger and
improve education
1. Micronutrient provision
2. Complimentary foods
3. Treatment for worms/diarrhea
4. Behaviour Change Programs
10
Health, schooling &
productivity
Chronic undernutrition in
developing countries36%
ROI 30 : 1
Page 12
Page 13
Page
Best target for nutrition?
14
By 2030, reduce by 40% the number of children who
are stunted, which would return $45 dollars for every dollar
spent.
ROI 45 : 1
Page
Focus on stunting reduction
Nutrition Physical/ Economic
cognitive potential growth
15
Horton and Hoddinott (2013), based on Hoddinott (2013)
Page
Focus on stunting reduction
Advantages of the stunting target
16 Horton and Hoddinott (2013)
- Importance of first 1000 days
- Growth also depends on health status, sanitation and reduced infection.
- Growth also affected by quality of care. Nutrition AND health care provide
better outcomes
- Growth is a good indicator of the quality of the early life environment;
- Growth is readily measurable (although it relies on reasonably good age data)
- Child height at age two is a good predictor of achieved adult height.
- Achieved adult height is associated with wages: from a survey of 8 high
income countries (Gao and Smyth, 2010) the median increase of hourly wages
per 1 cm of additional height was 0.55%; and from a survey of 8 low and middle
income countries, the median was 4.5% (Horton and Steckel, 2013).
- Achieved adult height also tracks economic development quite well
(Figures 1, 2 and 3 from Horton and Steckel, 2013, which show that height
tracks the economic “takeoff” for a range of countries).
Page
Effect of increased height on
wages, developing countries
17
Horton & Steckel, 2013
Height
=
Earning potential
Page
Guatemala
Hoddinott et al (2008) Longitudinal study
• 1969: Pre-school children given a more nutritionally rich diet
compared to control group (supplements, deworming, better
quality of the diet).
• Followed up 35 years later.
• Results from intervention group:
18
Virtuous cycle of development
Better nutrition in the first 1,000 days has
an overwhelming economic argument.
 Not stunted at age 3
 Stayed in school longer
 Better cognitive skills as adults
 Higher wages as adults
Page
Bundled interventions
19
Source: Sight and Life
Effective nutrition is affordable.
Ineffective nutrition is expensive
Quality is Essential!
Page
Back up slide – nutrition in
economic terms
22

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2. Liberando el potencial humano economico a traves de micronutrientes

  • 1. Unlocking human potential Economic impact through nutrition Anthony Hehir Director - Nutrition Improvement Program Bogotá, 14 May 2015
  • 2. Page 1 Innovative financing & new business models “No I didn’t attend - I work in research.” “Not interesting – its not about nutrition.” “No - nutrition topics are more important.”
  • 3. Page 2 The vicious cycle of income poverty Source: World Bank Malnutrition, Micronutrient deficiencies Income poverty Low food intake Frequent infections Hard physical labor Frequent pregnancies Large families Poor cognitive development and schooling = indirect loss in productivity Increased health care costs and illnesses = loss in resources Poor physical status = direct loss in productivity
  • 4. Page 3 The vicious cycle of income poverty
  • 5. Page The vicious cycle of income poverty 4 Darnton-Hill et al, 2005 Percentage of estimated loss in GNP due to iron deficiency
  • 6. Page 5 Copenhagen Consensus The Copenhagen Consensus exercise started in 2004 and continued in 2008 and 2012 as a simple but untested idea of prioritizing global opportunities of the world’s biggest problems and their solutions. Imagine you had $75bn to donate to worthwhile causes. What would you do, and where should we start?
  • 7. Page 6 Copenhagen Consensus 2004, 2008, 2012 2004 2008 2012 1 Control HIV/AIDS Micronutrient supplements for children (A and zinc) Bundled micronutrient interventions 2 Provide micronutrients The Doha development agenda (lower trade barriers) Malaria combination treatment 3 Trade liberalization Micronutrient fortification (iron and salt iodization) Childhood immunization coverage 4 Control of malaria Expanded immunization coverage for children TB treatment 5 New agricultural technologies to increase yields Biofortification R&D to increase crop yields 6 Small scale water technologies for livelihoods Deworming and other nutrition programs at school Effective early warning systems against natural disasters 7 Community-managed water supply and sanitation Lowering the price of schooling Surgical capacity 8 Rx on water productivity in food production Increase and improve girls’ schooling Hepatitis B immunizations 9 Lowering cost of starting new business Community-based nutrition promotion Low cost drugs for acute heart attacks in poorer nations 10 Lowering migration barriers for skilled workers Provide support for women’s reproductive role Salt reduction campaign
  • 8. Page Best long-term investments to fight hunger and malnutrition: 1. Acceleration of agricultural yield enhancements 2. Market innovations that reduce hunger 3. Bundled Interventions that reduce micronutrient malnutrition and reduce prevalence of stunting Copenhagen Consensus 2012
  • 9. Page 1. Accelerating agricultural yield enhancements • We need 2100kCal/person/day • We produce 2796kCal/person/day 8  Food production (Research for yields and tolerance)  Food prices and  affordability Buffer against climate change By 2050: - Rapeseed oil 68% cheaper - Rice 25% cheaper - Hunger 63% less ROI 16 : 1
  • 10. Page Dual approach to improve economic conditions: • Provide market information through cellphones • Reduce barriers to fertilizer access • 5 countries & 4 companies control >50% world’s fertilizer production • Invest in local fertilizer production capacity 2. Market innovations that reduce hunger 9 • 80% of global hungry live in rural areas • 50% of those are smallholders 9 ROI 8.4 : 1 ROI 6.5 : 1
  • 11. Page 3. Interventions to fight hunger and improve education 1. Micronutrient provision 2. Complimentary foods 3. Treatment for worms/diarrhea 4. Behaviour Change Programs 10 Health, schooling & productivity Chronic undernutrition in developing countries36% ROI 30 : 1
  • 14. Page Best target for nutrition? 14 By 2030, reduce by 40% the number of children who are stunted, which would return $45 dollars for every dollar spent. ROI 45 : 1
  • 15. Page Focus on stunting reduction Nutrition Physical/ Economic cognitive potential growth 15 Horton and Hoddinott (2013), based on Hoddinott (2013)
  • 16. Page Focus on stunting reduction Advantages of the stunting target 16 Horton and Hoddinott (2013) - Importance of first 1000 days - Growth also depends on health status, sanitation and reduced infection. - Growth also affected by quality of care. Nutrition AND health care provide better outcomes - Growth is a good indicator of the quality of the early life environment; - Growth is readily measurable (although it relies on reasonably good age data) - Child height at age two is a good predictor of achieved adult height. - Achieved adult height is associated with wages: from a survey of 8 high income countries (Gao and Smyth, 2010) the median increase of hourly wages per 1 cm of additional height was 0.55%; and from a survey of 8 low and middle income countries, the median was 4.5% (Horton and Steckel, 2013). - Achieved adult height also tracks economic development quite well (Figures 1, 2 and 3 from Horton and Steckel, 2013, which show that height tracks the economic “takeoff” for a range of countries).
  • 17. Page Effect of increased height on wages, developing countries 17 Horton & Steckel, 2013 Height = Earning potential
  • 18. Page Guatemala Hoddinott et al (2008) Longitudinal study • 1969: Pre-school children given a more nutritionally rich diet compared to control group (supplements, deworming, better quality of the diet). • Followed up 35 years later. • Results from intervention group: 18 Virtuous cycle of development Better nutrition in the first 1,000 days has an overwhelming economic argument.  Not stunted at age 3  Stayed in school longer  Better cognitive skills as adults  Higher wages as adults
  • 20. Effective nutrition is affordable. Ineffective nutrition is expensive Quality is Essential!
  • 21.
  • 22. Page Back up slide – nutrition in economic terms 22