Investment framework aims to tackle global malnutrition with evidence-based strategies

Banking & Financial Services
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Ajay Banga, 14th president of the World Bank | World Bank website

The Investment Framework for Nutrition 2024 highlights the ongoing global nutrition challenges, despite progress in reducing child stunting. Currently, 148 million children worldwide are still stunted, and nearly half of the global adult population is either obese or overweight.

The report notes that wasting and low birthweight rates remain high, with 45 million children affected by wasting in 2022 and one in seven children born with low birthweight in 2020. Anemia rates have also increased, affecting three out of ten women globally. Obesity rates continue to rise, with 45% of adults classified as overweight or obese in 2022. Notably, over 70% of these individuals live in low- and middle-income countries.

Climate conditions such as droughts exacerbate the problem by increasing the likelihood of wasting and underweight by almost 50%, placing additional stress on vulnerable populations.

Investing in high-impact nutrition interventions could prevent 6.2 million deaths among children under five and avert 980,000 stillbirths over the next decade. These programs could also prevent 27 million cases of child stunting and reduce maternal anemia by 144 million cases. The economic benefits are substantial; scaling up these interventions is projected to generate $2.4 trillion in economic gains, with a return of $23 for every dollar invested against an estimated cost of $41 trillion over ten years if no action is taken.

Ahead of the Nutrition for Growth Summit in France in 2025, the framework provides evidence-based investments and policy recommendations aimed at addressing undernutrition globally. To achieve this goal, an additional $13 billion annually will be required from 2025 to 2034. This translates to $13 per pregnant woman and $17 per child under five each year.

Most financing needs—$98 billion—are concentrated in low- and lower-middle-income countries due to their higher burden of poor nutrition outcomes:

- South Asia: $43 billion (34%)

- Sub-Saharan Africa: $34 billion (26%)

- East Asia and the Pacific: $19 billion (15%)

- Middle East and North Africa: $16 billion (12%)

Obesity prevention costs are significantly lower at about $3.5 per capita annually but can yield substantial labor market productivity benefits.

Exploring new financing sources is crucial. Integrating nutrition within primary health care interventions, adaptive safety net programs, repurposing agrifood subsidies for healthy diets, and leveraging climate funds are potential strategies. Non-traditional sources like Sovereign Wealth Funds and private sector investments offer additional opportunities.

Countries can expand fiscal space for nutrition interventions through innovative financing methods such as taxes on unhealthy foods, repurposing agrifood subsidies, and social bonds.

Complementary policies should aim to change health and dietary behaviors through initiatives like baby-friendly hospitals promoting breastfeeding and implementing taxes on sugar-sweetened beverages (SSBs). Effective tax design should consider production incentives, consumer subsidies, price controls throughout food supply chains, package labeling regulations, marketing rules, mass media campaigns, and digital communication efforts.

Repurposing public support for agrifood systems toward healthier diets is essential for transforming food systems sustainably. Social bonds can finance specific nutrition impact projects while ensuring returns for lenders at maturity.