Variation in consumption.

Economic Impacts

Lower Productivity

Insufficient food consumption can have a negative impact on economy.

eg. workers fall sick more often due to imbalance amount of nutrients consumed.

This will lower their productivity, which refers to the rate at which goods or service are produced.

It also lead to lower income due to inability to work as productively as before.

eg. childrens suffering from inadequate food consumption fall sick more often, leading to loss of school days and loss of educational opportunities.

Countries with lower level of productivity and low levels of nutrition intake : Sierra Leone, India , Sri Lanka , and Ethiopia.

Higher public health expenditures

  • Public health expenditure increase when the demand for health services increase.
  • The reason is because more people are falling sick.
  • This increases the overall cost of providing healthcare
  • This will limit the financial resources from areas such as education,housing and many more for LDCs.
  • Thus this slows the countries economic development and growth.

Long-term debts

Food aid and financial aid can be given to help people and countries to cope with insufficient supply of food.

Financial aid may lead to long-term debt problems.( for receiving country )

eg. USA contributes about half of all global aid. However most of the food must be bought from their (USA) suppliers and transport on their (USA) ships.

Human development report in 2005, 2006 and 2009 have found that food supplied as aid is up to 34 per cent more expensive than if purchased locally. LDCs incurred losses amounting to between US$5 to US$7 billion.

Rather than helping the country,such aid,often called tied aid,serves to increase the national debt of LDCs to DCs.