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Context

• The United Nations has recently published a significant report titled State of Food Security and Nutrition in the World (SOFI).

Report Contributors

• The SOFI report was compiled by five key United Nations specialized agencies:

1. Food and Agriculture Organization (FAO)
2. International Fund for Agricultural Development (IFAD)
3. United Nations Children’s Fund (UNICEF)
4. UN World Food Programme (WFP)
5. World Health Organization (WHO)

• These organizations collaborated to provide an in-depth examination of the current state of food security and nutrition globally.

Findings of the Report

• State of Food Security and Nutrition in the World (SOFI), highlights the unintended consequences of private investments aimed at eliminating global hunger.
• According to the report, these investments are exacerbating ill health and inequity rather than alleviating them.
• The SOFI report provides a comprehensive analysis of how such investments impact food security, particularly in developing countries.

Impact of Private Investments on Food Security

• The report suggests that private investments, including Foreign Direct Investment (FDI), may negatively affect long-term food security in developing nations.
• While FDI might offer short-term benefits, its long-term effects could undermine food security.
• Studies have shown limited evidence of FDI’s impact on food security, with indications that any positive effects may be temporary, and adverse consequences could emerge over time.

Current Hunger Statistics

• The report reveals that global undernourishment levels have remained stagnant at pre-COVID-19 pandemic levels for the third consecutive year.
• In 2023, about one in 11 people globally faced hunger. Estimates suggest that between 713 million and 757 million people may have suffered from severe hunger, indicating a significant challenge in achieving Sustainable Development Goal (SDG) 2, which aims to end hunger by 2030.

Foreign Direct Investment (FDI) and Health

• The report finds that FDI is more strongly linked to increases in overweight, obesity, and non-communicable diseases than to improvements in undernutrition.
• A study published in The Lancet in 2023 highlights a shift towards market fundamentalism driven by powerful transnational corporations. These corporations contribute to rising rates of avoidable health issues and social inequity, a phenomenon referred to as the "commercial determinants of health."

Challenges with Tracking Private Sector Financing

Tracking private sector investments is more challenging compared to other financial flows. For example:

• Philanthropic flows averaged USD 4 billion from 2017 to 2021.
• Cross-border remittances totaled USD 29 billion from 2017 to 2022.
• Foreign Direct Investment amounted to USD 62 billion from 2017 to 2022.

• These figures illustrate that while philanthropic efforts are relatively modest, FDI represents a substantial portion of financial flows into agrifood systems.

Health Implications of Food Products

• A review of 35,550 products from leading food and beverage companies in Brazil, China, India, and South Africa shows that most products were deemed unhealthy according to the World Health Organization’s nutrient profile model.
• Healthier products made up only 4-12% of sales in 2020, raising concerns about the quality of available food and its impact on health.

Environmental and Industry Concerns

• The report also addresses the environmental impact of ultra-processed foods, which are linked to intensive agriculture and livestock practices that threaten the sustainability of agri-food systems.
• Many major players in the global food and beverage industry are central to interest groups supporting the ultra-processed food sector, further complicating the issue.
• Overall, the SOFI report presents a critical perspective on how private investments intended to combat hunger are inadvertently contributing to broader health and environmental challenges.

PRACTICE QUESTION Q. Analyze the impact of private investments on food security. What are the main benefits and challenges, and how can the government ensure that these investments enhance food security?

SOURCE: DOWN TO EARTH