A report from the Economist Intelligence Unit Global food security index 2013 An annual measure of the state of global food security Sponsored by Global food security index 2013 An annual measure of the state of global food security Contents 1 Preface 2 Acknowledgements 3 Executive summary 4 Key findings 8 New additions to the 2013 GFSI 10 2013 focus: nutrition and natural disasters 13 Overall GFSI rankings table 16 Rankings by income classification 17 Affordability 18 Availability 22 Quality and safety 25 Appendix: Methodology 28 Scoring criteria and definitions 28 Country selection 30 Weighting 31 Data modelling 31 Food price adjustment factor 31 Sources and definitions 32 Scattergraphs: Correlation between overall rankings and dependent variables 38 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Preface The Global Food Security Index 2013: An annual measure of the state of global food security, is the second edition of an Economist Intelligence Unit study, commissioned by DuPont. This findings and methodology paper discusses the major results of the research and the accompanying global benchmarking model. Lucy Hurst, associate director of custom research for the Americas, was the research director for this project. Jamie Morgan, analyst, was the project manager. Josh Grundleger, research associate, Atefa Shah, analyst, and Martin Vierio, analyst, provided research and analytical support. Leo Abruzzese, global forecasting director and executive editor for the Americas, served as senior adviser. William Shallcross constructed the Excel benchmarking tool, and Mike Kenny was responsible for layout and design. We would like to thank the many researchers who lent their expertise to this project. A full list of acknowledgments follows. The findings, interpretations and conclusions expressed in this study are those of the author(s) and do not necessarily reflect the views of the sponsor. The sponsor does not guarantee the accuracy of the data included in this work. The boundaries, colours, denominations and other information shown on any map in this work or related materials do not imply any judgment on the part of the sponsor concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 2 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Acknowledgments The following economists, researchers, food specialists and country analysts contributed to the report. We thank them for their participation. Economist Intelligence Unit specialists and contributors Diane Alarcon, Tom Felix Joehnk and Brendan Koch Peer panel members The following experts on food security and agricultural policy contributed significantly to shaping the index methodology and vetting the indicators. Their diverse backgrounds and extensive experience ensured that a wide variety of views were considered. The panel met as a group in February 2012 in Washington DC to review an initial indicator list. The panel has also provided ongoing support, as needed, throughout the first and second editions of the index. They also advised on the selection of weights. 3 © The Economist Intelligence Unit Limited 2013 Ademola Braimoh (World Bank); Margaret Enis (US Agency for International Development); Craig Gundersen (National Soybean Research Laboratory, University of Illinois at UrbanaChampaign); Eileen Kennedy (Friedman School of Nutrition Science and Policy, Tufts University); Samarendu Mohanty (International Rice Research Institute); Prabhu Pingali (Gates Foundation); Pedro Sanchez (Earth Institute, Columbia University); David Spielman (International Food Policy Research Institute); Robert Thompson (Chicago Council on Global Affairs); Patrick Westhoff (Food and Agricultural Policy Research Institute, University of MissouriColumbia). We would also like to acknowledge the contributions of the following: Kostas Stamoulis and Carlo Cafiero among others at the Food and Agriculture Organization. Global food security index 2013 An annual measure of the state of global food security Executive summary More than 870m people globally do not have a secure source of food. In 1996 leaders at the World Food Summit in Rome set a goal of reducing the number of food-insecure people to 400m by 2015. With an average of just 2.5m people a year emerging from food insecurity during the last two decades, this target clearly will be missed.1 But although the scope of the problem, particularly in the developing world, remains vast, gains have been made, largely through poverty alleviation and innovations that improve market access, increase a household’s ability to purchase food and boost the availability of more nutritious crops. Indeed, the global commitment to providing adequate, affordable and nutritious food remains high. In 2009 the G8 group of the world’s leading industrial powers responded to the global food crisis of the previous year with unprecedented financial commitments to global food security. Countries committed US$22bn in aid—a significant advancement for food security globally. Yet by mid2012 these countries collectively had disbursed less than half of the funds they had pledged for the year.2 Several countries have extended the period in which they will provide funding to show their 2 1 State of Food Insecurity in the World, Food and Agriculture Organisation (FAO), 2012. “Agriculture Accountability: Holding Donors to their L’Aquila Pledges”, ONE Campaign, 2012; “Tracking the L’Acquila Food Security Initiative Pledge and Related Funding”, US Department of State, 2012; interviews. Food aid and undernourishment over time % of population; Metric tons Prevalence of undernourishment (left scale) Total food aid deliveries* (right scale) 30 15,000,000 12,000,000 25 9,000,000 6,000,000 20 3,000,000 15 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 *Note: Includes programmatic and project aid, not emergency aid Sources: World Food Programme; Food and Agriculture Organisation 4 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security ongoing commitment to the cause. The 2013 update of the Global Food Security Index (GFSI) reflects these limited gains, measured against an overall challenge that eludes rapid improvement. Globally, food security over the past year has remained relatively unchanged: the largest number of malnourished people lives in Asia and the Pacific, while the population of SubSaharan Africa remains the largest concentrated block of hungry people globally. However, small pockets of progress have also emerged. Globally, food prices are slightly lower than they were a year ago, and low-income countries have slightly more food per person than they did last year.3 Of the top ten countries whose GFSI scores have improved the most since 2012, seven are middle- or low-income countries.4 Changes in food security are, admittedly, incremental. But in a year in which the world continued to recover from a global economic downturn and a series of droughts in several of the largest crop-exporting countries, small gains are nonetheless welcome. Food security is complex and its drivers are interdependent, such that sufficiency of food alone, in any given country, does not guarantee an end to hunger. Internal and external factors can alter the availability, affordability and quality and safety of food in varying degrees. This year’s GFSI builds on the insights from the 2012 study and looks further into causes of food insecurity through new indicators and new countries. We have also added a new “focus” section, where we discuss two global food security issues that have received particular attention over the past year. This year’s issues are nutrition and natural disasters. New additions to the 2013 GFSI The 2013 GFSI incorporates two new countries— Ireland and Singapore. We have expanded the analysis to include these two countries, based on significant demand for insights into food security there and their importance as global economies. This year’s index also incorporates two new 5 3 Food prices, as measured by the FAO Food Price Index, are two points lower than they were at the same time last year. 4 “Middle income” refers to lower middle income, as defined by the World Bank. “Low income” refers to the same classification used by the World Bank. © The Economist Intelligence Unit Limited 2013 indicators: the corruption indicator, which measures the impact of bribery on food security, and the urban absorption capacity indicator, which evaluates the ability of a country to absorb urbanising populations and support their food needs. We have included corruption to capture the corrosive impact it can have on food security. Corruption creates distortions and inefficiencies in relevant markets, thus reducing available supply and raising costs. The urban absorption capacity indicator captures the complex relationship between urbanisation and food security. While a higher level of urbanisation is often correlated with greater food security, the process of urbanising can have negative implications for food security, particularly if resource development does not keep pace with urban growth rates. The new indicator assesses the capacity of countries to support the food needs of urbanising populations. 2013 focus: nutrition and natural disasters Geographically, food insecurity is a chronic problem in Sub-Saharan Africa, and malnutrition, hunger and severe food insecurity remain a danger in parts of South and South-east Asia. Meanwhile, at the opposite end of the spectrum, obesity is also a problem. While many die of hunger every year, diets in the developed world, and even in some developing countries, are increasingly overabundant in the quantity of food consumed and of poor nutritional value.5 Governments, development organisations and the private sector focus increasingly on nutrition as part of their food security agenda. This year the G8 will hold a special conference on nutrition, and the United Nations is expected to include nutrition as a stand-alone goal in the development agenda that will follow the Millennium Development Goals. Public-private-sector partnerships on food security that came out of the 2012 G8 meetings also include nutrition as a core goal. More than 3m children under the age of five are dying from malnutrition 5 “Global Burden of Disease 2010”, The Lancet, December 2012. Global food security index 2013 An annual measure of the state of global food security every year, and there are 165m children with stunted growth.6 Natural disasters have long-lasting effects on food security, and immediate emergency relief does not help underlying problems. There has been an increase in the amount of short-term climatic disasters, and their devastating impact is a trend.7 Developing countries face the most obstacles in recovering from such disasters, owing to a lack of mechanisms to rebuild lives and assets.8 The origins of the index The Economist Intelligence Unit (EIU) created the Global Food Security Index in 2012 to deepen the dialogue on food insecurity and measure the risks in a consistent, rigorous framework. Sponsored by DuPont, the index assesses food security across three internationally designated dimensions:9 affordability, availability and utilisation—the last modified to assess food quality and safety. The index builds on existing food security research and frameworks, including the annual State of Food Insecurity in the World report of the Food and Agriculture Organisation (FAO), the Global Hunger Index of the International Food Policy Research Institute (IFPRI), and the Maplecroft Food Security Risk Index, among others. Our GFSI complements these tools by analysing the inputs, or the drivers, of food security as a way of fostering dialogue about practical solutions and policy reform. Importantly, the index considers the nutritional quality and safety of food—elements missing from similar indices—alongside traditional supply and availability issues. Finally, the index features a unique monthly adjustment for changes in global food prices and other macroeconomic factors, allowing it to serve as an early warning of potential price shocks that might compromise a country’s food security, or worsen already poor conditions. 6 6 “Maternal and Child Nutrition”, The Lancet, June 2013. 7 Interview with Kostas Stamoulis of the FAO. Mr Stamoulis is the director of the Agricultural Economic Development Divison, and secretary of the Committee on World Food Security. 8 Interview with Mr Stamoulis. 9 Rome Declaration on World Food Security, FAO Corporate Document Repository, Rome, November 1996; Food security, World Health Organisation (WHO). © The Economist Intelligence Unit Limited 2013 Building the index The GFSI uses the following definition of food security: “When people at all times have physical, social and economic access to sufficient and nutritious food that meets their dietary needs for a healthy and active life”. This definition was developed by our research team, but is adapted from a formulation established at the World Food Summit in 1996. Each of the three categories in the GFSI—affordability and financial access, availability, and food quality and safety—is further divided into a series of indicators which evaluate programmes, policies or practices that influence food security. This year the EIU engaged again with a panel of experts to discuss updates to the study, which led to addition of the two new indicators and countries. The 2013 index is comprised of 27 indicators and 107 countries and uses data from a wide range of trusted international organisations, including the UN, the IMF, the FAO, the World Health Organisation (WHO), the World Bank and many others. In critical areas of assessment where there are limited or no data—for example, the presence of food safety nets, access to financing for farmers, public expenditure on agricultural research and development (R&D), and protein quality in the average diet—we called on our global team of economists and country experts to construct qualitative measures. The end product is a comprehensive assessment of food security across 107 countries. Topline results: Western nations remain the most food secure Wealthy nations again occupy the top spots in the index this year: the US retains the top ranking, while Norway has overtaken Denmark for second place. France remains in third place, followed by several north European countries. While relatively high incomes and low spending on food relative to other outlays have kept these countries at the top of the index, income losses in some of their south and east European neighbours—particularly Greece and Ukraine—have hurt food security in some Global food security index 2013 An annual measure of the state of global food security developed economies. Sub-Saharan Africa remains at the bottom of the index, although it is also home to the countries with the most significant gains in overall rank. Ethiopia and Botswana have risen the most in the ranks, followed by the Dominican Republic and Niger. Increases in per-head incomes and larger average food supplies were the primary drivers of these gains. How this index can be used The Global Food Security Index is an interactive, Excel-based benchmarking model with a range of analytical tools intended to facilitate crossregional comparisons and provide more detailed information about a specific country’s score. Users can, for example, restrict their analysis to include only low-income or middle-income countries (see the tables that follow) or just those in a particular region. Any two countries may be compared directly, and individual indicators can be examined in detail. The index also allows final scores and category scores to be correlated with external factors that may influence food security. For example, food security, as expressed in the index, correlates strongly with countries that have a high degree of economic opportunity for women. The correlation function was also used to validate the degree to which the index is aligned with the negative consequences of food security. The overall scores were correlated with four output variables: the prevalence of undernourishment, stunted children, underweight children, and intensity of food deprivation. Each variable showed a negative correlation with the overall scores of 0.7 or greater. The index can be used to analyse food security challenges in a variety of ways. The rankings function gives a quick snapshot of global food security and of those countries most at risk. The 7 © The Economist Intelligence Unit Limited 2013 regional filter allows comparisons within geographies or among economically similar countries, often a useful approach in encouraging reform. Country profiles use a “traffic light” approach to display findings, showing clearly where countries do well and where they struggle, and suggesting where interventions are most needed. At a basic level, the index and the tool are a repository of more than 3,500 data points that bear on food security. Finally, the food price adjustment factor, applied to the index on a quarterly basis, allows the food security scores to be modified following changes in global food prices. This adjustment permits an assessment of the shocks to food security introduced by sharp changes in food prices, but also provides insight into the role of gradual changes in causing food prices to slowly improve, or erode, food security over time. An index, even a carefully constructed one, is only a tool. By analysing conditions at the national level, it necessarily misses much local context. It cannot fully capture important cultural and political dimensions and risks simplifying complex issues. That said, by reducing major food security themes to their core elements, it allows a bottomup approach to understanding the risks to food security. By centralising existing data and filling data gaps, it aims to further research on food security. Most importantly, the index is meant to spur dialogue about the drivers of food insecurity and to suggest where countries and other stakeholders should focus their efforts to have the greatest impact. See the index website for more information on how to use the data and findings to inform your work: http://foodsecurityindex.eiu.com/ Global food security index 2013 An annual measure of the state of global food security Key findings l Developing countries made the greatest food security gains in the past year, with the biggest increases in Ethiopia, Botswana and the Dominican Republic. Rising incomes and larger average food supplies improved food security in many developing countries. The three most improved countries rose eight places in the index on average, with greater food availability and income growth particularly important drivers. l Overall food security was little changed from last year. The average score for all countries in the latest index was 53.5, virtually unchanged from 53.6 in the 2012 model. No region’s score improved dramatically, but Sub-Saharan Africa showed the biggest gain, climbing by just under one point. Last year’s drought in some key growing regions will have reduced food security for a period of time as prices for grains rose, although that trend eased later in the year. l Political conflict reduced food security in Mali, Yemen and Syria during the past year. These three countries recorded some of the biggest declines in the index, dropping 14, seven and seven places, respectively. Violent conflict not only reduced political stability but also hurt GDP growth, road infrastructure and access to potable water, and curbed the ability of formal grocery sectors to provide food. 8 © The Economist Intelligence Unit Limited 2013 l Falling national incomes hurt food security in some developed countries over the past year. Greece recorded the steepest fall among developed nations, dropping six places. Greece’s GDP has plummeted by more than 20% since the 2008-09 global recession. Income per person dropped in most advanced economies in the past year, the result of weak economies. Although this reduced food security in these countries, they remain, for the most part, in the top 20% of the index and thus are not in serious danger of food insecurity. l Some emerging markets appear well positioned to respond to urbanisation and the implications for food security. Sierra Leone ranked at the top of this year’s new urbanisation indicator, which measures the capacity of governments to support the food needs of growing cities. In Sierra Leone, real GDP grew nearly four times faster than urbanisation in the last three years, suggesting the government may have the resources to support newly urban populations. Urban farming has been particularly crucial in supporting the nutritional needs of migrants in the capital, Freetown, where some 90% of vegetables consumed in the city are the products of urban farming. Global food security index 2013 An annual measure of the state of global food security l Political stability and democratic reform are strongly tied to food security. Countries that experienced significant improvements in political stability and democratic rights in the past year, such as Myanmar and Sri Lanka, also improved their food security ranking. Myanmar rose five places overall, while Sri Lanka climbed by four. Likewise, some countries with the biggest declines in political stability risk scores experienced large overall reductions in food security. For example, political turmoil in Mali, where separatist groups have been battling the government, has created an environment where food security may suffer. Democratic reforms, as captured by the EIU’s Democracy Index, also correlate well with food security. Countries with high levels of corruption are also likely to be less food secure. 9 © The Economist Intelligence Unit Limited 2013 l Dietary protein consumption increased in 62% of countries in the index. On average, protein consumption per capita is 1.7 grams higher among countries in this year’s index than in the 2012 model. Protein consumption improved the most in Myanmar, where the average person is consuming 31% more grams of protein per day than previously. Global food security index 2013 An annual measure of the state of global food security New additions to the 2013 GFSI The underlying structure of the Global Food Security Index (GFSI) does not change significantly from year to year. This is by design. Minimal changes from year to year—particularly in data series and sources—allow for consistent comparison and analysis. However, this year’s GFSI does contain a few new features. Specifically, two new countries and two indicators have been added to the model. These additions are discussed below. Two new countries: Singapore and Ireland This year’s update to the GFSI adds two new countries to last year’s set of 105. The Economist Intelligence Unit has expanded this year’s analysis to include Ireland and Singapore, given significant interest in examining food security challenges and successes in both countries, as well as the global importance of each country’s economy. Food security has long played an important role in Irish history and continues to be highly relevant for the country. The agri-food and fisheries industry is the largest industry in Ireland and contributes substantially to GDP, employment and exports. The importance of this sector in the Irish economy and the challenges faced in light of the economic woes currently gripping Europe make Ireland a natural addition to the GFSI. In contrast, Singapore presents a very different set of food security-related issues. The island nation is unique in that it is a developed country 10 © The Economist Intelligence Unit Limited 2013 with an insignificant agricultural sector. Singapore is highly dependent on foreign sources of food, importing over 90% of foodstuffs. Despite its relative wealth, such a high level of foreign dependence makes Singapore a unique food security case study. Both countries scored well in the index, with Ireland and Singapore ranked 11th and 16th, respectively. Ireland scored exceedingly well in terms and quality and safety (6th) and affordability (8th), but saw its rank fall owing to availability challenges (13th). This was largely caused by its very low performance in terms of volatility of agricultural production (where Ireland ranked 82nd) and urban absorption capacity (94th). Singapore claimed the top position in affordability from the US and performed moderately in terms of availability (21st), but saw its overall rank hindered owing to quality and safety, where it was ranked 32nd between Mexico and Brazil. The quality and safety score was diminished by mediocre ranks in protein quality (30th) and diet diversification (49th). Although Singapore scored moderately well in terms of availability, its rank was largely driven by its limited agricultural sector, which has left the country with highly volatile agricultural production and low sufficiency of supply. Additionally, the city state’s moderate GDP growth and above-average rate of urbanisation contributed to limitations in availability. Global food security index 2013 An annual measure of the state of global food security Two new indicators: corruption and urban absorption capacity This year two new indicators—corruption and urban absorption capacity—have been added to the GFSI, both under the availability measure. The corruption indicator aims to provide additional insight into the capacity of the governance system to facilitate availability of the food supply. The urban absorption capacity indicator aims to measure the capacity of a food system to absorb the stresses of urban growth. Unsurprisingly, corruption has a pernicious effect on food security. Higher levels of corruption, as measured by the EIU’s Risk Briefing, can lead to higher levels of food insecurity. Institutional instability, which is often both a cause and a product of corruption, can hinder a government’s ability to develop and employ effective agricultural policies.1 This can lead to the misuse of land and other resources. Corruption creates distortions and inefficiencies in relevant markets, thus reducing available supply and raising costs. It creates bottlenecks and inefficiencies in the distribution of food commodities. Corrupt officials, for example, have been known to let food rot in the holds of ships, even while shortages exist throughout the country.2 Corruption also makes it difficult for farmers to utilise and improve their land and for consumers to have access to well-stocked markets.3 Additionally, corruption often stymies the efforts of non-governmental organisations (NGOs), aid groups and other organisations to improve food security in low-performing countries by diverting both cash and food aid away from the intended recipients and into the hands of corrupt officials and their cronies.4 The addition of a corruption indicator complements the political stability risk indicator that was already in the model. Both indicators 11 1 Tunku Abdul Aziz, “The Impact of Corruption on Food Security”, Sustainable Food Security for All by 2020, IFPRI Conference, September 2001, Bonn, Germany. 2 “Venezuelan socialism: Food fight: How to destroy an industry,” The Economist, June 10th 2010. 3 “Corruption in the Land Sector,” Transparency International and FAO, TI Working Paper No 04/2011. 4 “Corruption’s role in Kenyan food crisis,” BBC, October 26th 2011. © The Economist Intelligence Unit Limited 2013 measure how deficiencies in governance can adversely impact food security by inhibiting availability. However, they approach the issue from different angles. The addition of the corruption indicator allows the model not only to account for potential upheaval in or collapse of the government, but also to capture more robustly the effects of structural deficiencies in relatively stable governments. For instance, a country such as India, which scores fairly well in terms of political stability risk (72.2 out of 100), performs comparatively worse in terms of corruption (25 out of 100). The top-performing countries—nine countries were tied for first—are developed economies and, with the exception of Singapore, democratic members of the OECD. By contrast, the most corrupt countries consist of a mixture of small developing economies, such as Cambodia and Ecuador; poor African states, such as Sudan and Chad; and some larger more developed economies, such as Russia, Venezuela, China and Indonesia. While corruption has a straightforward, if multifaceted, impact on food security, urbanisation has a complex relationship with food security. Today, the world is urbanising at a rapid pace. As people migrate to urban environments, their impact is felt on all aspects of life, including food security. This year a new indicator—urban absorption capacity—has been added to the index to account for these changes. This indicator measures the capacity of a country to absorb the stresses of urban growth. While a higher level of urbanisation is often correlated with greater food security, the process of urbanising can have negative implications for food security, particularly if the development of resources is unable to maintain pace with urban growth rates. A rapidly urbanising population needs to quickly develop a number of key aspects of its infrastructure, including markets, transport infrastructure, a regulatory framework and storage and retail facilities, to accommodate changing demographics. Likewise, a growing urban population generally implies a need for greater productivity in the agricultural sector or increased Global food security index 2013 An annual measure of the state of global food security 12 imports to feed non-farm workers. Consequently, as urban growth accelerates, the growth of available resources in the economy that can be utilised to address these structural changes must keep pace. Accordingly, to best capture how urbanisation interacts with a country’s capacity to adapt to these changes, this new indicator evaluates a country’s resources (real GDP growth) in light of the stresses caused by rapid urbanisation (urban growth rate). The results provide some interesting and surprising insights. Sierra Leone, which otherwise ranks poorly in the index, received the top spot in this new indicator. Freetown, the capital and largest city, has a thriving urban agriculture economy. Years of civil war and rapid urbanisation rates—above 15% in recent years—forced a vast influx of people into Freetown. New urban dwellers had to develop mechanisms for gaining access to fresh food, and a thriving urban farming culture developed. Today, research organisations in the country estimate that over 90% of vegetables consumed in the city are products of urban farming.5 According to the Resource Centres on Urban Agriculture and Food Security, the practice is dominated by women, which is an additional boon for food security. “Female farmers … constitute approximately 80% of the urban farmers. Women tend to have considerable autonomy in decision-making and appear to have sole control over the income generated. This is a positive implication for household food security as women are traditionally responsible for household welfare, especially of children and the elderly.”6 The best-performing countries tend to have a combination of very high GDP growth rates and urban growth rates that generally fall in the middle range. This provides these countries with sufficient resources to adapt, at a reasonable tempo, to their growing urban populations. In contrast, the worst performers consist of a combination of low-income countries and struggling European states. Syria ranks last in the indicator, as it continues to suffer through civil war. Greece, which is one of the hardest-hit European economies, claims the second to last position. Yemen, Mali and Portugal round out the bottom five. The European nations at the bottom of the list tend to have low or contracting GDP growth rates coupled with relatively low, but positive, urban growth rates. The low-income countries have low to moderate GDP growth rates that make it difficult to cope with their considerably higher rates of urbanisation. For both groups of low performers, general macroeconomic conditions inhibit each country’s ability to cope with urbanisation, thus putting a strain on food security. 5 6 “The Role of Urban Agriculture in Conflict Situations: The Sierra Leone Experience”, RAUF Foundation. © The Economist Intelligence Unit Limited 2013 “Urban Agriculture in Freetown: Status, Opportunities and Constrains”, RAUF Foundation, May 2007. Global food security index 2013 An annual measure of the state of global food security 2013 focus: nutrition and natural disasters Global food issues: nutrition and food security Advances in medicine and technology, along with expanded access to food, have led to significant declines in global malnutrition rates over the past few decades. At the same time, changes in diet, lifestyle habits and the nutritional content of available and affordable food have also contributed to the rapid rise in global obesity, which is increasinlgy being understood as a form of malnutrition. Policymakers and global health leaders are now facing the dual task of combating malnutrition, while also curbing obesity and other obesity-related non-communicable diseases, sometimes within the same household.1 Once considered an issue restricted to developed economies, obesity rates are quickly rising in developing countries, as a “nutrition transition” occurs when nutrition, eating habits and physical activity change.2 While still affecting approximately 870m people worldwide, malnutrition rates are declining.3 Globally, the number of children who are stunted has fallen from approximately 40% in 1990 to an estimated 26% in 2010, and the prevalence of underweight children has declined from 25% to 13 16% over the same time period.4 Yet obesity— resulting from overconsumption, an imbalanced diet and lifestyle habits—is on the rise in children. In 2011 an estimated 43m children under five years of age globally were considered overweight—a 54% increase from 1990.5 Nutrition education is paramount for fighting malnutrition and obesity.6 Proper awareness, training and education on how to grow, purchase and prepare nutritious foods are vital for a healthy lifestyle. Nutrition education and dietary guidelines can come from a number of sources, from global and regional initiatives to country- and local-level programmes. Best practices in nutrition guidelines vary from region to region, depending on many cultural and societal preferences, local nutrition needs and the availability of resources. “Country-owned” nutrition strategies and programmes are important and allow for a nation to build strategies and guidelines around the specific goals, needs and capabilities of its population. Research has shown nutrition education programmes to be a particularly effective mechanisms for increasing nutritional outcomes, primarily for children in elementary and secondary 4 Joint Child Malnutrition Estimates – Levels and Trends, WHO, World Bank, UNICEF, 2011. 1 Marya Khan, The Dual Burden of Overweight and Underweight in Developing Countries, Population Reference Bureau, 2006. 5 Global Database on Child Growth and Malnutrition: Key Facts and Figures, WHO, 2013. 2 FOCUS: The Nutrition Transition and Obesity, FAO, 2013. 6 3 Globally Almost 870 million Chronically Undernourished – New Hunger Report, FAO, Media Centre, 2012. Corinna Hawkes, Promoting Healthy Diets Through Nutrition Education and Changes in the Food Environment: An International Review of Actions and their Effectiveness, FAO, 2013. © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security education.7 The FAO considers schoolchildren to be a priority group for nutrition education and found that only 53% of Latin American countries had official government policies regarding nutrition in effect in primary schools.8 School-based nutrition education programmes are also very effective. A 1999 nutrition education intervention programme in China showed gains in nutrition-related knowledge, attitudes and practices at secondary schools after 18 months of increased nutrition education, support and enhanced school facilities.9 These results were passed on to the communities, as students returned home and shared their knowledge and skills with their parents. With millions affected by malnutrition and obesity worldwide, nutrition education in individual countries should be seen as crucial to promoting healthy populations.10 From reducing rates of undernourishment to curbing obesity trends, dietary guidelines and nutrition education can raise awareness and provide the information, skills and motivation for healthy diets. Proper nutrition education is especially important for children as they develop habits and skills for later in life.11 Building on international standards, regional and national programmes can be adjusted to best fit the needs and culture of the intended audience in order to maximise their effectiveness. However, it is clear that the prevalence and efficacy of such programmes can be greatly improved. Increased government involvement in nutrition education programmes, school-based initiatives and adherence to international standards provide the basis on which to build for a healthier future. Global food security issues: natural disasters and food security Natural disasters pose an enormous threat to food security, in terms of both short-term and long-term impacts. A country’s ability to respond depends on several factors measured in the GFSI, including diversity of diet, strength of food storage and transport infrastructure. Not all countries are affected by disasters equally. Research shows that low-income countries are more vulnerable and experience larger losses from natural disasters than high-income countries, since many low-income countries have a higher concentration of people living in areas with weak infrastructure and depend more on weatherrelated industries, such as agriculture and tourism. High-income countries generally have strong infrastructures that are able to withstand disasters, more resources to deploy to affected areas, and more diverse economies to mitigate post-crisis economic declines.12 Comparing the impact of similar natural disasters—in type and magnitude—on three different countries with different income levels illustrates some of the short- and long-term implications for food security. Major earthquakes hit Haiti and Chile in 2010. Although it was the 12 “Natural Disasters: Mitigating Impact, Managing Risks”, IMF Working Paper, 2012. Table 1: Cross-country comparison of natural disaster impacts Haiti Chile 9,860,000 16,950,000 1,700 15,200 8 30 230,000 480 105 35 60 1 Population 2009 GDP per head, 2009 (US$) Disaster damage, (US$ bn) 7 Ibid, 2011. 8 Promoting Healthy Diets Through Nutrition Education and Changes in the Food Environment: An International Review of Actions and their Effectiveness, FAO. 9 Nutrition as an Entry Point for Health-Promoting Schools: Lessons from China, FAO, 2003. 10 Tanaka, Noriko and Kinoshita, Yukiko, “The Importance of Nutritional Education in Preventing Obesity and Malnutrition”, Forum on Public Policy, 2009. 11 Starting Early: Food and Nutrition Education of Young Children, Food Standards Agency, 2004. 14 © The Economist Intelligence Unit Limited 2013 Casualties Infrastructure ranking Food aid ranking Sources: Population: World Bank. GDP per capita: The Economist Intelligence Unit. Damage: IMF; Congressional Research Service; American Red Cross. Casualties: American Red Cross; Congressional Research Service. Global food security index 2013 An annual measure of the state of global food security smallest in terms of seismic magnitude, the Haitian earthquake resulted in a significantly larger number of casualties. And while it caused a much smaller “dollar damage”, economic recovery has taken the longest. 2010 Haitian earthquake In 2010 a 7.0-magnitude earthquake struck the Haitian town of Léogâne, approximately 25 km (16 miles) west of the capital, Port-au-Prince. The earthquake was devastating, killing an estimated 230,000 people and destroying hundreds of thousands of homes and businesses. Haiti was the poorest country in the western hemisphere even before the earthquake disrupted its economy and infrastructure. Annual GDP per head was US$1,700 in 2009; more than 70% of Haitians lived on less than US$2 per day, making the vast majority of the population food insecure.13 The 2010 earthquake compounded these problems. In the short term, the earthquake affected the ability of millions to afford and gain access to food. The disaster also had many longerterm impacts on food security, as intense deforestation and soil erosion had devastated the agricultural sector. The damage to Port-au-Prince, where approximately 65-85% of Haiti’s GDP originates, seriously constrained the country’s ability to recover economically.14 The centralisation of economic activity in the capital, the lack of infrastructure to mitigate physical damage and the ongoing assault of natural disasters since 2010 have kept an estimated 1.5m people food insecure in 2013.15 2010 Chilean earthquake A little over a month after the Haitian earthquake an 8.8-magnitude earthquake struck the western coast of Chile, triggering a tsunami that swept up and down the Chilean coast and beyond.16 Numerous older buildings and roads collapsed and over 81,000 homes were destroyed.17 The estimated death toll ranged from 450 to 700 people. Approximately 1.5m people were affected by the earthquake in total.18 Chile is one of South America’s wealthiest nations, with GDP per head at US$15,200 and only 3% of the population living on less than US$2 per day.19 Unlike Haiti, the 2010 earthquake was not Chile’s first, and reports suggest that the government and people were better prepared to deal with the aftermath because of this.20 The government reached an agreement with supermarkets to provide food to people in disasteraffected zones. In the long-term, Chile’s resilience factors—wealth, disaster preparedness and strong infrastructure—prevented widespread devastation and food insecurity. Natural disasters and food security Chile and Haiti’s experiences demonstrate the dangers natural disasters pose for long-term food security, while also illustrating the role of preparedness and infrastructure development as critical investment areas. 16 Chile Earthquake 2010: One-Year Progress Report, American Red Cross, 2011. 17 Report on the 2010 Chilean Earthquake and Tsunami Response, United States Geological Survey, 2011. 15 13 Haiti Earthquake Relief One-Year Report, American Red Cross, 2011. 18 Chile Earthquake 2010: One-Year Progress Report, American Red Cross, 2011. 14 Haiti after the Earthquake: Ensuring the Link between Reconstruction and Sustainable Development, World Bank, 2011. 19 World Development Indicators, World Bank, 2013; Economist Intelligence Unit estimates. 15 Haiti: UN warns 1.5 million people could remain at risk of food insecurity in 2013, UN News Centre, 2012. 20 “Why The Haiti Earthquake Wasn’t As Strong, But Far More Devastating”, Huffington Post, 2010. © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Overall 2013 GFSI rankings table Weighted total of all category scores (0-100 where 100=most favourable) Rank Score /100 1 United States 2 3 4 Rank Score /100 Rank Score /100 86.8 37 Slovakia 63.2 73 Uzbekistan 40.9 Norway 86.5 38 Turkey 62.9 74 Myanmar 40.1 France 83.7 39 South Africa 61.0 75 Pakistan 39.7 Austria 83.4 40 Russia 60.9 76 Cote d’Ivoire 39.5 =5 Switzerland 83.2 41 Venezuela 60.8 77 Uganda 38.3 =5 Netherlands 83.2 42 China 60.2 78 Cameroon 36.9 7 Belgium 82.4 43 Botswana 60.0 79 Syria 36.7 8 Canada 82.1 44 Panama 59.7 80 Kenya 36.4 9 New Zealand 82.0 45 Thailand 58.9 81 Bangladesh 35.3 Denmark 81.8 46 Belarus 58.8 82 Senegal 34.5 =11 Ireland 81.7 =47 Ukraine 58.0 83 Tajikistan 34.2 =11 Germany 81.7 =47 Tunisia 58.0 84 Nepal 33.8 13 Finland 81.4 49 Serbia 56.8 85 Benin 33.7 14 Sweden 80.8 50 Peru 56.0 86 Nigeria 33.0 15 Australia 80.1 51 Bulgaria 55.9 87 Guinea 32.0 16 Singapore 79.9 52 Colombia 54.5 88 Angola 31.8 17 Israel 78.4 53 Paraguay 52.9 89 Cambodia 31.3 18 Japan 77.8 54 Jordan 52.3 90 Ethiopia 31.2 19 Spain 77.5 55 Dominican Republic 51.9 91 Niger 30.1 20 United Kingdom 77.3 56 Egypt 51.7 92 Burkina Faso 29.9 21 Portugal 76.1 57 Ecuador 51.6 =93 Yemen 29.6 22 Italy 74.6 58 Kazakhstan 51.4 =93 Mozambique 29.6 23 Czech Republic 72.2 59 Morocco 49.4 95 Tanzania 29.4 24 South Korea 71.1 =60 Sri Lanka 48.6 =96 Madagascar 29.3 25 Greece 70.7 =60 Vietnam 48.6 =96 Rwanda 29.3 26 Chile 70.3 62 Honduras 48.4 98 Sierra Leone 29.0 27 Poland 69.9 63 El Salvador 47.5 99 Malawi 28.3 28 Hungary 69.0 64 Philippines 46.9 100 Zambia 28.1 29 Brazil 67.0 65 Bolivia 46.2 101 Haiti 27.6 30 Mexico 66.2 66 Indonesia 45.6 102 Mali 26.8 31 Saudi Arabia 65.7 67 Ghana 45.4 103 Burundi 26.3 32 Uruguay 65.3 =68 Algeria 45.2 104 Sudan 25.2 33 Romania 65.0 =68 Guatemala 45.2 105 Togo 22.7 34 Malaysia 64.5 70 India 44.4 106 Chad 22.1 35 Argentina 63.8 71 Azerbaijan 43.1 107 Congo (Dem. Rep.) 20.8 36 Costa Rica 63.7 72 Nicaragua 41.6 10 16 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Rankings by income classification (Income groups are World Bank classifications, 2012 data) Rank Score /100 High income (US$12,476 per capita or more) Rank Score /100 Upper middle income (US$4,036-12,475 per capita) Rank Score /100 Lower middle income (US$1,026-4,035 per capita) Rank Score /100 Low income (US$1,025 per capita or less) 1 United States 86.8 1 Chile 70.3 1 Ukraine 58.0 1 Myanmar 40.1 2 Norway 86.5 2 Brazil 67.0 2 Paraguay 52.9 2 Uganda 38.3 3 France 83.7 3 Mexico 66.2 3 Egypt 51.7 3 Kenya 36.4 4 Austria 83.4 4 Uruguay 65.3 4 Morocco 49.4 4 Bangladesh 35.3 =5 Switzerland 83.2 5 Romania 65.0 =5 Sri Lanka 48.6 5 Tajikistan 34.2 =5 Netherlands 83.2 6 Malaysia 64.5 =5 Vietnam 48.6 6 Nepal 33.8 7 Belgium 82.4 7 Argentina 63.8 7 Honduras 48.4 7 Benin 33.7 8 Canada 82.1 8 Costa Rica 63.7 8 El Salvador 47.5 8 Guinea 32.0 9 New Zealand 82.0 9 Turkey 62.9 9 Philippines 46.9 9 Cambodia 31.3 Denmark 81.8 10 South Africa 61.0 10 Bolivia 46.2 10 Ethiopia 31.2 =11 Ireland 81.7 11 Russia 60.9 11 Indonesia 45.6 11 Niger 30.1 =11 Germany 81.7 12 Venezuela 60.8 12 Ghana 45.4 12 Burkina Faso 29.9 13 Finland 81.4 13 China 60.2 13 Guatemala 45.2 13 Mozambique 29.6 14 Sweden 80.8 14 Botswana 60.0 14 India 44.4 14 Tanzania 29.4 15 Australia 80.1 15 Panama 59.7 15 Nicaragua 41.6 =15 Madagascar 29.3 16 Singapore 79.9 16 Thailand 58.9 16 Uzbekistan 40.9 =15 Rwanda 29.3 17 Israel 78.4 17 Belarus 58.8 17 Pakistan 39.7 17 Sierra Leone 29.0 18 Japan 77.8 18 Tunisia 58.0 18 Cote d’Ivoire 39.5 18 Malawi 28.3 19 Spain 77.5 19 Serbia 56.8 19 Cameroon 36.9 19 Haiti 27.6 20 United Kingdom 77.3 20 Peru 56.0 20 Syria 36.7 20 Mali 26.8 21 Portugal 76.1 21 Bulgaria 55.9 21 Senegal 34.5 21 Burundi 26.3 22 Italy 74.6 22 Colombia 54.5 22 Nigeria 33.0 22 Togo 22.7 23 Czech Republic 72.2 23 Jordan 52.3 23 Angola 31.8 23 Chad 22.1 24 South Korea 71.1 24 24 Yemen 29.6 24 70.7 25 Zambia 28.1 Congo (Dem. Rep.) 20.8 Greece Dominican Republic 51.9 25 26 Poland 69.9 25 Ecuador 51.6 26 Sudan 25.2 Kazakhstan 51.4 10 27 Hungary 69.0 26 28 Saudi Arabia 65.7 27 Algeria 45.2 29 Slovakia 63.2 28 Azerbaijan 43.1 17 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Affordability This category measures the ability of consumers to purchase food, their vulnerability to price shocks, and the presence of programmes and policies to support them when shocks occur. Affordability is measured across six indicators: l Food consumption as a proportion of total household expenditure l Proportion of population living under or close to the global poverty line l GDP per capita (at purchasing power parity, or PPP, exchange rates) l Agricultural import tariffs l Presence of food safety net programmes l Access to financing for farmers High food prices are an important cause of food insecurity—but so, too, are low prices, and wide swings in prices may be most damaging of all. Each, in its own way, disrupts markets and price signals, making consumption and production less secure. During the 1980s and 1990s global food prices reached record lows.1 Some experts even said food prices were set for long-term decline.2 Since then a combination of factors—including an expanding global population, more expensive food preferences in emerging markets, higher costs of agricultural inputs and lower returns on agricultural productivity—have all pushed prices up. Food economists expect prices to remain 18 1 The State of Food Insecurity in the World 2011, FAO, Rome. 2 The State of Agricultural Commodity Markets 2004, FAO, Rome; “Agriculture commodity prices continue long-term decline”, FAO, Rome/Geneva, February 15th 2005; interview with Mr Cafiero. © The Economist Intelligence Unit Limited 2013 high—and volatile—for the foreseeable future.3 “We will experience higher prices in the next 15 to 20 years—there is no doubt about it,” says Kostas Stamoulis, director of the agriculture and economics division at the FAO and secretary of the Committee on World Food Security. “The question is, what will governments do about it? There is no such thing as the perfect price of food.” High prices make food less affordable for consumers, particularly in developing countries. Those closest to the global poverty line and those for whom food consumption makes up a significant portion of household expenditure are the most vulnerable to higher prices; often they are already eating the cheapest foods, and they have little disposable income. In Cambodia, rice prices doubled between May 2007 and May 2008, plunging many into poverty, particularly the rural poor. Although Cambodia is a net exporter of rice, as in many countries with a sizable population near the global poverty line, many consumers are net buyers, even if they farm for a living.4 According to the 2013 GFSI, populations in Sub-Saharan Africa and South Asia again remain the most vulnerable to high prices. Of the 28 Sub-Saharan African countries covered in the index, food consumption accounts for 50% or more of household spending in 20 of them. In South Asia, food costs exceed 45% of spending in four of the five countries covered. Consumers in the Democratic Republic of Congo (DRC), Cambodia and Nepal devote the 3 The State of Food Insecurity in the World 2011, FAO, Rome. 4 “Rising Food Prices Discussion Paper”, UNICEF, 2008. Global food security index 2013 An annual measure of the state of global food security Income growth v food affordability Correlation between GDP per capita growth rate and GFSI Affordability rank change, 2012-2013 10 8 Peru Burundi 6 Myanmar 4 2 -0.2 0 0 -0.1 0.1 0.2 0.3 0.4 0.5 -2 -4 -6 -8 Mali -12 Source: Economist Intelligence Unit greatest share of household spending—about 70%—to food. In Switzerland, New Zealand and the US, by comparison, only around 7-14% of spending goes on food. Most citizens in these countries can easily divert a share of non-food spending to food if high prices force them to do so. Low food prices can also cause food insecurity, especially in low-income, agrarian economies. Indeed, economists have been debating for some time what is worse: high or low prices? Recent studies have found that cheap food may put a larger portion of rural poor at risk of food insecurity than previously thought.5 Low prices depress smallholder farmers’ incomes and disrupt their ability to purchase food. Low prices are also a disincentive to produce, which can hurt crop output in subsequent years.6 A study conducted by M Ataman Aksoy and Aylin Isik-Dikmelik found that in rural areas net buyers—those who buy more food than they sell—are often just as negatively affected by low food prices as net sellers. In the nine countries they examined, much of the economic activity in rural areas was tied in some way to farming. Low incomes for farmers meant low incomes for all.7 Despite the risks posed by high and low food prices, volatility—sharp swings in the price level— is one of the most significant concerns for shortterm food security.8 According to the World Bank, the 2008 price increase in many food commodities sent 44m people into poverty who had not been there previously.9 Says Mr Stamoulis: “We should not forget that the food crisis of 2008 was a spike in food prices—that is, everything went up very quickly. People were caught by surprise, and there was no time to adjust their production to take advantage of the higher prices, or to adjust their consumption away from expensive foods.”10 Sudden price changes can often cause poor consumers or suppliers to sell important assets at 5 M Ravallion, “Do Price Increases for Staple Foods Help or Hurt the Rural Poor?”, Policy, Planning and Research Working Paper WPS 167, World Bank, Washington DC, 2011; D Byerlee, R Myers and T Jayne, “Managing Food Price Risks and Instability in an Environment of Market Liberalization”, Agriculture and Rural Development Department, World Bank, Washington DC 2005; M A Aksoy and A IsikDikmelik, “Are Low Food Prices Pro-Poor? Net Buyers and Sellers in Low-Income Countries”, Policy Research Working Paper 4642, World Bank, June 2008. 7 M A Aksoy and A Isik-Dikmelik, “Are Low Food Prices Pro-Poor? Net Buyers and Sellers in Low-Income Countries”, Policy Research Working Paper 4642, World Bank, June 2008. 8 The State of Food Insecurity in the World 2011, FAO, Rome. 9 “Food price hike drives 44 million people into poverty”, Press Release No. 2011/333/PREM, World Bank, Washington DC, February 15th 2011. Interviews with Mr Stamoulis and Mr Cafiero. 10 Interview with Mr Stamoulis. 6 19 -10 X- axis: GDP per capita growth rate Y- axis: Change in Afforability ranking Line: OLS linear regression © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security low prices to maintain food security in the short term. In the longer term, those actions keep families in poverty and can also inhibit developing countries from making gains in agricultural productivity. Ongoing price volatility reduces incentives for smallholders to invest in more efficient agricultural tools, as they cannot count on a return on their investment.11 Highly volatile food prices can also be problematic for advanced economies. A study conducted by Craig Gundersen and James P Ziliak found that one in seven elderly people in the US is food insecure—approximately 8.3m people.12 Policymakers in the US of both major political parties have taken note of this challenge. Referring to this research, in May 2013 the US Representative, Jim McGovern, stated before the Senate Agriculture Committee: “The reason for this significant rise in senior hunger is the economy. The recession has made hunger in America worse for everyone, and it’s been particularly bad among people between the ages of 50 and 59, a population too young for Social Security and Medicare, but too old for programmes that target families with children. And it’s not just the very poor. In fact, between 2007 and 2009, the most dramatic increase in hunger was among those whose annual incomes were twice the poverty line.”13 Between 2012 and 2013 the US fell from second to fourth place in the index for food consumption as a share of household spending, reflecting the strain the recent economic downturn has placed on households that were not previously at risk. Policymakers can help farmers mitigate pricerelated risks by ensuring access to finance. In particular, financing for smallholders can help them invest in productivity-enhancing equipment, so that they can quickly adjust to low food prices by increasing production.14 In the index, this is captured through access to financing for farmers. 11 The State of Food Insecurity in the World 2011, FAO, Rome. 12 C Gunderson and J Ziliak, “Senior Hunger in America 2012: An Annual Report”, University of Kentucky Center for Poverty Research, May 2012; “Great Recession Reflux Amounts to More Hunger Among Seniors”, University of Illinois, Department of Agricultural, Consumer and Environmental Science, May 15th 2012. 13 US Representative Jim McGovern’s 11th “End Hunger Now” speech, May 14th 2013. 14 Interview with Mr Stamoulis. 20 © The Economist Intelligence Unit Limited 2013 Countries in Sub-Sahara countries perform particularly poorly in this area, although some small improvements have been made in the past year, through larger loans from the International Fund for Agricultural Development (IFAD) in the region. Food safety nets are another important riskcoping mechanism. School feeding programmes can keep children from leaving classrooms during a food crisis, and cash transfers may support families during a sudden price increase.15 Scholars at the International Food Policy Research Institute (IFPRI) and the World Bank also suggest that safety nets can expand economic growth.16 A range of programmes is in place globally, and academics continue to debate the efficacy of each type and when they are appropriate. The wide range of models makes it difficult to compare food safety net regimes across countries; nonetheless, most experts agree that they are a critical component of any food insecurity solution. As a result, the EIU has constructed a series of standardised benchmarks against which government commitment and NGO presence can be compared globally.17 Food safety net regimes were examined for the breadth of services available, the geographical reach of the programmes, and the depth of financing. Comprehensive national programmes are considered the most favourable. An overly strong reliance on donor organisations is considered a weakness, as it indicates that the programmes are subject to external funding. Highincome countries scored best on this indicator, as well as several middle-income countries that have invested in national hunger alleviation programmes, such as Brazil. School feeding initiatives are one particularly popular model for hunger alleviation. In Europe, education and feeding programmes for the poor 15 The State of Food Insecurity in the World 2011, FAO, Rome. 16 H Alderman and J Hoddinott, “Growth-Promoting Social Safety Nets, 2020 Focus Brief on the World’s Poor and Hungry People”, IFPRI, Washington DC, October 2007. 17 “Action Plan on Food Price Volatility and Agriculture”, ministerial declaration, meeting of G20 agriculture ministers, Paris, June 2011; S Fan, “Moving from Rhetoric to Action: Priorities to Curtail Price Volatility & Protect the Poor”, IFPRI, Paris, June 23rd 2011; interviews conducted by The Economist Intelligence Unit with food security experts. Global food security index 2013 An annual measure of the state of global food security have existed since the 19th century.18 Norway, ranked 4th in the affordability category, is one of the European pioneers of school feeding programmes. The well-known “Oslo breakfast”19 has been provided informally at schools in Norway since 1897. It gained its formal name 30 years later.20 Countries in Latin America and East Asia pioneered many of the modern models for safety net programmes. Mexico’s government introduced conditional cash transfers through its PROGRESA programme in the late 1990s.21 Providing cash to beneficiaries, rather than direct food handouts, empowered the recipients and incentivised certain behaviours, such as regular school attendance and healthcare visits.22 Conditional cash transfer programmes have since proliferated across Latin America and in parts of Asia and Africa.23 Seven of the top ten upper middle-income countries for the food safety nets indicator are from Latin America. Overall, the index shows that food is most affordable in the US and several advanced countries—Switzerland, the Netherlands and Norway also share the top ranks. Food expenditure in these countries comprises a low share of total outlays, and strong government programmes support households that are unable to meet their daily food needs. Costly food and large, vulnerable populations put Nigeria, the Democratic Republic of Congo (DRC) and Chad at the bottom of the index for affordability. The DRC and Chad also lack food safety net programmes to support their at-risk communities. In Chad the World Food Programme runs several large-scale food programmes, yet because a significant share of donor funding goes to conflict-affected areas bordering Sudan, programmes in the rest of the country are underresourced.24 18 “The National School Lunch Program: Background and Development”, United States Department of Agriculture (USDA), February 21st 2012. 19 The Oslo breakfast consists of so-called protective foods, such as milk, eggs, citrus fruits and leafy or yellow vegetables, which contain sufficient amounts of vitamins, high-quality proteins and minerals to defend against nutritional deficiency diseases. See Report of the Conference of FAO–First Session, FAO Corporate Document Repository, Quebec City, 1945. 20 “The National School Lunch Program: Background and Development”, USDA, February 21st 2012. 21 The programme has since been superseded by the “Oportunidades” programme. 22 J Berman, “Policy-Oriented Research Impact Assessment (PORIA) Case Study on the International Food Policy Research Institute (IFPRI) and the Mexican PROGRESA Anti-Poverty and Human Resource Investment Conditional Cash Transfer Programme”, IFPRI, Washington DC, 2007. 23 Interviews conducted by The Economist Intelligence Unit with food security experts. 21 © The Economist Intelligence Unit Limited 2013 24 2010 Annual Evaluation Report, World Food Programme (WFP), Rome, May 2011. Global food security index 2013 An annual measure of the state of global food security Availability This category measures the sufficiency of the national food supply, the risk of supply disruption, national capacity to disseminate food, and research efforts to expand agricultural output. Availability is measured across seven indicators: l Sufficiency of supply l Public expenditure on agricultural research and development (R&D) l Agricultural infrastructure l Volatility of agricultural production l Political stability risk l Corruption l Urban absorption capacity It is often said that the world produces enough food to feed every mouth in it.1 The Green Revolution of the 1970s ushered in the productivity gains that made this possible. Technology, for example, enabled seeds to absorb more water and fertiliser, expanding crop yields. Those gains, however, are slowing. For the first time since the Green Revolution, global yield growth is increasing at a slower rate than the population.2 In some places fertiliser use has reached saturation point, and water availability is now much lower than it once was. The combination of slowing returns on technology and the growing global population have made sufficiency of future food supplies uncertain. According to the UN, global food 22 1 See the following for just two examples: R Patel, “Can the World Feed 10 Billion People?”, Foreign Policy, May 4th, 2011; “2012 World Hunger and Poverty Facts and Statistics”, World Hunger Education Service. 2 “How much is enough?”, The Economist, February 24th 2011. © The Economist Intelligence Unit Limited 2013 production will need to rise by 50% by 2030 to meet demand.3 At its most basic level, food availability is a measure of the supply of food relative to the size of the population. This is captured in the sufficiency of supply indicator of the GFSI. Rather than explore specific sources of supply—domestic production versus imports, for example—the EIU asked a more basic question: do people have enough to eat? The FAO provides reliable estimates of supply available for human consumption–that is, all food available after production, exports and imports–and this was the foundation for our sufficiency of supply assessment. According to the FAO, the average adult needs 2,300 calories per day to lead a healthy and active life.4 In the US, which ranks first overall in the index, the national food supply is equivalent to 3,688 calories per person per day. The US is outranked only by Austria, where available food is equivalent to 3,800 calories per person per day. Overall, sufficiency of supply increased globally, improving in 71 countries. In the 2012 GFSI, Sub-Saharan Africa was the only region which, on average, did not meet the UN standard. In a major positive development, average caloric intake per person in Sub-Saharan Africa has increased to 2,332, above the UN standard. 3 ”UN: 50 percent more food needed by 2030”, Associated Press, MSNBC, June 3rd 2008. 4 There are several different daily caloric benchmarks; the most widely used internationally is the FAO benchmark. It is calculated based on an average of normative calorie requirements the FAO calculates for individual countries. Until recently the benchmark was 2,100 calories per day. 2,300 calories reflects the FAO recommendation as of June 2012. Correspondence with Mr Cafiero. Global food security index 2013 An annual measure of the state of global food security Food availiability in coastal vs landlocked countries 2013 GFSI Availability score, 0-100 where 100=best Landlocked countries Countries with port access 47 All countries 55 67 High income 74 51 Upper middle income 58 43 44 Lower middle income 33 Low income 35 38 39 Sub-Saharan Africa 41 South Asia 45 45 Latin America & Caribbean 52 55 Europe & Central Asia 69 Source: Economist Intelligence Unit Food aid from international donors is another source of supply, although the index makes a distinction between emergency or humanitarian aid—which is considered valuable and necessary— and chronic food aid, which we treat as evidence of fundamental weakness and policy failures. Chronic dependence on food aid also makes a country subject to donor budgets, and therefore less food secure. According to the IMF, programmatic aid flows are set to slow over the 2011-13 period,5 making reliance on food aid even more problematic in the short term. The countries most dependent on food aid are among the poorest in Latin America, Sub-Saharan Africa and South Asia. Despite these efforts, chronic shortages continue to plague Bangladesh. In 2011 the World Food Programme provided critical food supplies to over 150,000 people affected by heavy rains and floods in Satkhira.6 Extreme weather in Russia, Pakistan and Australia in recent years illustrates the threat that natural phenomena can pose to food supplies. The index measures these risks through volatility of 23 5 Disbursements of programmatic aid are expected to decline by 0.2% per year, according to donor plans for the forecast period. Global Monitoring Report 2012, IMF and World Bank, Washington DC, 2012. 6 2011 Annual Report Bangladesh, World Food Programme, Geneva, Switzerland. © The Economist Intelligence Unit Limited 2013 agricultural production. The standard deviation in annual growth rates was calculated to measure the stability of crop production year on year (that is, the average difference between the growth rate in a given year and the average growth rate over the period analysed). China experienced the least volatility of agricultural production during the last 20 years, and three North African countries— Algeria, Morocco and Tunisia—among the greatest. Low production volatility in China is in part a result of its geographical size, and in part owing to the fact that grain production is heavily incentivised. The Chinese government, for example, sets a minimum purchasing price that is higher than market rates to encourage grain growth. Recently, the government began moving away from this practice by paying direct subsidies to farmers. One mechanism for managing shocks, such as extreme weather, is investment in agricultural technology. Technology can also help farmers increase crop yields, reduce vulnerability to climate change, and improve nutritional outcomes.7 It is difficult to generalise about yield gaps because conditions are so country-specific, but research at 7 “Advancing Food and Nutrition Security at the 2012 G8 Summit,” expert panel discussions, Chicago Council event, May 18th 2012. Global food security index 2013 An annual measure of the state of global food security Experts agree that women are a critical part of expanding agricultural output, particularly in Sub-Saharan Africa. Indeed, the Global Food Security Index (GFSI) shows a 0.93 correlation with the Economist Intelligence Unit’s Women’s Economic Opportunity Index, a measure of the global environment for female economic participation. The Food and Agriculture Organisation (FAO) estimates that if women had access to the same productive resources as men—better seeds, fertilisers and fungicides—they could increase their yield by 20-30%. As women make up 43% of the world’s farmers, this would increase total agricultural output in developing countries by 2.5% to 4%, and reduce hunger globally by 12% to 17%, according to the FAO. a field in the UK’s Rothamsted Research Station illustrates the extent to which more productive inputs can increase yields. The Broadbank field at the research station is cultivated using three different levels of technology. One section is tilled using state-of-the-art inputs—high-quality seeds, fertilisers, plant protection products and husbandry. The second uses technology popular at the start of the Green Revolution. The third is tilled without any fertiliser, pesticides or other additive technology. The yield difference between the highest- and lowest-technology segment was between 80% and 90%.8 In the GFSI, public-sector efforts to improve agricultural technology are measured through public expenditure on agricultural R&D as a percentage of agricultural GDP.9 The indicator we chose was the best available across 107 countries. Carlo Cafiero, a senior statistician in the Statistics Division at the FAO, explains the importance of agricultural R&D, even in times of plenty: “Usually the results from investment in research and technology within agriculture come with a considerable time delay. So now, we are facing considerable problems because in the ‘80s and ‘90s the investment in public agriculture was particularly low; prices were low, so there was little incentive for research. And now ... we cannot 24 8 J Parker, “The 9 billion people question”, The Economist, February 24th 2011. 9 Ideally, we would have measured private as well as public research and development (R&D) spending, but private data were not available for the large number of countries covered in the index. © The Economist Intelligence Unit Limited 2013 benefit from the increase in production that could have occurred if there had been more investment in the ‘80s and ‘90s.”10 Even with expanding productivity, farmers also need access to markets to be able to sell their crops. Food experts often note that smallholders could contribute significantly to the global food supply if they had access to larger markets.11 The agricultural infrastructure indicator measures access to markets through roads and ports, as well as assessing crop storage. Within the agricultural infrastructure indicator, port infrastructure—or access to ports for landlocked countries—is considered. This is particularly relevant to food security, as recent research has shown that small landlocked countries are more vulnerable to food price shocks.12 Several World Bank studies have also found that landlocked countries can experience greater unpredictability in transport time and be subject to significant rentseeking activities, both of which could make food availability costlier and more challenging.13 Landlocked countries were therefore scored based on their ability to access ports through rivers and other means, taking into account delays and other obstacles to transporting goods to those ports. However, even considering such obstacles, landlocked countries on the whole were not significantly less food secure than those with ports. The 22 landlocked countries evaluated in the index scored, on average, just seven points lower than countries with a coastline. Mr Stamoulis of the FAO and the Committee on World Food Security explains: “It is a matter of mobilisation of resources and development. There is no reason why landlocked countries should do significantly worse than countries that are not landlocked.”14 10 Interview with Mr Cafiero. 11 “Advancing Food and Nutrition Security at the 2012 G8 Summit”, expert panel discussions, Chicago Council event, May 18th 2012. 12 The State of Food Insecurity in the World 2011, FAO, Rome. 13 J F Arvis, G Raballand and J F Marteau, “The cost of being landlocked: logistics costs and supply chain reliability”, Policy Research Working Paper, World Bank, January 2007; N Christ and M Ferrantino, “Land Transport for Export: The Effects of Cost, Time, and Uncertainty in Sub-Saharan Africa”, Office of Economics Working Paper, US International Trade Commission, Washington DC, February 8th 2011; “Landlocked Countries: Higher Transport Costs, Delays, Less Trade”, World Bank, June 16th 2012. 14 Interview with Mr Stamoulis. Global food security index 2013 An annual measure of the state of global food security Quality and safety This category measures what is sometimes called “utilisation” in food security parlance. It assesses the variety and nutritional quality of average diets, as well as the safety of food. Food quality and safety is measured across five indicators: l Diet diversification l Government commitment to increasing nutritional standards l Micronutrient availability l Protein quality l Food safety Poor nutrition is a concern for wealthy and poor countries alike. Nutrition, not included in earlier definitions of food security, is now widely recognised as important, particularly in the 1,000 days between the start of a woman’s pregnancy and her child’s second birthday.1 Bibi Giyose, a senior adviser for food and nutrition security at the New Partnership for Africa’s Development (NEPAD), explains: “The first two years are critical to determining how a child will be able to function in society. After two years the damage is done, and you are putting out fires. It is very hard to reverse the damage of malnutrition.” Research has shown that poor nutrition at a young age, even temporarily as a result of higher food prices, can harm a child’s cognitive development. Malnourished children are more likely to drop out 1 25 “Series on Maternal and Child Undernutrition”, The Lancet, January 16th 2008. © The Economist Intelligence Unit Limited 2013 of school, and World Bank research shows that they have a 10% lower lifetime earning potential.2 Indeed, malnutrition costs some poor countries national income equivalent to 2-3% of GDP each year.3 Poor nations are not the only ones suffering. Malnutrition is a financial burden for healthcare systems in many advanced economies. In the UK, researchers estimate that malnutrition and associated diseases raise domestic healthcare costs by £7.3bn (US$11.7bn) annually.4 In the US, hunger inflates healthcare costs by an estimated US$130.5bn a year.5 Obesity is also becoming recognised as a form of malnutrition.6 At the 2009 rate of obesity growth in the US, 103m people are expected to be obese in 2018, with associated healthcare costs of US$344bn.7 Vitamin A and iron deficiencies are among the most common micronutrient gaps.8 Here their availability in national food supplies is assessed 2 “Repositioning Nutrition As Central to Development”, International Bank for Reconstruction and Development (IBRD), World Bank, Washington DC, 2006. 3 “Repositioning Nutrition As Central to Development”, IBRD; World Bank, Washington DC, 2006. 4 M Elia, R Stratton, C Russell, C Green and F Pan, “The cost of disease-related malnutrition in the UK and economic considerations for the use of oral nutritional supplements (ONS) in adults”, British Association for Parenteral and Enteral Nutrition (BAPEN), 2006; “Malnutrition costs the UK more than £7.3 billion of actual expenditure each year - double the projected £3.5 billion cost of obesity”, BAPEN, December 14th 2005. 5 D Shepard, E Setren and D Cooper, “Hunger in America: Suffering We All Pay For”, Center for American Progress: Washington DC, October 2011. 6 2012 World Hunger and Poverty Facts and Statistics, World Hunger; “The nutrition puzzle”, The Economist, February 18th 2012. 7 The Future Costs of Obesity: National and State Estimates of the Impact of Obesity on Direct Health Care Expenses. A collaborative report from the United Health Foundation, the American Public Health Association and the Partnership for Prevention, based on research by Kenneth E Thorpe, Emory University, November 2009. 8 “Micronutrient deficiencies”, WHO; interviews conducted by The Economist Intelligence Unit with nutrition experts. Global food security index 2013 An annual measure of the state of global food security Protein punch! Year-on-Year change to protein quality score Year-on-year change from 2012 to 2013 GFSI Quality and Safety (Δ in rank) GFSI Protein quality score changes, 2012-2013 Top 5 gains Top 5 losses 25 20 15 10 5 0 -5 -10 -15 -20 -25 -30 -35 Romania Myanmar Venezuela Dominican Republic Serbia Sudan Congo (Dem. Rep.) Czech Republic Paraguay Botswana Source: Economist Intelligence Unit under micronutrient availability. While micronutrient deficiencies are a significant problem in poor countries, wealthier nations struggle as well. None of the ten richest nations, as measured by GDP per head, finish in the top ten for micronutrient availability, with the exception of Singapore and Ireland. Nearly all high-income countries have ample levels of vitamin A in their diets, but they are significantly lacking in iron from vegetables and vegetable products. Developing countries have higher iron availability from vegetables, probably because they make up a larger proportion of their diet. Policies that address nutrition deficiencies are generally effective. Analysis of individual cases consistently shows at least a 1:2 cost-benefit ratio, including breastfeeding promotion, vitamin A supplements and salt iodisation.9 Vitamin A supplements are particularly cheap, at 15 US cents per person, and are widely used. Iron supplements cost US$10-50 per head per year.10 Protein quality, another indicator in this category, correlates very highly with overall food security. To provide a comprehensive assessment of protein intake—one that includes protein absorbed 9 Global Monitoring Report 2012, IMF and World Bank, Washington DC, 2012. 10 Ibid. 26 © The Economist Intelligence Unit Limited 2013 from foods, such as legumes, whole grains, meat and dairy—The EIU uses a unique quantitative assessment of protein quality in diets. It is calculated by assessing the presence of nine essential amino acids in the average national diet. This allows the index to account for protein gained from non-animal sources, which is important in many countries where meat-eating is not widespread. Three Mediterranean countries— Israel, Greece and Portugal—fare best on this indicator. Latin American countries also do well, particularly upper middle-income countries. Diet diversification is often promoted as one solution to micronutrient deficiencies and lack of protein. Ms Giyose explains: “Supplements—such as vitamin A—have been … shown to be the most efficient way of preventing malnutrition. However, food-based solutions and diet diversity are more sustainable over the long term, as they enhance the breadth of production in a society.” Conversely, poor diet diversification often indicates a lack of sufficient nutrients. The problem remains most acute in South Asia, according to the index rankings. In Bangladesh, for example, rice makes up 60% of food consumption, and nearly 50% of children were moderately or severely Global food security index 2013 An annual measure of the state of global food security underweight in 2005.11 The World Food Programme (WFP) has implemented a variety of programmes in Bangladesh focusing on improving the social safety net, conditional cash transfers to “ultra-poor” women in disaster areas, improving school feedings, and material and child nutrition. According to the WFP, Bangladesh has increased the proportion of homes with adequate diet diversity to 90% in 2011, from 50% in 2011.12 While Bangladesh has updated its official statistics, anecdotal evidence points to improvement since 2005. The GFSI outcome variables—which do not factor into country rankings—for Bangladesh point to significant progress. New data for the 2013 index shows that Bangladesh reduced its prevalence of undernourishment from 27% to 16%. Diet diversity presents a different set of issues in emerging and advanced economies. Residents of wealthy countries, and increasingly of emerging ones, consume large quantities of processed foods that do not fill most nutritional needs. That economic development leads to a “nutrition transition”—a shift in consumption patterns, work and leisure habits that often results in high-fat and sugar-rich diets and less exercise—has been known for some time.13 In some regions, the problem is accelerating. In many Arab countries the difference in diets between the wealthy and the poor is growing, and obesity is on the rise.14 Diets are still the most diverse in North America and Western Europe, with the Netherlands, Switzerland and the US topping the 2013 index for this indicator. 11 G L Khor, “Food based approaches to combat the double burden among the poor: Challenges in the Asian context”, Asia Pacific Journal of Clinical Nutrition, Vol. 17, 2008. 12 2011 Annual Report Bangladesh, World Food Programme, Geneva, Switzerland. 13 A Drewnowski and BM Popkin, “The nutrition transition: new trends in the global diet”, Nutrition Reviews, Vol. 55, No. 2, 1997; “Global and regional food consumption patterns and trends”, in Diet, nutrition and the prevention of chronic diseases: Report of the joint WHO/FAO expert consultation, WHO Technical Report Series, No. 916. 14 Arab Human Development Report 2009, UN Development Programme, New York. 27 © The Economist Intelligence Unit Limited 2013 Poor nutritional quality can be addressed through better information and frequent monitoring of nutritional standards and food safety. We consulted with the World Health Organisation to identify appropriate metrics for nutritional standards, while the organisation is independently in the process of developing a more comprehensive measure of “nutritional governance”. For food safety, we created a new indicator which considers the presence of regulated food markets, the existence of a government entity to regulate such markets, and accessibility of potable water. In Sub-Saharan Africa, for example, the presence of aflatoxins—a carcinogenic toxin produced by mould—in maize and peanuts has made food safety a particular issue. Despite improvements here, Sub-Saharan Africa continues to score the poorest of any region in food safety. Overall, Israel remained at the top of the quality and safety category, with high micronutrient availability and good protein quality. France finished second again, performing even better than Israel in micronutrient availability, with a high degree of iron availability through animal foods. Two euro zone countries stand out: Portugal and Greece. Despite considerable drops in their overall scores, they improved their quality and safety rankings by coming 4th and 5th, respectively. Togo, Mozambique and the Democratic Republic of Congo rank at the bottom; all three lack even basic national nutritional guidelines. Global food security index 2013 An annual measure of the state of global food security Appendix: Methodology The objective of the Global Food Security Index is to measure which countries are most and least vulnerable to food insecurity. To do so, The Economist Intelligence Unit (EIU) constructed the Global Food Security Index (GFSI) as a dynamic quantitative and qualitative benchmarking model, constructed from 27 unique indicators, which measures drivers of food security across 107 countries. Please refer to the Appendix for definitions of the indicators. Scoring criteria and categories Categories and indicators were selected on the basis of EIU expert analysis and consultation with a panel of food security specialists. The EIU convened this panel of food security specialists in February 2012 to help select and prioritise food security indicators through a transparent and robust methodology. The goal of the meeting was to review the framework, selection of indicators, weighting, and overall construction of the index. Three category scores are calculated from the weighted mean of underlying indicators and scaled from 0-100, where 100=most favourable. These categories are: Affordability, Availability, and Quality and Safety. The overall score for the GFSI (from 0-100) is calculated from a simple weighted average of the category and indicator scores. Two new indicators—(2.6) Corruption and (2.7) Urban absorption capacity—were added to the 2013 index. The categories and indicators are: 1. Affordability 1.1 Food consumption as a share of household expenditure 1.2 Proportion of population under the global poverty line 1.3 Gross domestic product per head (PPP) 1.4 Agricultural import tariffs 1.5 Presence of food safety net programmes 1.6 Access to financing for farmers 28 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security 2. Availability 2.1 Sufficiency of supply 2.1.1 Average food supply 2.1.2 Dependency on chronic food aid 2.2 Public expenditure on agricultural R&D 2.3 Agricultural infrastructure 2.3.1 Existence of adequate crop storage facilities 2.3.2 Road infrastructure 2.3.3 Port infrastructure 2.4 Volatility of agricultural production 2.5 Political stability risk 2.6 Corruption 2.7 Urban absorption capacity 3. Quality and Safety 3.1 Diet diversification 3.2 Nutritional standards 3.2.1 National dietary guidelines 3.2.2 National nutrition plan or strategy 3.2.3 Nutrition monitoring and surveillance 3.3 Micronutrient availability 3.3.1 Dietary availability of vitamin A 3.3.2 Dietary availability of animal iron 3.3.3 Dietary availability of vegetal iron 3.4 Protein quality 3.5 Food safety 3.5.1 Agency to ensure the safety and health of food 3.5.2 Percentage of population with access to potable water 3.5.3 Presence of formal grocery sector 29 © The Economist Intelligence Unit Limited 2013 Data for the quantitative indicators are drawn from national and international statistical sources. Where quantitative or survey data were missing values, the EIU has used estimates. Some qualitative indicators have been created by the EIU, based on information from development banks and government websites; others have been drawn from a range of surveys and data sources and adjusted by the EIU. The main sources used in the Global Food Security Index are the EIU; the World Bank Group; the International Monetary Fund; the Food and Agriculture Organisation of the United Nations (FAO), the United Nations Development Programme (UNDP), the World Health Organisation (WHO); the World Trade Organisation (WTO); the World Food Programme (WFP); Agricultural Science and Technology Indicators (ASTI); and national statistical offices. Global food security index 2013 An annual measure of the state of global food security Country selection The 107 countries in the index were selected by the EIU based on regional diversity, economic importance, and size of population. Two new countries, Ireland and Singapore, were added to the index this year. They countries in the 2013 index are: East Asia & Pacific Europe & Central Asia Latin America & Caribbean Middle East & North Africa North America Sub-Saharan Africa South Asia Australia Belarus Argentina Algeria Canada Angola Bangladesh United States Cambodia Austria Bolivia Egypt China Azerbaijan Brazil Israel Benin India Botswana Nepal Indonesia Belgium Chile Jordan Burkina Faso Pakistan Japan Bulgaria Colombia Morocco Burundi Sri Lanka Malaysia Czech Republic Costa Rica Saudi Arabia Cameroon Myanmar Denmark Dominican Republic Syria Chad New Zealand Finland Ecuador Tunisia Cote d’Ivoire Philippines France El Salvador Yemen Congo (Dem. Rep.) Singapore Germany Guatemala Ethiopia South Korea Greece Haiti Ghana Thailand Hungary Honduras Guinea Vietnam Italy Mexico Kenya Ireland Nicaragua Madagascar Kazakhstan Panama Malawi Netherlands Paraguay Mali Norway Peru Mozambique Poland Uruguay Niger Portugal Venezuela Rwanda Russia Senegal Serbia Sierra Leone Slovakia South Africa Spain Sudan Sweden Tanzania Switzerland Togo Tajikistan Uganda Turkey Zambia Ukraine United Kingdom Uzbekistan 30 Nigeria Romania © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Weighting The weighting assigned to each category and indicator can be changed to reflect different assumptions about their relative importance. Two sets of weights are provided in the index. The first option, called neutral weights, assumes equal importance of all indicators and evenly distributes weights. The second option, called peer panel recommendation, averages the suggested weights from five members of an expert panel. The expert weights are the default weights in the model. Data modelling Indicator scores are normalised and then aggregated across categories to enable a comparison of broader concepts across countries. Normalisation rebases the raw indicator data to a common unit so that it can be aggregated. The indicators where a higher value indicates a more favourable environment for food security—such as GDP per head or average food supply—have been normalised on the basis of: x = (x - Min(x)) / (Max(x) - Min(x)) where Min(x) and Max(x) are, respectively, the lowest and highest values in the 107 economies for any given indicator. The normalised value is then transformed from a 0-1 value to a 0-100 score to make it directly comparable with other indicators. This in effect means that the country with the highest raw data value will score 100, while the lowest will score 0. For the indicators where a high value indicates an unfavourable environment for food security— such as volatility of agricultural production or political stability risk—the normalisation function takes the form of: x = (x - Max(x)) / (Max(x) - Min(x)) where Min(x) and Max(x) are, respectively, the lowest and highest values in the 107 economies for any given indicator. The normalised value is then 31 © The Economist Intelligence Unit Limited 2013 transformed into a positive number on a scale of 0100 to make it directly comparable with other indicators. Food price adjustment factor Food prices play an integral role in food security by affecting affordability. High food prices have the greatest impact in developing countries, where the poor typically spend a large share of their income on food, and where a price spike can significantly reduce food consumption. While food producers may benefit from price increases, and thus higher revenue, this is typically a medium- to long-run phenomenon and is not considered for the purpose of our index. To measure the effect of food prices on affordability, we will apply a food price adjustment factor to each country’s affordability score in the GFSI again this year as we did for the 2012 GFSI. This factor will be based on quarterly changes in global food prices, as measured by the FAO global food price index. To capture other elements of affordability, we will adjust the quarterly change in the FAO index by each country’s quarterly change in income per head—as forecast by the EIU. After adjusting the FAO index for each country’s change in income, we will multiply this price factor by what we call the local “food price pass-through rate”. We define this rate as the ratio of the change in local food prices to the change in global food prices between 2000 and 2012. If local food prices for Country X rose by 20% of the FAO index change during the historical period, we will assume, going forward, a 20% pass-through of global prices. The size of the pass-through factor will be capped at 100% of the FAO global change, so that in no case would any country’s price factor be multiplied by more than one. It is our intention to adjust each country’s starting score in the GFSI—as reflected in the 2013 GFSI—on a quarterly basis starting with Q3 if 2013. Global food security index 2013 An annual measure of the state of global food security Sources and definitions Where the quantitative or survey data have missing values, The Economist Intelligence Unit has estimated the scores. Indicator Source Year Indicator definitions and construction 1) Affordability Food consumption as a proportion of total household expenditure United States Department of Latest available year in Agriculture (USDA); Food and 2002-11 Agriculture Organisation (FAO); Economist Intelligence Unit (EIU) GDP per head estimates This indicator measures the share of household expenditure that is spent on food at a national level. Proportion of population living below global poverty line World Bank, World Development Indicators; EIU Latest available year in 2001-13 This indicator measures the percentage of the population living on less than US$2/day in purchasing power parity. Gross domestic product per head (PPP) EIU 2012 This indicator measures the average individual income and, hence, measures the ability to afford food. Agricultural import tariffs World Trade Organisation (WTO) Latest available year in 2006-12 This indicator measures the average applied most-favoured nation (MFN) tariffs on agricultural imports. Presence of food safety net programmes Qualitative scoring by EIU analysts; multinational development banks Latest available year in 2009-13 A measure of public initiatives to protect the poor from food-related shocks. This indicator considers food safety net programmes, including in-kind food transfers, conditional cash transfers (i.e. food vouchers), and the existence of school feeding programmes by the government, NGOs or the multilateral sector. Measured on a 0-4 scale based on the prevalence and depth of food safety net programmes. 0=Minimal evidence of food safety net programmes or programmes are run only by NGOs or multilaterals; Emergency food aid programmes funded by multilaterals or NGOs are not considered; 1=Moderate presence of food safety net programmes, but mainly run by NGOs or multilaterals. Depth and/or prevalence is inadequate; 2=Moderate prevalence and depth of food safety net programmes run by governments, NGOs or multilaterals; 3=National coverage, with very broad, but not deep coverage of food safety net programmes; 4=National government-run provision of food safety net programmes. Presence of NGOs or multilaterals is not critical to national coverage). 32 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Indicator Source Year Indicator definitions and construction Access to financing for farmers Qualitative scoring by EIU analysts; national ministries of agriculture Latest available year in 2005-13 This indicator is scored on a 0-4 scale based on the depth and range of farmer financing. 0=No access to government or multilateral farmer financing programmes (typically, but not necessarily a developing economy); 1=Limited multilateral or government farmer financing programmes (typically, but not necessarily a developing economy); 2= Some multilateral or government financing (typically, but not necessarily an emergingmarket economy; 3= Broad, not deep farmer financing (typically, but not necessarily a developed economy) OR well developed multilateral farmer financing programmes (typically, but not necessarily an emerging market economy; 4=Access to deep farmer financing (typically, but not necessarily an advanced economy) Depth indicates the quantity of funds available. Range covers credit and insurance. 2) Availability Sufficiency of supply FAO; World Food Programme (WFP); Organisation for Economic Co-operation and Development (OECD) 2006-10 A composite indicator that measures the food availability. It is comprised of the following subindicators: ● Average food supply in kcal/head/day ● Dependency on chronic food aid Average food supply FAO 2009 This indicator measures the estimated per-head amount of food available for human consumption in kilocalories/head/day. Dependency on chronic food aid WFP 2006-11 This indicator measures whether a country is a recipient of chronic food aid. For the purpose of this index, chronic aid recipients are defined as those countries which have received nonemergency food aid over a five-year time span. It is measured on a 0-2 scale: 0=Received chronic food aid on an increasing basis over the last five years; 1=Received chronic food aid on a decreasing basis over the last five years; 2=Receives little to no food aid or only on an emergency basis 33 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Indicator Source Year Indicator definitions and construction Public expenditure on agricultural R&D EIU estimates based on OECD, World Bank, Agricultural Science and Technology Indicators (ASTI); EIU data Latest available year in 2001-13 This indicator is a proxy for agricultural innovation and technology that increases market efficiency and access. It is measured as a percentage of agricultural GDP and is scored on a nine-point scale: 1= 0-0.5%; 2= 0.51-1%; 3= 1.01-1.5%; 4= 1.51-2%; 5= 2.01-2.5%; 6= 2.51-3%; 7= 3.01-3.5%; 8= 3.51-4%; 9= 4.01-4.5% Agricultural infrastructure EIU Risk Briefing; World Bank; national agricultural ministries; EIU analyst scoring 2008-13 This is a composite indicator that measures the ability to store and transport crops to market. Sub-indicators include: ● Existence of adequate crop storage facilities ● Extent and quality of road infrastructure ● Quality of ports’ infrastructure Existence of adequate crop storage facilities Qualitative scoring by EIU analysts based on documents from the World Bank and national agricultural ministries Latest available year in 2008-13 This binary indicator assesses the presence of sufficient crop storage facilities based on size of agricultural sector and population. It is measured on a 0-1 scale: 0=No 1=Yes Road infrastructure EIU Risk Briefing Latest available year in 2012-13 This qualitative indicator measures the extent and quality of road infrastructure and is measured on a 0-4 scale, where 4=best. Port infrastructure EIU Risk Briefing Latest available year in 2012-13 This qualitative indicator measures the quality of ports’ infrastructure and is measured on a 0-4 scale, where 4=best. Volatility of agricultural production FAO; EIU calculations 1992-2011 This indicator measures the standard deviation of the annual growth of agricultural production over 20 years. Political stability risk EIU Risk Briefing Latest available year in 2012-13 This indicator measures whether political instability has affected access to food (i.e. cut off food transport, reduction in food aid from other countries, etc). Indicator comprised of social unrest, orderly transfers, opposition stance, excessive executive authority, and international tensions. High political stability heightens risk that access to food may be disrupted. This indicator is measured on a 0-100 scale, where 100=highest risk. Corruption EIU Risk Briefing 2013 This indicator measures the pervasiveness of corruption among public officials. Urban absorption capacity World Bank, World Development Indicators; EIU 2011-13 This indicator measures the capacity of a country to absorb the stresses placed on it by urban growth and still ensure food security. It does so by evaluating a country’s resources (income) against the stress of urbanisation (urban growth rate). 34 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Indicator Source Year Indicator definitions and construction Diet diversification FAO 2005-07 This indicator measures the share of non-starchy foods (all but cereals, roots and tubers) in total dietary energy consumption. A larger share of non-starchy foods signifies a greater diversity of food groups in the diet. Nutritional standards Qualitative scoring by EIU analysts based on WHO, FAO and national health ministry documents 1994-2013 This is a composite indicator that measures nutrition governance. It is comprised of a set of binary sub-indicators as follows: ● Existence of national dietary guidelines ● Existence of national nutrition plan or strategy ● Existence of regular nutrition monitoring and surveillance National dietary guidelines Qualitative scoring by EIU analysts based on WHO, FAO and national health ministry documents 1999-2013 This is a binary indicator that measures whether the government has published guidelines for a balanced and nutritious diet. 0=No 1=Yes Nutrition plan or strategy Qualitative scoring by EIU analysts based on WHO, FAO and national health ministry documents 1994-2013 This is a binary indicator that measures whether the government has published a national strategy to improve nutrition 0=No 1=Yes Nutrition monitoring and surveillance EIU analyst scoring based on WHO, FAO and national health ministry documents 1999-2013 This is a binary indicator that measures whether the government monitors the nutritional status of the general population. Examples of monitoring and surveillance include the collection of data on undernourishment, nutrition-related deficiencies, etc. 0=No 1=Yes Micronutrient availability FAO 2005-07 This is a composite indicator that measures the availability of micronutrients in the food supply. Sub-indicators include: ● Dietary availability of vitamin A ● Dietary availability of animal iron ● Dietary availability of vegetal iron Dietary availability of vitamin A FAO 2005-07 According to the FAO, the dietary availability of vitamin A is calculated by converting the amount of food available for human consumption (as estimated by the FAO Food Balance Sheets) into the equivalent of vitamin A. This indicator is expressed in micrograms of retinol activity equivalent/head/day on a 0-2 scale. 0= less than 300 mcg RAE/person/day; 1= 300-600 mcg RAE/person/day; 2= more than 600 mcg RAE/person/day 3) Quality and Safety 35 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Indicator Source Year Indicator definitions and construction Dietary availability of animal iron FAO 2005-07 According to the FAO, the dietary availability of iron is calculated by converting the amount of food available for human consumption (as estimated by the FAO Food Balance Sheets) in the equivalent of iron. Animal iron is obtained from products such as meat, milk, fish, animal fats, eggs. This indicator is expressed in mg/head/ day. Dietary availability of vegetal iron FAO 2005-07 According to the FAO, the dietary availability of iron is calculated by converting the amount of food available for human consumption (as estimated by the FAO Food Balance Sheets) in the equivalent of iron. Vegetable iron is obtained from products such as cereals, pulses, roots and tubers, vegetable oils, fruits, vegetables, etc. This indicator is expressed in mg/head/day. Protein quality EIU calculation based on data from FAO, WHO and USDA Nutrient Database 2005-09 This indicator measures the grams of quality protein through the Protein Digestibility Corrected Amino Acid Score (PDCAAS). The PDCAAS methodology assesses the presence of nine essential amino acids in the average national diet. The inputs of this calculation include: the amino acid profile, protein digestibility value, and the average grams consumed of each food item which contributes a minimum of 2% to protein consumption. Food safety Scoring by EIU analysts based on government websites; WHO data; UN Children’s Fund (UNICEF); Millennium Development Goals Database; EIU Industry Briefing Latest available in 2005-13 This is a composite indicator that measures the enabling environment for food safety. Subindicators include: ● Existence of agency to ensure health/safety of food ● Access to potable water ● Presence of formal grocery sector Agency to ensure the safety and health of food Qualitative scoring by EIU analysts based on government websites Latest available in 2005-13 This is a binary indicator that measures the existence of a regulatory or administrative agency to ensure the health and safety of food 0=No 1=Yes Percentage of population with access to potable water WHO 2010 This indicator measures the percent of population with access to an improved water source, which is measured on a 0-4 scale: 0=Between 0-59%; 1=Between 60%-69%; 2=Between 70%-79%; 3=Between 80%-89%; 4=Between 90%-100% Presence of formal grocery sector EIU Industry Briefing Latest available in 2009-13 This indicator measures the presence of formal grocery sector measured on a 0-2 scale: 0=Minimal presence; 1=Moderate presence; 2=Widespread presence 36 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Indicator Source Year Indicator definitions and construction Prevalence of undernourishment FAO 2010-12 This indicator measures the proportion of the population who do not receive the minimum number of required calories for an average person, as defined by the FAO/WHO/UNU Expert Consultation in 2001. Percentage of children stunted WHO Latest available year in 1972-2011 The percentage of children under five years who have a height-for-age below minus two standard deviations of the National Centre for Health Statistics (NCHS)/WHO reference median. Percentage of children underweight WHO Latest available year in 1972-2011 The percentage of children under five years who have a weight-for-age below minus two standard deviations of the NCHS/ WHO reference median. Intensity of food deprivation FAO 2010-12 Intensity of food deprivation is a measure of how much people, on average, fall below the dietary energy requirement. It is measured as the difference between the minimum dietary energy and the average dietary energy intake of the undernourished population. Human Development Index United Nations Development Programme (UNDP) 2012 The Human Development Index is a composite index that measures development by combining indicators on life expectancy, educational attainment and income EIU Women’s Economic Opportunity Index EIU 2012 The Women’s Economic Opportunity Index measures specific attributes of the environment for women employees and entrepreneurs in 128 economies. The index includes 29 indicators in the following categories: labour policy and practice, access to finance, education and training, women’s legal and social status, and the general business environment. EIU Democracy Index EIU 2012 The Democracy Index provides a snapshot of the state of democracy in 165 states and 2 territories. The index includes indicators in the following five categories: electoral process and pluralism, functioning of government, political participation, political culture, and civil liberties. 4) Output variables 37 © The Economist Intelligence Unit Limited 2013 Global food security index 2013 An annual measure of the state of global food security Scattergraphs Correlation between overall rankings and dependent variables Correlation between overall rankings and dependent variables Prevalence of undernourishement Overall score v Prevalence of undernourishement Correlation (x,y) -0.69 70 60 50 40 30 20 10 0 10 20 30 40 50 60 70 80 90 100 -10 Overall score Overall score: Rating 0–100 Prevalence of undernourishment 38 © The Economist Intelligence Unit Limited 2013 Source: Economist Intelligence Unit Global food security index 2013 An annual measure of the state of global food security Correlation between overall rankings and dependent variables Percentage of children stunted Overall score v Percetage of children stunted Correlation (x,y) -0.88 70 60 50 40 30 20 10 0 -10 10 20 30 40 50 60 70 80 90 100 Overall score Overall score: Rating 0–100 Percetage of children stunted: % Source: Economist Intelligence Unit Correlation between overall rankings and dependent variables Prevalence of children underweight Overall score v Percetage of children underweight Correlation (x,y) -0.75 50 40 30 20 10 0 10 20 30 40 50 60 70 80 90 100 -10 Overall score Overall score: Rating 0–100 Prevalence of children underweight: % 39 © The Economist Intelligence Unit Limited 2013 Source: Economist Intelligence Unit Global food security index 2013 An annual measure of the state of global food security Correlation between overall rankings and dependent variables Intensity of food deprivation Overall score v Intensity of food deprivation Correlation (x,y) -0.68 700 600 500 400 300 200 100 0 -100 10 20 30 40 50 60 70 80 90 100 Overall score Overall score: Rating 0–100 Intensity of food deprivation: kcal/person/day Source: Economist Intelligence Unit Correlation between overall rankings and dependent variables Human development index Overall score v Human development index Correlation (x,y) 0.95 1.2 1.0 0.8 0.6 0.4 0.2 0 10 20 30 40 50 60 70 80 90 100 Overall score Overall score: Rating 0–100 Human development index: Rating 0-1 40 © The Economist Intelligence Unit Limited 2013 Source: Economist Intelligence Unit Global food security index 2013 An annual measure of the state of global food security Correlation between overall rankings and dependent variables EIU women’s economic opportunity index Overall score v EIU women’s economic opportunity index Correlation (x,y) 0.93 100 90 80 70 60 50 40 30 20 10 0 10 20 30 40 50 60 70 80 90 100 Overall score Overall score: Rating 0–100 EIU women’s economic opportunity index: Rating 0-100; 100 = most favorable conditions for women Source: Economist Intelligence Unit Correlation between overall rankings and dependent variables Percentage of children stunted Overall score v Percetage of children stunted Correlation (x,y) -0.88 70 60 50 40 30 20 10 0 -10 10 20 30 40 50 60 70 80 90 100 Overall score Overall score: Rating 0–100 Percetage of children stunted: % 41 © The Economist Intelligence Unit Limited 2013 Source: Economist Intelligence Unit Global food security index 2013 An annual measure of the state of global food security Whilst every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd. nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the Cover: Shutterstock information, opinions or conclusions set out in the white paper. 42 © The Economist Intelligence Unit Limited 2013 London 20 Cabot Square London E14 4QW United Kingdom Tel: (44.20) 7576 8000 Fax: (44.20) 7576 8476 E-mail: london@eiu.com New York 750 Third Avenue 5th Floor New York, NY 10017 United States Tel: (1.212) 554 0600 Fax: (1.212) 586 0248 E-mail: newyork@eiu.com Hong Kong 6001, Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: (852) 2585 3888 Fax: (852) 2802 7638 E-mail: hongkong@eiu.com Geneva Boulevard des Tranchées 16 1206 Geneva Switzerland Tel: (41) 22 566 2470 Fax: (41) 22 346 93 47 E-mail: geneva@eiu.com