1. Philosophical Approaches to Undernutrition
Text Extracted from:
The World Food Problem
Leathers & Foster, 2004

2. Ethics: Pope John Paul II
“Contrasts between poverty and wealth are intolerable for humanity”
“It is the task of nations, their leaders, their economic powers and all people of goodwill to seek every opportunity for a more equitable sharing of resources”
Example of Beneficence
Personal moral duty to help the poor

3. Ethics: Right to Food? Right to Food Now must address hunger issue
Included in International Covenant on Economic, Social and Cultural Rights
Adopted by UN 1976
Signed by 85 countries
Not ratified by U.S.A.
Now must address hunger issue
to protect fundamental rights of society
Don’t need to feel personal moral duty to help the poor
United Nations

4. Ethics: Right to Food? Rights taken very seriously
Absolute entitlement
Non-negotiable
Would require government to act to prevent hunger
Conflict with property rights?

5. Economist’s Questions
What is the appropriate policy for society as a whole?
How can government best manipulate human greed to achieve its policy objectives?

6. Economics Policy Decisions
Every action has costs and benefits
Marginal costs and benefits
For 1% increase in cost, what is the increase in benefits?
Ideal decision: where marginal costs = marginal benefits
Free market will allocate resources optimally, but
Without concern for
Social costs
Environmental costs
Can everything be put in dollar terms?

7. Externalities
Costs and benefits sometimes go to people outside the market transaction
Should poor benefit from costs borne by wealthy?
Should wealthy benefit from costs borne
By the poor?
By the environment?

8. How much would you pay for…
A human life?
Airbags in every car?
Speed limit 10 MPH?
Nutrition for every man, woman, and child?
Food without pesticide residue?
No pollution?
Freedom?
Fair trade?

9. Harnessing greed in policy: economic incentives
More expensive to have children
More expensive to degrade environment
Need property rights
Production increases with reward
If we eat less, other countries won’t benefit
Farmers will produce less
As demand increases, efficiency increases
Products made available more cheaply
Alternatives found

10. Policy to reduce undernutrition?
On average, 250 Calories/day would erase Calorie deficit of hungry
Cost 35 cents/day/person
= $6,400 invested at 2% interest
Value of Human Life?
But for 800 million people, this policy would
Increase food prices
Increase environmental costs of food production

11. Policies to raise incomes of poor
Redistribute income from rich to poor
Rationale: declining marginal utility of income
Rich don’t benefit from a dollar spent as much as poor do
But should incomes be equalized?
Improve rate of economic growth
Is Globalization beneficial to developing nations?

12. Policies to reduce price of food
Population reduction
Demand will rise slower
Food prices will rise slower
Increasing supply
Research investment
Loans to farmers

13. Policies to reduce cost of food
Price supports
Sell food to consumers
Subsidies to farmers
Both reduce economic efficiency
Therefore distortionary
Corrective price policies
Example: correcting distortions that reduce food output
Example: To feed hungry has indirect benefit to wealthy
We feel better = externality
No market for this