Nurturing economic growth through nutrition.

Economic growth can be positively influenced by improved nutrition, FAO says in a special section of its annual report, The State of Food and Agriculture 2001: "The impact of nutrition on labour productivity, health and education ultimately filters through to higher levels of overall economic growth." Raising the per capita calorie intake to 2,770 calories per day in countries where it is below that level could increase the per capita gross domestic product growth in those countries by between 0.34 and 1 .48 percentage points per year. In the 1996-1998 period, FAO found that some 826 million people worldwide were, undernourished, facing a shortfall in their basic daily energy requirements of between 100 and 400 calories.

While the consequences of an inadequate diet are not always visible "undernourishment leads to a lower nutritional status, or undernutrition, to which the body adjusts by slowing down its physical activity and, in the case of children, growth". Undernutrition also increases susceptibility to disease and causes listlessness, limiting the ability of children to concentrate. "An estimated 740 million people suffer from disorders related to iodine deficiency, including mental retardation, delayed motor development and stunting. There are more than 16 million cretins and nearly 49.5 million people suffering from brain damage caused by iodine deficiency. About two billion people are anemic, mainly as a result of iron deficiency, the most common micronutrient disorder, which reduces physical productivity, and children's cognitive skills." Between 100 million and 140 million children suffer from vitamin A deficiency. According to the report, the biggest impact comes from improvements in the health of women, because t his not only benefits families and communities today, but will also have a major impact on the health and productivity of the next generation.

In its special chapter on "Economic Impacts of Transboundary Plant Pests and Animal Diseases", FAO warns that the spread of emergent diseases and invasive species has increased dramatically in recent years. The rapidly increasing transboundary movements of goods and people, trade liberalization, increasing concerns about food safety and the environment have heightened the need for international cooperation in controlling and managing transboundary pests and diseases. "Growth in the trade of fresh fruits and vegetables is responsible for many of the quarantine pest problems today."

In many countries, there is a trend towards increased intensification and commercialization of livestock production, providing greater opportunity for animal diseases and other infections to spread rapidly and cause economic losses. For many types of pests and diseases, the economic losses resulting from reduced demand or the loss of export markets can far outweigh the costs caused by direct losses in production.

Based on existing volumes of trade and phytosanitary restrictions, for example, the Mediterranean fruit fly would cause more than $800 million in lost output and trade if it became established in the United States, according to one study cited in the report. Another study suggests that the 1996 eradication of foot-and-mouth disease in Uruguay could provide $20 million of actual, and $90 million of potential, additional exports revenue.

Significant technological progress has been made in combating transboundary plant pests and diseases, FAO says, but this alone is not enough. In many cases, countries have also rapidly and frankly shared information on disease and pest outbreaks and they have harmonized disease control programmes. However, "a lack of cooperation among countries in many parts of the world has been a major constraint to the successful control of transboundary animal diseases". FAO calls for increased regional and international cooperation. Developing countries should receive assistance "because not all countries can face the cost of prevention and reaction alone".

The report also contains a section about negotiations on international agricultural trade, which were launched within the World Trade Organization. Agricultural trade is particularly important for most developing countries that are exporters and importers of agricultural goods. Barriers to such trade still represent a significant obstacle for many of them. The complexity of import regimes and the cost of complying with sanitary and phytosanitary standards and technical barriers to trade can be insurmountable obstacles, particularly for small developing countries. It is important that a new round of agricultural trade negotiations leads to greater opportunities for developing countries to participate in international agricultural trade, says FAO.

The 295-page published Report also contains a CD-ROM, with time series data for 150 countries country groups and regions, in English, French and Spanish together with FAOSTAT TS software to ensure easy access and use. Please visit www.fao.org for details.