This research paper was written as my final honors thesis in economics. I was questioning the somewhat sudden high rates of obesity found in many developing countries today. I found several reasons for why obesity has sky rocketed in the global south, finding that most trends leading to obesity derived from the western lifestyle.
One significant change between the western world and the developing world is that for the global south the transition to industrialization and development happened at a much faster pace. The sudden modernization has in many places led to extreme changes in behavior and lifestyle. The one trend that reoccured in most developing countries and had the highest effect on obesity rates was the infiltration of food products, mostly from western food corporations. I look at some specific practices made by companies like Nestle and others, as well as looking at behavioral changes in some of the worst hit areas like the Pacific Island nations.
Table of Contents
1. Introduction
2. Developing Countries And Trade Liberalization
3. Diet Change And Obesity In The Developing World
4. The Role Of Big Food Corporations
5. Foreign Direct Investment
6. Trade Agreements: The North American Free Trade Agreement
7. The Pacific Island Nations, The Case Of Micronesia
8. Trade Agreements: Central America-Dominican Republic Free Trade Agreement.
9. Obesity Levels And Socio-Economic Status
10. The Global Food System
11. Liberalization Of Markets In Africa
12. Income, Price Fluctuations And Consumer Behavior
13. Food Sovereignty- A Solution To Food Issues?
14. Food Corporation Reaching The Remote Areas And Emerging Markets
15. The Economic Theory: Supply And Demand
16. Supply And Demand After Trade
17. (WHO) Obesity Ranking: The Top Ten Countries Case Study
18. Results
19. Increased Imports Of Processed Food Over Time
20. What Globalization Did To Consumer Behavior
21. Future Of Processed Food On The Global Scale
22. Conclusion
Research Objectives and Core Themes
This thesis examines the causal relationship between international trade liberalization and the rising epidemic of obesity in developing countries. It investigates how foreign direct investment, multinational corporate expansion, and specific trade agreements have restructured food systems, leading to a shift toward the consumption of cheaper, unhealthy, processed foods over traditional diets.
- The impact of free trade agreements (NAFTA, CAFTA-DR) on dietary shifts in developing nations.
- The role of multinational food corporations in penetrating emerging and remote markets.
- The influence of foreign direct investment (FDI) on food price accessibility and consumer preference.
- The connection between economic modernization, income fluctuations, and nutrition transition.
- Case studies on the Pacific Island nations and the impact of food import dependencies.
Excerpt from the Thesis
The Role Of Big Food Corporations
The diet change is linked to urbanization and development. As a society develops, advertising and the spread of supermarkets and fast-food outlets increase. People in developing nations will experience economic growth and spend their increased salaries on diets that include a greater proportion of fats and caloric sweeteners(Popkin, Adair, & Ng, 2012). The products coming from Western companies are often offered at a lower price than domestic traditional food products. Food products entering markets in developing countries are set at such low price levels partly because U.S. exports and market prices are set below the cost of production. For example, wheat was exported at an average price 43% below cost of production. (Rosset, 2006) Therefore, the products made domestically have trouble competing with imported goods set at unrealistic low prices.
Food corporations want to set prices at the lowest level possible in order to compete in world markets. To make up for these low prices western countries subsidizes its agriculture in order to have family farms working. However, subsidies are not the only reason why prices are so low, it is rather the opposite; subsidies are triggered by low prices. When prices are low subsidies rise, and when prices are high subsidies drop. Farm policy used to make sure farmers didn’t overproduce, or to make sure prices were not falling too low. Today however, there are no limit to how low prices can fall or how much can be produced. It is therefore argued that
Summary of Key Chapters
Introduction: Outlines the global obesity epidemic, the shift from traditional to "Western" diets, and establishes the research focus on international trade's role in this transition.
Developing Countries And Trade Liberalization: Examines how global institutions and trade policies have encouraged market opening in developing nations, often at the cost of local food security.
The Role Of Big Food Corporations: Analyzes how multinational corporations use aggressive marketing and lower pricing to outcompete local producers and penetrate emerging markets.
Foreign Direct Investment: Discusses how increased FDI has accelerated the spread of highly processed food and changed dietary habits in developing economies.
The Pacific Island Nations, The Case Of Micronesia: A case study highlighting how government policies and reliance on food imports have transformed a nation from consuming fresh local produce to nutrient-poor packaged foods.
Food Corporation Reaching The Remote Areas And Emerging Markets: Details the expansion strategies of global food giants into rural and impoverished regions to capture new consumer bases.
The Economic Theory: Supply And Demand: Provides an economic framework for understanding why imported processed foods often displace traditional local food products.
Conclusion: Synthesizes the findings, arguing that trade liberalization and corporate expansion are driving obesity in developing countries, and suggests that current policy frameworks favor corporate growth over public health.
Keywords
International trade, obesity, developing countries, food systems, multinational corporations, trade liberalization, foreign direct investment, dietary transition, processed food, Micronesia, food sovereignty, consumer behavior, market integration, Western diet, trade agreements.
Frequently Asked Questions
What is the primary focus of this research?
The research explores the link between international trade and the rising obesity rates in developing nations, specifically how global market integration facilitates the consumption of unhealthy, processed foods.
What are the central thematic fields addressed?
The core themes include international trade agreements, the expansion of multinational food corporations, foreign direct investment (FDI), and the resulting "nutrition transition" in developing economies.
What is the main research question or objective?
The objective is to determine whether international trade—through the influence of foreign corporations and investment—is effectively boosting the spread of obesity throughout developing countries.
Which scientific methods are employed?
The thesis utilizes economic theory, specifically supply and demand models, and conducts case studies using data from the Observatory of Economic Complexity (OEC), the World Health Organization (WHO), and agricultural outlook reports.
What does the main body of the work cover?
It covers the history of trade liberalization, the impact of specific agreements like NAFTA and CAFTA-DR, the strategies of multinational corporations in rural areas, and empirical data on food imports and export patterns in the most obese nations.
Which keywords best characterize this work?
International trade, obesity, developing countries, multinational corporations, food sovereignty, and the nutrition transition.
How does the author characterize the expansion of companies like Nestle?
The author describes it as an aggressive strategy to capture new markets, often using direct distribution and affordable small-sized "starter products" to hook consumers in impoverished or remote rural regions.
What is the conclusion regarding the impact of free trade on the poor?
The author concludes that current trade laws, established by dominant nations, create an imbalanced playing field that harms developing countries' health and economies while benefiting multinational corporations.
- Quote paper
- Mathilde Laderud (Author), 2014, Is international trade causing obesity in developing countries?, Munich, GRIN Verlag, https://www.grin.com/document/288762
