A/HRC/26/31
increased the shelf life of such foods and reduced transportation costs, making them more
profitable.
7.
The 1980s “structural adjustment programmes” of the International Monetary Fund
and the World Bank compelled developing countries to open up their markets, including the
food sector, to foreign trade as a part of loan fulfilling conditions. Agreements negotiated at
the World Trade Organization sought further market integration by reducing tariffs and
non-tariff barriers to trade, curtailing export subsidies and removing protections of
domestic industry to promote the freer flow of goods and services.18 These policies were
implemented as a means of increasing the efficiency of the food system in producing the
foods that people needed and wanted, but they had significant effects on the types of
available foods and their costs. As a result, there has been a drastic increase in production
of certain products relative to others. For example, there was a substantial increase in the
global production of vegetable oils such as partially hydrogenated soybean oil, a source of
trans-fats, and palm oil, a source of saturated fats.19 Similarly, grains such as corn are
produced in larger quantities to cater to the food processing industry to produce sweeteners
like high-fructose corn syrup, substantially increasing global calorie consumption from
such sweeteners (A/HRC/19/59, pp. 13–14). Studies show that countries adopting market
deregulation policies experience a faster increase in unhealthy food consumption and mean
body mass index, an indicator of obesity.20 In furthering the goals of market expansion and
profits, critical focus areas of health such as diets and nutrition have not been given due
consideration.21
8.
Rise in levels of FDI in the processed foods sector is one such factor that allows for
greater exposure to unhealthy foods in low- and middle-income countries.22 FDI is one of
the mechanisms by which TNCs enter developing countries. FDI enables companies to
purchase or invest in food-processing companies in other countries, which then produce
processed foods for the domestic market. This circumvents import tariffs on processed
foods and reduces the cost of transportation. FDI has been more crucial than trade in
increasing sales of processed foods in developing countries.23 For example, in some
emerging markets, the processed food industry is amongst the top sectors attracting FDI.24
Most of the sales for popular soft drink and fast food brands also come from developing
countries.25
9.
Supermarkets and large food chains have largely replaced fresh food markets as a
major source of food supply in most countries,26 and at a faster rate in developing than
18
19
20
21
22
23
24
25
26
6
Corinna Hawkes et al., “Linking agricultural policies with obesity and noncommunicable diseases: a
new perspective for a globalising world”, Food Policy , vol. 27 (2012), pp. 344–345.
Ibid., p. 345.
Roberto De Vogli et al., “The influence of market deregulation on fast food consumption and body
mass index: a cross-national time series analysis”, Bulletin of the World Health Organization, vol. 92
(2014), pp. 99–107A.
“Diets, nutrients and noncommunicable diseases” (see footnote 7 above), p. 148.
“Manufacturing epidemics” (see footnote 10 above), p. 5.
Corinna Hawkes, “The role of foreign direct investment in the nutrition transition”, Public Health
Nutrition, vol, 8, No. 4 (2005), pp. 357–365.
Kakali Majumdar, “Foreign direct investment in Indian food processing industry”,
Asian Journal of Research in Business Economics and Management , vol. 2, No. 4 (April 2012),
p.113. Available from http://www.aijsh.org/setup/business/ paper139.pdf.
Corinna Hawkes, “Marketing activities of global soft drink and fast food companies in emerging
markets: a review”, Globalization, Diets and Noncommunicable Diseases (Geneva, WHO, 2002), p.
1.
Barry M. Popkin et al., “The global nutrition transition and the pandemic of obesity in developing
countries”, Nutrition Reviews, vol. 70, No. 1 (2012), p. 8.
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