Does nutrition-sensitive aid reduce the prevalence of undernourishment?

Abstract

This paper examines the impacts of nutrition-sensitive sector aid inflows on the prevalence of undernourishment. We find nutrition-sensitive aid can reduce undernourishment. Estimates suggest that a 10% increase in overall nutrition-sensitive aid would approximately decrease hunger by 1.1% 2 years later on average. Among nutrition-sensitive aid inflows, we find that emergency food aid reduces hunger a year later and that food aid is more effective than emergency food aid at reducing medium-term hunger. A 10% increase in food aid per capita would result in a 1.3% decrease in hunger 3 years later on average, against 1% for a similar increase in emergency food aid per capita. Generally, the size of the aid effects on hunger depend on the time horizon considered in the empirical analysis. Our findings provide supporting evidence for the prioritization of specific nutrition-sensitive investments within the SDG agenda, while simultaneously challenging the relative reallocation of nutrition-sensitive aid that has reduced the role of food and emergency food aid inflows.