From Hungry to Hefty

• Author: Eduardo J. Gómez

From Hungry to Hefty Finance & Development, June 2017, Vol. 54, No. 2

Eduardo J. Gómez

Obesity and diabetes threaten emerging market economies, but the right policies can help

The prospects for emerging markets look good, but rich country diseases like obesity and Type 2 diabetes pose a new threat to their improved economic outlook.

In recent years, Brazil, for example, has done more than China, India, or Mexico to strengthen the government’s commitment to prevention and treatment programs, helped by an enduring partnership with civil society.

Since the 1990s, similar circumstances have contributed to the rise of obesity and Type 2 diabetes in these countries. With increased international trade came an influx of fatty foods accessible to all. Technology such as computers and mobile devices led to less physical activity and contributed to weight gain; in most of these countries, lack of access to public parks and poor environmental conditions also discourages exercise.

In Mexico, roughly a third of the population is now obese, and the proportion of obese children is the highest in the world. Type 2 diabetics in Mexico are expected to double in number by 2050. In India as well, obesity has surged, and children are afflicted in both urban and poor rural areas. India’s Type 2 diabetes rate is 10 times what it was in the 1970s, and by 2030 there are expected to be 100 million diabetics. In China, more than 120 million people are now obese; its diabetic population is the largest in the world (French and Crabbe 2010). Brazil’s obesity and Type 2 diabetes rates have also surged in the past two decades.

Big price tagObesity and diabetes carry a hefty price tag. In Mexico, obesity and its associated diseases cost the government’s health care system between $4.3 billion and $5.4 billion a year. Costs for diabetes programs and treatment rose from $318 million in 2005 to $343 million in 2010. In 2012, the government also disbursed about $4 billion on diabetes-related spending (for example, hypertension, heart disease), including for treatment, primary care services, and research. Unchecked, according to Dr. Abelardo Avila Curiel of Mexico’s Salvador Zubiran National Institute of Medical Science and Nutrition, the costs could demolish the health care system by 2030.

In India, obesity is projected to strain the government’s health care budget—and the economy—due to work days lost. Moreover, government expenditures on Type 2 diabetes patients ranged...