http://www.indonesia-investments.com/news/news-columns/world-bank-malnutrition-stunted-growth-policies-in-indonesia/item7410

World Bank: Malnutrition, Stunted Growth & Policies in Indonesia
05 December 2016 |  
  a.. Victoria Kwakwa

When visiting Indonesia for the first time as World Bank Vice President for the 
East Asia and Pacific, Victoria Kwakwa stated that the World Bank is committed 
to support Indonesia’s efforts to achieve higher economic growth and greater 
prosperity for its +250 million people. During her visit, Kwakwa met various 
government officials and stakeholders, including Vice President Jusuf Kalla, 
Chief Economics Minister Darmin Nasution, Finance Minister Sri Mulyani 
Indrawati, as well as representatives from civil society, opinion leaders, 
analysts and the private sector.

Since the Asian financial crisis in the late 1990s, Indonesia has managed to 
strengthen macroeconomic resilience and reduced vulnerabilities through prudent 
macroeconomic and monetary management. Southeast Asia's largest economy has 
become a vibrant middle-income country with a rising middle class and has cut 
the poverty rate by more than half.

Still, Indonesia faces the daunting challenge of sharing prosperity more 
widely. Income inequality remains high, with about one-third explained by 
differences in individuals’ circumstances at birth. This situation causes 
concern about the future social and economic context of the country.

During the meetings with Indonesian officials and stakeholders, Kwakwa 
discussed a range of issues, including the central government’s reform efforts 
that are aimed at achieving higher and more inclusive economic growth, through 
attention to macroeconomic stability, structural reforms, and greater focus on 
infrastructure as well as human capital investment.



Kwakwa said Indonesia’s progress in strengthening the nation's macroeconomic 
fundamentals and recent improvements in the business and investment climate 
will help achieve its growth objectives against a challenging international 
economic environment. Indonesia is also setting a good example of how strategic 
policy reforms and a focus on service delivery at the local level can benefit 
the poor and contribute to lower poverty rates.

However, malnutrition and stunted growth remain two matters that need attention 
and require action. Malnutrition exacerbates the unfair start in life that 
poorer children often face, undermining their ability to succeed as adults. 
Stunted growth during the critical period of early life, the first 1,000 days, 
impairs brain cell development, the impact of which can be devastating. 
Research shows that stunted children often do worse in school and may lose ten 
percent of their earnings over a lifetime. In 2013, almost 9 million or 37 
percent of Indonesian children under five were stunted, making it the country 
with the fifth-highest percentage of stunted children in the world.

Stunted growth is also associated with increased risk of developing 
non-communicable diseases and increased incidence of obesity later in life. 
High prevalence of non-communicable diseases is related with economic losses 
due to increased healthcare costs and lost productivity.

Kwakwa said global experience shows that the fight against stunting can be won 
by adopting a holistic approach that addresses multiple drivers of stunting and 
by creating synergies between different program interventions within and 
outside the health sector. For example, Peru cut stunting rates in half less 
than a decade. Key success factors included: strong commitment at the highest 
level of government, allocation of budgets to the geographical areas with the 
highest stunting rates, use of an innovative incentive structure that aligned 
incentives for households, health facilities and local government to tackle 
stunting, and use a unified data system that integrates social assistance 
programs.

Policy makers, civil society, private sector and development partners need to 
work together to enhance investment in nutrition, scale up what works, and 
support research that informs policy responses. Such collaboration would 
improve the coordination and integration of the various programs to address the 
multi-sectoral determinants of stunting and will improve the quality of 
government spending and local service delivery for good nutrition outcomes.

The World Bank is committed to work together with Indonesia and other partners 
to develop strategies, policies and programs that will help move the country 
towards a vision where no child is stunted nor malnourished, where every child 
is given the best chance early in life to achieve their ability to learn, to 
thrive and contribute to Indonesia’s aspiration to be counted among the most 
prosperous countries in the world.

Source: World Bank
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