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Positive returns: cost-benefit analysis of a stunting intervention in Indonesia

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  • Lubina F. Qureshy
  • Harold Alderman
  • Claudia Rokx
  • Rebekah Pinto
  • Matthew Wai-Poi
  • Ajay Tandon

Abstract

Would investing to reduce stunting reap economic benefits that outweigh costs? We investigate this question by conducting a cost-benefit analysis for a large-scale integrated nutrition programme to reduce stunting in Indonesia, using actual rather than stylised data on costs. The gains are assumed to accrue from productivity enhancement from reduced malnutrition, productive earnings from deaths averted and household savings from diarrhoea costs avoided. The programme extends to six provinces over 5 years covering seven cohorts. Using a discount rate of 5 per cent, the benefit-cost ratio is 2.08. The study finds positive net benefits through the productivity impact of lower malnutrition even with sensitivity analysis that excludes the benefits of mortality reduction.

Suggested Citation

  • Lubina F. Qureshy & Harold Alderman & Claudia Rokx & Rebekah Pinto & Matthew Wai-Poi & Ajay Tandon, 2013. "Positive returns: cost-benefit analysis of a stunting intervention in Indonesia," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 5(4), pages 447-465, December.
    • Handle: RePEc:taf:jdevef:v:5:y:2013:i:4:p:447-465
    DOI: 10.1080/19439342.2013.848223
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    References listed on IDEAS

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    1. Susan Horton & Meera Shekar & Christine McDonald & Ajay Mahal & Jana Krystene Brooks, 2010. "Scaling Up Nutrition : What Will it Cost?," World Bank Publications - Books, The World Bank Group, number 2685.
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    Cited by:

    1. Mark E. McGovern & Aditi Krishna & Victor M. Aguayo & S.V. Subramanian, 2017. "A Review of the Evidence Linking Child Stunting to Economic Outcomes," CHaRMS Working Papers 17-03, Centre for HeAlth Research at the Management School (CHaRMS).

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