“What would be the best ways of advancing global welfare, and particularly the welfare of the developing countries, illustrated by supposing that an additional $75 billion of resources were at their disposal over a four‐year initial period?”
This was the question posed to a panel of 10 economic experts – 8 of whom are Nobel Laureates. The global challenges discussed were: Air pollution; Conflicts; Diseases; Education; Global Warming; Malnutrition and Hunger; Sanitation and Water; Subsidies and Trade Barriers; Terrorism; Women and Development. Proposals on how to engage and resolve these challenges were discussed in 30 detailed papers which were presented during this May’s Copenhagen Consensus.
The top priority based upon cost-benefit analysis is combating malnutrition through MICRONUTRIENT SUPPLEMENTS FOR CHILDREN (vitamin A and zinc). This was given the highest priority after Canadian economist Sue Horton from the Wilfrid Laurier University presented her paper arguing that an economic case can be made for providing micronutrients to children in developing countries. She argues that of the 10 million children deaths per year, 2.8 million perish due to malnutrition, and that 700,000 child deaths can be averted with low-cost, low-tech solutions that could help children, and as they grow into adults, stave off infections, increase cognition and productivity, thereby increasing overall economic output and economic growth. The cost: US$60 million per year that could translate into a US$1 billion in yearly benefits.
The second highest priority is for FREE TRADE – passage of the DOHA development plan. With DOHA it is estimated that global income could increase by US$3000 billion of which US$2500 billion would go to the developing world. Coming in third is MICRONUTRIENT FORTIFICATION (iron and salt iodinization) of basic foodstuff to address deficiencies in approximately 2 billion people worldwide. With US$19 billion, salt-fortification can be achieved in sub-Saharan Africa, South Asia, and Central and Eastern Europe where this is lacking. It can also fund iron fortification in areas such as in sub-Saharan Africa and in South Asia where such activity is practically nil.
Of the 30 solutions presented to tackle the 10 global challenges, the top 10 focus on malnutrition, education and women’s issues. The second 10 mostly focus on water and sanitation, education and diseases. The last 10 focus mostly on air pollution and global warming issues, with climate change mitigation at the bottom of the list. Based upon the papers and analyses presented to the panel, US$75 billion would not result in benefits towards climate change mitigation. Some experts remarked that the best way to tackle climate change would be to help alleviate poverty, and improve access and quality of education in order to boost overall economic productivity and growth in developing countries. Terrorism did not figure in the list at all and has been determined to be a waste of much needed financial resources in terms or economic cost benefits.
Click the link for the Copenhagen Consensus 2008 list.
The Copenhagen Consensus 2008 Panel
- Jagdish Bhagwati - Columbia University
- Nancy Stokey - University of Chicago
- François Bourguignon – Paris School of Economics and former World Bank-Chief Economist
- Finn E. Kydland - Nobel Laureate, University of California, Santa Barbara
- Robert Mundell - Nobel Laureate, Columbia University
- Douglass C North - Nobel Laureate, Washington University in St. Louis
- Thomas Schelling - Nobel Laureate, University of Maryland
- Vernon L Smith - Nobel laureate, Chapman University
