The financial crisis that quietly stunted a generation

"We see that a massive price shock not only has a short-term impact, but can also affect the long-term physical development of children. The crisis-induced price rise increased chronic malnutrition and was associated with a 3.5 percentage point increase in child stunting. Children severely affected will not only remain shorter than their unaffected peers later in life, they will also be significantly more vulnerable to obesity."

During the late 1990s Asian financial crisis, rice prices in Indonesia surged dramatically, creating severe nutritional challenges for vulnerable populations. Researchers from the University of Bonn analyzed data from the Indonesian Family Life Survey to examine how regional differences in rice price inflation between 1997 and 2000 affected child development. The study found that price shocks increased chronic malnutrition and stunting by 3.5 percentage points. Urban residents and families with lower education levels experienced the greatest vulnerability to these food price increases. Children affected by the crisis showed measurable physical development impacts that persisted into early adulthood, remaining shorter than unaffected peers and facing increased obesity risk later in life.

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