Global nutrition crisis: Asia and private sector step in as governments cut aid funding

As the US continues to slash foreign aid and major European countries appear to be following suit, experts warn that millions of people globally face worsening malnutrition. Nutrition Insight reviews the impact on at-risk regions and investigates the rising role of other nations and businesses in global nutrition security. 

The US Trump administration says it is cutting 90% of foreign aid contracts, totaling US$60 billion worth of assistance. Driven by the “America First” policy, the government intends to funnel taxpayer money toward defense and domestic activities. 

European nations are also making significant cuts to re-arm themselves, with Ursula von der Leyen, the President of the European Commission, stating: “We are in an era of rearmament.”

The Netherlands has cut 30% of its nutrition aid spending, Belgium 25%, France 37%, and the UK 40%. Germany, the world’s second-largest aid donor, also reveals plans to slash aid spending by more than 50%.

While some countries are withdrawing support, others are filling the gap. Japan has partnered with UNICEF Indonesia and the National Nutrition Agency to fund US$3.4 million for child nutrition and education in Papua, where they face malnutrition. Korea has contributed US$5 million to the UN World Food Programme to boost Kenya’s food security and the resilience of vulnerable families. Last year, China promised US$50 billion to Africa over three years.

CEO of the War Child Alliance, Rob Williams, states: “A 90-day suspension means there is a 90-day interruption of funds flowing to the organization delivering it. NGOs and their local partners do not have sufficient cash reserves to cover this gap from their resources. They are forced to cut their staff and stop their work.”

“Food is not delivered. People starve.”

Japan has partnered with UNICEF to fund US$3.4 million for child nutrition and education in Papua (Image credit: UNICEF).The nonprofit says it continues to provide care for children and is wary of long-term growth challenges while it continues to support partners facing short-term financial challenges.

Call for other countries to step up

The Council on Foreign Relations says that China is gaining soft power and can fill the gaps left by the US Agency for International Development (USAID) withdrawals while it already dominates Southeast Asia.

Ian Mitchell, co-director of Europe and senior policy fellow at the Center for Global Development, urges: “Other countries will need to step up…there is an immediate need for other donors — particularly Germany but also Canada, Japan, and Sweden.”

“If USAID funding were paused for a year, the resulting shock would exceed 1% of gross national income in 23 economies, with eight experiencing a devastating hit of 3% or more. Eight low-income countries and eight lower-middle-income countries face losing over a fifth of the total foreign assistance they receive.”

The countries include South Sudan, Somalia, the Democratic Republic of Congo, Liberia, Afghanistan, Sudan, Uganda, and Ethiopia. Mitchell explains that aid accounts for 11% of their total income, with USAID accounting for 30%. A freeze means a shortfall of 3% — a “potentially major economic shock” for countries with 410 million people.

“For context, low-income countries grew by just 3% in 2023 and are estimated to have grown 3.6% in 2024,” he adds.

The Center for Global Development’s research associate, Sam Hughes, adds: “Should the US fully turn away from the world’s poorest countries, the effect on extremely poor people will be devastating. For governments prepared to commit a modest share of taxpayer revenue to saving lives, averting malnutrition, and maintaining stability, this is a moment to step up.”

Mitchell says if USAID funding were paused for a year, the resulting shock would exceed 1% of gross national income in 23 economies.“The US has not been a generous aid donor relative to its income since the 1960s, but it has always been the largest in absolute terms. Relative to other providers, a major feature of US support is that it has tended to focus on the poorest countries.”

Private sector hones in on food fortification 

With public funding in decline, private-sector solutions like food fortification are gaining traction as a scalable, cost-effective strategy to address malnutrition.

The World Business Council for Sustainable Development has launched a playbook for accelerating food and nutrition security through food fortification.

It recognizes that there is no single tool for fixing global food system challenges and that several tools are required, with food fortification being a proven, scalable, and cost-effective strategy to boost global nutrition.

dsm-firmenich comments: “As a leader in nutrition, we have an ambition to help combat micronutrient deficiencies. Large-scale food fortification is a cost-effective solution to end hidden hunger by delivering vital nutrients and ultimately bringing progress to life.”

According to the report, fortification can become a long-lasting and significant solution to the world’s nutrition problems if it is integrated into public awareness and policy frameworks and is continuously innovated.

Food fortification is a proven, scalable, and cost-effective strategy to boost global nutrition.“The private sector faces a complex landscape of internal and external challenges regarding fortification. Overcoming these challenges and fostering a more conducive market environment for fortified foods requires a multifaceted approach. This includes government support, enabling policies, impactful communication, and the creation of sustainable business models.”

Programs on the chop

Nutrition Insight caught up with Action Against Hunger, a US-based humanitarian organization whose global staff and communities face an uncertain future under the USAID cuts. Representatives told us the nonprofit is facing over US$100 million in lost funding in places like Haiti, Ethiopia, Nigeria, Madagascar, and Afghanistan, among many others. They warn children face mortality risks.

Meanwhile, The New York Times has confirmed the cancellations of several global nutrition programs, including an FHI 360 project supporting malnourished children in Yemen, affected by civil war.

Others include health services for 3.9 million children and 5.7 million women in Nepal, the Helen Keller project aiding 144,000+ Bangladeshi malnourished pregnant women and children, and Plan International providing health and nutrition care for 115,000 displaced people in northern Ethiopia.

Additionally, Helen Keller projects treating 5.6 million children and 1.7 million women from severe and acute malnutrition in Nigeria have been cancelled. The cut places 60,000 children under five at immediate risk of death, according to The New York Times.

Additionally, the Demographic and Health Surveys’ project in 90 countries has been discontinued. It was the only source of data on maternal and child health and mortality, nutrition, reproductive health, and HIV infections in several places.