Credit with Education Impact Review No. 3: Children's Nutritional Status

Freedom From Hunger's impact review of its chronic hunger and poverty alleviation strategy Credit with Education was designed to evaluate the degree to which microfinance has positively affected children's nutrional status. The following is an outline of the paper:

Introduction on the problem of global malnutrition:

• Malnutrition is a direct cause of poverty and the extreme poor spend about 80% of their incomes on food;
• Microfinance, therefore, also has an effect on hunger and malnutrition, and as children's nutrional status is an indicator of quality of life, the effects of microfinance on such an indicator should be studied.

Linking Credit with Education and Improved Nutrional Status of Children:

• The program combines microfinance (credit, savings) and education on better business practices, health, and nutrition;
• It uses credit and education, channeled through women's associations, to improve health and nutrition;
• The intermediate benefits include income, self-confidence, and increased knowledge and practice.

Methodology:

• Two four year studies conducted to evaluate:
  • The program's impact on children's nutrional status,
  • Their mother's economic capacity,
  • Women's empowerment,
  • Mother's adoption of key child survival health/nutrition practices.
• Annual visits to collect follow-up information.

Study results:

• Improved food security resulted from women's increasing economic capacity due to obtaining credit;
• Increase in non-farm income in Ghana but no changes in Bolivia;
• Women generally more open to changing their behaviors (sending children to school, paying more attention to what their children are being fed).