Market greed, failure to blame for epidemic obesity: Study

Market failures may have made obesity epidemic and more costly to prevent for more people living in industrialised countries, experts say. The proper role of the markets and government in the mission to combat the growing problem of obesity is yet far from settled.

Consumers, especially children, are not all well-informed with the long-term consequences of being obese and even about the causes of weight gain, the researchers say. To date, people are leading to over-consumption of less expensive, unhealthy food products more than healthier items.

The study shows obesity carries consequences not only to affected individuals but also to the greater society through higher health care and insurance costs. Researcher Aneel Karnani, a professor of strategy at the University of Michigan's Ross School of Business, said market failures are commonly addressed by corporate social responsibility, industry self-regulation, social activism and government intervention.

People argue that economic markets and the government should work together to develop strategies that will reduce the consumption of unhealthy products while promoting healthy foods. But the study shows, aside from government intervention, corporate social responsibility, self-regulation and social activism have largely failed to act against the spread of obesity.

Consumers treat food as a necessity which aids the growth of the number of obese people because consumers sometimes have subjective views of what’s unhealthy, unlike tobacco and alcohol that have noticeable bad effects. The social responsibility efforts of the food and beverage industry have been ineffective to prevent obesity, and might even worsen the problem, Karnani said.

The messages being implied by the industry often focuses on lack of physical activity as the main cause of weight gain, but even scientific evidences show diet is the primary driver. The fact also shows that the self-regulation efforts of the industry have failed, and the amount of unhealthy foods continues to be marketed to children.

Likewise, social activism has not helped to block the causes of obesity; rather, it runs the risk of shaming overweight people, which is cruel and counterproductive, Karnani stated. “What we found is that things that are likely to happen are unlikely to work, and things that are likely to work are unlikely to happen,” he said.

However, government intervention has worked slightly to prevent obesity. Countries such as Sweden, Norway, the UK and the Canadian province of Quebec have begun banning or severely restricting food advertising to children. Another study found the fast-food consumption in Quebec decreased because of the restrictions.

“Restrictions on advertising have demonstrable effects on consumer demand, especially when it comes to children,” Karnani said. People cannot be expected to perceive the best choices for themselves, especially for the long term, and studies show childhood obesity leads to adult obesity.

Some actions done through government intervention showed promise, but many are still politically unpopular and fraught with politics. However, the individual and societal costs have risen to the point where unpopular measures could be necessary, the researchers said.

“People want to be left alone to exercise their good judgment. That’s usually the best case, but when it [comes] to obesity the market is failing them,” Karnani stated. The researchers hope the study would spark a public discussion rooted in data and logic as reasonable government regulation could only be possible once the people learn about taking steps that work.

Contact the writer at feedback@ibtimes.com.au or tell us what you think below