The food revolt around the world

Logo of the Food and Agriculture OrganizationImage via Wikipedia
Peter Popham, Independent on Sunday:

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Why are all these revolutions happening now? Plenty of answers have been offered: the emergence of huge urban populations with college degrees but no prospect of work; the accumulation of decades of resentment at rulers who are "authoritarian familial kleptocracies delivering little to their people", as Peter Bergen of the New America Foundation put it; the subversive role of Facebook and Twitter, fatally undermining the state's systems of thought control.

Absent from this list – to the combined bewilderment and relief of the US and Europe – are the factors that were universally supposed to be driving populist politics in the Middle East: Islamic fundamentalism coupled with anti-Zionism and anti-Americanism. As one Egyptian pointed out after the fall of Mubarak, at no point during weeks of passionate revolt did either the Israeli or the US embassies become a target of the crowd's fury, even though both are within easy reach of Tahrir Square. "Not so much as a Coke can was thrown over the wall," he said.

Of course, that does not mean that allies of al-Qa'ida will not seek to exploit the growing chaos in Libya in particular, striving to turn it into a new Somalia-sur-Med. Nor does it guarantee that any of the other revolts will produce stable democracies. Because the real cause of these revolutions, beyond all the chatter about social networks, is a problem that is liable to get worse in coming years rather than better, and that is largely beyond the power of anyone to contain or control.

The first warnings of what was to come appeared in the form of a briefing paper on the website of the UN's Food and Agriculture Organisation in December. "Recent bouts of extreme price volatility in global agricultural markets," it said, "portend rising and more frequent threats to world food security. There is emerging consensus that the global food system is becoming more vulnerable and susceptible to episodes of extreme price volatility. As markets are increasingly integrated in the world economy, shocks in the international arena can now transpire and propagate to domestic markets much quicker than before."

The "shocks" all occurred a long way from Cairo and Tunis. They included fires in Russia last autumn which wiped out hundreds of thousands of acres of grain; heavy rains in Canada, destroying the wheat crop there; hot, dry weather in Argentina which destroyed the soybean crop; the Australian floods which ruined the wheat harvest. The Middle East accounts for one-third of worldwide wheat imports. The combined effect of these far-flung agricultural problems was to bump up the food price index by 32 per cent in the second half of 2010.

The FAO likens "extreme price volatility" to great natural disasters – major earthquakes, tsunamis, catastrophic cyclones. "Historically, bouts of such extreme volatility... have been rare," they say. "To draw the analogy with natural disasters, they typically have a low possibility of occurrence but bring with them extremely high risks and potential costs to society."

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Most of the countries involved in the current uprisings are net food importers so they are more at risk of price volatility. They were also authoritarian countries where the government takes responsibility for controlling the imports and distributing the food. If they were in a true capitalist system the people would have a better understanding of markets.

Since the US is a new food exporter it is well placed to help these countries that emerge from the upheaval. We and the world would be even better off if we did away with ethanol requirements and let the farmers sell food to world markets.

Egypt used to be a rich farming country.  The Romans relied on grain from Egypt to feed their people.  Apparently they have lost their touch.
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