29
Oct 12

Can High Food Prices and Volatility Be Managed?

I was in Montreal two weeks ago to take part in the 2012 McGill Global Food Security Conference, presenting in a session titled “Can High Food Prices and Volatility Be Managed?” Here are my slides (document opens a .pdf file).

My answer to the question posed by the session’s theme was: “Yes, but high food prices and food price volatility are different problems requiring different policy instruments,” and most of my presentation was dedicated to explaining (and then showing empirical examples of) how “food price volatility” is not the same thing as “high food prices.”


03
Oct 12

Everybody’s an Expert

Columbia University historian Mark Lilla does a short Q&A in this week’s New York Times book review.

[T]here’s another factor, I think, and that is the centrality of economic policy to our politics today, and its inherent complexity. Though wars are complicated things, it’s not hard to develop a defensible position about their legitimacy or illegitimacy. But you need to know a fair amount about finance to make any sense, for example, of the bank collapses and bailouts of 2008-9 and the stimulus that followed. Very few people have that, but in a democracy everyone is supposed to have an opinion about everything. Everyone’s opinion is supposed to matter; you shouldn’t need higher education to chime in. But on economic policy you do. This opens the field to charlatans who demonize educated elites and reassure people that “it’s really all very simple.”

The emphasis is mine.

Though I agree that there certainly are many charlatans who demonize educated elites and have simple (and almost surely mistaken) answers to complex questions, I find that, on matters of social science, many people think they know more than they actually do (because hey, they live in society!) and are prone to dismiss experts as ideological hacks. Continue reading →


27
Jul 12

Drought, Extreme Temperature, and the Consequences of High Food Prices

I wish I’d had a chance to write on this topic earlier, but travel to the West Coast for work last week and working on my research this week prevented me from taking the necessary time to read everything I could find on food prices, digest it all, and write something worth reading on the topic.

The crop season started out nicely this spring, with corn producers setting out to cultivate almost 100 million of acres of corn,  the largest cultivated area in 75 years. At the beginning of summer, however, things took a turn for the worst, with many areas experiencing both drought and extreme temperature.

Worry about Extreme Temperatures, Not Drought

Before anything else, I’d like to make one thing clear: Rather than drought, it looks as though it is extreme temperature that is the problem.

Indeed, according to my colleague Mike Roberts at NC State, drought is a poor predictor of crop yields, whereas extreme temperature — defined as the number of days for which temperature exceeds 84.2 degrees Fahrenheit — does a much better job of predicting crop yields.

The impact of temperature on crop yields looks like this (see the original research article here):

Corn Yields and Temperature (Source: Schlenker et al., PNAS 2009).

In other words, though there is a roughly linear relationship between temperature and corn yields from about 10 to about 29 degrees Celsius (i.e., from about 50 to about 84.2 degrees Fahrenheit), at which point corn yields drop sharply. Continue reading →


26
Mar 12

Food Prices and the Arab Spring, One Year Later

I’m in Washington, DC for a roundtable on climate change and conflict at the Woodrow Wilson today, so I thought I should discuss this article in last week’s issue of The Economist which discusses food prices in the Middle East and North Africa:

It is sadly appropriate that Mohamad Bouazizi, the Tunisian whose self-immolation triggered the first protest of the Arab spring, should have been a street vendor, selling food. From the start, food has played a bigger role in the upheavals than most people realise. Now, the Arab spring is making food problems worse.

They start with a peculiarity of the region: the Middle East and North Africa depend more on imported food than anywhere else. Most Arab countries buy half of what they eat from abroad and between 2007 and 2010, cereal imports to the region rose 13 percent, to 66 million tons. Because they import so much, Arab countries suck in food inflation when world prices rise. In 2007-08, they spiked, with some staple crops doubling in price. In Egypt local food prices rose 37 percent in 2008-10.

Unsurprisingly, the spike triggered a wave of bread riots. Bahrain, Yemen, Jordan, Egypt and Morocco saw demonstrations about food in 2008. They all suffered political uprisings three years later. The Arab spring was obviously about much more than food. But it played a role.

The article then goes on to discuss the foolishness of food subsidies in several countries in the Middle East and North Africa. The problem is that the removal of those subsidies is fraught with danger — people come to take those subsidies for granted, and they tend to riot at the slightest hint of the subsidies’ removal.

I also wanted to share one of the background documents which was sent to today’s roundtable participants, a USAID report titled “Climate Change, Adaptation, and Conflict” (link opens a .pdf document), as it is a very useful review of the issues one needs to consider when thinking about the climate change–conflict nexus.

 


16
Dec 11

Food Prices Helped Trigger the Arab Spring

And it looks like I am no longer the one saying it: the following VOA news clip features both International Food Policy Research Institute director-general Shenggen Fan as well as my coauthor Chris Barrett:

YouTube Preview Image

For more in-depth reading on this topic, see:

(HT: Chris Barrett, via Facebook.)