Skip to content

Category: Policy

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.

 

Do Food Prices Track Oil Prices?

Not necessarily, argues Kay McDonald on the basis of a recent OECD report:

While it is partly true in the industrial agricultural system that “food equals oil,” there are many other factors which affect food prices, including the definition of “food” used in making the comparison. Below, I’ve listed some of them.

  • The dollar’s value compared to currencies of other food exporting and importing nations.
  • Supply and demand.
  • Amount of food used for biofuel production.
  • Available infrastructure in transport and storage of food.
  • The price of natural gas.
  • Economic health of each nation.
  • The amount of global meat consumption.
  • Weather.
  • Population growth.
  • The percent of food wasted.
  • Transport prices (not always the same as oil prices, as, for example, currently we have excess bulk shipping capacity which has lowered shipping rates).
  • Government Ag policies and price support programs.
  • Trade agreements.
  • Geopolitics.

In her post, Kay also discusses how the OECD report finds no support for the claim that food price volatility has increased  significantly over the last few years when compared to the last 50 years.

More generally, if you have any interest in food policy, Kay’s blog, Big Picture Agriculture, is a must-follow.

Spring Break Classic Posts: Thoughts on the Debate Surrounding Randomized Controlled Trials

(It’s Spring Break here this week, so I am taking the week off from blogging to work to revise a few articles and begin working on new research projects. As a result, I am re-posting old posts that some new readers might have missed but which were very popular the first time I posted them. The following was initially posted on May 25, 2011.)

Last weekend, Nicholas Kristof published a column in the New York Times in which he praised the use of randomized controlled trials (RCTs) in development policy. In a fit of econ envy, Kristof even went so far as to confess that if he had to do it all over again, he would major in economics in college instead of political science.

As a result of Kristof’s column, however, the use of RCTs in development policy has come under a considerable amount of scrutiny in the development blogosphere.