News / Middle East

High Food Prices Helped Spark Egypt Protests

Food production has not kept pace with population growth

A man carries bread bought from a bakery in Cairo on February 6, 2011.
A man carries bread bought from a bakery in Cairo on February 6, 2011.

Multimedia

Audio

Many developing countries are closely watching the role escalating food prices is playing in the turmoil in North Africa.

Government repression, corruption, unemployment and poverty united protesters to oust Egyptian President Hosni Mubarak last week. But experts say the rising price of food was one of the sparks that set off the historic protests.

The global price of wheat has risen 60 percent in the past year, and Egypt is the world's largest wheat importer. But that was not always the case.

"I find it actually ironic that bread lines are what provoked the latest political unrest," says policy analyst Marie Brill, with the advocacy group ActionAid, "considering that in the 1960s, Egypt had been a breadbasket (major wheat producer) and able to meet its own wheat needs."

Focus on exports

So what happened? Brill says it goes back to the 1980s and 90s, when the United States, the World Bank and the International Monetary Fund encouraged developing countries to import grain produced cheaply in the U.S. and elsewhere and to focus their farming on export crops.

"This has been a policy that has been pushed around the world, not just in Egypt or in the Middle East," Brill says. "But what we've found was that, as Egypt became more and more dependent on [imported] wheat, Egypt also became more and more vulnerable to price hikes and price volatility."

Egyptians shop at a vegetable market in Cairo on February 6, 2011.
Egyptians shop at a vegetable market in Cairo on February 6, 2011.

Bad governance

Others say the roots of Egypt's vulnerability go much deeper. Democracy activist Mohamed Eljahmi blames 1950s land reform laws and bad governance in Egypt, not economic policies emanating from Washington.

"That has been used as a crutch by Arab regimes to justify their failures," Eljahmi says. "The problem is, there is a legacy of corruption. There is a lack of accountability. So, the failure really rests with the nature of the military regime in Egypt. Not the IMF or anything."

Subsidized bread

Whatever the cause of the failure, Egypt's food production has not kept pace with its population growth.

As prices climbed in recent months, the Egyptian government had to pay dearly to import wheat for its subsidized bread program. The country was already deeply in debt, which limited how it could respond to the protests.

"So, they really didn't have any scope for doing what an oil-producing country like Algeria could," says senior fellow Mohsin Khan at the Peterson Institute of International Economics. "Which is, you have unrest and you can throw money at it."

Algeria has made huge wheat purchases and set price controls following street protests. Not all citizens have been placated, and some protesters returned to the streets this weekend.

Other countries watching

According to the UN Food and Agriculture Organization, there are 77 low-income countries that rely heavily on food imports.

Khan says policymakers in these countries are going to say, "'Look, we have large-scale unemployment.We have high food prices rising and therefore pushing up inflation. This is likely to trigger protests in our country. So, what do we need to do?'"

Targeted aid, not subsidies

Khan says poor countries need to target help to the poor, rather than blanketing the economy with price controls or food subsidies, which are expensive and bad for the economy in the long run.

But they are among the easiest options. And Khan adds that people in other repressed countries may be inspired by events in Egypt and Tunisia, where food prices also contributed to the ouster of President Zine el-Abidine Ben Ali  last month. He says governments will likely be tempted to step in rather than risk protests.

"It's going to be very interesting to see how it plays out in terms of who's going to [act] first," he says. "Are the protests going to come first, or [are the governments going to] start subsidizing food?"

Many experts agree the likelihood of protests is rising along with the cost of food.

 

NEW: Follow our Middle East reports on Twitter
and discuss them on our Facebook page.

You May Like

Turkey's Erdogan: Women Not Equal to Men

Speaking at conference in Istanbul, President Erdogan says Islam has defined a position for women: motherhood More

Ahead of SAARC Summit, Subdued Expectations

Some regional analysts say distrust between Pakistani, Indian officials has slowed SAARC's progress over the year More

Philippines Leery of Development on Reef Reclamation in S. China Sea

Chinese land reclamation projects in area have been ongoing for years, but new satellite imagery reportedly shows China’s massive construction project More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Changei
X
November 24, 2014 10:09 PM
Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid