Where and why food prices lead to social upheaval - The Washington Post - 0 views
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Unlike other commodities, global food prices have followed a different trajectory. Although down from near-historic highs in 2007-2008 and 2011, they are still higher than at any point in the previous three decades.
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Politics might affect the relationship between food prices and protest through two channels. The first is the extent to which governments shield urban consumers from high global prices. Governments in developing countries often subsidize food purchases, especially those of urban dwellers, shifting welfare from rural producers to urban consumers. But this observation raises the second-order question of the conditions under which governments will subsidize urban consumers. We hypothesized that autocratic governments were more likely to shield urban consumers. While urban dwellers can riot in the absence of elections, rural dwellers have fewer channels through which they can voice grievances.
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Unlike energy and electronics, demand for basic foodstuffs is income-inelastic: Whether I have adequate income has no effect on my need for sustenance. Not surprisingly, 97 percent of the post-2007 ‘food riots’ identified by a team at the New England Complex Systems Institute occurred in Africa and Asia, which are home to more than 92 percent of the world’s poor and chronically food-insecure. Careful empirical work bears out this conventional wisdom: High global food prices are more destabilizing in low-income countries, where per capita incomes are lower.
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The economic effects of higher food prices are clear: Since 2007, higher prices have put a brake on two decades of steady process in reducing world hunger. But the spikes in food prices over the past decade have also thrust food issues back onto the security agenda, particularly after the events of the Arab Spring. High food prices were one of the factors pushing people into the streets during the regionwide political turmoil that began in late 2010. Similar dynamics were at play in 2007-2008, when near-record prices led to food-related protests and riots in 48 countries.
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democracies and anocracies did enact more pro-rural food policy. In particular, democracies in Africa and Asia enact policies that favor urban areas less and rural areas more. These take the form of enhancing farmer incomes and raising consumer prices, which often causes protests and rioting. Lessening urban bias in food policy may be good pro-poor policy, given the continued concentration of poverty in rural areas, but it carries political risks.
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the Arab Spring reflects some of the risks autocratic leaders face when attempting to insulate urban consumers from global market prices. Consumer subsidies have long been part of the “authoritarian bargain” between the state and citizens in the Middle East and North Africa, and attempts to withdraw them have been met with protest before: Egypt’s bread intifada, which erupted over an attempt to reform food subsidies, killed 800 in 1977. These subsidies explicitly encouraged citizens across the region to evaluate their governments’ effectiveness in terms of their ability to maintain low consumer prices — prices that, given these countries’ dependence on food imports, those governments ultimately could not control
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Our findings point to the difficult tradeoffs facing governments in developing countries as they attempt to pursue two different definitions of food security simultaneously: food security as an element of human security, and food security as a means of ensuring government survival and quelling urban unrest. These tradeoffs appear to be particularly acute for developing democracies.