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Providing jobs is a good way to curry favor with local populations in places where the United States wants to maintain a military presence. Other foreign policy tools may not reach the right people. The well-known risk with foreign aid, for example, is that recipient regimes will divert it for their own purposes instead of investing in public goods. Contracting directly with local firms might help bypass corrupt governments. Subscribe Receive daily email updates: Subscribe to the Defense One daily. Be the first to receive updates. But there is a big problem with this seemingly sound logic: to date, there is no evidence that it works as promised.

By some estimates, ten percent of defense-related logistics contracts ended up in the hands of insurgents

The law limits the government’s ability to dictate the hiring of firms it does business with. This caused problems in Djibouti, where the United States has its only base in Africa, Camp Lemonnier. In 2013, the American company in charge of base support fired local Djiboutian employees in search of cheaper labor, despite a diplomatic understanding between the United States and Djibouti that the base would provide jobs for Djiboutians. Between the fallout and threat of hosting a Russian base, the Djiboutian government managed to hike Washington’s annual base rent from $30 million to $63 million.

Congress could make preferential procurement authorities conditional upon independently conducted studies of this spending’s effectiveness

First, we need to be able to answer questions such as: who is getting the business and how many jobs are created? That will enable systematic study of questions such as: what are the downstream effects on local markets? Do local jobs actually buy local goodwill?

New York, Los Angeles, and Miami have joined London as the world’s most desired destinations for laundered money. This boom has enriched the American elites who have enabled it—and it has degraded the nation’s political and social mores in the process. While everyone else was heralding an emergent globalist world that would take on the best values of America, Palmer had glimpsed the dire risk of the opposite: that the values of the kleptocrats would become America’s own. This grim vision is now nearing fruition

in the days after the Twin Towers collapsed, George W. Bush’s administration furiously scoured Washington for ideas to jam into the 342-page piece of legislation that would become the patriot Act. A sense of national panic created a brief moment for bureaucrats to realize previously shelved plans. Title III of the patriot Act, the International Money Laundering Abatement and Anti-terrorist Financing Act, was signed into law little more than a month after September 11

If a bank came across suspicious money transferred from abroad, it was now required to report the transfer to the government. A bank could face criminal charges for failing to establish sufficient safeguards against the flow of corrupt cash. Little wonder that banks fought fiercely against the imposition of so many new rules, which required them to bulk up their compliance divisions—and, more to the point, subjected them to expensive penalties for laxity

nestled in the patriot Act lay the handiwork of another industry’s lobbyists. Every House district in the country has real estate, and lobbyists for that business had pleaded for relief from the patriot Act’s monitoring of dubious foreign transactions. They all but conjured up images of suburban moms staking for sale signs on lawns, ill-equipped to vet every buyer. And they persuaded Congress to grant the industry a temporary exemption from having to enforce the new law.The exemption was a gaping loophole—and an extraordinary growth opportunity for high-end real estate. For all the new fastidiousness of the financial system, foreigners could still buy penthouse apartments or mansions anonymously and with ease, by hiding behind shell companies set up in states such as Delaware and Nevada. Those states, along with a few others, had turned the registration of shell companies into a hugely lucrative racket—and it was stunningly simple to arrange such a Potemkin front on behalf of a dictator, a drug dealer, or an oligarch. According to Global Witness, a London-based anti-corruption NGO founded in 1993, procuring a library card requires more identification in many states than does creating an anonymous shell company.

Foreign Account Tax Compliance Act (fatca), legislation with moral clout that belies its stodgy name. Never again would a foreign bank be able to hold American cash without notifying the IRS—or without risking a walloping fine.

As the Treasury Department put it in 2017, nearly one in three high-end real-estate purchases that it monitors involves an individual whom the government has been tracking as “suspicious.” Yet somehow the presence of so many shady buyers has never especially troubled the real-estate industry or, for that matter, politicians. In 2013, New York City’s then-mayor, Michael Bloomberg, asked, “Wouldn’t it be great if we could get all the Russian billionaires to move here?”

the aluminum magnate Oleg Deripaska, a character who has made recurring cameos in the investigation of Russian interference in the 2016 presidential election. The State Department, concerned about Deripaska’s connections to Russian organized crime (which he has denied), has restricted his travel to the United States for years. Such fears have not stood in the way of his acquiring a $42.5 million mansion on Manhattan’s Upper East Side and another estate near Washington’s Embassy Row.

In 2016, Barack Obama’s administration tested a program to bring the real-estate industry in line with the banks, compelling brokers to report foreign buyers, too. The ongoing program, piloted in Miami and Manhattan, could have become the scaffolding for a truly robust enforcement regime. But then the American presidency turned over, and a landlord came to power. Obama’s successor liked selling condos to anonymous foreign buyers—and may have grown dependent on their cash

Nationwide, nearly half of homes worth at least $5 million, the Times found, were bought using shell companies. The proportion was even greater in Los Angeles and Manhattan

Birkenfeld described how he had ensconced himself in the gilded heart of the American plutocracy, attending yacht regattas and patronizing art galleries. He would mingle with the wealthy and strike up conversation. “What I can do for you is zero,” he would say, and then pause before the punch line: “Actually, it’s three zeroes. Zero income tax, zero capital-gains tax, and zero inheritance tax.” Birkenfeld’s unsubtle approach succeeded wildly, as did his bank. As part of an agreement with the Justice Department, UBS admitted to hiding assets totaling some $20 billion in American money.

Around the time that Trump took up occupancy in the White House, the patriot Act’s “temporary” exemption for real estate entered its 15th year

While the U.S. can ask almost any other nation’s banks for financial information about American citizens, it has no obligation to provide other countries with the same. “The United States had bullied the rest of the world into scrapping financial secrecy,” Bullough writes, “but hadn’t applied the same standards to itself.” A Zurich-based lawyer vividly spelled out the consequences to Bloomberg: “How ironic—no, how perverse—that the USA, which has been so sanctimonious in its condemnation of Swiss banks, has become the banking secrecy jurisdiction du jour … That ‘giant sucking sound’ you hear? It is the sound of money rushing to the USA.”

The behavior of the American elite changed too. Members of the professional classes competed to sell their services to kleptocrats

“They don’t send lawyers to jail, because we run the country … We’re still members of a privileged class in this country.”

Once upon a time, it might have been possible to think of Manafort as a grubby outlier in Washington—the lobbyist with the lowest standards, willing to take on the most egregious clients. But Mueller has exposed just how tightly tethered Manafort’s work on behalf of Ukrainian kleptocrats was to Washington’s permanent elite. Manafort subcontracted some of his lobbying to the firm of Tony Podesta, arguably the most powerful Democratic influence-peddler of his generation. And Manafort employed Mercury Public Affairs, where he dealt with Vin Weber, a former Republican congressman and a former chairman of the National Endowment for Democracy

The perils of corruption were an obsession of the Founders. In the summer of 1787, James Madison mentioned corruption in his notebook 54 times. To read the transcripts of the various constitutional conventions is to see just how much that generation worried about the moral quality of public behavior—and how much it wanted to create a system that defined corruption more expansively than the French or British systems had, and that fostered a political culture with higher ethical ambitions

The defining document of our era is the Supreme Court’s Citizens United decision in 2010. The ruling didn’t just legalize anonymous expenditures on political campaigns. It redefined our very idea of what constitutes corruption, limiting it to its most blatant forms: the bribe and the explicit quid pro quo. Justice Anthony Kennedy’s majority opinion crystallized an ever more prevalent ethos of indifference—the collective shrug in response to tax avoidance by the rich and by large corporations, the yawn that now greets the millions in dark money spent by invisible billionaires to influence elections.

American collusion with kleptocracy comes at a terrible cost for the rest of the world. All of the stolen money, all of those evaded tax dollars sunk into Central Park penthouses and Nevada shell companies, might otherwise fund health care and infrastructure. (A report from the anti-poverty group One has argued that 3.6 million deaths each year can be attributed to this sort of resource siphoning.) Thievery tramples the possibilities of workable markets and credible democracy. It fuels suspicions that the whole idea of liberal capitalism is a hypocritical sham: While the world is plundered, self-righteous Americans get rich off their complicity with the crooks.

The Founders were concerned that venality would become standard procedure, and it has. Long before suspicion mounted about the loyalties of Donald Trump, large swaths of the American elite—lawyers, lobbyists, real-estate brokers, politicians in state capitals who enabled the creation of shell companies—had already proved themselves to be reliable servants of a rapacious global plutocracy

by the time Vladimir Putin attempted to influence the shape of our country, it was already bending in the direction of his

the Trump administration has stopped at nothing to push the argument that job creation is justification enough for supporting weapons manufacturers to the hilt. Even before Donald Trump was sworn in as president, he was already insisting that military spending was a great jobs creator. He’s only doubled down on this assertion during his presidency. Recently, overriding congressional objections, he even declared a national “emergency” to force through part of an arms sale to Saudi Arabia that he had once claimed would create more than a million jobs. While this claim has been thoroughly debunked, the most essential part of his argument — that more money flowing to defense contractors will create significant numbers of new jobs — is considered truth personified by many in the defense industry

In addition to the reductions at Lockheed, Boeing slashed 21,400 jobs and Raytheon cut 800 employees from its payroll. Only General Dynamics and Northrop Grumman added jobs — 13,400 and 16,900 employees, respectively — making that total figure look modestly better. However, even those “gains” can’t qualify as job creation in the normal sense, since they resulted almost entirely from the fact that each of those companies bought another Pentagon contractor and added its employees to its own payroll

Pentagon spending was actually higher in 2018 than in 2012

From 2012 to 2018, overall employment at Lockheed actually fell from 120,000 to 105,000, according to the firm’s filings with the SEC and the company itself reported a slightly larger reduction of 16,350 jobs in the U.S. In other words, in the last six years Lockheed dramatically reduced its U.S. workforce, even as it hired more employees abroad and received more taxpayer dollars

where is all that additional taxpayer money actually going, if not job creation? At least part of the answer is contractor profits and soaring CEO salaries. In those six years, Lockheed’s stock price rose from $82 at the beginning of 2012 to $305 at the end of 2018, a nearly four-fold increase. In 2018, the company also reported a 9% ($590 million) rise in its profits, the best in the industry. And in those same years, the salary of its CEO increased by $1.4 million

From 2012 to 2018, the unemployment rate in the U.S. plummeted from roughly 8% to 4%, with more than 13 million new jobs added to the economy. Yet, in those same years, three of the five top defense contractors slashed jobs. In 2018, the Pentagon committed approximately $118 billion in federal money to those firms, including Lockheed — nearly half of all the money it spent on contractors. This was almost $12 billion more than they had received in 2012. Yet, cumulatively, those companies lost jobs and now employ a total of 6,900 fewer employees than they did in 2012, according to their SEC filings.

In 2012, concerned that those caps on defense spending would cut into their bottom lines, the five top contractors went on the political offensive, making future jobs their weapon of choice. After the Budget Control Act passed, the Aerospace Industries Association — the leading trade group of the weapons-makers — warned that more than one million jobs would be at risk if Pentagon spending were cut significantly. To emphasize the point, Lockheed sent layoff notices to 123,000 employees just before the BCA was implemented and only days before the 2012 election. Those layoffs never actually happened, but the fear of lost jobs would prove real indeed and would last.

“the aerospace and defense (A&D) sector scored record revenues and profits in 2018” with an “operating profit of $81 billion, surpassing the previous record set in 2017.” According to the report, Pentagon contractors were at the forefront of these profit gains. For example, Lockheed’s profit improvement was $590 million, followed closely by General Dynamics at $562 million. As employment shrank, CEO salaries at some of these firms only grew. In addition to compensation for Lockheed’s CEO jumping from $4.2 million in 2012 to $5.6 million in 2018, compensation for the CEO of General Dynamics increased from $6.9 million in 2012 to a whopping $20.7 million in 2018.

weapons-making outfits spend more than $100 million on lobbying yearly, donate tens of millions of dollars to the campaigns of members of Congress every election season, and give millions to think tanks annually

research has repeatedly shown that, even with this supposed “multiplier effect,” defense spending produces fewer jobs than just about anything else the government puts our money into. In fact, it’s about 50% less effective at creating jobs than if taxpayers were simply allowed to keep their money and use it as they wished

As Brown University’s Costs of War project has reported, “$1 billion in military spending creates approximately 11,200 jobs, compared with 26,700 in education, 16,800 in clean energy, and 17,200 in health care.”

not only are the green energy and education areas vital to the future of the country, they are also genuine job-creating machines. Yet, the government gives more taxpayer dollars to the defense industry than all these other government functions combined.

Reports from the industry’s own trade association show that it has been shedding jobs. According to an Aerospace Industries Association analysis, it supported approximately 300,000 fewer jobs in 2018 than it had reported supporting just three years earlier

add to their army of lobbyists, their treasure trove of campaign contributions, and those think tanks on the take, the famed revolving door that sends retired government officials into the world of the weapons makers and those working for them to Washington

since 2008, as the Project On Government Oversight’s Mandy Smithberger found, “at least 380 high-ranking Department of Defense officials and military officers shifted into the private sector to become lobbyists, board members, executives, or consultants for defense contractors.” 

the United States needs a dramatic overhaul to adapt to the global threats of the 21st century, which should include moving away from military engagement and toward international cooperation on issues from peacekeeping to greenhouse gas reduction to global health to banking reform. Such an overhaul should also include cutting the defense budget in half by 2035, and perhaps even getting rid of the Pentagon itself.

one big, underappreciated reason for declining interstate war is that it doesn’t pay. Through most of history, global power and wealth have been determined by control of people, land and resources. Wars were fought over bodies and territory in zero-sum conflicts in which the victor took the spoils. Caesar was considered a Roman hero because he brought as many as 1 million slaves back from his Gallic wars alone. And as late as World War II, physical resources were still a key concern—Japan’s need for oil, Germany’s desire for Lebensraum (“living space”).

The World Bank estimates that nearly two thirds of global wealth is intangible—inventions such as the internal combustion engine or the solar panel that allow people to produce more power with less resources than older technologies, institutions including systems of property rights and education—leaving only around a third to be accounted for by built infrastructure, land and natural resources combined. Only in poorer countries are natural resources a large proportion of total wealth

the technological underpinnings of high productivity, such as the engines and solar panels and property rights, are “non-rival”—we don’t have to fight for them. If I occupy land, you cannot. If I use the technology of the internal combustion engine or double-entry bookkeeping, you can use it at the same time. In fact, if we both use the same technologies, we both benefit even more.

land and resources simply aren’t worth the cost of the fight for successful economies. And that helps to explain why the conflict that remains is increasingly concentrated in poorer countries where natural resources are still relatively important, especially in sub-Saharan Africa

The low returns of war may also help to explain the limited military ambitions of China, which has the world’s second-largest defense budget—about 40 percent the size of America’s. While China clearly wants dominance in the South China Sea, the country has only two aircraft carriers—one of which is a secondhand boat left over from the days of the Soviet Union. It conducts bomber flights in international waters, but the two warships are limited to the same area. And it spends a smaller percentage of its gross domestic product on the military than does the United States: 1.9 percent compared with America’s 3.2 percent. China’s recent success has been built on global connections that have left it the world’s largest trading nation. A world war would tear apart those connections

the United States retains a massive global military advantage, responsible for one out of every three dollars spent on defense worldwide and outspending the countries with the next seven biggest military budgets combined. But while that ensures dominance at confrontation on the battlefield, it is not so useful for the kind of conflicts the world still fights, dominated by guerrilla warfare. That is demonstrated by America’s not-winning streak over the past seven decades in civil conflict: Korea, Vietnam, Afghanistan and Iraq. The “Global War on Terror” drags on; the two countries suffering the most terror attacks in the world are also the two countries the United States has invaded in the past 20 years.

This low efficacy of the Department of Defense is primarily because the military is limited in its ability to keep the peace in countries where much of the population doesn’t want it there at a cost in lives, finance and time that is acceptable to U.S. voters and lawmakers.

Rising productivity has increased carbon emissions and other pressures on global sustainability. Connectivity leaves people worldwide more exposed to threats from elsewhere including viruses real and virtual alongside financial contagion. These new national security challenges require a collective response: We can’t bomb our way out of climate change or financial crises—we have to cooperate through international organizations, agreements and the shared financial incentives for signing on to them.

The total number of people working in the Department of Defense itself (none of whom are in the field actually defending or deterring war) climbed from 140,000 in 2002 to just shy of 200,000 in 2012. Nearly three-quarters of a million civilian federal employees work for the Defense Department—add in the Department of Veterans Affairs and that’s about half of the total civilian federal workforce

an institution that was recently declared simply unauditable due to complexity, failed systems and missing records—this after a $400 million effort involving over 1,200 auditors

Retired Lieutenant General David Barno and colleagues from the Center for a New American Security have listed seven “deadly sins” of defense spending in a recent report, ranging from redundant overhead through inefficient procurement systems to excess infrastructure to a bloated retirement system that could generate annual savings of $49 billion if rectified. If that sounds too large to be plausible, in 2015, the Department of Defense itself reported administrative waste and excess bureaucracy cost the institution an annual $25 billion.

A budget cut to 1.5 times the military spending of our nearest competitor (China) would free up about $150 billion of the current $649 billion in U.S. spending (as reported by the World Bank). Taking $100 billion of that and adding it to the U.S. overseas development assistance budget would also bring the U.S. aid ratio up to 0.7 percent of gross national Income—the U.N. target.

over 10 years, the United States could move toward 2 percent of GDP going to defense, down from today’s 3.2 percent—that’s the target set for NATO as a whole back in 2006. And perhaps in 15 years, U.S. military spending could reach the current global median: 1.5 percent of GDP

Each American citizen—man, woman and child—currently pays an average of $1,983 a year to the Department of Defense. Over an average lifetime, that adds up to $156,000 per person. It is a simply incredible sum for a country at zero risk of invasion and with a reasonable aversion to violent territorial expansion

The continent averages less than one intensive care bed and one ventilator per 100,000 people, Reuters found.

Donations have poured in from a foundation set up by Chinese billionaire Jack Ma, and the World Bank is helping procure more than $1 billion worth of equipment for Africa.

even in a best-case scenario, Africa could need at least 111,000 more intensive care beds and ventilators - more than 10 times the number it has at present.

Tanzania, publicly criticised by the WHO for not restricting large gatherings, has sometimes gone for days without updating its coronavirus figures and has refused to tell donors anything about its public health resources

In Madagascar, where the president is pushing a botanically-based remedy untested in an international clinical trial, the health ministry took five weeks to respond to Reuters questions about the number of ventilators in the country.

The WHO does not have the funds to carry out detailed surveys on a regular basis, Yao said. "Information is critical for us to better help," he told Reuters. "It's difficult to anticipate their overall needs if you don't have accurate information."

around 685 tests have been carried out per million people - far below the 37,000 per million in Italy or 22,000 in the United States.

South Africa accounts for 30% of Africa’s tests, although it has less than 5% of the population. Nigeria, which has 15% of the population, has carried out just 2% of testing; it began by testing strategically then broadened it out, Health Minister Osagie Ehanire said. Chad and Burundi have carried out fewer than 500 tests each. Chad said it didn’t have enough testing kits and staff after many of them had fallen ill; Burundi did not respond. Tanzania carried out 652 tests and identified 480 cases.

the World Bank is helping more than 30 African nations source medical supplies. South Sudan recently received a donation of five ventilators, bringing its total to nine. But the new ventilators have yet to be plugged in because the isolation centre is being expanded

Intensive care beds are expensive, difficult to run, and very unevenly distributed. Chad, an oil-rich but impoverished nation of 15 million people, has only 10, whereas the island nation of Mauritius, a financial hub home to 1.2 million, has 121.

The continent’s three giants - Nigeria, Ethiopia and Egypt - have 1,920 intensive care beds between them for more than 400 million people

Kenya has 518 beds in its public and private facilities, but 94% are already occupied by non-COVID-19 patients

Under a best-case scenario - what Imperial College researcher Charlie Whittaker described as a complete lockdown for an indefinite time - at least 121,000 critical care beds will be needed at the peak of the pandemic on the continent, Reuters found. That compares with 9,800 at present

Africa has no history of building ventilators. South Africa’s state-owned defence company Denel plans to begin making them, and institutions in Kenya and Senegal have developed prototypes. But authorities in Senegal say they’ve only certified imports before; it could take months to get a prototype certified and mass-produced.

In many nations like Nigeria, South Sudan and Zimbabwe, electricity is extremely unreliable and hospitals depend on diesel-powered generators. Some health facilities in poorer, often rural, areas are unable to pay for the constant refueling and maintenance they need.

Continent-wide, one doctor serves an average of 80,000 people, World Bank data shows. There are more in wealthy Mauritius - 2 doctors per 1,000 - but countries like Liberia, Malawi or Burundi have far fewer.

only nine countries have one or more physicians qualified to administer anaesthetics per 100,000 people, according to the World Federation of Societies of Anaesthesiologists. Most have staffing levels comparable to Afghanistan or Haiti.

The Africa CDC, set up by the African Union in 2017, worked with the WHO to rapidly roll out testing. In January, only South Africa and Senegal could test for the new coronavirus, but now all African countries can perform tests apart from tiny Lesotho and the island nation of Sao Tome and Principe.

Private hospitals are generally better staffed, but their revenues have dropped by an average of 40% since March, mostly due to a decline in elective surgeries and regular outpatient chronic treatment, said the Africa Healthcare Federation, an umbrella organisation for the private healthcare sector. Private hospitals are also having to spend more on protective equipment, and private insurance companies are delaying settling claims in many countries, said Dr. Amit Thakker, the head of the federation.

the Air Force and Lockheed baked failure into the F-35’s very concept. “They tried to make the F-35 do too much,”

Pentagon leaders have hinted that, as part of the U.S. military’s shift in focus toward peer threats—that is, Russia and China—the Navy and Air Force might get bigger shares of the U.S. military’s roughly $700-billion annual budget. All at the Army’s expense.

greater awareness of the potential impact of natural as well as man-made shocks will accelerate tendencies not toward deglobalization but rather toward reglobalization: a reshuffling of supply chains and at least a partial reduction in the concentration of capacity inside China

The disruption caused by the pandemic creates an opportunity for U.S. policymakers to reassess and recalibrate their generally laissez-faire approach to globalization.

Another reason for attempting to shift existing supply chains and, in particular, for trying to preserve and expand domestic manufacturing capacity is that doing so could help boost the overall productivity, international competitiveness, and long-term growth prospects of the U.S. economy. That, in turn, would generate more of the aggregate resources necessary to sustain a protracted strategic competition with China, while at the same time enhancing the well-being of many American workers.

Even if the value-added from the final assembly of consumer goods is relatively small, from a strategic standpoint it would be preferable if the resulting gains accrued to the economies of U.S. friends and allies rather than to China. The physical relocation of some portion of existing supply chains could also help slow China’s efforts to extract sensitive technology through industrial espionage or coerced joint ventures.

Even a largely market-driven dispersion of supply chains and a lesser degree of concentration in China should help to reduce risks and increase resilience.

To the extent feasible, the United States should seek to source imports of critical goods from a trusted production network of facilities in friendly or allied countries, at least some of them located far from China.

During World War II and the opening stages of the Cold War, the federal government used the tax code in a focused fashion, extending the so-called rapid tax amortization privilege to promote expansion in sectors where resource requirement calculations revealed gaps that could stall defense mobilization. In the 1950s, federal agencies also used procurement guarantees to encourage the maintenance of capacity above anticipated market demand for certain minerals and machine tools by promising to buy a portion of the resulting output. Some of these were then placed in stockpiles for possible future use.

The U.S. government could use similar tools today if, for example, it wanted to expand the nation’s ability to manufacture personal protective equipment and ventilators, items that might be needed to combat the next pandemic.

Globalization is not an unstoppable natural force, propelled solely by technological progress and autonomous market forces; instead it is a man-made phenomenon with contours shaped by the choices of states as well as firms.

China’s emergence as an irresistibly attractive manufacturing platform was partly due to the sheer size of its working-age population and the falling costs of communication and transportation, but also due to deliberate government policies designed to aid in the acquisition of foreign intellectual property while keeping the cost of land, labor, and capital low and exchange rates favorable.

the migration of manufacturing capacity from the advanced industrial countries reflected not only the profit and loss calculations of individual companies but also the permissive policies of Western governments that concluded in effect (in the U.S. case) that what was good for Apple or 3M was good for the United States.

if it results in excessive dependence, an addiction to low costs can create serious commercial and strategic risks

There are obvious dangers here. Sharpened tools of trade and industrial policy can be abused by irresponsible leaders seeking to pander to voters and pay off supporters, or they may be captured and exploited by special interests.

Ukraine accounts for 90 per cent of Lebanon’s wheat imports and is a leading supplier for countries including Somalia, Syria and Libya. Lebanon is “really struggling with an already high import bill and this is only going to make things worse,”

Russia also provides its Black Sea neighbour Turkey with more than 70 per cent of its wheat imports

Even before the Russian invasion of Ukraine, inflation in Turkey had had hit a 20-year high of 54.4 per cent in February. “The war is only going to exacerbate the cost of food,”

“What’s critical here is that the Black Sea offers a logistical and price advantage . . . Costs will rise significantly when [Turkey] buys from the US or Australia,” he said. “Even if the war ends tomorrow, Ukraine’s planting season has already been disrupted and it will impact the 2022 harvest regardless.”

The UN World Food Programme, which procures grains and food to distribute to poorer countries, bought just under 1.4m tonnes of wheat last year of which 70 per cent came from Ukraine and Russia.

The last time wheat prices spiked to these levels in 2007 and 2008 because of severe production declines in leading producing countries such as Australia and Russia, protests spread through nearly 40 countries from Haiti to the Ivory Coast, while a jump in grain prices in 2009-10 is regarded as one of the triggers of the Arab Spring uprisings in the Middle East.

Egyptian authorities say their wheat inventories will last until mid June and the Egyptian local harvest should start coming in by mid April. Any rise in subsidised bread prices and further increase in food inflation in Egypt “increases the threat of social unrest,”

Wheat inventories are tight everywhere and as Chinese and South Korean buyers of Ukrainian corn, used to feed livestock, sought sellers elsewhere, EU agricultural ministers on Wednesday discussed allowing farmers to boost production using the 10 per cent of land they usually leave fallow in response to the war in Ukraine.

“The supply chain is broken,”