The Arab World’s Looming Crisis: The Rapidly Rising Cost of Food

While many Arab countries are struggling to adapt to the economic implications of the Arab Spring, another crisis now looms on the horizon: the rising cost of food. Taking the necessary steps to tackle this crisis is in the interest of not only the Arab Spring states, but the entire region — including the wealthy Gulf emirates. After all, nearly every country in the Arab world is facing a lack of food security.

 

 

Most Arab countries currently import approximately 60% to 80% of their foodstuffs. Speculation on global food markets in 2008 resulted in a regional crisis. Commodity prices skyrocketed and drove inflation to unprecedented levels. Many Arab countries took targeted action intended to reduce inflation. But these measures failed to address the root causes of the food crisis. 

A glance at the data indicates just how serious the threat has become. The cost of the Arab world’s food imports is estimated to reach $115 billion by 2020. This estimate is based on a population growth rate of 3.5 percent over the next decade.

What makes the challenge even harder to overcome is the fact that the food crisis is likely to get worse before it gets better. There are several reasons for this, most importantly the global phenomenon of increasing desertification. In addition, conflicts over water resources are intensifying and the list of countries without food security continues to grow. And the expected rise in energy and production costs threatens the world with a tidal wave of price hikes.

These rising costs are likely to hit Arab states especially hard because of a number of underlying policy missteps. First, the agricultural sectors in most Arab countries have been severely neglected in recent decades, resulting in low levels of productivity. This spurred mass migration from agricultural regions to cities and suburbs, hence skilled workers have abandoned the sector and governments lost interest in allocating adequate financial resources to enhance the sector’s productivity, leading to a lack of agricultural resources and skilled labor.

Second, most Arab states have begun to subsidize foodstuffs, thus reducing the incentives to seek innovative solutions to the growing food security problem. But that cannot be sustained forever. The rise in global prices means higher budget deficits in most Arab countries. And, while the Gulf states are still running surpluses, the exorbitant cost of importing foodstuffs is nevertheless taking its toll.

 

You might also like
Latest news
Khamenei: Enemies will receive a jaw-breaking response for what they are doing against Iran and Resi... Lebanese resistance launched missile attack on the “Glilot” base and settlements in northern occupie... Pyongyang: The DPRK will further intensify its practical efforts to deter the military threat of the... China evacuated 282,000 people ahead of the Typhoon Kong-rey Zionist enemy committed 10 bloody massacres in south Lebanon yesterday Zionist occupation killed several Palestinian citizens in central Gaza Strip PA issues a statement on the 107th anniversary of the ill-fated Balfour Declaration Al-Mardini discusses with ALECSO’s director and Russian delegation educational cooperation World Health Organization Expresses Concern Over Israeli Attacks on Lebanese Health Facilities On the Second Day of the World Education Meeting... Minister of Education Presents an Intervention o... 9 Settlers Injured as a Result of the Lebanese Resistance Targeting Several Settlements in Northern ... The UN Warns of the Danger of Israeli Raids on Archaeological Sites in Lebanon 3 Martyrs in an Israeli Enemy Raid on The Town of al-Qamatiya in Lebanon 29 Martyrs in a New Massacre by the Israeli Enemy in al-Nuseirat Camp The Africa Centers for Disease Control and Prevention: Monkeypox Is Out of Control   National Environment Day... raising awareness of the Importance of Dealing Properly with Natural and... Albusaidi: Western Countries Must Put an End to Israeli Aggressions in The Region Lebanon… 11 Martyrs and 14 Wounded by Israeli Aggression Against Baalbek and Several Villages Lavrov Condemns Israeli Entity's Crimes in Assassinating Resistance Leaders in Lebanon and Palestine On The Sidelines of The World Education Meeting in Brazil... The Syrian Delegation Discusses Ways to...