Food prices reach ‘dangerous levels’ fuelling protests in the Middle East

Kitty Webster, used to be Campaigns and policy intern

As the World Bank issued a report this week warning of the impacts of rocketing food prices, protests continued to sweep across the Middle East and North Africa. The latest edition of Food Price Watch outlines how food prices have risen by almost 30 per cent in the past year and were within striking distance of the record levels reached during 2008.

“Global food prices are rising to dangerous levels and threaten tens of millions of poor people around the world” said Robert Zoellick, the World Bank's president. Speaking about the current wave of protests in the Arab world triggered by the overthrow of the Presidents in Tunisia and Egypt, Zoellick said rising food prices are "an aggravating factor that could become more serious.”

According to the report, the World Bank's food price index was up by 15 per cent between October 2010 and January 2011, having risen almost 30 per cent in the past year and only just below the record levels reached during 2008. Wheat prices have risen the most, doubling between June 2010 and January 2011.

Many factors affect food prices, including growing more crops for biofuels and crop yield fluctuations caused by climate change. But as this video shows food speculation has played a crucial role in the massive food price hikes that been devastating for the worlds poorest people in recent years:

Arab countries are the largest importers of cereal – a wheat product - in the world. What is more, Egypt, once considered the breadbasket of the Roman Empire, is now the world's biggest wheat importer. For the 40 million Egyptians living on less than $2 a day the 70-80 per cent rise in international wheat prices between 2007-08 was catastrophic. Riotous queues broke out around the country as the price of bread doubled, leaving an estimated 11 people dead.

Since Hosni Mubarak assumed power in 1981 life for the majority of Egyptians became increasingly harder as poverty increased from 29 per cent to almost 50 per cent. Socio-economic inequalities widened and living conditions had deteriorated as wages failed to keep up with inflation. For the millions of Egyptians who have now overthrown 'one of the oldest authoritarian regimes in the developing world' spiralling food costs undoubtedly inflamed rising political discontent.

Find out more about WDM’s food speculation campaign here.