Spaaroverschot zal rente laag houden

I think if there is one thing that exposes the failure of neoliberal governance through global institutions such as the IMF and the World Bank is the food regime. the global food regime is based on massive production out of the US and the EU through huge subsidies which hurt the agricultural sector in the periphery and leaves a lot of countries food-dependent. And that is combined with the IMF and the World Bank pushing for export-based agriculture in the periphery. This is a form of neo-colonialism.

Add to that the emerging effects of climate disruption that are already devastating parts of Africa and you have disasters waiting to happen. Because, as recent cases have shown, if there is one thing that people won’t stand for, it’s the lack of food:

“When grain prices spiked in 2007-2008, Egypt’s bread prices rose 37%. With unemployment rising as well, more people depended on subsidised bread – but the government did not make any more available. Egypt’s annual food price inflation continued and had hit 18.9% before the fall of President Mubarak.

Fifty per cent of the calories consumed by Egyptians originate outside its borders. Egypt is the world’s largest wheat importer, and no country in the region (except for Syria) produces more than a small fraction of the wheat it consumes. Should the global markets be unable to provide a country’s need, or if there are not enough funds available to finance purchases and to offer price support, then the food of the poor will become inaccessible to them. Already, in Egypt and Yemen, more than 40% of the population live below the poverty line and suffer from some form of malnutrition. Most of the poor in these countries have no access to social safety nets. Images of bread became central to the Egyptian protests, from young boys selling kaik, a breakfast bread, to one protester’s improvised helmet made from bread loaves taped to his head. Although the Arab revolutions were united under the slogan “the people want to bring down the regime” not “the people want more bread”, food was a catalyst.

“Bread riots” have been occurring regularly since the mid 1980s, following policies brought to us by the World Bank and the International Monetary Fund. Among these were the reduction of agricultural subsidies and the encouragement of production of fruits and vegetables for export, at the expense of investing in local grain production. Export of value-added produce and the import of basic commodities such as wheat were monopolised by a small group of “entrepreneurs” protected by the security state who financially backed the ruling elite. The powerful countries provided encouragement and support. The US gave Egypt around $1.7bn last year, exceeded only by the $2.4bn it gave to Israel. Tunisia under President Ben Ali was viewed as the IMF model of “growth” and France offered to support him militarily through the uprising.”