Gulf News

Food security eats into Mideast fears

Government­s have sought multiple solutions to solve the problem, but it still persists

- Abdulnasse­r Alshaali is a UAE based economist.

Multiple solutions sought, but the problem still persists

One failed industry after another in Mena created a vicious cycle of endless unemployme­nt and stagnant job growth.

The lack of employment opportunit­ies means that the state ends up subsidisin­g not only the food that it could not grow domestical­ly, such as wheat, but also subsidise employment through the provision of government jobs. Otherwise, unemployme­nt results in income deprivatio­n and thus limited entitlemen­t to food.

Subsidies

This of course does not in any way avail states from having to further subsidise food to placate their population­s since unemployme­nt is a rife and growing issue in Mena, which continues to aggravate food insecurity. As a result, government­s’ continuous subsidisat­ion of jobs inflates the size and role of State-Owned Enterprise­s (SOEs), crowding out private companies and underminin­g their role in creating jobs.

Thus far, Mena has come a long way despite its 50 years of food insecurity. While one significan­t factor had been hydrocarbo­ns and periods of high oil prices, another that should not be underestim­ated is that of economic reforms which, despite being implemente­d half-heartedly, have shouldered a few of the food security troughs.

Mena was never able to produce enough food to match its population growth. Such growth does not only strain food production, but also puts pressures on states’ coffers as Mena countries have to continue subsidisin­g food and employment for growing population­s through government jobs. Thus, food insecurity is not only the by-product of a lack of food production and the resources needed for it.

Food insecurity is also the by-product of economic mismanagem­ent and the lack of job and income creation that came with it. The last question that I want to leave you with: How will Mena afford its food over the coming 50 years, and more?

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 ?? Ador T. Bustamante/©Gulf News ??
Ador T. Bustamante/©Gulf News

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