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   Investment Thoughts - Beyond Finance

The Food Crises and Political Instability in North Africa and the Middle East

 

Abstract

 

Social unrest may reflect a variety of factors such as poverty, unemployment, and social injustice. Despite the many possible contributing factors, the timing of violent protests in North Africa and the Middle East in 2011 as well as earlier riots in 2008 coincides with large peaks in global food prices. We identify a specific food price threshold above which protests become likely. These observations suggest that protests may reflect not only long-standing political failings of governments, but also the sudden desperate straits of vulnerable populations. If food prices remain high, there is likely to be persistent and increasing global social disruption. Underlying the food price peaks we also find an ongoing trend of increasing prices. We extrapolate these trends and identify a crossing point to the domain of high impacts, even without price peaks, in 2012-2013. This implies that avoiding global food crises and associated social unrest requires rapid and concerted action.

 

 

Excerpt:

 

Time dependence of FAO Food Price Index from January 2004 to May 2011

 

 

Red dashed vertical lines correspond to beginning dates of \food riots" and protests associated with the major recent unrest in North Africa and the Middle East. The overall death toll is reported in parentheses [26{55]. Blue vertical line indicates the date, December 13, 2010, on which we submitted a report to the U.S. government, warning of the link between food prices, social unrest and political instability [56]. Inset shows FAO Food Price Index from 1990 to 2011

 

Link to the orginial full-text document

 

 

 

 

New England Complex Systems Institute, August 10, 2011-M. Lagi, K.Z. Bertrand, Y. Bar-Yam

03.10.2012


 

Themes

 

Asia

Bonds

Bubbles and Crashes

Business Cycles
Central Banks

China

Commodities
Contrarian

Corporates

Creative Destruction
Credit Crunch

Currencies

Current Account

Deflation
Depression 

Equity
Europe
Financial Crisis
Fiscal Policy

Germany

Gloom and Doom
Gold

Government Debt

Historical Patterns

Household Debt
Inflation

Interest Rates

Japan

Market Timing

Misperceptions

Monetary Policy
Oil
Panics
Permabears
PIIGS
Predictions

Productivity
Real Estate

Seasonality

Sovereign Bonds
Systemic Risk

Switzerland

Tail Risk

Technology

Tipping Point
Trade Balance

U.S.A.
Uncertainty

Valuations

Yield