Lebanon Among Most Vulnerable Countries in Global Food Price Shocks
By Anonymous
Following clashes in Beirut that sent protesters to the street - shutting down roads and burning tires - jokes mocking the standard of living in Lebanon spread around the country. One particular joke asked protesters where they were when the real problems were happening, like the rise in gas and bread prices.
Often thoughts of Lebanon trigger images of confusing politics and sectarian divisions, but to the Lebanese, there is much more. For one, Lebanon ranks 13th in highest gas prices in the world, according to a new survey 55 countries released by Byblos Bank.
Food prices are also on the rise, causing a major political rift between the Ministry of Economy and the bakeries association. The main reason for the rift is the price of bread. As is often the case in Lebanon, little attention is given to these concerns until protestors take to the streets.
A strike by the bakers union was planned over a month ago and was cancelled today, just one day before the strike, as government officials finally managed to convince flour mills to bring down the price of flour, easing the costs for bakeries.
Lebanon is among the most vulnerable countries in the world to global food price shocks, accroding to the World Bank's "Global monitoring Report." Lebanon imports almost 80 percent of its annual wheat consumption, which is an alarming figure indicating a high risk for bring impacted by food price increases.
Other goods, particularly produce, have also started to climb, as transportation costs and gas costs increase. The Lebanese market is also flooded with cheap labor from Syria, as thousands of Syrian refugees scramble to make money and survive. Cheap labor has sent unemployment rates soaring as local businesses can hire cheap Syrian labor at a fraction of the cost of what it takes to pay Lebanese, particularly since minimum wage has increased.
Lebanon's government must immediately address the issue of price increase. The government must look at the sector of agriculture as a whole and study ways to limit Lebanon's vulnerability to regional and global shocks. Especially as the security situation has severely damaged the upcoming tourist season, and conflict across the borders threatened import routes to Lebanon, the problem will continue unless serious, proactive action is taken.


