Resource scarcity in Ethiopia

Global concern is currently mounting all over again about the impacts of a more resource-scarce world, with particular attention focused at present on the risks of a renewed global food price spike following a spate of extreme weather in the US and around the world. Two weeks ago, corn and soyabean prices broke the record they had set during the 2008 food spike, while wheat prices have increased by 50% over the last five weeks.

These global trends have the potential to cause massive problems for a country like Ethiopia – where wheat is by far the country’s biggest import by value. And that’s before you take into account low agricultural yields and farm sizes, major exposure to drought, limited access to energy, and how these challenges will be magnified by high rates of population and economic growth, which will increase demand for resources – as well as intensifying climate change impacts

Against this backdrop, the NYU Center on International Cooperation has just published a new report of mine entitled Resources, Risks and Resilience: Scarcity and climate change in Ethiopia.  This is the first in a series of CIC case studies on the risks that resource scarcity and climate change pose to poor countries – and on how those countries and their international partners can build resilience to them. (A second case study, on resource scarcity in Pakistan, is currently being prepared by David Steven; plans are also in train to undertake a third study on Nigeria.)

While the report sets out a daunting set of scarcity-driven challenges for Ethiopia, it also notes that Ethiopia’s government is well aware of the challenges it faces, and has put in place a battery of policies to address them – including, notably, the breathtaking aim of becoming a middle income country by 2025 with zero net growth in greenhouse gas emissions, as well as an extremely ambitious (and controversial) program of dam-building and large scale agricultural projects.

As well as assessing these policies, the report also identifies a range of vulnerabilities, policy gaps and exogenous risks that will need to be taken account of in future planning by the government and its international partners. It concludes by setting out a ten point agenda on how Ethiopia’s government and partners can improve their performance in managing scarcity issues. (more…)

Starvation in Pakistan

I have spent much of my time in Pakistan over the past few months and have been deeply concerned by signs that an unheralded food emergency is under way. Evidence of rising prices is easier to find, of course (see my previous posts), but what is less clear is exactly what impact the resource crunch is having on the diets of the poor.

Back in  November, at the Pakistan Development Forum, the redoubtable Shahnaz Wazir Ali, Special Adviser to the Prime Minister on the Social Sectors (a Cabinet post), presented alarming figures suggesting that per capita caloric intake had dropped to 1650 cal/d, with a quarter of the population malnourished. I haven’t yet managed to track down the source of her data or the basis on which it is calculated, but FAO figures put the average in 2007  for least developed countries at 2157 cal/d.

In the media this morning, there are reports confirming that – in rural Sindh at least – a growing number of people are now starving:

Pakistan’s Sindh province, hit hard by last year’s floods, is suffering levels of malnutrition almost as critical as Chad and Niger, with hundreds of thousands of children at risk, Unicef said on Wednesday.

A survey conducted by the provincial government and the UN Children’s Fund revealed malnutrition rates of 23.1 per cent in northern Sindh and 21.2 per cent in the south.

Those rates are above the 15 per cent emergency threshold set by the World Health Organisation and are on a par with some of the poorest parts of sub-Saharan Africa.

Northern Sindh also had a 6.1 per cent severe acute malnutrition rate and southern Sindh had 2.9 per cent, both far above the WHO thresholds.

“We are looking at hundreds of thousands of children at risk,” Unicef chief of communication Kristen Elsby told Reuters

It’s good to hear Unicef ringing the alarm – and Ms Wazir Ali is a powerful advocate in government for the plight of the poor – but this silent emergency provides yet more evidence of how poorly equipped national governments and the international system are even to understand what is happening as the pressure of resource scarcity ratchets up.

Time for someone to join up the dots, I think.

Zardari’s Goats

Recently, I wrote about the devastating – and largely unreported – impact that resource scarcity is having on Pakistan’s fragile economy and society. Barely a day goes by without a new data point that illustrates the size of the problem.

Today, for example, the papers report that the two main political parties (the ruling PPP, and its arch opponents, PML-N) have come together to try and fix an economic crisis that they admit has its main roots back in the 2008 resource price spike:

Sources said the government had told almost all parties that most of the economic pressure had built up because of carryover of huge fiscal deficit from the previous government which did not pass on energy prices to consumers even when international oil prices increased from $90 to $147 a barrel and the current government was facing a similar situation. Most public sector corporations have since been bleeding mainly because of this single factor.

Power companies are getting so desperate for fuel oil (which they are using to replace gas, whose shortage has led to an electricity crisis), that they’re signing sovereign-backed contracts for imports on deferred payments, going against the express wishes of the state-run Pakistan Oil Company, and, seemingly, without explicit permission from the government.

In Punjab, meanwhile, grain markets are grinding to a halt, as the government attempts to tax agricultural production in order to plug its yawning fiscal hole and – I suspect – to make it politically easier to raises taxes on urban consumption. Traders are on strike, accusing the government of destroying the ‘backbone’ of the economy.

The impact on ordinary people is marked. The gas shortage is pushing urban residents back towards a reliance on biofuel. “I am purchasing stove to use firewood in the 21st century thanks to the government,” complains one resident of Rawalpindi.

Fortunately, food shortages are yet to hit one of the citizens of nearby Islamabad: President Zardari. He has his own camel in the Presidential Palace, because he thinks the milk is healthier.

The President House also has a herd of black goats. One goat is slaughtered everyday when Mr Zardari is there.

Earlier, his trusted personal servant, Bai Khan, used to buy a goat from Saidpur village every day, but now a herd has been kept in the presidency to avoid frequent visits to the animal market. The animal is touched by Mr Zardari before it is sent to his private house in F-8/2 for slaughtering.

Good to see one man, at least, taking resilience seriously.

Russia’s dirty little secret on Cote d’Ivoire

A propos of Richard’s post on how the French used to behave in Cote d’Ivoire, let’s not forget how another member of the Security Council P5 – Russia – is behaving right now. Why, you might wonder, should Russia be blocking moves in the Security Council to step up the international community’s level of intervention in Cote d’Ivoire?  

Concerned about implications for its own restive regions, such as Chechnya, Russia has traditionally sought to thwart Security Council actions regarding nations’ sovereignty. But one western diplomat said Russian considerations over Ivory Coast were “90 per cent about oil, 10 per cent about sovereignty”.

Lukoil, Russia’s second biggest oil producer, has stakes in three deep-water blocks off the Ivorian coast, part of a largely untapped 1,000km oil frontier. Lukoil acquired its interests during Mr Gbagbo’s rule and changes of power in Africa have often been followed by reviews of oil and mineral rights.