What price bread in Egypt?

Moving from an "autocracy of bread" to a "democracy of bread".

Debate rages as to the exact nature of events leading to the military ousting of President Mohamed Morsi. Was it a conspiracy engineered by the legions of personnel left in place after the departure of former President Hosni Mubarak; the failure of the police to maintain law and order and state agencies to provide adequate power supplies that whipped the people into fever pitch?

While the validity of these accusations may be a matter of contention, the challenges facing Mubarak, Morsi and Egypt’s next president are the same: how to restructure Egypt’s economy to end the crippling regime of subsidies that hamper growth and act as a drag on government finances.

Food subsidies have been used as a tool to buy loyalty and ensure stability for decades. While a continuing burden, Egypt began to feel the pain in 2008, when grain prices reached record levels and unemployment soared.

By 2010, the Egypt government’s bread subsidy bill topped $3bn a year. Much of this took the form of selling subsidised flour to local bakeries; an inefficient process system that lent itself to massive corruption. As global prices rose bakers resold subsidised flour and bread into the black market, where they could go for five or more times the subsidised rate, pushing up the price of bread for consumers.

The US contributed to the creation of the "autocracies of bread" through the provision of cheap wheat as a device to secure influence during the Cold War. Egypt’s Hosni Mubarak was the main recipient along with Iraq’s Saddam Hussein who received billions of dollars’ worth of surplus American wheat through grants and loan guarantees, while Jordan, Yemen, and other Middle Eastern countries got lesser amounts. This funding of the "social safety net" was seen as a cheap way of keeping friendly regimes in power.

In the long term cheap wheat has come at a high price; lack of investment in domestic agricultural production and a dangerous dependence on cheap imports from abroad. Bread subsidies also failed to lift the recipients out of poverty. The Middle East is the only region outside sub-Saharan Africa where the number of malnourished people has risen since the early 1990s with Egypt and Tunisia experiencing declines in the standard of living for all income groups outside of the top 20 per cent, despite the rise in GDP.

In 2008 when the price of bread soared, a wave of bread riots broke out across the MENA region. Governments intervened by raising wages, cash handouts and increased subsidies. These were short term remedies that proved unsustainable and had the unintended consequence of making more people dependent on subsidised bread.

Over the next two years a combination of factors - changing consumption patterns among the developing world’s middle class, drought, poor harvests, bio fuels and export embargoes - pushed food prices to an all-time high. The United Nations’ Food and Agriculture Organisation announced in early 2011 that food prices had surpassed 2008 levels.

The regimes in the region responded in the way they always had - with subsidies. Egypt, Yemen and Jordan increased food subsidies, Algeria, Tunisia and Morocco lifted customs duties and import tariffs on food, while Saudi Arabia unveiled a multi-billion dollar spending plan.

For hydrocarbons poor Egypt, the challenge was how to keep pace with subsidies at a time of contracting government revenue. Egypt’s food bill is unsustainable without significant donor handouts or high tourist receipts. The donors have been deterred by the policies of the Morsi government and the tourists have stayed away because of violence on the streets.

If the ousting of Morsi leads to the election of a secular leadership the donors may return. Saudi Arabia is willing to find a non-Muslim Brotherhood leadership and a new president may reach accommodation with the IMF for the release of funds. While these scenarios may stabilise Egypt in the short term and allow the government to continue to fund its food bill, donor aid will simply allow the restructuring of the Egyptian economy to be postponed until some indeterminate time in the future. The fundamental problems and grievances will be perpetuated transforming the government from an "autocracy of bread" to a "democracy of bread".

Photograph: Getty Images

JLT Head of Credit & Political Risk Advisory

Coders for Corbyn
Show Hide image

Can emojis win elections?

Jeremy Corbyn has claimed his campaign's use of technology would be the "path to victory" in 2020. But can emojis play a meaningful part? 

When photographic campaign badges were first unleashed in 1860, a Facebook commenter posted on Abraham Lincoln’s wall: “What is this? Today’s youth are doomed” and then, a moment later, “You call this news?”*

It might be tempting to react in a similar way to the fact that Jeremy Corbyn emoji – or rather, Jeremoji – are now a thing. Small digital stickers of the flat-capped Labour leader expressing joy and sadness might seem like the End Of Serious Political Campaigning As We Know It, but are they really that different from the multitude of deft and daft political campaign buttons throughout history?

Well, yes. Because there will be a marrow.

Beyond the marrow, however, Jeremoji aren’t actually that revolutionary. Before Kim Kardashian crashed the App Store with the 9,000 downloads a second of her Kimoji in December 2015, we here at the New Statesman created a much-needed Yvette Cooper emoji. Around the same time, Bernie Sanders supporters released BerniemojiThe slightly-less pleasing to the ear Hillarymoji were also unveiled by Hillary Clinton campaigners two months ago, though none of these apps were officially endorsed by their respective candidates.

“We’re not affiliated, we’re totally independent,” says Gregory Dash from Coders for Corbyn, the group behind Jeremoji, and a wider online volunteer toolkit for Corbyn supporters. “A lot of us have social links with the campaign and we ran ideas past them and got feedback but as an organisation we’re totally independent and all volunteers.”

Dash reveals that a variety of professional and amateur artists contributed to the emoji and that unfortunately, as the marrow design is currently being finalised, it won’t be in the first version of the app. Once the app has been approved by Google Play and the App Store, it should be available to the public in the coming weeks.

“Mainly they’re just fun but we’re also hoping we’ll be able to communicate some of the main message of Jeremy’s campaign,” says Dash.

But are Dash and other developers misguided in their attempts to promote sexagenarian politicians via a communication tool favoured by teens? Hillary Clinton has already been mocked for her attempts to capture the youth vote via memes, and has proven on multiple occasions that trying to be “down with the kids” can backfire. Corbyn’s own digital manifesto was met with scorn by some yesterday.

“To be very honest, the emojis are pretty cringy,” says Max Rutter, a 17-year-old from Oxford. “I know that they are targeted towards teens but politics isn't something most teens talk about on social media, and these emojis could only be used in a political conversation. Corbyn doesn't need emojis to get teens on his side, he just needs to stick to his guns and keep telling it like it is.”

A 2013 London School of Economics study on Youth Participation In Democratic Life supports Max’s assertions. The final report found that although in theory young people wanted politicians to use social media more, in practice it led to more negative perceptions of politicians and “an increased perception of the gap between political elites and the young.” Moreover, teens exposed to a social media campaign were less likely to vote than those who only received political flyers.

Jeremoji, then, may not ultimately capture the youth vote, and nor are they likely to make lifelong Conservatives pause and say, “On second thoughts, yes. This Corbyn chap is the man for me.” So what will they achieve?

“We’re hoping to do some emojis around Corbyn’s ten pledges and allow people to share them that way,” says Dash. The app already contains emojis affiliated with the Orgreave Truth and Justice Campaign, a society seeking justice for miners after the Battle of Orgreave in June 1984. Dash also hopes to get emojis supporting the No More Blacklisting campaign and Save Our Steel.

“We want to have it so you go to the Orgreave campaign and you click the emoji and it will give you a little bit of information about the campaign as well,” Dash says. “Emojis then become a tool to communicate all these different campaigns that are going on. There are amazing things going on that the wider Labour membership may not know about.”

Coders for Corbyn seek the approval of each of these campaigns before creating the emoji, as they don’t want to seem as if they’re exploiting campaigns to make themselves look better “like Owen Smith did”. But despite their current affiliation with Corbyn, the group plan to rebrand as Coders for Labour after the leadership election.

“I’m not sure there would be the same demand for Owen Smith emojis, but we'd definitely still be producing Labour themed emojis for people to use,” says Dash, when I ask what he’d do if Smith won.

Dash tells me when iOS10 launches in the autumn, emojis will be available at three times their current size, and will be more like stickers. This means they can communicate complicated messages from various campaigns, and may also lose any potential stigma associated with the word “emoji”. In the late 20th century, campaign buttons like Lincoln’s were replaced by cheaper disposable label stickers. It makes sense for these in turn to be replaced by digital stickers. Even if emoji can’t win elections, they may still prove powerful in raising awareness.

The UK’s currently most used emoji is the despairing crying face. Personally, I see no problem with it becoming a marrow.

*May not strictly be true 

Amelia Tait is a technology and digital culture writer at the New Statesman.