Archive for the ‘Morocco’ Category

Arabs lament lack of dialogue on Iran nuclear crisis

November 9, 2008

Arab diplomats complained on Sunday about a lack of dialogue with the West over Iran‘s nuclear ambitions during a briefing on the crisis by EU foreign policy chief Javier Solana.

US Secretary of State Condoleezza Rice attended the meeting in the Egyptian resort of Sharm el-Sheikh alongside French Foreign Minister Bernard Kouchner and their counterparts from Egypt, Jordan, Bahrain, Morocco and the United Arab Emirates.

“The Arab countries wanted to be informed of the state of negotiations” between Iran and six major world powers — Britain, China, France, Germany, Russia and the United States — said an official who attended the talks.

Another participant said the Arab diplomats expressed “deep concerns” at the meeting and complained of “insufficient dialogue” between Arab countries and the six world powers on the standoff over Iran’s nuclear drive.

Western nations led by the United States accuse Tehran of secretly trying to develop nuclear weapons but Iran vehemently denies the charges, saying its programme is solely aimed at generating electricity.

Jordanian Foreign Minister Salah Bashir told the meeting that “the nuclear crisis became a crisis (for the West) but for us the Iranian surge for hegemony has become a crisis,” according to the participant who asked not to be named.

Sunni Arab governments like Egypt, Jordan and the six oil-rich Gulf monarchies have repeatedly expressed concerns over what they see as the growing influence of Shiite Iran in the region, namely in Iraq, Syria and Lebanon.

Iran is under three sets of UN sanctions for failing to heed international demands to halt uranium enrichment but the major powers have offered Tehran technological, economic and political incentives if it suspends the process.

–AFP

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Perils in The Price Of Each Grain of Rice

April 3, 2008

By David Ignatius
The Washington Post
Thursday, April 3, 2008; Page A17

You may have missed the front-page article in the New York Times last Saturday, with the one-column headline written in clipped newspaperese: “High Rice Cost Creating Fears of Asia Unrest.” But this little story could be an early warning of another big economic problem that’s sneaking up on us.

The new danger is global inflation — most worryingly in food prices, but also in prices for commodities, raw materials and products that require petroleum energy, which includes almost everything. Prices for these goods have been skyrocketing in international markets — at the same time the Federal Reserve and other central banks have been hosing the world with new money in their efforts to avoid a financial crisis.

That’s an explosive mixture. It risks a kind of inflation that would trigger panic buying, hoarding and fears of mass political protest. Actually, this is already happening in Asia, according to the Times.

The price of rice in global markets has nearly doubled in the last three months, reports the Times’s Keith Bradsher.
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Fearing shortages, some major rice producers — including Vietnam, India, Egypt and Cambodia — have sharply limited their rice exports so they can be sure they can feed their own people.

Bradsher summarizes the evidence that food shortages and inflation are fueling political unrest: “Since January, thousands of troops have been deployed in Pakistan to guard trucks carrying wheat and flour. Protests have erupted in Indonesia over soybean shortage, and China has put price controls on cooking oil, grain, meat, milk and eggs. Food riots have erupted in recent months in Guinea, Mauritania, Mexico, Morocco, Senegal, Uzbekistan and Yemen.”

World Bank President Robert Zoellick rang the alarm bell in a speech yesterday. He noted that since 2005, the prices of staples have risen 80 percent. The real price of rice rose to a 19-year high last month, he said, while the real price of wheat hit a 28-year high.

Zoellick warned that this inflation is having political repercussions: “The World Bank Group estimates that 33 countries around the world face potential political and social unrest because of the acute hike in food and energy prices.” To cope with the topsy-turvy economy, Zoellick made an innovative proposal that countries running a surplus, such as Saudi Arabia and China, devote 1 percent of their “sovereign wealth” funds to investment in Africa‘s poor countries. That could yield up to $30 billion in development spending.

Now, cut to the Federal Reserve. At a time when global inflation is raging, you might expect that the central bank’s first priority would be to dampen inflationary expectations in the United States. But because of its worries about a financial meltdown, the Fed has been doing the opposite — drastically cutting interest rates in an effort to unclog the financial markets. The cheap money didn’t stop the Wall Street bank run — it was the Fed’s bold plan to absorb subprime debt that did that — but it may well add fuel to the inflation fire.

Related:
Lowly Rice Grain Impacts Global Economy

Vietnam and India move to limit rice exports

Inflation and Food Shortages?

Read the rest:
http://www.washingtonpost.com/wp-dyn/content/article/2008/04/02/AR2008040202997.html?hpid=opinionsbox1