The latest issue of the Yemen Times has an article warning about a potential “famine” in the works for Yemen due to the rising costs of the food. It then goes on to demand that the government “do something” to fix the problem… Ok, first of all, famines are not caused by high prices, high prices are a consequence of short supply. Not having enough food definitely can cause a famine, but of course the question is why isn’t there enough food? There certainly isn’t a food shortage world wide, why doesn’t someone see the “high” prices of food here in Yemen and cash in? I’m sure there is an enterprising Omani or Saudi that would like to make some money, so why don’t they? If they could compete with the current suppliers, the price should come down as the supply rose.
I personally haven’t seen the rise in prices, but maybe I’m not buying the stuff that has gone up in price. If the supply is indeed limited, who is limiting it? As a general rule, the only way that can happen is with collusion with the government. If there is a problem of high food prices, don’t expect the government to do anything about it because they are most likely the cause of it. Whether it is through import duties, granting of monopoly privileges, or just general corruption, the government is involved somehow. There is plenty of food to go around, why isn’t it getting to Yemen?