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Bread troubles
Published in Al-Ahram Weekly on 24 - 04 - 2008

Regardless of economic theories, final responsibility for the welfare of the people lies with the government, writes Amin Howeidi*
Bread lines made the news of late when clashes among anxious consumers led to casualties. The government considered the matter at its highest echelons, taking unprecedented action. The army and police were sent onto the scene, keeping order and helping with practical matters. About 62,000 bread traders were threatened with trial. Ten major flour racketeers were detained. The whole thing was humiliating and hurtful, to say the least.
Bread, if you ask me, is not the problem. But it is a sign of something more worrisome. Some people offer the simplistic view that it is all the fault of the Nazif government. That may well be so, at least to some extent. But let me ask you, what if we change the entire cabinet, will things improve?
My short answer is no. The problem is too deep to be resolved by an infusion of new blood. We need to address matters in a more radical way. We need to change the policies and ideas we have. We need to change the horizontal and vertical relations within the government as well as between the government and the ruling party.
The bread problem is not the only trouble we're having. Our healthcare is in shambles. Our education has lost touch with reality. Our court system is too ponderous to provide timely justice. Our streets are clogged and our sidewalks have been taken over by peddlers.
The whole scene is one of chaos, and the government seems absent, disinterested, unable to bring reason back into our lives. People are left alone to deal with their own problems, and as troubles mount they reach the point where their only recourse is to stage strikes, sit-ins, and other forms of industrial action.
Our officials must show more concern for the needs of the public: not by words, not by telling us they have allocated billions in the budget, but by setting the nation's priorities straight. The writing is on the wall and we can no longer turn our eyes away.
Strategically speaking, no one knows where this country is heading. The government is proceeding without a pact with its own people. We have plans of action, but these are not enough. What we need is for our rulers to set a vision for the future, rally the nation around it, and have everyone working in the same direction. We need to have aspirations that are relevant to all, not just to the few.
So far, the government hasn't appeared in control. The government says that the economy is free and that intervention is undesirable. "Let the future be set by the forces of supply and demand", our top planners say. This is wrong. We cannot let our citizens be crushed under the weight of greedy traders, insidious monopolies, and rampant corruption. We cannot stand on the sidelines while hoarders and speculators push up the prices of essential goods. At some point, the government has to intervene.
How much intervention is best? I would go for moderate action. In all respect for freedom, there must be a point where the government arbitrate the outcome. Should we anticipate problems before they happen and do something about them? I would say yes, better to be prudent than sorry. See what needs to be done and act accordingly. Is there a need to stop exports for a while? Is there a need to tax exports? Is there a need to break monopolies? Do we need to give producers certain incentives to ensure ampler supply? All these are things for planners to ponder.
We must keep in mind that market forces are good up to a certain point. Beyond that point, someone has to step in and make sure that the game is fair. The government needs to act as an arbitrator between consumers and producers. If it fails to do so it would deserve the blame it would eventually get. It is the government's job to keep business honest. The government has a responsibility towards the people. Businessmen do too, but they often forget it.
It is sad when the government is taken by surprise in such a simple matter as bread. It is sad when a nation wakes up to discover that it has nothing to eat. It is sad to have to send the army into the streets to regulate the market. A good government doesn't let such things happen.
The government has a sovereign role to play. In countries with limited means such as ours, we expect the government to think ahead, keep racketeers at bay, and show concern for the ordinary people. A clever government would start taking more care of the countryside. Not long ago our villages supplied the cities with bread, poultry and meat. We were a land of plenty, and we can be once more.
* The writer is former defence minister and chief of General Intelligence.


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