Thursday, January 19, 2023

The Giant Shifting Its Weight

 

"China has become older before it has become rich."
"[China's population has been in decline since 2018; the population crisis is] much more severe [than previously thought]."
"[China's] real demographic crisis is beyond imagination and that [means] all of China's past economic, social, defence and foreign policies were based on faulty demographic data."
Yi Puxian, demographer, expert on Chinese population trends University of Wisconsin-Madison
 
"For policies to reverse the fertility decline itself is very challenging. In recent years China has already been coming up with lots of new measures, including getting rid of the one-child policy, some kinds of subsidies at different levels. But they haven't really been working well, fertility has not reversed. I do think this decline will continue."  
"But what's really causing concerns socially is what that means in terms of the structure. Because things are changing really fast… societies may not have time to adapt,"
Shuang Chen, assistant professor, department of social policy, London School of Economics
 
"The Chinese economy is entering a critical transition phase, no longer able to rely on an abundant, cost-competitive labor force to drive industrialization and growth."
"As the supply of workers begins to shrink, productivity growth will need to pick up to sustain the economy’s heady pace of expansion."
HSBC chief Asia economist Frederic Neumann. 
 
"[We will] improve the population development strategy [and ease economic pressure on families]."
“[We will] establish a policy system to boost birth rates, and bring down the costs of pregnancy and childbirth, child rearing, and schooling."
"We will pursue a proactive national strategy in response to population aging, develop elderly care programs and services, and provide better services for elderly people who live alone."
Chinese President Xi Jinping
Children playing in the village square after school in Xiasha Village in Shenzhen, China, in November.
  Credit...Qilai Shen for The New York Times
Wherever, whenever the Chinese Communist Party creates solutions to problems that confront it, Beijing somehow manages to make the problems more severe than ever imagined. Its interference through measures that tend to be draconian in nature solving nothing and complicating everything. Just as its zero-COVID measures served only to stave off the inevitable. Just as it ignored the welfare of the elderly by failing to inoculate them adequately against the SARS-CoV-2 virus. Just as it refused to import mRNA vaccines that were immeasurably more effective than Chinese vaccines.

Its policy of one-child per family, meant to slow down population growth, deprived families of the choice of the number of children they would ideally prefer to have, and in the long term began a stealth campaign against female children. Since in Chinese culture (practised elsewhere as well) male babies were preferred, abortions of female foetuses were common, and neglect of female babies including infanticide was not unknown.

Which has now given way to a paucity of females of marriageable, child-bearing age in China and an embarrassment of young Chinese men who cannot find brides. Women of marriageable age are now more educated and many refuse to be child-bearers, much like their counterparts elsewhere in the developed world where population replacement levels are on the decrease. Women prefer careers over child-rearing. There are now more elderly Chinese dying than children being born in the space of a year.

People shopping for Chinese New Year in Qingdao, China (Credit: Getty Images)
 
Over the past three years while China and the rest of the world have been coping with economic downturns resulting from the pandemic, workplaces shuttered and people became unemployed. In straitened economic times people are not inclined to grow their families. All these issues have left China with a diminishing population. Granted, with 1.4 billion people, China has been celebrated as the most populous country on Earth (many now claim India has overtaken China in population growth and numbers), with an ample and cheap labour force.

That labour force is now compromised and the growth engine of world production is stalling. China has established itself as a production colossus, the manufacturing and export hub of the world community. In the past few years manufacturing has slowed considerably thanks to COVID-19's impact, and supply lines have stalled. A situation not guaranteed to improve much any time soon. In fact, with China now facing the likelihood of an ongoing and even accelerated drop in its population base, the entire world's production and distribution capabilities will be affected.
 
China is home to several of the most populous cities on Earth (Credit: Getty Images)
China is home to several of the most populous cities on Earth (Credit: Getty Images)
 
The country whose government was set on controlling the world's commercial resources has failed its own population which lacks the resources to care for its aging population. At a time when inflation is running high through the global community there is no rescue from a situation which suddenly appears even more bleak, with the official news out of China of its shrinking population and a crisis of demographic proportions.

According to a report released by the National Bureau of Statistics, China had 850,000 fewer people at the turn of the year than the previous year. This number refers to the population of mainland China only, not inclusive of Hong Kong and Macau. Fewer babies were born in China to the tune of over a million, than the year before. China's newly-sclerotic economy due to incessant lockdowns bodes ill for the future. It was reported by the Bureau that 9.56 million births took place in 2022, while deaths numbered 10,41 million.

The situation rivals the time of the Great Leap Forward when collective farming and industrialization propelled by Mao Zedong in the 1950s resulted in a massive famine where millions of people starved to death. A decline in population had been officially recognized, but this decline is at least a decade faster and steeper than authorities anticipated. The working age population between 15 and 59 years of age totalled 875.56 million, accounting for 62 percent of the national population, according to the statistics bureau. Those aged 65 and over totalled 209.78 million , relative to 14.9 percent of the total.

A crowded train station with a large digital sign in the foreground and people below.
China's overall population has not declined for decades. (Andy Wong/The Associated Press)
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Friday, April 10, 2020

COVID Impact on Food Prices, Distribution World-Wide

"Without the coronavirus, there would not be any problem whatsoever [with food availability and distribution]."
"People are getting worried about the supply chain."
Stefan Vogel, head, agricultural commodity research, Rabobank International

"Within countries there are going to be a lot of people who currently can't make money."
"If their incomes decline, the quality and quantity of the food is going to be declining, especially if this is matched by an increase in price."
Rami Zurayk, professor, food security, American University of Beirut

"But if restrictions on movement persist and we can't transport our produce to the market, there will likely be a shortage in the market that will affect prices."
Rikotu Isah, rice farmer, Kebbi, Nigeria

"All bets are off the table right now."
"Food security is going to be a big issue."
Neil Townsend, analyst, FarmLink, Winnipeg

"There is no guarantee if prices of staples will remain stable."
"It's better to buy a little more than the normal requirement, as we have children in the family to feed."
Lalatendu Rath, owner, small grocery shop, Odisha, India
Rice posted a third straight monthly increase in price.
Rice posted a third straight monthly increase in price.PHOTO: AFP

Governments around the world are focused on keeping food prices stable, and inflation as far away as possible. Algeria, Turkey and Tunisia stepped up wheat purchases recently to secure supplies for their countries while Egypt and Saudi Arabia are focused on boosting their grain reserves. Over $600 million has been allocated for food sufficiency efforts and plans to buy 300,000 tons of rice in the Philippines.

Rice and wheat account for about a third of the world's calories and their prices have been rising rapidly. Not good news for countries relying on imports, finding themselves with an added financial burden, on top of the vast expenditures having to be allocated to health services in the battle against the novel coronavirus raging throughout the globe, with resulting lockdowns devastating nations' production output and crippling their economies.

In retail markets the cost of rice rose by over 30 percent in the last four days of March, in Nigeria. The price rise can be attributable to a number of issues, from local logistical choke points, panic buying, or a number of things in combination. The reality is that the world has more than enough food available to feed the global population. Distribution of the food is the identified problem, to get it where it is needed.
Food prices are set to rise as coronavirus costs take hold.

From one country to another on various continents measures to stifle the spread of the coronavirus has meant lockdowns of industry and society with resulting mass unemployment, poverty and the concerns over food availability. The depressed oil market would lend itself to lowering costs of transporting food, a ripple effect from plunging energy costs. Yet rice posted another monthly increase.

There is plentiful global grain inventories, still it has become more difficult to transport food staples where they aqre most needed. This, at a time when mass hysteria over the potential lack of availability has spurred people to panic-buy and to hoard, to enable them to remain locked as much as possible within their homes and away from possible infection by COVID-19 rampaging through communities with its unappeasable appetite.

Eneas De Troya / Flikr
Shoppers stock up on food supplies in reaction to news of spreading disease.

Even while Russia, Kazakhstan and Vietnam move to secure domestic supply, restricting exports, export prices for rice from Thailand, the second-largest shipper on the globe, are at a six-year high. Canadian durum wheat is at the  highest demand and price in the past three years. Wholesale egg prices in the U.S. rose to a record while grocers increased their orders up to six times normal volumes. Beef too surged in price, later to ease back again.

It is in those countries most sensitive to food price rises, where the price of food takes a larger part of household budgets, placing the most vulnerable at further risk, where higher prices for food will present an enormous problem. While staple crop prices rise, prices of fruit and vegetables also rise in many parts of the world. Stay-at-home orders from state governments spark panic buying.

At the same time confused transportation links have translated to fewer foods on the market where grocery stores and inventories are depleting under pressure from shoppers. As yet, overall food prices remain below their peaks realized from 2008 and 2011 and the oil slump will keep costs down for farmers. Sub-Saharan Africa has not yet been hit widely by the virus. If/when it is affected, harvests may shrink, prices spike and people will go hungry.

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