Equity and efficiency in the reform of price subsidies : a guide for policymakers
Author(s)
Bibliographic Information
Equity and efficiency in the reform of price subsidies : a guide for policymakers
International Monetary Fund, 2000
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Note
Includes bibliographical references (p. 33-35) and index
Description and Table of Contents
Description
This paper is a guide for policy makers on how to design and implement sound price-subsidy reforms that take into account both economic and social considerations. It draws on the experience of reform of price subsidies in 28 countries. It discusses economic and political considerations in price-subsidy reform and makes recommendations concerning the speed of reform and social protection mechanisms. Rapid reform requires a favourable political and economic environment. In the absence of this, reform should be implemented slowly. The social impact of reform can be limited by establishing cost-effective and well-targeted temporary social protection mechanisms. Governments can reduce the risk of political disruption by distributing the initial burden of reform fairly and by clearly explaining the cost and benefits to the public.
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