By Masood Ahmed
(Version in عربي)
For decades, countries in the Middle East and North Africa have relied heavily on food and fuel price subsidies as a form of social protection. And, understandably, governments have recently raised subsidies in response to hikes in global commodity prices and regional political developments.
Like many things, there may be a time and a place for using subsidies.But, they need to be better targeted. And, often, there will be better alternatives. Alternatives that do a better job of protecting the poor. (more…)
Filed under: Economic outlook, International Monetary Fund, Middle East | Tagged: better targeting subsidies, cash transfers, commodity prices, cost-effective, food price subsidy, fuel price subsidy, protecting the poor, public finances, public sector governance, Regional Economic Outlook: Middle East and Central Asia, social protection, social safety nets, subsidy reform | 3 Comments »