Departmental Papers

Subsidy Reform in the Middle East and North Africa: Recent Progress and Challenges Ahead

By Carlo A Sdralevich, Randa Sab, Younes Zouhar, Giorgia Albertin

July 9, 2014

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Carlo A Sdralevich, Randa Sab, Younes Zouhar, and Giorgia Albertin. Subsidy Reform in the Middle East and North Africa: Recent Progress and Challenges Ahead, (USA: International Monetary Fund, 2014) accessed September 19, 2024

Also available in: العربية, français, русский

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

In the Middle East and North Africa (MENA) countries price subsidies are common, especially on food and fuels. However, these are neither well targeted nor cost effective as a social protection tool, often benefiting mainly the better off instead of the poor and vulnerable. This paper explores the challenges of replacing generalized price subsidies with more equitable social safety net instruments, including the short-term inflationary effects, and describes the features of successful subsidy reforms.

Subject: Commodities, Energy subsidies, Expenditure, Fuel prices, Inflation, Oil, Oil prices, Prices, Social assistance spending

Keywords: DP, DPPP, East Africa, Energy subsidies, Energy subsidy, Exchange rate, Food subsidy, Fuel price, Fuel prices, Fuel subsidy, Global, Inflation, Middle East, Middle East and Central Asia, North Africa, Oil, Oil exporter, Oil importer, Oil prices, Price increase, Price subsidy, Reform outcome, Reforms in the Middle East, Social assistance spending, Subsidy reform

Publication Details

  • Pages:

    130

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Departmental Paper No. 2014/008

  • Stock No:

    SRMENAEA

  • ISBN:

    9781498350433

  • ISSN:

    2616-5333

Supplemental Resources

Notes

Short summary is also available in Arabic, in French, and Russian.