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2017 | OriginalPaper | Chapter

1. Subsidy Reforms in the Middle East and North Africa Region: A Review

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Abstract

The paper takes stock of eight country studies and a cross country analysis to review the experience with subsidy reforms in the MENA region between 2010 and 2014. This unprecedented period of subsidy reforms occurred during a period of extraordinary political changes which makes this particular experience unique. The paper reviews the facts and the different paths to reforms taken by different countries faced with different challenges and discusses the pros and cons of alternative policy options. It concludes with an assessment of the experience and a discussion on future prospects.

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Appendix
Available only for authorised users
Footnotes
1
Note that the difference between the Cushing OK WTI Spot price and the Europe Brent price may be due to infrastructure constraints in the United States (the location of oil pipelines relative to that of major refineries exporting refined products, for example) combined with the ban on crude oil exports. The three series are plotted to show that the trends are the same despite differences in absolute values.
 
2
Since June 2007 gasoline has been subject to a quota system administered with electronic cards.
 
4
Increasing block tariffs (IBT) apply when the tariff corresponding to a particular block applies only to the latest block of consumption, and tariffs for the previous blocks of consumption apply to the previous blocks. Volume differentiated tariffs (VDT) apply is when the tariffs corresponding to a particular block is applied to all quantities consumed up to that block.
 
Literature
go back to reference Coady, D., V. Flamini, and L. Sears. 2015. The Unequal Benefits of Fuel Subsidies Revisited: Evidence for Developing Countries, IMF Working Paper No. 15/250. Coady, D., V. Flamini, and L. Sears. 2015. The Unequal Benefits of Fuel Subsidies Revisited: Evidence for Developing Countries, IMF Working Paper No. 15/250.
go back to reference Devarajan, S., L. Mottaghi, F. Iqbal, G. Mundaca, M. Laursen, M. Vagliasindi, S. Commander, and I. Chaal-Dabi. Economic Monitor Corrosive Subsidies. Working Paper 2014. Washington, DC: World Bank. Devarajan, S., L. Mottaghi, F. Iqbal, G. Mundaca, M. Laursen, M. Vagliasindi, S. Commander, and I. Chaal-Dabi. Economic Monitor Corrosive Subsidies. Working Paper 2014. Washington, DC: World Bank.
go back to reference Guillaume, D., R. Zytek, and M.R. Farzin. 2011. Iran–The Chronicles of the Subsidy Reform. IMF Working Paper WP/11/167. Washington, DC: International Monetary Fund. Guillaume, D., R. Zytek, and M.R. Farzin. 2011. Iran–The Chronicles of the Subsidy Reform. IMF Working Paper WP/11/167. Washington, DC: International Monetary Fund.
go back to reference IMF (International Monetary Fund). 2014. Subsidy Reform in the Middle East and North Africa: Recent Progress and Challenges Ahead. Middle East and Central Asia Department. Washington, DC: IMF. IMF (International Monetary Fund). 2014. Subsidy Reform in the Middle East and North Africa: Recent Progress and Challenges Ahead. Middle East and Central Asia Department. Washington, DC: IMF.
go back to reference Kojima, M. 2013. Reforming Fuel Pricing in an Age of $100 Oil. Washington, DC: The World Bank. Kojima, M. 2013. Reforming Fuel Pricing in an Age of $100 Oil. Washington, DC: The World Bank.
Metadata
Title
Subsidy Reforms in the Middle East and North Africa Region: A Review
Author
Paolo Verme
Copyright Year
2017
DOI
https://doi.org/10.1007/978-3-319-52926-4_1