The Quest for Subsidy Reforms in the Middle East and North Africa Region

More about the book

This book analyzes energy and food subsidies in the MENA region from 2010 to 2014 using the World Bank’s SUBSIM model. It examines the distribution of subsidies and simulates reforms across eight countries within a partial equilibrium framework. The distributional analysis reveals who benefits from existing subsidies, while simulations assess the impacts of reforms on government budgets, household welfare, poverty, inequality, and the trade-offs involved. This information aids governments in making informed decisions regarding subsidy reforms and helps consumers understand which programs succeed. The book delves into the historical roots of subsidies, the catalysts for reforms, and the complexities involved. It evaluates the merits and drawbacks of radical versus gradual reform approaches, the role of compensation mechanisms, the effectiveness of public information campaigns, and the political economy of targeting various economic groups. It also considers the timing of reforms and assesses the overall success of subsidy reforms in the region. As the first book on MENA subsidies based on primary micro data, it serves as a valuable resource for researchers, graduate students in political economy, and government officials involved in subsidy reforms, as well as consulting groups advising on these issues.