Easing Subsidy Reform for Producers, Consumers and Communities

The subject of subsidy reform has received considerable attention in recent years. However, much of this attention is focused on the end points or goals of reform and less attention has been paid to the actual process of reform. It is generally recognised that appropriately targeted subsidy reform will result in improved overall economic efficiency and will increase social welfare. But not everyone will gain in the short run and some individuals and communities may be adversely affected by the policy change, prompting governments to seek ways to cushion the impacts of reform on individuals and communities.