Subsidy Reform and Sustainable Development

Political Economy Aspects

image of Subsidy Reform and Sustainable Development

Unsustainable subsidies are pervasive in the industry, agriculture, transport and energy sectors of most OECD countries. They are expensive for governments and can have harmful environmental and social effects. Eliminating these supports requires comprehensive approaches which are supported by top political leadership, transparent in their potential effects on all parties, consistent over the long-term, and often accompanied by transition supports. This volume uses sectoral case studies to illustrate that achieving change in structural policies such as subsidies depends largely on good governance practices.



Chair's Summary

This workshop – which benefited from a number of very interesting and thoughtful papers on the policy process associated with reforming subsidies – was the second OECD workshop on the “political economy of subsidy reform” and the fourth OECD workshop relating to environmentally harmful subsidies. Understanding the political economy of reform has become a priority given the lack of progress in actual implementation of subsidy reform, notwithstanding a broad understanding of the need for it.


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