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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.

English

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Discussant Remarks

The objective of this workshop is to understand better the political economy of subsidy reform. Put another way, we are trying to understand how to get reform rather than to understand what reform should be undertaken. For the pessimists among us, the objective might instead be thought of as trying to understand why reform does not take place.

English

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