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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.

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Forestry

Prompted by the Rio Summit in 1992, Finland revised its forestry legislation to emphasise sustainability aspects. In earlier legislation, sustainable forestry meant mainly sustainability in terms of timber production and generally ignored environmental and social impacts. The most recent Forest Act considers ecological and social sustainability to be as important as economic sustainability.

English

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