India’s Economy: Stamina Is The Name Of The Game

Is India’s growth about to go back to 8-9 percent? The short answer is no. But we need to look back to understand why India’s growth has decelerated to a decade low and why the slump, which has hit investment particularly hard, has persisted for over a year. As structural problems are at the root of the slowdown, so structural reforms must be at the core of the solution.

By | February 21st, 2013|Economic Crisis, Emerging Markets, growth, IMF, International Monetary Fund|

Subsidies—Love Them or Hate Them, It’s Better to Target Them

For decades, countries in the Middle East and North Africa have relied heavily on food and fuel price subsidies as a form of social protection. And, understandably, governments have recently raised subsidies in response to hikes in global commodity prices and regional political developments. Like many things, there may be a time and a place for using subsidies. But, they need to be better targeted. And, often, there will be better alternatives. Alternatives that do a better job of protecting the poor. Subsidies enjoyed by all are typically poorly targeted, so they are not the most cost-effective way to provide social protection. They really should be regarded as stop-gap measures. But, better targeting subsidies or replacing them with more effective social safety nets is a complex process, so buy-in from the public is crucial to success.

By | May 10th, 2011|Economic outlook, International Monetary Fund, Middle East|
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