On Subsidy Reform in Arab Countries: Reflection on IMF Recommendations Prepared by the Arab NGO Network for Development (ANND), the New America Foundation.

Slides:

Advertisements

Similar presentations

South-South Cooperation and Public-Private Partnership for Development by Bader Al Dafa Under Secretary General Executive Secretary, UNESCWA October 2007.

Advertisements

Prospects and Reform After the Great Recession Zeljko Bogetic Lead Economist and Coordinator for Economic Policy for Russia Presentation based on the Russian.

1 The Food Crisis: Global Perspectives and Impact on MENA Fiscal & Poverty Impact Ruslan Yemtsov, MNSED MENA BBL Monday, June 16.

Poverty Reduction Strategies: A tool for implementing the BPOA Linda Van Gelder The World Bank.

Annual Growth Survey What is the AGS? A communication, which sets out the economic and social priorities for the EU in 2013 Launches the next European.

Introduction to the Country Assistance Strategy (CAS)

MR. MAGDI FARAHAT, SENIOR ECONOMIST AND PARTNER, GLOBAL TRADE CONSULTANTS Uncertainty in a period of global downturn: Medium and long-term policy challenges.

FOSSIL FUEL TAXATION AND SUBSIDY POLICY Mr BERA Arsonina Director of Pollution Management Ministry of Environment, Ecology and Forests Madagascar.

Fiscal Policy and Fossil Fuels Ian Parry, Fiscal Affairs Department, IMF Disclaimer: The views expressed herein are those of the author and should not.

A Case of Oil Subsidy Presented at Nagoya University, 11 June 2008.

MENA Development Report On Water Making the Most of Scarcity MNA Water Seminar June 28, 2007 World Bank Tokyo Satoru Ueda.

High Inflation in India – A Threat to Growth and Development? A2 Macro – January 2014.

Fuel Subsidies: Ghana – Reforms and Lessons EDWARD A. AWAFO Researcher, The Energy Center, KNUST, Ghana; Author, GGBP Assessment Project (

1 MANAGING PRICE SHOCKS Oil and Food Subsidies in Jordan First MENA-SBO MEETING CAIRO November 24-25, 2008 Dr.Hamzah Jaradat, Ph.D MoF Jordan.

The Effects of Rising Food and Fuel Costs on Poverty in Pakistan Azam Amjad Chaudhry and Theresa Thompson Chaudhry.

Removing fossil fuel subsidies – yes but how? Henning Wuester, IRENA REN21 Academy Bonn, 10 November 2014.

Public Subsidies and Policy Failures 1 Building a Grand Deal to phase out harmful energy subsidies André de Moor INFORSE-Europe Seminar,

1 Reducing the Gaps in Society: Policy Challenges in the Era of Globalization Dr. Karnit Flug June 2007 Taub Center Conference.

Energy Subsidy Reform: Lessons and Implications Masahiro Nozaki International Monetary Fund October 2013 This presentation represents the views of the.

The UK Climate Change Levy and Ecological Tax Reform Professor Stephen Smith Department of Economics University College London.

Why social protection need to be universal in Indonesia Presentation for Workshop Economic development and social protection Institute of Economics Federal.

Issues in Domestic Petroleum Pricing in Oil- Producing Countries Sanjeev Gupta IMF January 27, 2004.

1 Dr. Christo Christov Energy Institute JSCo Sofia, Bulgaria Bulgaria GHG Emission Projections - Results and Methodological Problems Dr. Christo Christov.

Public Expenditure in Latin America: Trends and Key Policy Issues Benedict Clements Western Hemisphere Department International Monetary Fund* ECLAC Fiscal.

Impacts of high and volatile oil prices and policy choices Shikha Jha.

YOUTH EMPLOYMENT IN THE MENA REGION GLOBAL YOUTH CONFERENCE 2012 Caroline Freund, Chief Economist MENA.

Indonesia post $100 per barrel: The impact of oil & gas prices on public finances Wolfgang Fengler and Tim Bulman World Bank Institute: Oil Price Volatility,

CHILE INITIAL CONDITIONS, Years Military Rule. 17 Years Military Rule. Over Heated Economy Over Heated Economy –Rate of Inflation 30% –Annualized.

Poverty and Environmental Impacts of Electricity Price Reforms in Montenegro prepared by Dragana Radevic CEED, Montenegro Fourth Poverty Reduction Strategies.

Increasing transparency and social expenditure in public budgets Iván Fernández Espinoza Technical Secretary of the Social Front Quito-Ecuador.

Joint UNEP-UNECE Expert Meeting on Energy Subsidies Geneva, November UNECE Guidelines Reforming Energy Pricing and Subsidies Charlotte Griffiths.

EGYPT: STATE, SOCIETY AND ENERGY IN A VICIOUS CIRCLE Robert Springborg.

The Economy of Jordan: Problems and Solutions Presented by Dr. Ohan Balian May 03, 2010 Amman.

Research and Planning Administration National Insurance Institute National Insurance Institute Research & Planning Administration Herzliya Conference The.

Energy Subsidy Reform: Lessons and Implications April 2013 This presentation represents the views of the author and should not be attributed to the IMF,

Iraq Institute for Economic Reform Oil Revenues and Fuels Subsidies April, 2006.

Fuel and Food Subsidies: Issues and Reform Options MENA Chief Economist Office Breakfast Seminar February 23 rd, 2012 David Coady Fiscal Affairs Department.

IS BELARUSIAN ECONOMY SUSTAINABLE? Dr. Elena Rakova, IPM Research Center.

Empowering People The Electricity Governance Initiative PRAYAS- PUNE ENERGYGROUP Smita Nakhooda 11 May 2007 New York CSD 15.

Ministry of Environment and Energy Republic of Maldives Ministry of Environment and Energy Republic of Maldives.

Workshop on Food Security, Economic Growth and Poverty Reduction by Don Mitchell USAID Feed the Future Sera Project Implemented by Booz Allen Hamilton.

Higher food and fuel prices: What is the impact on the Thai economy and what to do about it?

Andrés Solimano Regional Adviser CEPAL, United Nations Washington - June 27 & 28, 2006 Asset Accumulation by the Middle Class and the Poor: Economic Considerations.

The World Bank Fiscal Leakages & Poverty Impacts The Case of Indonesia’s Fuel Subsidy Presented by: Kai Kaiser Economist Public Sector Group (PRMPS) Presentation.

A Citizens’ Guide to Energy Subsidies in Indonesia Learning from international experience Damon Vis-Dunbar, IISD 12 October 2012.

: 1 ALGERIA AT THE CROSSROADS PARTNERSHIP WITH ALGERIA CONFERENCE OCTOBER 8, 2015 London Algeria’s economy is heavily reliant on revenues generated from.

Distributional Analysis of Fiscal Policies at the IMF PREM 2011 Knowledge and Learning Forum World Bank April 25, 2011.

Rights in Crisis: Older Persons’ Social and Economic Rights during the Global Recession Human Rights Social Forum United Nations, Geneva, 1 April 2014.

Deepening Integration in SADC - Macroeconomic Policies and Their Impact South African Country Study 3rd – 6th April 2006 Zambezi Sun Hotel, Livingstone,

Chris DeBose Edan Harris 1997 Indonesia Financial Crisis.

Dollarization on El Salvador Team Members Nixon Orellana Mike Scott.

Arab Spring Assessment Dr. Robert E. Looney NS3040 Fall 2014.

Complementary Approaches to Evaluating Social Safety Nets at the World Bank: Evaluation questions and approaches AEA meetings 2010 Jennie Litvack and Victoria.

THE PROSPECTS OF A BASIC INCOME GRANT FOR IRAN Hamid Tabatabai BIEN 2010 – Sao Paulo – 1 July 2010.

Energy Transition: Reforms, Investment and the Post-Paris Agenda Dr. Robert Ichord CEO, ICHORD VENTURES, LLC February 4, 2016.

Financial & Budget Outlook City Council Strategic Planning Retreat March 19, 2012 Pueblo, Colorado.

PRINCIPLES OF ECONOMICS Chapter 32 Macroeconomic Policy Around the World PowerPoint Image Slideshow.

Promoting social cohesion in Korea. Social spending is low but increasing rapidly Rising income inequality and relative poverty and the factors behind.

BULGARIA – ECONOMIC PERSPECTIVES

Building Social Protection Systems:

Egypt’s Electricity Subsidy Removal and the Unified Electricity Law; Paving the Way for Renewables SME Growth.

Tracking fossil fuel subsidies in APEC economies

Fiscal policy settings for clean energy

SUDAN Fiscal Trends, Constraints & Prospects Paris, March 9, 2006

PEOPLE’S VOICE (Ukraine)

Energy Subsidy Reform: Lessons and Implications

Discussions about the Role of Nuclear Power for Achieving the Paris Agreement in Japan Yutaka Nagata and Sumio Hamagata Socio-economic Research Center.

Ministry of National Economy of The Republic of Kazakhstan

Addressing the resource curse?

Green fiscal policy: Reducing GHG emissions and mobilizing revenue

Presentation transcript:

On Subsidy Reform in Arab Countries: Reflection on IMF Recommendations Prepared by the Arab NGO Network for Development (ANND), the New America Foundation (NAF) and the Egyptian Center for Economic and Social Rights (ECESR) Picture adapted from: large-fossil-fuel-subsidies/#/energy-fuel-subsidies-quiz_54907_600x450.jpghttp://news.nationalgeographic.com/news/energy/2012/06/pictures/ large-fossil-fuel-subsidies/#/energy-fuel-subsidies-quiz_54907_600x450.jpg

Abstract Subsidy reform is not viable for Arab countries in transition in the near-term due to political and economic challenges. Photo source:

MENA Region: Highest Spending on Energy Subsidies Worldwide Adapted from:

IMF Recommendations on food and fuel subsidies to Tunisia and Morocco Available at:

Tunisian Response Authorities’ response to recommendations:  In 2009 and 2010: Loosened fiscal policy (including on subsidies)  In September, 2012: Lifted the price of lead-free petrol by 7.3%.  In March 2013, the government increased energy and electricity prices by 7%; a move accompanied by a rise in cash transfers to lower-income households.  June 2013: IMF Executive Board approved a $1.75 billion loan for Tunisia Popular response to subsidy cuts:  Unstable street protests, last of which was in March

Moroccan Response Authority’s Response to recommendations:  In 2009, the volume of subsidized wheat in Morocco was reduced as part of a pilot program that the Moroccan government has launched to distribute targeted cash assistance.  In response to Morocco's budget deficit (7.6% of its annual GDP in 2012) partly due to the rising cost of subsidies, which have reached $6.3 billion in 2012  In August 2012, the IMF approved a $6.2 billion loan for Morocco over two years.  In September 2012, Morocco's Islamist government raised energy prices in accordance with IMF requirements (Diesel increased by 0.69 MAD/litre, gasoline by 0.59 MAD/litre, and fuel oil by MAD/ton. Popular Response to subsidy cuts:  Street protests, last of which took place in September

Challenges Political Developments Weak Institutional Capacity Weak Social Safety Nets Inefficiency in cash transfers (Corruption)  Reflections from CSOs in Tunisia and Morocco

Challenges  The efficacy of social safety nets Coverage and availability of data Inadequacy of cash transfers Consistency of distribution

Challenges  Feasibility and effectiveness of subsidy reforms Political development Institutional capacity Budget issues

Recommendations for the IMF  Rethink subsidy policy proposals in the SR. IMF recs should address the potentially negative socio-economic effects of subsidy removal on low and middle-income households and individuals. This necessitates the consideration of broader economic indicators, such as wages, purchasing power, participation in domestic markets, and poverty levels.  Adjust recs on social safety nets according to country-specific political and institutional conditions.  Most importantly, The IMF should adopt a rights-based approach in policy recs for governments in the region.  IMF’s engagement and negotiations with Arab governments should be transparent.  Encourage local governments to consult with stakeholders, including civil society organizations, on major economic reforms such as subsidy reforms.