From Universal Price Subsidies to Modern Social Assistance : The Political Economy of Reform

The efficiency and effectiveness of generalized subsidies as part of a safety net system are questionable. This is because generalized subsidies tend to create distortions in the food and fuel markets and are likely to be regressive and to suffer from significant leakage of benefits to the non-poor, diluting their impact on poverty reduction. They also often have higher administrative costs than cash transfers. The policy response to recent crises highlighted an emerging interest for a transition from food and fuel subsidies toward greater reliance on targeted cash transfer programs in several countries. The transition from a strong reliance on generalized subsidies to more modern and administratively more sophisticated social protection has been witnessed in much of the developing world as countries move from lower to middle income status. However, cutting back subsidies has social as well as political implications, and therefore needs to be managed and implemented appropriately. This paper seeks to examine the implications and aspects of subsidies reform, in particular the socio-political risk of cutting subsidies in the context of modernizing social assistance.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2013
Subjects:ACCESS TO SERVICES, ACCESSIBILITY, ADMINISTRATIVE COSTS, ASSISTANCE PROGRAMS, BENCHMARK, BENEFICIARIES, BENEFICIARY, BUFFER STOCKS, BUSES, CAR, CAR-OWNING HOUSEHOLDS, CARS, CASH AID, CASH ASSISTANCE, CASH BENEFIT, CASH TRANSFER, CASH TRANSFER PROGRAMS, CASH TRANSFERS, CIVIL WAR, CLIMATE CHANGE, COMMODITY, COMMUNITY INVOLVEMENT, CONSUMER SUBSIDIES, CONSUMER SUBSIDY, CONSUMERS, CONSUMPTION LEVELS, COPING STRATEGIES, DEMOCRACY, DEVALUATIONS, DEVELOPING COUNTRIES, DEVELOPMENT POLICIES, DIESEL, DIVIDEND, DRIVERS, ECONOMIC CRISES, ECONOMIC GROWTH, ECONOMIES OF SCALE, EMISSIONS, ENERGY SUBSIDIES, ENERGY SUBSIDY, ENVIRONMENTAL ISSUES, EXCLUSION, EXPORTS, EXPOSURE, EXTERNALITIES, FARES, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL STABILITY, FISCAL CRISIS, FISCAL RISK, FOOD COMMODITIES, FOOD CONSUMPTION, FOOD DISTRIBUTION, FOOD PRICE, FOOD PRICE SUBSIDIES, FOOD PRICES, FOOD SUBSIDIES, FOOD SUBSIDY, FOSSIL FUEL, FOSSIL FUELS, FUEL, FUEL CONSUMPTION, FUEL PRICE, FUEL PRICE INCREASE, FUEL PRICE INCREASES, FUEL PRICES, FUEL SUBSIDIES, GASOLINE, GDP, GOVERNANCE INDICATORS, GOVERNMENT BUDGET, GOVERNMENT CAPACITY, GOVERNMENT FUNDS, HEALTH CARDS, HEALTH INSURANCE, HOUSEHOLD SURVEYS, HUMAN CAPITAL, HUMAN DEVELOPMENT, IMPORT QUOTAS, INCOME, INCOME INEQUALITY, INCOME LEVELS, INCOMES, INEFFICIENCY, INEQUALITY, INFORMATION ASYMMETRY, INFRASTRUCTURE INVESTMENT, INSTITUTIONAL CAPACITY, INTEREST RATES, INTERNATIONAL LABOUR ORGANIZATION, KEROSENE SUBSIDY, LEAKAGE OF BENEFITS, LOW INTEREST RATES, MARKET FAILURES, MARKET PRICE, MARKET PRICES, MINIMUM INCOME, MOBILITY, NATURAL RESOURCE, NATURAL RESOURCES, OPPORTUNITY COST, PATRONAGE, PENSIONS, POLICE, POLITICAL ECONOMY, POLITICAL ECONOMY OF REFORM, POLITICAL RISK, POLITICAL RISKS, POLITICAL STABILITY, POLITICAL SUPPORT, POLITICAL SYSTEM, POLITICAL SYSTEMS, POOR, POVERTY ALLEVIATION, POVERTY LEVELS, POVERTY REDUCTION, PRICE FLUCTUATIONS, PRICE LEVELS, PRICE OF DIESEL, PRICE OF FUEL, PRICE SETTING, PRICE STABILIZATION, PRICE SUBSIDIES, PRICE SUBSIDY, PROTECTION MECHANISM, PROTECTION MECHANISMS, PUBLIC ATTITUDES, PUBLIC PERCEPTION, PUBLIC PERCEPTIONS, PUBLIC POLICY, PUBLIC RELATIONS, PUBLIC RESOURCES, PUBLIC SERVICES, PUBLIC SPENDING, PUBLIC SUPPORT, REDISTRIBUTIVE POLICIES, REFORM PROCESS, REGULATORY BODY, RICE SUBSIDY, RISK REDUCTION, RURAL INFRASTRUCTURE, SAFETY, SAFETY NET, SAFETY NET PROGRAMS, SAVINGS, SHOCK, SMALL BUSINESS, SMALL ENTREPRENEUR, SOCIAL ASSISTANCE, SOCIAL CAPITAL, SOCIAL CONTRACT, SOCIAL COST, SOCIAL INVESTMENT, SOCIAL POLICIES, SOCIAL PROGRAMS, SOCIAL PROTECTION, SOCIAL SAFETY NET, SOCIAL SAFETY NETS, SOCIAL SECURITY, SOCIAL SERVICES, SOCIAL SPENDING, SOCIAL WELFARE, SSN, STREETS, SUBSIDIZING, SUPPORT PROGRAM, SUSTAINABLE DEVELOPMENT, TARGETED SUBSIDIES, TARGETED TRANSFERS, TARGETING, TAX, TAX REFORM, TAXI DRIVERS, TRADE UNIONS, TRANSPARENCY, TRANSPORT, TRANSPORTATION, TRAVEL COSTS, TRIP, TRIPS, TRUE, UNIVERSAL HEALTH, UNIVERSAL SUBSIDIES, VULNERABLE HOUSEHOLDS, WAGES, WAR, WEALTH, WELFARE POLICY, WELFARE SYSTEM,
Online Access:http://documents.worldbank.org/curated/en/2012/12/18699556/universal-price-subsidies-modern-social-assistance-political-economy-reform
https://hdl.handle.net/10986/16723
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databasecode dig-okr
tag biblioteca
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libraryname Biblioteca del Banco Mundial
language English
en_US
topic ACCESS TO SERVICES
ACCESSIBILITY
ADMINISTRATIVE COSTS
ASSISTANCE PROGRAMS
BENCHMARK
BENEFICIARIES
BENEFICIARY
BUFFER STOCKS
BUSES
CAR
CAR-OWNING HOUSEHOLDS
CARS
CASH AID
CASH ASSISTANCE
CASH BENEFIT
CASH TRANSFER
CASH TRANSFER PROGRAMS
CASH TRANSFERS
CIVIL WAR
CLIMATE CHANGE
COMMODITY
COMMUNITY INVOLVEMENT
CONSUMER SUBSIDIES
CONSUMER SUBSIDY
CONSUMERS
CONSUMPTION LEVELS
COPING STRATEGIES
DEMOCRACY
DEVALUATIONS
DEVELOPING COUNTRIES
DEVELOPMENT POLICIES
DIESEL
DIVIDEND
DRIVERS
ECONOMIC CRISES
ECONOMIC GROWTH
ECONOMIES OF SCALE
EMISSIONS
ENERGY SUBSIDIES
ENERGY SUBSIDY
ENVIRONMENTAL ISSUES
EXCLUSION
EXPORTS
EXPOSURE
EXTERNALITIES
FARES
FINANCIAL CRISES
FINANCIAL CRISIS
FINANCIAL STABILITY
FISCAL CRISIS
FISCAL RISK
FOOD COMMODITIES
FOOD CONSUMPTION
FOOD DISTRIBUTION
FOOD PRICE
FOOD PRICE SUBSIDIES
FOOD PRICES
FOOD SUBSIDIES
FOOD SUBSIDY
FOSSIL FUEL
FOSSIL FUELS
FUEL
FUEL CONSUMPTION
FUEL PRICE
FUEL PRICE INCREASE
FUEL PRICE INCREASES
FUEL PRICES
FUEL SUBSIDIES
GASOLINE
GDP
GOVERNANCE INDICATORS
GOVERNMENT BUDGET
GOVERNMENT CAPACITY
GOVERNMENT FUNDS
HEALTH CARDS
HEALTH INSURANCE
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
IMPORT QUOTAS
INCOME
INCOME INEQUALITY
INCOME LEVELS
INCOMES
INEFFICIENCY
INEQUALITY
INFORMATION ASYMMETRY
INFRASTRUCTURE INVESTMENT
INSTITUTIONAL CAPACITY
INTEREST RATES
INTERNATIONAL LABOUR ORGANIZATION
KEROSENE SUBSIDY
LEAKAGE OF BENEFITS
LOW INTEREST RATES
MARKET FAILURES
MARKET PRICE
MARKET PRICES
MINIMUM INCOME
MOBILITY
NATURAL RESOURCE
NATURAL RESOURCES
OPPORTUNITY COST
PATRONAGE
PENSIONS
POLICE
POLITICAL ECONOMY
POLITICAL ECONOMY OF REFORM
POLITICAL RISK
POLITICAL RISKS
POLITICAL STABILITY
POLITICAL SUPPORT
POLITICAL SYSTEM
POLITICAL SYSTEMS
POOR
POVERTY ALLEVIATION
POVERTY LEVELS
POVERTY REDUCTION
PRICE FLUCTUATIONS
PRICE LEVELS
PRICE OF DIESEL
PRICE OF FUEL
PRICE SETTING
PRICE STABILIZATION
PRICE SUBSIDIES
PRICE SUBSIDY
PROTECTION MECHANISM
PROTECTION MECHANISMS
PUBLIC ATTITUDES
PUBLIC PERCEPTION
PUBLIC PERCEPTIONS
PUBLIC POLICY
PUBLIC RELATIONS
PUBLIC RESOURCES
PUBLIC SERVICES
PUBLIC SPENDING
PUBLIC SUPPORT
REDISTRIBUTIVE POLICIES
REFORM PROCESS
REGULATORY BODY
RICE SUBSIDY
RISK REDUCTION
RURAL INFRASTRUCTURE
SAFETY
SAFETY NET
SAFETY NET PROGRAMS
SAVINGS
SHOCK
SMALL BUSINESS
SMALL ENTREPRENEUR
SOCIAL ASSISTANCE
SOCIAL CAPITAL
SOCIAL CONTRACT
SOCIAL COST
SOCIAL INVESTMENT
SOCIAL POLICIES
SOCIAL PROGRAMS
SOCIAL PROTECTION
SOCIAL SAFETY NET
SOCIAL SAFETY NETS
SOCIAL SECURITY
SOCIAL SERVICES
SOCIAL SPENDING
SOCIAL WELFARE
SSN
STREETS
SUBSIDIZING
SUPPORT PROGRAM
SUSTAINABLE DEVELOPMENT
TARGETED SUBSIDIES
TARGETED TRANSFERS
TARGETING
TAX
TAX REFORM
TAXI DRIVERS
TRADE UNIONS
TRANSPARENCY
TRANSPORT
TRANSPORTATION
TRAVEL COSTS
TRIP
TRIPS
TRUE
UNIVERSAL HEALTH
UNIVERSAL SUBSIDIES
VULNERABLE HOUSEHOLDS
WAGES
WAR
WEALTH
WELFARE POLICY
WELFARE SYSTEM
ACCESS TO SERVICES
ACCESSIBILITY
ADMINISTRATIVE COSTS
ASSISTANCE PROGRAMS
BENCHMARK
BENEFICIARIES
BENEFICIARY
BUFFER STOCKS
BUSES
CAR
CAR-OWNING HOUSEHOLDS
CARS
CASH AID
CASH ASSISTANCE
CASH BENEFIT
CASH TRANSFER
CASH TRANSFER PROGRAMS
CASH TRANSFERS
CIVIL WAR
CLIMATE CHANGE
COMMODITY
COMMUNITY INVOLVEMENT
CONSUMER SUBSIDIES
CONSUMER SUBSIDY
CONSUMERS
CONSUMPTION LEVELS
COPING STRATEGIES
DEMOCRACY
DEVALUATIONS
DEVELOPING COUNTRIES
DEVELOPMENT POLICIES
DIESEL
DIVIDEND
DRIVERS
ECONOMIC CRISES
ECONOMIC GROWTH
ECONOMIES OF SCALE
EMISSIONS
ENERGY SUBSIDIES
ENERGY SUBSIDY
ENVIRONMENTAL ISSUES
EXCLUSION
EXPORTS
EXPOSURE
EXTERNALITIES
FARES
FINANCIAL CRISES
FINANCIAL CRISIS
FINANCIAL STABILITY
FISCAL CRISIS
FISCAL RISK
FOOD COMMODITIES
FOOD CONSUMPTION
FOOD DISTRIBUTION
FOOD PRICE
FOOD PRICE SUBSIDIES
FOOD PRICES
FOOD SUBSIDIES
FOOD SUBSIDY
FOSSIL FUEL
FOSSIL FUELS
FUEL
FUEL CONSUMPTION
FUEL PRICE
FUEL PRICE INCREASE
FUEL PRICE INCREASES
FUEL PRICES
FUEL SUBSIDIES
GASOLINE
GDP
GOVERNANCE INDICATORS
GOVERNMENT BUDGET
GOVERNMENT CAPACITY
GOVERNMENT FUNDS
HEALTH CARDS
HEALTH INSURANCE
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
IMPORT QUOTAS
INCOME
INCOME INEQUALITY
INCOME LEVELS
INCOMES
INEFFICIENCY
INEQUALITY
INFORMATION ASYMMETRY
INFRASTRUCTURE INVESTMENT
INSTITUTIONAL CAPACITY
INTEREST RATES
INTERNATIONAL LABOUR ORGANIZATION
KEROSENE SUBSIDY
LEAKAGE OF BENEFITS
LOW INTEREST RATES
MARKET FAILURES
MARKET PRICE
MARKET PRICES
MINIMUM INCOME
MOBILITY
NATURAL RESOURCE
NATURAL RESOURCES
OPPORTUNITY COST
PATRONAGE
PENSIONS
POLICE
POLITICAL ECONOMY
POLITICAL ECONOMY OF REFORM
POLITICAL RISK
POLITICAL RISKS
POLITICAL STABILITY
POLITICAL SUPPORT
POLITICAL SYSTEM
POLITICAL SYSTEMS
POOR
POVERTY ALLEVIATION
POVERTY LEVELS
POVERTY REDUCTION
PRICE FLUCTUATIONS
PRICE LEVELS
PRICE OF DIESEL
PRICE OF FUEL
PRICE SETTING
PRICE STABILIZATION
PRICE SUBSIDIES
PRICE SUBSIDY
PROTECTION MECHANISM
PROTECTION MECHANISMS
PUBLIC ATTITUDES
PUBLIC PERCEPTION
PUBLIC PERCEPTIONS
PUBLIC POLICY
PUBLIC RELATIONS
PUBLIC RESOURCES
PUBLIC SERVICES
PUBLIC SPENDING
PUBLIC SUPPORT
REDISTRIBUTIVE POLICIES
REFORM PROCESS
REGULATORY BODY
RICE SUBSIDY
RISK REDUCTION
RURAL INFRASTRUCTURE
SAFETY
SAFETY NET
SAFETY NET PROGRAMS
SAVINGS
SHOCK
SMALL BUSINESS
SMALL ENTREPRENEUR
SOCIAL ASSISTANCE
SOCIAL CAPITAL
SOCIAL CONTRACT
SOCIAL COST
SOCIAL INVESTMENT
SOCIAL POLICIES
SOCIAL PROGRAMS
SOCIAL PROTECTION
SOCIAL SAFETY NET
SOCIAL SAFETY NETS
SOCIAL SECURITY
SOCIAL SERVICES
SOCIAL SPENDING
SOCIAL WELFARE
SSN
STREETS
SUBSIDIZING
SUPPORT PROGRAM
SUSTAINABLE DEVELOPMENT
TARGETED SUBSIDIES
TARGETED TRANSFERS
TARGETING
TAX
TAX REFORM
TAXI DRIVERS
TRADE UNIONS
TRANSPARENCY
TRANSPORT
TRANSPORTATION
TRAVEL COSTS
TRIP
TRIPS
TRUE
UNIVERSAL HEALTH
UNIVERSAL SUBSIDIES
VULNERABLE HOUSEHOLDS
WAGES
WAR
WEALTH
WELFARE POLICY
WELFARE SYSTEM
spellingShingle ACCESS TO SERVICES
ACCESSIBILITY
ADMINISTRATIVE COSTS
ASSISTANCE PROGRAMS
BENCHMARK
BENEFICIARIES
BENEFICIARY
BUFFER STOCKS
BUSES
CAR
CAR-OWNING HOUSEHOLDS
CARS
CASH AID
CASH ASSISTANCE
CASH BENEFIT
CASH TRANSFER
CASH TRANSFER PROGRAMS
CASH TRANSFERS
CIVIL WAR
CLIMATE CHANGE
COMMODITY
COMMUNITY INVOLVEMENT
CONSUMER SUBSIDIES
CONSUMER SUBSIDY
CONSUMERS
CONSUMPTION LEVELS
COPING STRATEGIES
DEMOCRACY
DEVALUATIONS
DEVELOPING COUNTRIES
DEVELOPMENT POLICIES
DIESEL
DIVIDEND
DRIVERS
ECONOMIC CRISES
ECONOMIC GROWTH
ECONOMIES OF SCALE
EMISSIONS
ENERGY SUBSIDIES
ENERGY SUBSIDY
ENVIRONMENTAL ISSUES
EXCLUSION
EXPORTS
EXPOSURE
EXTERNALITIES
FARES
FINANCIAL CRISES
FINANCIAL CRISIS
FINANCIAL STABILITY
FISCAL CRISIS
FISCAL RISK
FOOD COMMODITIES
FOOD CONSUMPTION
FOOD DISTRIBUTION
FOOD PRICE
FOOD PRICE SUBSIDIES
FOOD PRICES
FOOD SUBSIDIES
FOOD SUBSIDY
FOSSIL FUEL
FOSSIL FUELS
FUEL
FUEL CONSUMPTION
FUEL PRICE
FUEL PRICE INCREASE
FUEL PRICE INCREASES
FUEL PRICES
FUEL SUBSIDIES
GASOLINE
GDP
GOVERNANCE INDICATORS
GOVERNMENT BUDGET
GOVERNMENT CAPACITY
GOVERNMENT FUNDS
HEALTH CARDS
HEALTH INSURANCE
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
IMPORT QUOTAS
INCOME
INCOME INEQUALITY
INCOME LEVELS
INCOMES
INEFFICIENCY
INEQUALITY
INFORMATION ASYMMETRY
INFRASTRUCTURE INVESTMENT
INSTITUTIONAL CAPACITY
INTEREST RATES
INTERNATIONAL LABOUR ORGANIZATION
KEROSENE SUBSIDY
LEAKAGE OF BENEFITS
LOW INTEREST RATES
MARKET FAILURES
MARKET PRICE
MARKET PRICES
MINIMUM INCOME
MOBILITY
NATURAL RESOURCE
NATURAL RESOURCES
OPPORTUNITY COST
PATRONAGE
PENSIONS
POLICE
POLITICAL ECONOMY
POLITICAL ECONOMY OF REFORM
POLITICAL RISK
POLITICAL RISKS
POLITICAL STABILITY
POLITICAL SUPPORT
POLITICAL SYSTEM
POLITICAL SYSTEMS
POOR
POVERTY ALLEVIATION
POVERTY LEVELS
POVERTY REDUCTION
PRICE FLUCTUATIONS
PRICE LEVELS
PRICE OF DIESEL
PRICE OF FUEL
PRICE SETTING
PRICE STABILIZATION
PRICE SUBSIDIES
PRICE SUBSIDY
PROTECTION MECHANISM
PROTECTION MECHANISMS
PUBLIC ATTITUDES
PUBLIC PERCEPTION
PUBLIC PERCEPTIONS
PUBLIC POLICY
PUBLIC RELATIONS
PUBLIC RESOURCES
PUBLIC SERVICES
PUBLIC SPENDING
PUBLIC SUPPORT
REDISTRIBUTIVE POLICIES
REFORM PROCESS
REGULATORY BODY
RICE SUBSIDY
RISK REDUCTION
RURAL INFRASTRUCTURE
SAFETY
SAFETY NET
SAFETY NET PROGRAMS
SAVINGS
SHOCK
SMALL BUSINESS
SMALL ENTREPRENEUR
SOCIAL ASSISTANCE
SOCIAL CAPITAL
SOCIAL CONTRACT
SOCIAL COST
SOCIAL INVESTMENT
SOCIAL POLICIES
SOCIAL PROGRAMS
SOCIAL PROTECTION
SOCIAL SAFETY NET
SOCIAL SAFETY NETS
SOCIAL SECURITY
SOCIAL SERVICES
SOCIAL SPENDING
SOCIAL WELFARE
SSN
STREETS
SUBSIDIZING
SUPPORT PROGRAM
SUSTAINABLE DEVELOPMENT
TARGETED SUBSIDIES
TARGETED TRANSFERS
TARGETING
TAX
TAX REFORM
TAXI DRIVERS
TRADE UNIONS
TRANSPARENCY
TRANSPORT
TRANSPORTATION
TRAVEL COSTS
TRIP
TRIPS
TRUE
UNIVERSAL HEALTH
UNIVERSAL SUBSIDIES
VULNERABLE HOUSEHOLDS
WAGES
WAR
WEALTH
WELFARE POLICY
WELFARE SYSTEM
ACCESS TO SERVICES
ACCESSIBILITY
ADMINISTRATIVE COSTS
ASSISTANCE PROGRAMS
BENCHMARK
BENEFICIARIES
BENEFICIARY
BUFFER STOCKS
BUSES
CAR
CAR-OWNING HOUSEHOLDS
CARS
CASH AID
CASH ASSISTANCE
CASH BENEFIT
CASH TRANSFER
CASH TRANSFER PROGRAMS
CASH TRANSFERS
CIVIL WAR
CLIMATE CHANGE
COMMODITY
COMMUNITY INVOLVEMENT
CONSUMER SUBSIDIES
CONSUMER SUBSIDY
CONSUMERS
CONSUMPTION LEVELS
COPING STRATEGIES
DEMOCRACY
DEVALUATIONS
DEVELOPING COUNTRIES
DEVELOPMENT POLICIES
DIESEL
DIVIDEND
DRIVERS
ECONOMIC CRISES
ECONOMIC GROWTH
ECONOMIES OF SCALE
EMISSIONS
ENERGY SUBSIDIES
ENERGY SUBSIDY
ENVIRONMENTAL ISSUES
EXCLUSION
EXPORTS
EXPOSURE
EXTERNALITIES
FARES
FINANCIAL CRISES
FINANCIAL CRISIS
FINANCIAL STABILITY
FISCAL CRISIS
FISCAL RISK
FOOD COMMODITIES
FOOD CONSUMPTION
FOOD DISTRIBUTION
FOOD PRICE
FOOD PRICE SUBSIDIES
FOOD PRICES
FOOD SUBSIDIES
FOOD SUBSIDY
FOSSIL FUEL
FOSSIL FUELS
FUEL
FUEL CONSUMPTION
FUEL PRICE
FUEL PRICE INCREASE
FUEL PRICE INCREASES
FUEL PRICES
FUEL SUBSIDIES
GASOLINE
GDP
GOVERNANCE INDICATORS
GOVERNMENT BUDGET
GOVERNMENT CAPACITY
GOVERNMENT FUNDS
HEALTH CARDS
HEALTH INSURANCE
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
IMPORT QUOTAS
INCOME
INCOME INEQUALITY
INCOME LEVELS
INCOMES
INEFFICIENCY
INEQUALITY
INFORMATION ASYMMETRY
INFRASTRUCTURE INVESTMENT
INSTITUTIONAL CAPACITY
INTEREST RATES
INTERNATIONAL LABOUR ORGANIZATION
KEROSENE SUBSIDY
LEAKAGE OF BENEFITS
LOW INTEREST RATES
MARKET FAILURES
MARKET PRICE
MARKET PRICES
MINIMUM INCOME
MOBILITY
NATURAL RESOURCE
NATURAL RESOURCES
OPPORTUNITY COST
PATRONAGE
PENSIONS
POLICE
POLITICAL ECONOMY
POLITICAL ECONOMY OF REFORM
POLITICAL RISK
POLITICAL RISKS
POLITICAL STABILITY
POLITICAL SUPPORT
POLITICAL SYSTEM
POLITICAL SYSTEMS
POOR
POVERTY ALLEVIATION
POVERTY LEVELS
POVERTY REDUCTION
PRICE FLUCTUATIONS
PRICE LEVELS
PRICE OF DIESEL
PRICE OF FUEL
PRICE SETTING
PRICE STABILIZATION
PRICE SUBSIDIES
PRICE SUBSIDY
PROTECTION MECHANISM
PROTECTION MECHANISMS
PUBLIC ATTITUDES
PUBLIC PERCEPTION
PUBLIC PERCEPTIONS
PUBLIC POLICY
PUBLIC RELATIONS
PUBLIC RESOURCES
PUBLIC SERVICES
PUBLIC SPENDING
PUBLIC SUPPORT
REDISTRIBUTIVE POLICIES
REFORM PROCESS
REGULATORY BODY
RICE SUBSIDY
RISK REDUCTION
RURAL INFRASTRUCTURE
SAFETY
SAFETY NET
SAFETY NET PROGRAMS
SAVINGS
SHOCK
SMALL BUSINESS
SMALL ENTREPRENEUR
SOCIAL ASSISTANCE
SOCIAL CAPITAL
SOCIAL CONTRACT
SOCIAL COST
SOCIAL INVESTMENT
SOCIAL POLICIES
SOCIAL PROGRAMS
SOCIAL PROTECTION
SOCIAL SAFETY NET
SOCIAL SAFETY NETS
SOCIAL SECURITY
SOCIAL SERVICES
SOCIAL SPENDING
SOCIAL WELFARE
SSN
STREETS
SUBSIDIZING
SUPPORT PROGRAM
SUSTAINABLE DEVELOPMENT
TARGETED SUBSIDIES
TARGETED TRANSFERS
TARGETING
TAX
TAX REFORM
TAXI DRIVERS
TRADE UNIONS
TRANSPARENCY
TRANSPORT
TRANSPORTATION
TRAVEL COSTS
TRIP
TRIPS
TRUE
UNIVERSAL HEALTH
UNIVERSAL SUBSIDIES
VULNERABLE HOUSEHOLDS
WAGES
WAR
WEALTH
WELFARE POLICY
WELFARE SYSTEM
World Bank
From Universal Price Subsidies to Modern Social Assistance : The Political Economy of Reform
description The efficiency and effectiveness of generalized subsidies as part of a safety net system are questionable. This is because generalized subsidies tend to create distortions in the food and fuel markets and are likely to be regressive and to suffer from significant leakage of benefits to the non-poor, diluting their impact on poverty reduction. They also often have higher administrative costs than cash transfers. The policy response to recent crises highlighted an emerging interest for a transition from food and fuel subsidies toward greater reliance on targeted cash transfer programs in several countries. The transition from a strong reliance on generalized subsidies to more modern and administratively more sophisticated social protection has been witnessed in much of the developing world as countries move from lower to middle income status. However, cutting back subsidies has social as well as political implications, and therefore needs to be managed and implemented appropriately. This paper seeks to examine the implications and aspects of subsidies reform, in particular the socio-political risk of cutting subsidies in the context of modernizing social assistance.
topic_facet ACCESS TO SERVICES
ACCESSIBILITY
ADMINISTRATIVE COSTS
ASSISTANCE PROGRAMS
BENCHMARK
BENEFICIARIES
BENEFICIARY
BUFFER STOCKS
BUSES
CAR
CAR-OWNING HOUSEHOLDS
CARS
CASH AID
CASH ASSISTANCE
CASH BENEFIT
CASH TRANSFER
CASH TRANSFER PROGRAMS
CASH TRANSFERS
CIVIL WAR
CLIMATE CHANGE
COMMODITY
COMMUNITY INVOLVEMENT
CONSUMER SUBSIDIES
CONSUMER SUBSIDY
CONSUMERS
CONSUMPTION LEVELS
COPING STRATEGIES
DEMOCRACY
DEVALUATIONS
DEVELOPING COUNTRIES
DEVELOPMENT POLICIES
DIESEL
DIVIDEND
DRIVERS
ECONOMIC CRISES
ECONOMIC GROWTH
ECONOMIES OF SCALE
EMISSIONS
ENERGY SUBSIDIES
ENERGY SUBSIDY
ENVIRONMENTAL ISSUES
EXCLUSION
EXPORTS
EXPOSURE
EXTERNALITIES
FARES
FINANCIAL CRISES
FINANCIAL CRISIS
FINANCIAL STABILITY
FISCAL CRISIS
FISCAL RISK
FOOD COMMODITIES
FOOD CONSUMPTION
FOOD DISTRIBUTION
FOOD PRICE
FOOD PRICE SUBSIDIES
FOOD PRICES
FOOD SUBSIDIES
FOOD SUBSIDY
FOSSIL FUEL
FOSSIL FUELS
FUEL
FUEL CONSUMPTION
FUEL PRICE
FUEL PRICE INCREASE
FUEL PRICE INCREASES
FUEL PRICES
FUEL SUBSIDIES
GASOLINE
GDP
GOVERNANCE INDICATORS
GOVERNMENT BUDGET
GOVERNMENT CAPACITY
GOVERNMENT FUNDS
HEALTH CARDS
HEALTH INSURANCE
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
IMPORT QUOTAS
INCOME
INCOME INEQUALITY
INCOME LEVELS
INCOMES
INEFFICIENCY
INEQUALITY
INFORMATION ASYMMETRY
INFRASTRUCTURE INVESTMENT
INSTITUTIONAL CAPACITY
INTEREST RATES
INTERNATIONAL LABOUR ORGANIZATION
KEROSENE SUBSIDY
LEAKAGE OF BENEFITS
LOW INTEREST RATES
MARKET FAILURES
MARKET PRICE
MARKET PRICES
MINIMUM INCOME
MOBILITY
NATURAL RESOURCE
NATURAL RESOURCES
OPPORTUNITY COST
PATRONAGE
PENSIONS
POLICE
POLITICAL ECONOMY
POLITICAL ECONOMY OF REFORM
POLITICAL RISK
POLITICAL RISKS
POLITICAL STABILITY
POLITICAL SUPPORT
POLITICAL SYSTEM
POLITICAL SYSTEMS
POOR
POVERTY ALLEVIATION
POVERTY LEVELS
POVERTY REDUCTION
PRICE FLUCTUATIONS
PRICE LEVELS
PRICE OF DIESEL
PRICE OF FUEL
PRICE SETTING
PRICE STABILIZATION
PRICE SUBSIDIES
PRICE SUBSIDY
PROTECTION MECHANISM
PROTECTION MECHANISMS
PUBLIC ATTITUDES
PUBLIC PERCEPTION
PUBLIC PERCEPTIONS
PUBLIC POLICY
PUBLIC RELATIONS
PUBLIC RESOURCES
PUBLIC SERVICES
PUBLIC SPENDING
PUBLIC SUPPORT
REDISTRIBUTIVE POLICIES
REFORM PROCESS
REGULATORY BODY
RICE SUBSIDY
RISK REDUCTION
RURAL INFRASTRUCTURE
SAFETY
SAFETY NET
SAFETY NET PROGRAMS
SAVINGS
SHOCK
SMALL BUSINESS
SMALL ENTREPRENEUR
SOCIAL ASSISTANCE
SOCIAL CAPITAL
SOCIAL CONTRACT
SOCIAL COST
SOCIAL INVESTMENT
SOCIAL POLICIES
SOCIAL PROGRAMS
SOCIAL PROTECTION
SOCIAL SAFETY NET
SOCIAL SAFETY NETS
SOCIAL SECURITY
SOCIAL SERVICES
SOCIAL SPENDING
SOCIAL WELFARE
SSN
STREETS
SUBSIDIZING
SUPPORT PROGRAM
SUSTAINABLE DEVELOPMENT
TARGETED SUBSIDIES
TARGETED TRANSFERS
TARGETING
TAX
TAX REFORM
TAXI DRIVERS
TRADE UNIONS
TRANSPARENCY
TRANSPORT
TRANSPORTATION
TRAVEL COSTS
TRIP
TRIPS
TRUE
UNIVERSAL HEALTH
UNIVERSAL SUBSIDIES
VULNERABLE HOUSEHOLDS
WAGES
WAR
WEALTH
WELFARE POLICY
WELFARE SYSTEM
author World Bank
author_facet World Bank
author_sort World Bank
title From Universal Price Subsidies to Modern Social Assistance : The Political Economy of Reform
title_short From Universal Price Subsidies to Modern Social Assistance : The Political Economy of Reform
title_full From Universal Price Subsidies to Modern Social Assistance : The Political Economy of Reform
title_fullStr From Universal Price Subsidies to Modern Social Assistance : The Political Economy of Reform
title_full_unstemmed From Universal Price Subsidies to Modern Social Assistance : The Political Economy of Reform
title_sort from universal price subsidies to modern social assistance : the political economy of reform
publisher Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2012/12/18699556/universal-price-subsidies-modern-social-assistance-political-economy-reform
https://hdl.handle.net/10986/16723
work_keys_str_mv AT worldbank fromuniversalpricesubsidiestomodernsocialassistancethepoliticaleconomyofreform
_version_ 1807160470566600704
spelling dig-okr-10986167232024-08-08T14:13:00Z From Universal Price Subsidies to Modern Social Assistance : The Political Economy of Reform World Bank ACCESS TO SERVICES ACCESSIBILITY ADMINISTRATIVE COSTS ASSISTANCE PROGRAMS BENCHMARK BENEFICIARIES BENEFICIARY BUFFER STOCKS BUSES CAR CAR-OWNING HOUSEHOLDS CARS CASH AID CASH ASSISTANCE CASH BENEFIT CASH TRANSFER CASH TRANSFER PROGRAMS CASH TRANSFERS CIVIL WAR CLIMATE CHANGE COMMODITY COMMUNITY INVOLVEMENT CONSUMER SUBSIDIES CONSUMER SUBSIDY CONSUMERS CONSUMPTION LEVELS COPING STRATEGIES DEMOCRACY DEVALUATIONS DEVELOPING COUNTRIES DEVELOPMENT POLICIES DIESEL DIVIDEND DRIVERS ECONOMIC CRISES ECONOMIC GROWTH ECONOMIES OF SCALE EMISSIONS ENERGY SUBSIDIES ENERGY SUBSIDY ENVIRONMENTAL ISSUES EXCLUSION EXPORTS EXPOSURE EXTERNALITIES FARES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL STABILITY FISCAL CRISIS FISCAL RISK FOOD COMMODITIES FOOD CONSUMPTION FOOD DISTRIBUTION FOOD PRICE FOOD PRICE SUBSIDIES FOOD PRICES FOOD SUBSIDIES FOOD SUBSIDY FOSSIL FUEL FOSSIL FUELS FUEL FUEL CONSUMPTION FUEL PRICE FUEL PRICE INCREASE FUEL PRICE INCREASES FUEL PRICES FUEL SUBSIDIES GASOLINE GDP GOVERNANCE INDICATORS GOVERNMENT BUDGET GOVERNMENT CAPACITY GOVERNMENT FUNDS HEALTH CARDS HEALTH INSURANCE HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN DEVELOPMENT IMPORT QUOTAS INCOME INCOME INEQUALITY INCOME LEVELS INCOMES INEFFICIENCY INEQUALITY INFORMATION ASYMMETRY INFRASTRUCTURE INVESTMENT INSTITUTIONAL CAPACITY INTEREST RATES INTERNATIONAL LABOUR ORGANIZATION KEROSENE SUBSIDY LEAKAGE OF BENEFITS LOW INTEREST RATES MARKET FAILURES MARKET PRICE MARKET PRICES MINIMUM INCOME MOBILITY NATURAL RESOURCE NATURAL RESOURCES OPPORTUNITY COST PATRONAGE PENSIONS POLICE POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM POLITICAL RISK POLITICAL RISKS POLITICAL STABILITY POLITICAL SUPPORT POLITICAL SYSTEM POLITICAL SYSTEMS POOR POVERTY ALLEVIATION POVERTY LEVELS POVERTY REDUCTION PRICE FLUCTUATIONS PRICE LEVELS PRICE OF DIESEL PRICE OF FUEL PRICE SETTING PRICE STABILIZATION PRICE SUBSIDIES PRICE SUBSIDY PROTECTION MECHANISM PROTECTION MECHANISMS PUBLIC ATTITUDES PUBLIC PERCEPTION PUBLIC PERCEPTIONS PUBLIC POLICY PUBLIC RELATIONS PUBLIC RESOURCES PUBLIC SERVICES PUBLIC SPENDING PUBLIC SUPPORT REDISTRIBUTIVE POLICIES REFORM PROCESS REGULATORY BODY RICE SUBSIDY RISK REDUCTION RURAL INFRASTRUCTURE SAFETY SAFETY NET SAFETY NET PROGRAMS SAVINGS SHOCK SMALL BUSINESS SMALL ENTREPRENEUR SOCIAL ASSISTANCE SOCIAL CAPITAL SOCIAL CONTRACT SOCIAL COST SOCIAL INVESTMENT SOCIAL POLICIES SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SAFETY NET SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL SERVICES SOCIAL SPENDING SOCIAL WELFARE SSN STREETS SUBSIDIZING SUPPORT PROGRAM SUSTAINABLE DEVELOPMENT TARGETED SUBSIDIES TARGETED TRANSFERS TARGETING TAX TAX REFORM TAXI DRIVERS TRADE UNIONS TRANSPARENCY TRANSPORT TRANSPORTATION TRAVEL COSTS TRIP TRIPS TRUE UNIVERSAL HEALTH UNIVERSAL SUBSIDIES VULNERABLE HOUSEHOLDS WAGES WAR WEALTH WELFARE POLICY WELFARE SYSTEM The efficiency and effectiveness of generalized subsidies as part of a safety net system are questionable. This is because generalized subsidies tend to create distortions in the food and fuel markets and are likely to be regressive and to suffer from significant leakage of benefits to the non-poor, diluting their impact on poverty reduction. They also often have higher administrative costs than cash transfers. The policy response to recent crises highlighted an emerging interest for a transition from food and fuel subsidies toward greater reliance on targeted cash transfer programs in several countries. The transition from a strong reliance on generalized subsidies to more modern and administratively more sophisticated social protection has been witnessed in much of the developing world as countries move from lower to middle income status. However, cutting back subsidies has social as well as political implications, and therefore needs to be managed and implemented appropriately. This paper seeks to examine the implications and aspects of subsidies reform, in particular the socio-political risk of cutting subsidies in the context of modernizing social assistance. 2014-01-30T16:49:10Z 2014-01-30T16:49:10Z 2013 http://documents.worldbank.org/curated/en/2012/12/18699556/universal-price-subsidies-modern-social-assistance-political-economy-reform https://hdl.handle.net/10986/16723 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain Washington, DC