International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Open Access | Fully Refereed | Peer Reviewed

ISSN: 2319-7064


Downloads: 135

Research Paper | Economics | Morocco | Volume 7 Issue 11, November 2018


A Benchmark of Implementing Energy Subsidy Reforms: Case Studies on Brazil, Chile, Indonesia, Turkey and Morocco

Moustapha Hamzaoui, Safaa El Yahyaoui


Abstract: Since 2014, more than 32 countries which include 17 oil-producing countries proceeded to reform their subsidy systems especially in relation to energy subsidies. These reforms took different forms, as some opted to readjust/review prices, some reformed their fiscal framework, while others chose the complete liberalization of petroleum products prices. This global tendency was triggered by the lack of effectiveness of most of these subsidy systems, in a context of severe price volatility on international markets. As huge budgets were allocated to compensate staple products, in order to, protect low income social classes purchasing power, the achievement of the targeted objectives was costing very costly. As a result, most countries took the initiative to change their subsidy policy and look for more effective ways to channel financial support to the said social classes. Most of the countries who engaged in these reforms replaced subsidies by direct financial aids distributed based on social criteria to vulnerable social classes (Bolsa familia (Brazil), Chile solidario (Chile) etc) or by transferring funds to vital social sectors like health and education (Mexico, Columbia etc). Using different approaches (geographic targeting, incomeetc) these countries succeeded to identify the most worthy of these financial aid transfers. Many accompanying measures were adopted by each country following the specificities related to their different economic and social contexts. In the case of Morocco, there were no remarkable social measures accompanying the removal of LPPs subsidies removal, despite governmental reports stating social programs like Tayssir (primary education program), or the program for direct assistance to widowed women in precarious situations with orphaned children (granting 350 MAD per child monthly with a ceiling of 1050 MAD for a single household) as measures that were taken to improve social conditions for deprived social classes. It is hard to imagine how these measures could be effective if a sudden price jump occurs on international markets and local prices start soaring. Nevertheless, well briefly detail both programs alongside other benchmarks for accompanying measures that were taken in countries like Brazil, Chili, Mexico and Indonesia.


Keywords: Subsidy policy, reform, energy subsidies


Edition: Volume 7 Issue 11, November 2018,


Pages: 1938 - 1941


How to Cite this Article?

Moustapha Hamzaoui, Safaa El Yahyaoui, "A Benchmark of Implementing Energy Subsidy Reforms: Case Studies on Brazil, Chile, Indonesia, Turkey and Morocco", International Journal of Science and Research (IJSR), https://www.ijsr.net/get_abstract.php?paper_id=ART20193284, Volume 7 Issue 11, November 2018, 1938 - 1941

How to Share this Article?

Enter Your Email Address


Similar Articles with Keyword 'Subsidy policy'

Downloads: 125

Research Paper, Economics, Morocco, Volume 7 Issue 11, November 2018

Pages: 1934 - 1937

The Macroeconomic Impacts of Reforming Subsidy Policy in Morocco

Moustapha Hamzaoui, Safaa El Yahyaoui

Share this Article

Downloads: 136

Research Paper, Economics, Morocco, Volume 7 Issue 11, November 2018

Pages: 1929 - 1933

The Evolution of the Subsidy System in Morocco

Moustapha Hamzaoui, Safaa El Yahyaoui

Share this Article

Similar Articles with Keyword 'reform'

Downloads: 1 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Research Paper, Economics, Uzbekistan, Volume 10 Issue 8, August 2021

Pages: 294 - 296

Analysis of the State of Food Development Industries of the Republic of Karakalpakstan

Tleuov Nietulla Rakhmanovich, Djumaniyazov Ubbiniyaz Ismayl Uli

Share this Article

Downloads: 3 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Research Paper, Economics, India, Volume 10 Issue 8, August 2021

Pages: 14 - 19

Indian Banking - A Long Journey of Incredible Transformation from Traditional Branch Banking to Digital Banking

Dr. S. Upendra Sastry

Share this Article

Similar Articles with Keyword 'Subsidy'

Downloads: 118

Research Paper, Economics, Sri Lanka, Volume 3 Issue 10, October 2014

Pages: 1261 - 1267

Economic and Social Cost of Fertilizer Subsidy on Paddy Farming in Sri Lanka

Dr. Wanninayake. M. Semasinghe

Share this Article

Downloads: 125

Research Paper, Economics, Morocco, Volume 7 Issue 11, November 2018

Pages: 1934 - 1937

The Macroeconomic Impacts of Reforming Subsidy Policy in Morocco

Moustapha Hamzaoui, Safaa El Yahyaoui

Share this Article

Similar Articles with Keyword 'policy'

Downloads: 1

Research Paper, Economics, South Africa, Volume 10 Issue 8, August 2021

Pages: 1136 - 1143

Towards Incorporating Rural Sanitation Issues into the Rural Development Agenda

Lindile L. Ndabeni

Share this Article

Downloads: 2

Research Paper, Economics, Mongolia, Volume 10 Issue 5, May 2021

Pages: 601 - 609

Research on Mongolian Cashmere Exports and its Impact on Economic Growth

Enkhod Ochirpurev

Share this Article
Top