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Tuesday, 14 June 2016

The government needs to re-engage with the public on fuel subsidy reform

Clearing a path for subsidy reform: Taking stock of the way forward for Egypt’s fuel subsidy policy, doctoral candidate Tom Moerenhout first praises what was right about President Abdel Fattah El Sisi’s first round of energy subsidy reform, while taking pains to point out what was different then versus now. “Taking a closer look, it is clear that the 2014 action [on fuel subsidies] was enabled by an unusual mix of political-economy factors… Sisi was elected with more than 95% of the vote, and he promptly used a significant part of his political capital to reform energy subsidies.” Moerenhout says this was also enabled by an effective communication outreach to the public, and argues that Egypt has entered into a far more difficult phase of subsidy reform, and that for it to proceed successfully, the government must redouble those same outreach efforts. It’s the type of reasonable advice that may leave one nodding in agreement while at the same time leaving one with the impression it will go unheeded. (Read Nobody said it was easy: Egypt’s energy reforms unwrapped)

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