Iran: The Subsidies Dilemma

Since the 1979 revolution the removal of government subsidies has proved expensive. Subsidies have strained government funds and fostered inefficient energy use, leaving the current administration in a quandary, as to how to approach a fair and efficient subsidy reform plan.

By-Jahangir Amuzegar*

The Islamic Republic’s five-year-old subsidy program, designed to compensate consumers for increased prices of energy and public utilities, has now become...