Sunday 19 June 2011

Pressure starts to bite over subsidies

Surging prices of oil and food are putting Middle East governments in a fix.

For decades, they have used subsidies and price controls to help to keep inflation in check and protect citizens from volatility in global markets.

So tightly woven into the fabric of society have the measures become that nobody questioned the approach for many years. Instead, many consumers enjoyed the benefits of cheap electricity in their homes and offices, petrol in their cars and bread on their tables.

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