On the topic on discussion: fuel subsidies, Bart Edes mentioned one element to support the elimination of fuel subsidies and its replacement with cash tranfers to poor poeple that will be negatively affected. He afirms that fuel subsidies increase energy intensity and energy inefficiency. I do not agree with it, since what matters is energy intensity and consumption per head and not as fraction of GDP. Stadistics from IAE and from EIA do not show that developing countries, have the highest energy consumption per head. It is the USA the largest energy and oil consumption per head.
I do agree with Jayati and others in critizising the elimination of fuel subsidies without deep consideration of economic and political effects.
The 20 years or so of the existence of conditioned cash transfers in Mexico and other Latin American Countires do not show radical improvement in poverty. Cahs transferes are related to minimun wage, so their real value has tended to decrease pari pasu with the fall of the minimum wage. Further more, the growth tedence of the Mexican Economy since 1982 has not been strong enough to improve job creation, informality, precary employment and to put a break to the deterioration of labour incomes.
Alicia Puyana
profesora investigadora de la Facultad Latinoamericana de Ciencias Sociales (FLACSO
I do agree with Jayati and others in critizising the elimination of fuel subsidies without deep consideration of economic and political effects.
The 20 years or so of the existence of conditioned cash transfers in Mexico and other Latin American Countires do not show radical improvement in poverty. Cahs transferes are related to minimun wage, so their real value has tended to decrease pari pasu with the fall of the minimum wage. Further more, the growth tedence of the Mexican Economy since 1982 has not been strong enough to improve job creation, informality, precary employment and to put a break to the deterioration of labour incomes.
Alicia Puyana
profesora investigadora de la Facultad Latinoamericana de Ciencias Sociales (FLACSO
