Why Fuel Subsidies in Developing Nations Are an Economic Addiction

Emerging economies worldwide struggle to end budget-busting subsidies
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Once again, Ukraine is turning to Europe and the International Monetary Fund for assistance, this time a $15 billion bailout. For years, negotiations with the IMF had stalled over a single point: Ukraine spends 7 percent of its gross domestic product on natural gas subsidies for consumers. The IMF wants that cut by a third before approving any loans.

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