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I read recently (in the FT I think) that Indonesia is also facing serious budgetary problems because of subsidised gasoline. Subsidies have been multiplied by 6 to 100 billion ringgit, iirc.

What to do? Bust the budget, or risk riots?

As we all know, it is a basic "human right" to have cheap fuel...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Aug 16th, 2005 at 05:37:57 AM EST
I actually have some sympathy for the leaders in these countries. Ending subsidies is not going to provoke irritable voting by soccer moms whose SUVs are suddenly costing more to run in China and Indonesia. Cheap energy has been the fuel to lift living standards from (in political terms) unsustainably low levels. The riots will come as those on the cusp lose their jobs and sink towards hunger and destitution. Of course, many of those politicians have caused their own problems over the years, but certainly some Indonesians are stuck in holes not of their own design.
by Metatone (metatone [a|t] gmail (dot) com) on Tue Aug 16th, 2005 at 06:21:02 AM EST
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