Why does a nation which has pledged to curb greenhouse gas emissions, lacks investment in basic infrastructure, and whose capital suffers from chronic traffic jam — spend an annual 20 percent of central government budget on keeping the price of fuel artificially low? And why is it notoriously difficult to remove this paradoxical subsidy?
Lukas Schlogl is doctoral student at King’s College London researching the impact of ‘new middle classes’ on subsidy and social policy reform in Indonesia and Brazil. He graduated from the University of Vienna and worked on issues related to international development assistance and policy coherence. You can follow him on Twitter at @LukasSchlogl