Subsidies won't help the poor - WB experts

by Gamini Warushamana

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Subsidies are not the solution to help the poor who are affected by the present trade shocks, said WB experts participating in a video conference that brought together experts from South Asian countries last week.

Food and oil prices have increased to record levels. Quick policy responses from the governments of the South Asia regions are essential to face the crisis, because the impact of the trade shock is fatal to millions of the poor in the region as South Asia is the largest net importer of food and oil, they said.

The experts were from Afghanistan, Bangladesh, India, Nepal, Pakistan and Sri Lanka were connected to Washington DC. The topic of the conference was "Impact of macro level shocks on South Asia poverty reduction effort".

WB Chief Economist, South Asia region Dr. Shantayanan Deverajan, Economic Advisor of the South Asia poverty reduction and economic management unit Ejaz Ghani from Washington DC participated in the conference.