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Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 11
First page : ( 200) Last page : ( 205)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2014.00985.2

The law requires the optimization of energy subsidies in different countries

Naeemi Mohammad Rezaa, Naeemi Somayehb

aDepartment of Economics, Saravan Branch, Islamic Azad University, Saravan, Iran

bDepartment of Accounting, Saravan Branch, Islamic Azad university, Saravan, Iran

Abstract

In the 1950s, with the introduction of thought and attention to indicators of social development and poverty reduction, government intervention in economic activity, was more bold. In this era of tight state, as previously mentioned, was developed. The role of the classical economists were defined for the and since this group of theorists, economic development requires huge investment only physical and economic infrastructure saw more government involvement in these areas would recommend. But since 1970 the centrality of ideas of human development, the knowledge that was created To deal with the problems of underdeveloped countries with insufficient physical capital, and at least as physical capital, human capital formation and social policy issues and the need. Therefore, in this era of social protection policies in welfare states, subsidy policies and top ranked programs in developing countries. What was neglected in subsidizing the true target of these policies was in the most countries, public subsidies were paid. But following the 1980 debt crisis and the global recession and the contrasting experiences of East Asia, Latin America, South Asia and sub-Saharan Africa, emphasizing the development of strategies to improve the management of the economy and changing market forces would accept a greater role in the new approach, most countries have attempted to reform subsidies programs. The main reason for these countries to implement the reform program, the cost of the subsidy was to be comprehensive.

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Keywords

Energy subsidies, optimization, economic activity.

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