Via calculated risk, Asian countries are reducing their subsidies for oil in an effort to lower demand.

It was not that long ago that Indonesia removed its subsidies for oil. They were subsidising it to the tune of 3% of Indonesia GDP. Suharto had tried to remove the subsidy and this, in part, led to the social instability that over-threw his junta-like dictatorship. As a liberal democracy the subsidy was removed without social disturbance. Another sign of how Australia's northern neighbour is maturing as a social and political entity.
Cam Riley: South Sea Republic. Freedom, liberty, equity and an Australian Republic.

Comments
  • adam . # . 1/1
    It was not without protest. There were riots.

    I think it was the right decision, and it did not bring down the government, but Indonesians were never likely to simply take the end of a 30 year tax break on the chin.

    Give me utilitiy or give me something slightly better!
    • cam . # .
      Pundits like Zakaria argue that this maybe better done by a strong arm dictator who is enforcing capitalism; ie Pinochet-style, but in this instance the collective recognition of it being the right policy meant that liberal democracy handled it well.

      I wonder why many assume that liberal democracy is often best added after capitalism when a strong arm has finished implementing those policies.

      There is that individual wealth threshold that Zakaria quoted, IIRC it is about 3K per capita, where liberal democracy becomes more stable after that is reached.

      Don't know.
      'Sworn to no party, and of no sect am I.' Frederick Vosper's republican motto.