Latin America Struggles to Address Energy Subsidies

Latin America Struggles to Address Energy Subsidies

As the recession recedes, fuel prices have begun to soar across Latin America, confronting governments with the dilemma of how to balance fiscal demands with energy subsidies that are increasingly wreaking budgetary havoc, especially in the Andean nations. The Bolivian and Chilean governments’ recent efforts to confront that dilemma led to dramatic images of unrest, with protesters in both nations burning tires, throwing rocks and building barricades in response to announced policy changes. At the end of December, major cities across Bolivia erupted when President Evo Morales’ government decided to remove price controls that were artificially depressing fuel prices. The […]

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