Over a Barrel

January 21, 2003

Subsidies, to an economist, are not very different from drugs. It is easy to be dependent on them, although everybody knows that in the end subsidies kill the economy. This is why dependence on subsidies usually happens to countries having two main characteristics: abundant natural resources and an authoritarian government that cares nothing about wasting these resources and wrecking the future of the nation in order to stay in power.

Indonesia

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