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Economist Blames Failing Subsidy System for Rising Inequality

Economist Blames Failing Subsidy System for Rising Inequality
Economist Blames Failing Subsidy System for Rising Inequality

Because of the failing subsidy system in Iran, some high-income individuals have raced ahead while those who fall into low-income deciles have been left behind and become poorer, Vahid Shaqaqi-Shahri, an economist and university professor, says. 
What follows is the full translation of his write-up in the Persian daily Jahan-e Sanat on the most important requirement for designing a subsidy reform plan: 
Iran’s economic system has three key components: the banking system, the taxation system and the subsidy system. A healthy heart’s task is to pump blood to all organs of the body, but if it fails to pump blood properly, some organs would fail. The same is true about a subsidy system, if it fails to divvy up subsidies equitably among income deciles, some groups might benefit more than others, and some might be left behind and become poorer...

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