From Poverty to Power » The Economist on the global spread of cash transfers and Jokowi’s flying start in Indonesia

From Poverty to Power » The Economist on the global spread of cash transfers and Jokowi’s flying start in Indonesia: "‘Having trimmed petrol subsidies in November, Indonesia’s president, Joko Widodo, who is universally known as Jokowi, scrapped them entirely from January 1st. Small subsidies (1,000 rupiah, or eight cents, per litre) will remain in place for diesel, used for public transport and by the country’s millions of fishermen. But for the first time in decades, the price of petrol will reflect global market prices.’

Thinking about this from a theory of change angle, Jokowi seized two brief opportunities – his honeymoon period as a new president, and a slump in global oil prices which allowed him to remove subsidies without prices going through the roof. The move liberates about $16bn a year that previously subsidised the better off at the expense of social transfers (see chart). Another article covers what that cash might be destined for:"



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