Policy Spotlight

The most educated country in the world is ​South Korea. It has 69% of its population owning tertiary degrees.

In 2022, the Kingdom of Saudi Arabia spent 27 percent of its gross domestic product on subsidies for fossil fuels, amounting to $253 billion. It is not only on fuels the kingdom provides subsidy. Education from primary to university is virtually free so is health care that covers heart surgeries. Saudi Arabia is a contented society because of subsidy and it is same with all flourishing societies around the world.

In United States, while many industries receive government subsidies, three of the biggest beneficiaries are energy, agriculture, and transportation. America also provides free primary and secondary education and gives scholarships at tertiary level and finances research.

Government removed subsidy without looking at the bigger picture. In their narrow understanding, subsidy is a waste. But basically, in prosperous countries subsidies are provided to specific industries with the aim of keeping the prices of products and services low for people to be able to afford them. And it is not just about affordability but also to encourage production and consumption.