This paper covers qualitative case studies from Iran, Nigeria, and India to illustrate a series of lessons for governments implementing subsidy reform policies. From these three country experiences, we find that fostering public support to implement lasting reform may depend on four measures: (1) forming a public engagement plan and a comprehensive reform policy that are then clearly communicated to the public in advance of price increases; (2) phasing in price adjustments over a period of time to ease absorption; (3) providing a targeted compensatory cash transfer to alleviate financial impacts on low- to middle-income households; and (4) capitalizing on favorable global macroeconomic conditions.
My family’s ancestral home in the village of Jakhan in India’s western state of Rajasthan exemplifies the challenges and opportunities of facilitating energy access in India. Though Rajasthan is perhaps the most densely populated desert on the planet, near Jakhan the population is spread more thinly, and electrification has been slow in coming. The dreams of people such as my grandparents, who wished to see central electricity access arrive at their doorstep, were unfortunately not met in time. My grandfather filed an application to have a grid connection reach his home in the 1970s. The connection came three decades after his passing. Today, over 300 million people still lack access to reliable centralized electricity in this nation of 1.2 billion people.