Asian Development Outlook 2005 Update - This part of the Update reviews the possible consequences and challenges presented by high oil prices for developing Asia. After a brief review of why prices are high, their impact on various economies in developing Asia is examined. Policy responses to structurally higher oil prices are then surveyed, including a brief discussion on the risks inherent in subsidizing oil products. The review ends by setting out key principles for guiding policy decisions, and offering some conclusions.
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