The staff report for the 2013 Article IV Consultation on Chad focuses on economic background and policy. The country continues to enjoy its longest period of domestic political stability since independence. Macroeconomic performance continued to be stable in 2013, with some deceleration in economic growth and inflation. Recently revised balance-of-payments data show that Chad has been running much larger external current account deficits. Chad’s ability to tackle its developmental needs and poverty reduction objectives is seriously hampered by the projected oil revenue trajectory.
Using an input-output approach, this paper assesses the distributional effects of a rise in various petroleum product prices in Mali. The results show that, although rising gasoline and diesel prices affect mainly nonpoor households, rising kerosene prices are most harmful to the poor. Overall, the impact of fuel prices on household budgets displays a U-shaped relationship with expenditure per capita. Regardless of the oil product considered, highincome households would benefit disproportionately from oil price subsidies. This suggests that a petroleum price subsidy is an ineffective mechanism for protecting the income of poor households compared with a targeted subsidy.