TEHRAN, Oct. 30 (MNA) -- There has been much talk of alleviating poverty and ending subsidies on goods and services which disproportionately benefit the middle and upper socioeconomic classes, but so far we have seen no concrete action.

The current economic policy is not in conformity with a sound economic system. Economic experts and some MPs say the government spends about 40 to 50 billion dollars annually on energy subsidies.

At first glance, the current subsidy system seems pro-poor. However, if we examine it carefully, we notice that it is more pro-rich since people with higher incomes are benefiting from these lavish subsidies much more than those with lower incomes.

The heavy subsidies on certain goods and services have led to extravagant waste of national wealth and resources while a considerable percentage of the population are living under the poverty line.

In a recent article in the Sarmayeh (Capital) newspaper, former agriculture minister Isa Kalantari wrote that if the government stops subsidizing bread (flour) then there will be no need for three million tons of wheat. This shows that about three million tons of flour is wasted in the country as a result of the huge subsidy for flour. A study by economics professor Narsis Amin Rashti also shows that about three million tons of flour is wasted annually.

Thus, it seems that there would have been no need to import wheat for several years if Iran had a system for controlling the waste of bread.

The waste of bread in public restaurants, and especially in government offices, is so great that it pains the heart, especially for those who are concerned about the national wealth.

It may be argued it is the poor that use bread as their main staple, but the suggestion to halt flour subsidies doesn’t mean that people from the low-income bracket should be made to suffer more and deprived even of cheap bread. The point is that subsidies on basic commodities such as bread should go to those living under the poverty line, but in a different way.

In addition to the wasteful use of petrol and bread, subsidies have also led to the smuggling of such goods to neighboring countries.

A nationwide census has recently begun, but a great opportunity has been missed since the questionnaire doesn’t ask families about their total income. The data could have been used in the implementation of a comprehensive program to provide direct subsidies, such as cash or food coupons, to low-income households.

This would take away the excuses of those who have resisted increasing petrol prices, to the detriment of national development and the national coffers.

Deputy Oil Minister Reza Kasayizadeh told a seminar of experts at Shiraz University on Monday that Iran’s rate of energy consumption is 17 times greater than Japan’s, four times the rate of Canada, and double the rate of China. He also said Iran ranks third in the world in natural gas consumption.

Through direct subsidies, poverty can be alleviated to a considerable degree because the poor know how to spend their money.

The implementation of a program of direct subsidies will be a laborious task, but further delays will only cost the country billions of dollars more, undermining national development and poverty alleviation efforts. MS/HG END MNA