Monday, August 29, 2005


[At the outset, let me state my position: I'm not that pessimistic considering our recent economic dowturn. The whole thing has root on the hiking oil and gas prices. The key problem is that, the country has no access to benefit from this incentive. The price movements are simply blocked. We see here and there some positive development, though: people are talking about alternative sources of energy, about the need of better technology, and of course about efficiency. Even officials (and yes, some legislatives) have started to welcome the elimination of subsidy; gradually, but that's ok for now, considering the likely social and political resistance.]

(Having said that) I'm not too excited with this whole idea about export repatriation.

Think about your home. What happens if you close the door? You can't go out, and .... neither one can come in. How to close the door effectively? Use the best lock. Otherwise, hire the best guard in town. My point is, repatriation will lead to reciprocity. And besides, monitoring costs are high.

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