Create a 8 page essay paper that discusses Subsidies.In particular, subsidies are provided to those industries or sectors which are lagging behind the other sectors in the economy in terms of performa

Create a 8 page essay paper that discusses Subsidies.
In particular, subsidies are provided to those industries or sectors which are lagging behind the other sectors in the economy in terms of performance or are not being able to perform up the expected level. In this paper we shall focus on the subsidies provided by the governments of the less developed countries (LDCs) and developing countries. In these countries subsidies are provided by the government on the trading of different goods and services, and can be categorized as energy or fuel subsidies, agricultural subsidies and educational subsidies. However, the World Bank and the IMF has stated that subsidies act as barriers to investment in the developing country by foreign and international companies. This in turn proves unbeneficial for the country’s long term development. It is in the country’s own interest towards its development that the government should abolish subsidies and promote perfect competition. This paper aims at examining the relationship between subsidies and economic growth in the context of developing countries.