Rural electrification: a hard look at costs and benefits

How succesful were World Bank electrification programmes in the 1990s?

In a study of rural electrification (RE) in Asia, OED notes that while RE projects supported by the World Bank have had a satisfactory record overall, their economic returns have been considerably lower than projected. Also a wide range of expected indirect and external benefits have not materialised.

The report does note some successes. In India, for example, the report finds that RE has had a crucial role to play in the spread of irrigated farming, in conjunction with other agriculture development programs. But in general the authors conclude that Bank experienceshows that RE does not provide a primary stimulus for regional development through industrial growth.

The study recommends more rigorous economic and financial analysis and improved tariff and demand management policies. [adapted from authors summary]

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Rural electrification: a hard look at costs and benefits