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Middle East and North Africa

Power Pools: How Cross-Border Trade in Electricity Can Help Meet Development Goals

Michael Pollitt's picture

Power lines strecth over water. Source - DCCXLIXFor nearly three-fifths of the world population, the lack of access to energy is a major challenge to economic development and poverty reduction.

Increasing cross-border trade in electricity can play a major role in helping overcome these challenges. Trade in electricity can help bring down energy prices, mitigate against power shocks, relieve shortages, facilitate decarbonization and provide incentives for market extension and integration.

Yet, countries have been reluctant to trade electricity across borders. Global exports of electricity are currently around 3 percent of total production. This is an anomaly in the energy sector. Think of oil. Roughly 64 percent of all oil produced is traded between countries.

A recent working paper published by the World Bank looks at the institutional arrangements of regional power pools in both developing regions and those in developed countries. In understanding how the regional integration of electricity markets has developed, the paper is able to draw useful lessons for the promotion of future trade arrangements.
 

The inspiring Green Growth program of Morocco: How it could work back home in Egypt

Nehal El Kouesny's picture

On assignment in the Morocco office for about three months, I had the chance to have what I could confidently describe as a rich development experience. Getting away from Egypt’s years of unrest helped me develop a clearer vision.

Multiple Pathways – How "Why" Matters

Brian Levy's picture

Once upon a time, development seemed straightforward. Sound technical analysis identified what to do– and the rest followed. But experience has taught us that it is harder than that. As Shanta’s recent post signals, there are three competing camps – the ‘whats’, the ‘hows’ and the ‘whys’. I wonder, though, whether in clarifying the differences, we might be missing the chance to learn across these different perspectives?
 
Certainly, the differences are large. At one end are the old-time-religion ‘whats’, who confidently prescribe ‘best practices’ to help countries stay on the right path – and who sometimes turn to the ‘whys’  to identify  the political and institutional blockages to good policies.  At the other end, the ‘hows’ argue that every country is unique, that the crucial knowledge for shaping and implementing policy is local, and tend to be dismissive of  efforts (especially by outsiders) to analyze political and institutional obstacles.
 
My new book, Working with the Grain  tries to steer a middle ground.  The book explores a small number of alternative development pathways that are very different from  each other – with each characterized by a distinctive set of political and institutional incentives and constraints, and thus distinctive options for policymaking and implementation.

Why Just the Why?

Germano Mwabu's picture

Some Thoughts on Shanta's Anniversary Blog

I have extracted what I find to be the key points in Shanta’s blog post “It’s not the How; It’s the Why” and have commented on them:
 
1. “Bad policies or institutions exist and persist because politically powerful people benefit from them.” 

Bad policies or institutions are bad for those who are excluded from their benefits in the short-run, but they also harm the supposed beneficiaries in the long run. Further careful analysis can corroborate this, and show the long-term harm caused by bad policies to virtually everyone in a particular country.

Stories from the Unfinished Revolution: Tunisian Farmers have the Know-how but Lack Support

Antonio Nucifora's picture


Hassen Abidi crumbles a sickly-looking ear of wheat in his hand. He doesn't need an agronomist to tell him it's infected with a fungal blight known to local farmers as “septoria”. "I know more about growing things than any doctor knows about medicine, but I'm at my wit's end with all this," he says. "I sometimes wonder why I carry on planting."

It’s Not the How; It’s the Why

Shanta Devarajan's picture

Hardly a week goes by without my hearing the statement, “It’s not the What; it’s the How.”  On the reform of energy subsidies in the Middle East and North Africa, for instance, the discussion is focused not on whether subsidies should be reformed (everyone agrees they should be), but on how the reform should be carried out.  Similar points are made about business regulations,educationagriculture, or health. I confess to having written similar things myself.  And there is no shortage of such proposals on this blog
 
Reforms are needed because there is a policy or institutional arrangement in place that has become counterproductive.  But before suggesting how to reform it, we should ask why that policy exists at all, why it has persisted for so long, and why it hasn’t been reformed until now.  For these policies didn’t come about by accident.  Nor have they remained because somebody forgot to change them.  And they are unlikely to be reformed just because a policymaker happens to read a book, article or blog post entitled “How to reform…”

Global child mortality rate dropped 49% since 1990

Emi Suzuki's picture

The under-5 mortality rate worldwide has fallen by 49% since 1990, according to new child mortality estimates and press release launched today. This information is also summarized in the report Levels and Trends in Child Mortality 2014 by the United Nations Inter-Agency Group for Child Mortality Estimation (UN IGME).  Put another way, about 17,000 fewer children under-5 died each day in 2013 than in 1990.

These rates are falling faster than at any other time during the past two decades: from a 1.2% annual reduction during 1990-1995 to a 4% reduction during 2005-2013. 

More children making it to their fifth birthday
The major improvements in under-5 child survival since 1990 are attributable to better access to affordable, quality health care, as well as the expansion of health programs that reach the most vulnerable newborns and children.

The 49% drop – from 90 deaths per 1,000 live births in 1990, to 46 deaths in 2013 – means that a baby born today has a dramatically better chance of survival to age 5 compared with a baby born in 1990.   

More progress needed to achieve the global Millennium Development Goal 4 target
Four out of 6 World Bank Group regions are on track to achieve Millennium Development Goal 4 (MDG 4), which is to reduce the under-5 mortality rate by two-thirds by 2015.  Sub-Saharan Africa and South Asia are two regions where the rates of decline remain insufficient to reach MDG 4 on a global scale.  In 2013, the highest under-5 mortality rate was in Sub-Saharan Africa, where there were 92 deaths per 1,000 live births or where 1 in 11 children die before reaching the age of 5.

Chart 1

Stories from the Unfinished Revolution: Regulations Leave Bitter Taste for Tunisian Candy Makers

Antonio Nucifora's picture


​Tunisian sugar beet and Sudanese sesame seeds are the main ingredients of the halwa made by Tunisia’s Grand Fabrique de Confiserie Orientale (GFCO) company. Great globs of sesame seeds, mixed with nougat, are put in cans bearing pictures of a gazelle. The Ottoman Turks left behind a taste for this sweet not just in Tunisia but in Libya and Algeria too, and this brand of halwa has long made its own way onto their markets, according to the company's director, Moncef Ayoub.

It’s not the How; It’s the Why

Shanta Devarajan's picture

Hardly a week goes by without my hearing the statement, “It’s not the What; it’s the How.”  On the reform of energy subsidies in the Middle East and North Africa, for instance, the discussion is focused not on whether subsidies should be reformed (everyone agrees they should be), but on how the reform should be carried out.  Similar points are made about business regulations, education, agriculture, or health. I confess to having written similar things myself.  And there is no shortage of such proposals on this blog
 
Reforms are needed because there is a policy or institutional arrangement in place that has become counterproductive.  But before suggesting how to reform it, we should ask why that policy exists at all, why it has persisted for so long, and why it hasn’t been reformed until now.  For these policies didn’t come about by accident.  Nor have they remained because somebody forgot to change them.  And they are unlikely to be reformed just because a policymaker happens to read a book, article or blog post entitled “How to reform…”

“Libya’s 52 Percent”

Heba Elgazzar's picture
 Heba Elgazar

In Libya right now, one out of every two people is 24 years old or younger (52 percent). 

One out of every two fighters was previously unemployed or a student (52 percent). 

Why does this matter? 

Since my last trip to Tripoli in April, the unfolding conflict has brought these numbers to life.  At the time, opportunities were emerging, which I’ll return to in a bit.  The current conflict notwithstanding, it was clear at the time that Libya has immense potential due to its natural resources and unique geography. 

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