Electricity Dreams

An interesting story in the Guardian tells us about a critical issue in the developing practice of Great Britain. Headed "UK accused of trading aid for privatisation", it presents the outcomes of a recent study to be published by 'War on Want', a UK-based aid organisation. According to the report, the granting of UK aid is often linked to the imposition of privatisation on developing countries. One of the case studies is Kyrgyzstan, where accountancy firm Arthur Andersen advocated the rise of electricity prices in order to make the state company more attractive to foreign buyers. 'This led to more than half of the capital, Bishkek, being unable to pay their bills', the Guardian says.

The effect of this policy was detrimental. Outstanding bills increased the deficit of the state-run enterprises and led to a decline in investment into the old Soviet-era electricity grid. Blackouts occur frequently, requiring all businesses to invest into backup power. I counted three or four blackouts while being in Bishkek - most of which took more than an hour to get fixed.