Why Latin American Nations Fail by Vernengo MatIas
Author:Vernengo, MatIas
Language: eng
Format: epub
ISBN: 9780520290297
Publisher: University of California Press
EnergyAccess to a reliable energy supply is another major requirement of any modern country. In the past, the provision of electricity was a state monopoly, but it has been gradually privatized. In most countries, the production and distribution of electricity are still considered “natural monopolies” and entrusted to a single operator, whether public or private. Advanced countries have increasingly opened the provision of electricity to competition, as well as allowed decentralization of the production of electricity, its distribution via high-tension networks, and its retailing. Nevertheless, in most less developed countries, a single operator dominates the field. The quality of the energy supply in terms of its capacity to meet demand, its reliability, and its costs are major criteria for long-term capital investments. Global industrial and commercial corporations commonly base their investment decisions precisely on these criteria (Vaz da Silva, 2015).
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