Asian electricity reform in historical perspective

The laws and institutions governing electric power in Asia are in the midst of an uncertain transition. After decades of state control of electricity, in the 1990's Asian nations began transforming their power sectors to align with globally prevalent neoliberal trends. Following an initial burst of market-oriented reforms, electricity liberalization in Asia has slowed and sometimes dramatically changed course, responding to international events and to country-specific battles over the sector's fundamental economic, political and symbolic importance in Asia societies, and also constitutes at an important specific instance of Asia's response to globalization. This paper describes the broad regional context of Asian electricity, with emphasis on the international forces that have shaped the sector's evolution. It starts with an historical sketch of the electricity industry in Asia during the Cold War, followed by a discussion of the origins of electricity reform as a global phenomenon. It then describes the course of electricity reform within Asia, with particular attention to the role of international actors such as foreign investors and the World Bank, and catalytic events such as the Asian financial crisis and the California electricity crisis. The paper shows how, from origins to outcomes, the trajectory of electricity reform in Asian countries has reflected the complex interactions of international and domestic political economy.