Electrification, Economic Development and Poverty Alleviation: Examining the Role of Macro-factors in Sri Lanka

Abstract

Access to modern energy services is central to enhancing rural incomes, reducing poverty and achieving the Millennium Development Goals; however, it is not sufficient in and of itself (Barnes 1988; Barnes & Floor 1996; Barnes & Foley 2003; Bose 1993; Cabraal et al 2005; Department for International Development 2002; Modi et al 2006; Saghir 2005; The World Bank 2001; The World Bank Group 2004; UN-Energy 2005; United Nations Development Program 2006). Energy services need to be integrated into a broader development program that also delivers other rural development services such as agricultural improvement technologies, healthcare and education, in order to play a transformative role in the economy of the rural poor. In recognition of this, the focus in development agencies is on enhancing the productive uses of energy (Cabraal et al 2005; Energy Sector Management Assistance Program 2005; Kapadia 2003).