Transforming the power sector in developing countries: Geopolitics, poverty and climate change in Pakistan

Author: Robert F. Ichord, Jr.

Affiliation: Atlantic Council

Organization/Publisher: Atlantic Council

Date/Place: January 9, 2020, Washington DC

Type of Literature: Policy Brief

Word Count: 8311

Link:https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/transforming-the-power-sector-in-developing-countries-geopolitics-poverty-and-climate-change-in-pakistan/

Keywords: Climate change, Pakistan, Electricity, Poverty

Brief:

This policy brief, written by a former American energy official and now current fellow at the Atlantic Council, argues for moving Pakistan away from dependency on Chinese financing and energy collaboration. The report demonstrates how American policy makers are obsessed with Chinese investments into Pakistan and continue to see Pakistan as prized possession in a never-ending geopolitical struggle. The report raises alarm at the amount of Chinese money being poured into Pakistan’s energy sector. However, the report is unable to produce adequate reasons as to why Chinese investments are bad, except that they create a debt trap and the Chinese government is authoritarian. What is behind the fear mongering is both an ideological and geopolitical difference. The Chinese state-driven model puts the Pakistani government in charge. However, the author puts forward a contrasting image of Pakistan’s energy future. The single word that reoccurs throughout the piece is “privatization.” Pakistan should privatize and follow the model set out by Bangladesh. This will allow NGOs and private companies to make Pakistan’s energy sector better and more efficient. The argument hinges on Bangladesh’s success without showing how the two cases are similar outside of the fact that they both are in South Asia. On more than one occasion the author shamelessly plugs American or western oil and gas companies, and advocates not working with Pakistan and China. One of the longest sections discusses the Central Asian gas pipeline, in which the author hints that without American protection in Afghanistan, the pipeline will not work. In order to ensure safety and security, Pakistan should consider involving international companies and not rely on the Taliban.

By: M. Üveys Han, CIGA Senior Research Associate