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Energy, Development, and Regional Integration David Mares This paper provides an overview of three general themes: 1) the relationship among energy, development and institutions; 2) the history of energy coopera- tion and integration in Latin America; and 3) the major obstacles to further ener- gy cooperation and integration in the region. A key variable that emerges in each of these subject areas is the institutional context within which energy policy is made. This institutional context is a key determinant of whether or not energy policy contributes to development and promotes stable regional integration. ENERGY, DEVELOPMENT, AND INSTITUTIONS Abundant and competitively priced energy is a key infrastructural element which attracts industry and a modern service sector and facilitates further natu- ral resource extraction. While promoting economic development, the energy sector itself is very capital intensive and not a major generator of employment. Energy is a fundamental component for any improvement in social welfare and health. Energy promotes education by facilitating studying after dark and mak- ing it possible for children to attend school rather than gather water or wood for fuel. The contributions of energy to health are multiple: cooking indoors with cleaner burning LPG or natural gas produces fewer respiratory diseases than tra- ditional fuels and makes it more likely that water will be boiled, thus reducing water borne illnesses; electricity permits health clinics and hospitals to function around the clock and access the internet to expand the diagnostic capabilities of local doctors; public health information for disease prevention and treatment can be disseminated more broadly through radio and television. Table I, indicating access to electricity in 2005, demonstrates that the level of access to electricity shows quite a bit of variation among Latin American pop- ulations, closely coinciding with social and economic situations. In Argentina, 95 percent of the population has access to electricity, but in Bolivia, only 64 per-PDF Image | Energy and Development in South America
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