Mindanao Power Shortage: Cause and Effect
POWER SHORTAGE IN MINDANAO: CAUSE AND EFFECT
A Term Paper Presented to the Faculty of Northlink Technological College
New Pandan, Panabo city
In Partial Fulfillment of the Requirements for the subject Econ1: ECONOMICS ,
TAXATION AND AGRARIAN
REFORM
Eddie L. Manungas Jr. lkenn louie M. Palma
Researchers
October 2014
CHAPTER 1
THE PROBLEM AND ITS SETTINGS
Background of the Study
One of the potential contributors to the large productivity gap between developed and developing countries are low quality infrastructure. In the summer of 2012, India suffered the largest power failure in history, which plunged 600 million people into darkness for two days. Even under normal circumstances, however, the Indian government estimates that shortages currently amount to about ten percent of demand at current prices, and many consumers have power only a few hours a day. In the 2005 World Bank Enterprise Survey, one-third of Indian business managers named poor electricity supply as their biggest barrier to growth. According to these managers, blackouts are far more important than other barriers that economists frequently study, including taxes, corruption, credit, regulation, and low human capital. (Hunt Allcott, Allan Collard-Wexler, and Stephen D. O’Connell 2014) In Mindanao, the nation 's main southern island which relies mostly on hydroelectricity, has been grappling with chronic power shortages for years. The recent spate of massive power interruptions is a symptom of the predicament facing Mindanao. Plants have shut down, cutting off electricity in large parts of the region for hours on end. The reason for the outage: the demand for power far exceeds existing supply. Millions of people were left without electricity in the southern Philippines on February 21, 2014 after a massive power breakdown, officials said, as repair crews worked to determine the cause of the outage. The power cuts began before dawn and affected heavily populated areas
A Term Paper Presented to the Faculty of Northlink Technological College
New Pandan, Panabo city
In Partial Fulfillment of the Requirements for the subject Econ1: ECONOMICS ,
TAXATION AND AGRARIAN
REFORM
Eddie L. Manungas Jr. lkenn louie M. Palma
Researchers
October 2014
CHAPTER 1
THE PROBLEM AND ITS SETTINGS
Background of the Study
One of the potential contributors to the large productivity gap between developed and developing countries are low quality infrastructure. In the summer of 2012, India suffered the largest power failure in history, which plunged 600 million people into darkness for two days. Even under normal circumstances, however, the Indian government estimates that shortages currently amount to about ten percent of demand at current prices, and many consumers have power only a few hours a day. In the 2005 World Bank Enterprise Survey, one-third of Indian business managers named poor electricity supply as their biggest barrier to growth. According to these managers, blackouts are far more important than other barriers that economists frequently study, including taxes, corruption, credit, regulation, and low human capital. (Hunt Allcott, Allan Collard-Wexler, and Stephen D. O’Connell 2014) In Mindanao, the nation 's main southern island which relies mostly on hydroelectricity, has been grappling with chronic power shortages for years. The recent spate of massive power interruptions is a symptom of the predicament facing Mindanao. Plants have shut down, cutting off electricity in large parts of the region for hours on end. The reason for the outage: the demand for power far exceeds existing supply. Millions of people were left without electricity in the southern Philippines on February 21, 2014 after a massive power breakdown, officials said, as repair crews worked to determine the cause of the outage. The power cuts began before dawn and affected heavily populated areas
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