Power sector reform and corruption: evidence from Sub-Saharan Africa
The electricity reforms in many developing countries were motivated by the desire to improve performance and reduce corruption in the sector. Independent regulation and private sector participation were expected to achieve this. Examine whether this has been the case in Sub-Saharan Africa. Conduct an econometric analysis of the performance of reforms in terms of efficiency, welfare, and economic development in 47 countries in the region between 2002 and 2013. Show that corruption can reduce technical efficiency of the sector and constrain the efforts to increase access to electricity and national income. However, the adverse effects are reduced where independent regulation is established and privatisation is implemented.