ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Power Sector Reform in Latin America

Power sector reforms have been widespread in Latin America and the Caribbean. While there have been significant accomplishments, several challenges remain. The paper looks at four issues: (1) difficulties in separating the various roles of the state and providing effective regulation; (2) constraints in following the correct sequence of reforms and its consequences; (3) difficulties in achieving competition in markets; and (4) regulation of the non-competitive segments of the sector and addressing the needs of the poor. The author concludes with several lessons and recommends that local needs and capabilities should be taken into account in developing a reform model.

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