China's Changing Development Strategy: The Case of Rural Electrification

Abstract

ABSTRACT Rural electrification is necessary if rural incomes are to keep pace with those of urban dwellers as an economy develops. The recent changes in China's development strategies have altered both the emphasis and form of electrification strategies. The move away from small local power generation to an emphasis on large projects and extension of the electrical grid are likely to have two effects. First, as the extension of the grid to rural consumers is likely to be prohibitively expensive the pace of rural electrification is likely to slow. Second, as the central government will have more control on the end use of electricity, less of the benefits from electrification are likely to remain in rural areas. The end result is that urban-rural income differences will increase. As the Chinese revolution has historically had a rural base, the recent changes may lead to less consensus on the appropriate development strategy.