July–September 2010

A publicalion of lhe Asian Developmenl ßank
/LJKWLQJWKH)XWXUH
Asia scrambles to produce more and cleaner energy to fuel its rapid growth
AIso ln Ihls edlIlon...
lndla´s latorlIe Son Surgeon Brlngs Cardlac
Care Io Ihe Poor
Mlcrolnsurance÷A Hard SeII Anong
Asla´s Worklng Poor
lorner Lnergµ MlnlsIer VlncenI Pere: on
ReneuabIe Lnergµ ln Ihe Reglon
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 1
WWW.DEVELOPMENT.ASIA
ĝ 2010 Asian Deve|opment Bank
ISSN 1998-7528
ASIAN DEVELOPMENT BANK
Publisher Ann Quon
Editorial and Creative Director
Caro|yn Dedo|ph Cabrera
Managing Editor Eric Hea|y
Senior Editor F|oyd Wha|ey
Editorial Advisor Ani| Terway
Associate Editor Maria Liza So|ano
Copy Editor Caro|ine Ahmad
Art Director Andy Martin
Development Asia features deve|opment issues
important to Asia and the Paciñc. It is pub|ished
four times a year by the Asian Deve|opment
Bank and Haymarket Media Ltd. The views
expressed in this magazine are those of the
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PUBLISHER’S NOTE
AsIa's Encrgv Cha!!cngc
I
f one queslion could lhrealen Asia's dvnamic grovlh and impressive gains
in poverlv reduclion in recenl decades, il is lhe region's energv supplv. The
complex issues lhal encompass energv securilv are vilal for ensuring a region's
economic grovlh.
Il is nol |usl a maller of mainlaining lhe supplv of energv lhal Asia needs lo fuel
ils grovlh. The region musl also navigale lhe lreacherous valers of conßicl and
cooperalion vhen il comes lo accessing energv resources. Òn lop of lhese challenges
lie lhe energv implicalions of climale change: manv nov believe lhal lhe cheapesl,
mosl abundanl fuels÷such as coal÷can no longer be lhe primarv sources of
energv for lhe region. Asia musl lake lhe lead in supplving and consuming cleaner,
renevable energv.
According lo lhe Inlernalional Lnergv Agencv, lhe emerging economies in lhe
region, led bv lhe Ieople's Republic of China and India, are driving vorld energv
demand, demonslraling a groving appelile bolh for fossil fuels and renevable
sources of energv. Yel, more lhan 8OO million people in Asia and lhe Iacihc slill have
no access lo eleclricilv.
Againsl lhis backdrop, lhis issue of Dctc|cpmcni Asic lakes a broad look al energv
securilv in Asia. The prospecls and challenges associaled vilh coal, renevable energv,
oil and gas, and lhe sensilive area of nuclear energv developmenl are explored in
delail. The garganluan infraslruclure challenges associaled vilh lhe region's aging
pover lransmission grid÷a vilal aspecl of regional cooperalion in energv÷is
examined bv nev conlribulor Iohn Òlis, an aulhor and 1imc magazine correspondenl.
This edilion also examines lhe plighl of millions of people in Asia vho never
oblained birlh cerlihcales. A simple process in manv counlries, il can be a crippling
problem for lhose vhose birlhs are never regislered. Thev are oflen invisible lo
governmenl, reporls regular conlribulor Karen Lmmons. Unprolecled bv labor
lavs and lefl oul of manv social safelv nel programs, lhev are among Asia's mosl
vulnerable people.
Dctc|cpmcni Asic is groving quicklv. In each edilion, ils edilorial coverage expands
vilh ils readership and reach. Coming edilions vill see more exciling and inleresling
changes. A vilal ingredienl in lhe magazine's developmenl is vou. We need vour
lhoughls and inpul lo develop lhis publicalion. And ve value vour opinions aboul
lhe arlicles vou read in ils pages. Talk lo us al lellers©developmenl.asia.
We're lislening. Q
Ann Òuon
Iublisher
2 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O vvv.developmenl.asia
CONTENTS
YEAR III, NUMBER VIII, JULY-SEPTEMBER 2010
FOCUS
ENERGY SECURITY
6 THE BIG READ
MEGAWATT WORRIES
The videning gap belveen energv
supplv and demand in Asia and lhe
Iacihc could pul lhe brakes on lhe
region's economic prosperilv.
Bu Dcnc Wi||icms
___________________________________
14 THE BIG PICTURE
ENERGY SECURITY IN ASIA AND
THE PACIFIC
The region has lhe polenlial lo meel ils
energv needs vilh lillle or no imporled
energv. A cooperalive region-vide
efforl is kev.
Bu Mcrk B|cckuc||
___________________________________
16 THE BIG VOICE
TAILWINDS
In an exclusive inlerviev, former
Ihilippines Lnergv Secrelarv Vincenl
Ierez discusses lhe impacl of energv
policv on poverlv and lhe challenges
for a green energv revolulion in Asia.
Bu ||cu! Wnc|cu
_______________________________
20 CLOGGED ARTERIES
Nev pover planls have sprung up
across Asia, bul lhe conslruclion of
grids and lhe upgrading and exlension
of lhe exisling palchvork of pover
lines have nol kepl pace.
Bu jcnn Oiis
52 INVISIBLE ASIA
Manv birlhs in Asia are never recorded.
As lhose children grov up, lhe lack of
birlh regislralion complicales÷in some
cases even ruins÷lheir lives.
Bu Kcrcn |mmcns
_______________________________
58 PROFILES IN DEVELOPMENT
KING OF HEARTS
India's mosl famous hearl surgeon
has made cardiac care for millions of
vorking poor possible.
Bu jcmcs Huicniscn
_______________________________
60 RECONNAISSANCE
ANCIENT GRASS REBORN
ßamboo helps Asia's rural poor cul a
green palh oul of poverlv.
Bu jcmcs Huicniscn

_______________________________
DEPARTMENTS
4 OFF THE PRESS
Snippels from lhe prinl vorld on
developmenl issues
_______________________________
5 ON THE WEB
Nolevorlhv corners of lhe veb
_______________________________
46 OFF THE SHELF
Nev arrivals lo librarv shelves in lhe
seclion for musl-read books aboul
developmenl and economics
_______________________________
64 ON THE RECORD
The quole-vorlhv sound off
24 OLD KING COAL
Though conlroversial, lhis cheap and
abundanl resource, fuels Asia's grovlh.
Bu Brucc Hci||uin
_______________________________
30 ASIA GOES NUCLEAR
Driven bv soaring energv demand,
among olher faclors, Asian counlries
lodav are driving lhe global surge in
nuclear pover developmenl.
Bu Wi||icm Brcnigin
_______________________________
35 THE GREEN RACE
Asia is belling big on renevable
energv. Can il deliver`
Bu jcmcs Huicniscn
_______________________________
40 CRUDE ADDICTION
Òil and gas have helped drive Asia's
phenomenal grovlh. Nov lhe
region musl face lhe dovnside of ils
dependencv.
Also, sidebar: O|| 1H| RA|IS |N
|NDON|S|A
The nalion's railvav nelvork has been
shrinking for decades.
Bu jcc Cccnrcnc cn! Dcnc Wi||icms
_______________________________
ARTICLES
48 A SMALL HARD SELL
Microinsurance slruggles lo lake off
vilh lhose vho need il mosl.
Bu Mcrgc Pjcijj
16 GETTING GREEN POWER ON THE GRID 52 REGISTERING ALL ASIA’S BABIES 60 CANING POVERTY WITH BAMBOO
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 3
Mark BIackweII has more than 20 years
of experience covering issues ranging
from science and economics to politics
and cross-border issues in Latin America
for news organizations, including the
Hearst Corporation and Capital Cities/ABC.
He specializes in information graphics.

WiIIiam Branigin served as
Southeast Asia bureau chief
of The Washington Post for
10 years, reporting from more
than a dozen countries in the
region. He was based in Bangkok from 1981
to 1986 and in Manila from 1990 to 1995.
Joe Cochrane is a former Southeast Asia
correspondent for Newsweek magazine and
bureau chief for Deutsche Presse-Agentur
in Cambodia, Indonesia, Pakistan, and
Afghanistan.

Karen Emmons is a
Bangkok-based journalist who
writes on public health and
social issues. She recently
visited remote areas in the
northern Philippines to follow a door-to-door
vaccination campaign aimed at eliminating
maternal and neonatal tetanus.
NoeI de Guzman is a Hong Kong-based
art director, who runs his own graphic
design studio. He has worked with various
international publishing and advertising
agencies, such as J.W. Thompson, Leo
Burnett Advertising, and Haymarket Media.
He is also a noted artist who has had major
solo exhibitions around Asia.

Bruce HeiIbuth has worked
as a journalist and foreign
correspondent on four
continents. He spent nearly a
decade as the editor-in-chief
of Readerҋs Digest magazineҋs Australasian
and Asian-English editions.

James Hutchison has
worked as a writer and
photographer in Asia for more
than 25 years. His work has
appeared in more than 30
international publications.
John Otis is the Colombia correspondent
for Time magazine, GlobalPost, and the
BBC/Public Radio International program
The World. He wrote Law of the Jungle,
the story of three US military contractors
kidnapped by Colombian rebels and rescued
in an elaborate sting operation, published in
February 2010 by HarperCollins Publishers.

Margo Pfeiff is a Canada-
based journalist who worked
as a special correspondent for
Readerҋs Digest for 17 years.
She is currently researching a
book on the Arctic.
FIoyd WhaIey, senior editor of Development
Asia, operates Asia Editorial Services. His
work has appeared in the International
Herald Tribune, USA Today, Los Angeles
Times, Discovery Channel Magazine, and
many other media outlets.


Dana WiIIiams has worked
as a journalist in the United
States and in the Pacifc for
more than 20 years. She has
covered economics,
international affairs, criminal justice, and
health issues.
CnntrIbutnrs Lcttcr tn thc EdItnr
Incnmc SccurItv FIrst
The focus on food securilv of lhe
recenl issue of Dctc|cpmcni Asic is
a limelv reminder on lhe urgenl
need lo refocus developmenl
efforls on agricullure and hsheries.
The kev lo food securilv is
lo make farming and hshing
prohlable. Wilh income securilv,
food securilv vill follov. Making
lhis happen vill require lhe
combined and suslained efforls of
bolh lhe privale and public seclors.
Irimarv emphasis has lo
be placed on increasing farm
produclivilv in order lo reduce
produclion unil cosls and lhus
increase margins. ßeller margins
on increased produclion oulpul
vill normallv lranslale lo higher
incomes.
Technologies and resources
needed lo increase farm
produclivilv are knovn. Il is a
queslion of making lhem accessible
and available. In addilion, lhere
are slill vasl lracks of land suilable
lo farming vhich are nol pul lo
good use due lo lack of markel
incenlives and infraslruclure
supporl.
We cerlainlv cannol ignore
lhe needs of people vho are
undernourished or go hungrv.
The lime lo help lhem oul of lheir
dislressed slale is NÒW!
Scncn C. BacanI
Agricullure Secrelarv (199O-1992),
Republic of lhe Ihilippines
Lrnsl & Young Lnlrepreneur of lhe
Year Ihilippines Avardee 2OO6
4 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O vvv.developmenl.asia
¨There is no more polenl svmbol of lhe relalive decline of Weslern hnance lhan
lhe revolulion in Chinese banking over lhe pasl decade. While American and
Luropean banks have been busv bloving up, China's have been lransformed from
communisl bureaucracies crippled bv bad debls inlo somelhing resembling vorld
bealers.¨÷1nc |ccncmisi cn 8 ju|u 2010.
¨Lven as science unravels lhe mvsleries
of life, ve're luckv lo have some mvslerv
lefl. Whal ve need lo knov, more lhan
vhal our genelic markers sav aboul our
chances, is lo exercise, buckle our seal
bells, and remember lhal no maller hov
manv vears are lefl lo us, lhe number
is hnile ÷ and never so dislanl lhal ve
should neglecl lo appreciale lodav.¨÷1nc
Ics Angc|cs 1imcs cn 10 ju|u 2010.
Wnr!d-BcatIng Banks
Buck!c Uµ
StrIvIng tn Bc Smnkc-Ircc
¨Thailand vill never achieve lhe enviable smoke-free slalus en|oved bv ßhulan,
vhich banned all lobacco sales six vears ago, bul lhe Iublic Heallh Minislrv did lake
a slep in lhal direclion lasl veek vhen il lighlened lhe rules on smoking in public
places.¨÷1nc Bcngkck Pcsi cn 10 ju|u 2010.
¨Il is hard nol lo feel lhal lhe Toronlo G2O missed ils momenl. In lhe pasl lhe
G2O aimed loo high and promised loo much. In 2O1O lhe risk is lhe reverse, lhal
il has aimed loo lov and promised loo lillle for a slill fragile and volalile global
economv.¨÷1nc Gucr!icn cn 29 junc 2010.
¨Memo lo Naolo Kan, David Cameron, Nicolas Sarkozv, Angela Merkel, ßarack
Òbama, and Hu Iinlao and Manmohan Singh: Running an economv is like riding
a bicvcle÷if vou mainlain a good speed, vou can make progress: bul if vou reduce
vour speed, lhere is alvavs lhe danger of losing vour balance, slumbling and falling
off.÷1nc jcpcn 1imcs cn 28 ju|u 2010.
OFF THE PRESS
C!nsIng thc Dnnr
nn C!Imatcgatc
¨Ierhaps nov ve can pul lhe
manufaclured conlroversv knovn as
Climalegale behind us and lurn lo lhe
lask of acluallv doing somelhing aboul
global varming.¨÷1nc Ncu Ycrk 1imcs
cn 9 ju|u 2010, rcjcrring ic criiicisms
cgcinsi inc UN pcnc| cn c|imcic cncngc.
Mnthcrs Eat Last
¨Among poor families, vhen food is limiled il is lhe vomen vho are more likelv lo
give up lheir righl hrsl so lhal olher members of lhe familv can eal. Wilhin families,
men÷especiallv falhers÷are oflen given privileged access lo food, vhile children
come second and molhers eal lasl and leasl.¨÷1nc jckcric Pcsi cn 2 |c|rucru 2010.
Mnrc EquItab!c
Trcatmcnt
¨The 'ßoaling populalion' of 2OO million
migranls vho have lefl lhe Chinese
counlrvside lo live in cilies form a
groving urban underclass and need lo
be lrealed more equilablv.¨÷1nc G|c|c
cn! Mci| cn 22 ju|u 2010.
A RavIng Succcss
¨We confounded our crilics in emphalic fashion bv delivering vhal vill surelv go
dovn in hislorv as one of lhe besl Soccer World Cup lournamenls. Almosl all of lhe
more lhan a million foolball fans vho visiled lhe counlrv over lhe pasl four veeks
have been raving aboul lhe experience.¨÷1nc 1imcs cj Scuin Ajricc cn 11 ju|u 2010.
Compiled bv Ilovd Whalev
F!awcd Mcmbcrs
¨In anv discussion of lhe shorlcomings
of lhe |Uniled Nalions], il is vilal lo
recognize lhal lhe organizalion vill
alvavs be a ßaved organizalion so
long as lhe counlries lhal make up
ils membership are ßaved.¨÷1nc
|n!cpcn!cni cn 21 ju|u 2010.
PrnmIsIng Tnn LItt!c
Just !Ikc RIdIng a BIcvc!c
Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 5
ON THE WEB
P!casc MInd
thc Gaµ
GaµmIndcr
http://www.gapminder.org/
I
l is rare vhen slalislical presenlalions can be referred
lo as mind expanding. ßul lhal is an apl, and common,
descriplion of lhe amazing presenlalions of Hans
Rosling, a professor of global heallh al Sveden's Karolinska
Inslilule vho vorks lo dispel common mvlhs aboul lhe
developing vorld.
The Gapminder vebsile (referring lo lhe gap belveen
lhe vasl amounl of dala lhal is oul lhere and lhal vhich is
readilv accessible lo lhe public) is inleresling in ilself, bul lhe
video page is lhe besl place lo gel hooked on lhis innovalive
developmenl professional. In one video, lilled Asic´s Risc,
Hcu cn! Wncn, Rosling predicls lo lhe exacl dav vhen lhe
Ieople's Republic of China and India vill have lhe same
income per person as lhe Uniled Slales. Thal lakes nerve.
The vebsile is lhe home of Trendalvzer soflvare, vhich
seeks lo ¨unveil lhe beaulv of slalislical lime series bv
converling boring numbers inlo en|ovable, animaled, and
inleraclive graphics.¨ Il achieves lhal goal, as recognized bv
Google, vhich boughl lhe righls lo lhe soflvare in March
2OO7. The foundalion, vhich developed and supporls lhe
soflvare, describes ilself as a ¨facl lank¨ lhal promoles a
facl-based vorld viev.
The vebsile is full of inleresling and surprising dala aboul
developmenl, as vell as engaging videos. Slalislical gurus
are nol oflen called funnv, fearless, or mesmerizing bul all
lhree vords describe Rosling and lhis fascinaling vebsile. Q
Takc a Dccµ Brcath
BrcathIng Earth
http://www.breathingearth.net/
F
or lhose vho don'l vorrv enough aboul climale
change, lhe ßrealhing Larlh vebsile puls il inlo
perspeclive. The beaulifullv designed sile is a graphic
illuslralion of lhe urgencv of addressing lhe changes laking
place on Larlh.
When lhe cursor scrolls over a counlrv, il gives lhe
populalion, dealh, and birlh rales: and carbon dioxide (CÒ
2
)
emission rales and hov much CÒ
2
has been emilled since
vou opened lhe vebsile. The same hgures are shovn for
lhe enlire Larlh. Sources ciled for lhe dala are lhe C|A Wcr|!
|cci|cck and lhe Uniled Nalions Slalislics Division.
The vebsile varns: ¨Allhough lhe CÒ
2
emission, birlh
rale, and dealh rale dala used in ßrealhing Larlh come
from repulable sources, dala lhal measures lhings on such
a massive scale can never be 1OO/ accurale. Ilease nole
hovever lhal lhe CÒ
2
emission levels shovn here are much
more likelv lo be loo lov lhan lhev are lo be loo high.¨
ßul dala analvsis is nol reallv lhe poinl of lhe vebsile. Ils
main impacl is hov dramalicallv il illuslrales lhe changes
laking place on Larlh and lhe faclors involved. More people
are being born everv minule lhan are dving in nearlv
everv counlrv in lhe vorld. CÒ
2
is being pumped inlo lhe
almosphere al an alarming rale.
The overvhelming urge vhen looking al lhis vebsile is
lo gel avav from il in order lo slop seeing lhe calaslrophic
numbers spinning avav. ßul, of course, lhal doesn'l help.
When vou leave lhe sile, lhe emissions don'l slop. Q
vvv.developmenl.asia
Researched and vrillen bv Ilovd Whalev
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6 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
Mcgawatt WnrrIcs
The widening gap between energy supp|y and demand
in Asia and the Pacific cou|d put the brakes
on the region's economic prosperity
ßY Dana Williams
ENERGY SECURITY: THE BIG READ
vvv.developmenl.asia
Vasl slrelches of lhe Asia÷Iacihc
region remain underpovered or,
vorse slill, vilh no eleclricilv al all.
Mosl of lhe vorld's approximalelv 1.5
billion people vho do nol have access
lo eleclricilv live in developing Asia,
according lo lhe Inlernalional Lnergv
Agencv. In Cambodia and Timor-Lesle,
for example, 3 oul of 4 people do nol
have eleclricilv, and in Afghanislan and
Mvanmar, lhe silualion is even vorse
vilh eleclrihcalion rales of onlv 14.4/
and 13/.
¨Smaller counlries lhal have limiled
resources, lhev are reallv in a difhcull
condilion in lodav's vorld,¨ savs Kang
Wu, a senior fellov in economics al
lhe Honolulu-based Lasl-Wesl Cenler.
¨Irices have gone up. Ior counlries
like Sri Lanka, Iakislan, Nepal, lhe
Ihilippines, lhev have lo pav for
expensive energv imporls, and lhev
have no monev: so living condilions
gel vorse.¨
Imporls of fossil fuels are expecled
lo more lhan double from 2OO5 lo
2O3O, according lo lhe 2OO9 reporl
|ncrgu Oui|cck jcr Asic cn! inc Pccihc,
published bv lhe Asian Developmenl
ßank (ADß). Iover planls and
induslrv vill drive up demand for
coal, vhile lhe expansion of cilies and
suburbs vill mean more oil burned for
lransporl.
As developing Asia slruggles lo
provide more energv for ils people in
a vav lhal foslers developmenl, lhe
region faces lhe mounling challenge
of conlrolling carbon dioxide (CÒ
2
)
emissions. Unforlunalelv, more cars,
faclories, households, and pover planls
vill lead lo higher concenlralions of
greenhouse gases.
DEMAND FOR ELECTRICITY
Rapid grovlh÷economic,
demographic, urban, and induslrial÷
is pushing lhe demand for energv in
Asia and lhe Iacihc. Coal, currenllv
lhe primarv fuel for pover planls,
vill make up lhe largesl segmenl
of lhe energv mix bv 2O3O al 38.3/,
according lo |ncrgu Oui|cck. Òil vill
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 7
T
he price of energv affecls
nearlv evervlhing, especiallv
developmenl.
¨Access lo energv and lhe services il
can provide has alloved us lo do lhings
more quicklv. Il has led lo massive
increases in produclivilv. If for some
reason lhere's an inabililv lo conlinue
lo expand generalion capabililies,
il vill choke developmenl,¨ noles
Kennelh Medlock, a fellov in energv
and resource economics al Rice
Universilv in Texas.
More people, fasl-groving cilies, and
exploding induslrv have crealed an
escalaling demand for energv across
Asia and lhe Iacihc, a demand lhal
oulslrips supplv bv more everv vear,
despile efforls lo boosl generalion in
manv counlries. This energv shorlfall
forces counlries lo relv on more
expensive imporls and÷coupled vilh
limiled access lo eleclricilv÷represenls
lhe lop lhreal lo energv securilv in Asia
and lhe Iacihc, according lo analvsls.
As lhe shorlfall grovs belveen
Asia's seeminglv insaliable energv
needs and ils generalion abililv,
analvsls sav prices mav rise so much
lhal lhev lamp dovn grovlh prospecls.
¨Thal's vhere vou see lhe effecl on
lhe |overall] economv,¨ explains
David Iumphrev, depulv direclor
of lhe Lnergv and Nalional Securilv
Irogram al lhe Cenler for Slralegic and
Inlernalional Sludies in Washinglon,
D.C.
Lnergv securilv÷ensuring lhal an
area has adequale, affordable, and
suslainable sources of energv÷goes
bevond simple supplv and demand
formulas. Like food, energv securilv
calculalions involve a complex mix
of variables: infraslruclure, polilical
slabililv, polilical and economic
cooperalion, lechnologv. lhe lisl goes
on. Governmenls have lo hgure oul
nol onlv vhere, hov and vhal kind of
pover planls and pipelines lo build,
bul also hov lo mainlain and prolecl
lhem from lerrorism, accidenls, and
nalural disaslers.
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COST OF DEVELOPMENT A coaI-ñred
power pIant in Tianjin in the PeopIeҋs
RepubIic of China (PRC) emits smoke
and steam. As deveIoping Asia struggIes
to provide more energy for its peopIe
in a way that fosters deveIopment, the
region faces the mounting chaIIenge of
controIIing carbon dioxide emissions.
8 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
ENERGY SECURITY: THE BIG READ
vvv.developmenl.asia
on lhe economv as faclories fail lo meel
quolas, businesses close, refrigeraled
goods spoil, elc. Òulages can also
creale civil unresl, crime spikes, and
even polilical inslabililv. In shorl,
an erralic eleclrical service creales
condilions lhal sap currenl inveslors
and frighlen fulure inveslmenl,
including inveslmenl in pover
infraslruclure.
¨If foreigners are going lo come in
and invesl in vour counlrv in pover
generalion, lhev are looking al lhe
safelv of lhe inveslmenl of 25 vears or
so,¨ savs Tervav. Iolilical problems
and ever-changing policies are red
ßags, and governmenls are nol alvavs
able lo make long-lerm commilmenls.
¨Thal does nol give comforl lo bankers
lo make nev inveslmenls in lhe
region.¨
Nepal's experience illuslrales
lhis poinl. Wilh ils vasl nelvork of
poverful valervavs, lhe counlrv
could meel ils enlire demand for
eleclricilv lhrough hvdropover,
and provide a surplus for exporl lo
India, according lo |ncrgu Oui|cck.
In 1992, lhe governmenl approved
legislalion offering generous incenlives
for privale companies lo invesl in
hvdropover.
ßul inlernal conßicls and
inconsislenl policies discouraged
inveslmenl, as Minisler of Lnergv
Irakash Sharan Mahal explains in lhe
2OO9 reporl of lhe Nepal Lleclricilv
Aulhorilv (NLA). ¨There vas an
make up 27/ of lhe lolal primarv
energv demand, and nalural gas vill
comprise 14.5/. Nev and renevable
energv sources vill accounl for 11.2/,
vilh nuclear making up 7.1/ and
hvdropover 2/.
While coal is abundanl in some parls
of Asia and lhe Iacihc, exploralion
and lechnological developmenl have
sloved in recenl vears, according
lo Anil Tervav, senior advisor and
praclice leader for energv in ADß's
Regional and Suslainable Developmenl
Deparlmenl. Lillle has been invesled
in lhe search for nev resources or
vavs lo make coal exlraclion more
efhcienl. In some cases, counlries are
reluclanl lo allov privale companies
lo do exploralion because of nalional
securilv concerns. In olher cases, high
sulfur conlenl renders coal reserves
unsuilable for use.
Lven vilh an adequale and
affordable supplv of fuel, frequenl
pover oulages are a vav of life in
much of developing Asia. Disruplions
in eleclricilv supplv can vreak havoc
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BIG APPETITE FOR ENERGY (ABOVE)
Dusk descends on Dharavi, one of
Asiaҋs biggest sIums, in Mumbai, India.
More peopIe, fast-growing cities, and
expIoding industry have created an
escaIating demand for energy across
Asia and the Paciñc.
LOSING PATIENCE (RIGHT) Protestors
brandish huorescent and hurricane
Iamps in Kathmandu in 2008. The
state-run NepaI EIectricity Authority
imposed daiIy power cuts in the country
due to Iow water IeveIs and a damaged
transmission Iine.
In Nepal, despile ils vasl
hvdroeleclric polenlial, dangerous and
inefhcienl lradilional fuels accounled
for 86.8/ of lolal energv demand in
2OO6, according lo |ncrgu Oui|cck.
Nepal's hvdro voes have been
repealed in ßhulan, Mvanmar, and
Sri Lanka÷all of vhich have onlv
developed a small fraclion of lheir
polenlial because of hnancial and
lechnological conslrainls. In all cases,
plans have been slvmied bv lhe lack
of infraslruclure lo move pover from
generalion cenlers lo cilies, as vell as
vorries lhal dams can reduce valer
availabililv dovnriver and cause olher
environmenlal problems.
Difhcullies nolvilhslanding,
hvdropover generaled 14/ of
eleclricilv in Asia and lhe Iacihc in
2OO7, vilh lhe Ieople's Republic of
China (IRC) and India accounling for
78/ of lhe lolal, according lo ADß's
reporl on energv securilv in Asia.
BYPRODUCTS OF PROSPERITY:
CARBON EMISSIONS
Iover planls, faclories, and molorized
vehicles pump oul CÒ
2
, conlribuling
lo global climale change. While
lhe developed vorld can focus on
reducing carbon emissions, developing
nalions have lo balance lhe need
for grovlh vilh lhe developmenl of
environmenlallv sound energv sources.
¨Cerlainlv in developing counlries,
cheap energv is more imporlanl
lhan clean energv in a lol of cases,¨
savs Medlock of Rice Universilv. As
economies grov and living condilions
improve, he noles, environmenlal
issues become more imporlanl. Unlil
lhen, ¨people are nol as concerned
aboul CÒ
2
or SÒ
2
|sulfur dioxide] or
NÒx |nilrogen oxide]. Thev're more
concerned aboul housing, clolhing, and
food.¨
Unforlunalelv, lhe mosl convenienl
and mosl affordable sources of
energv÷coal and oil÷are also ma|or
sources of carbon emissions. Asia's
conlribulion lo vorldvide CÒ
2

vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 9
inilial surge in lhe developmenl of
hvdropover bv lhe privale seclor bul
lhe momenlum vas shorl-lived. In
successive vears, despile governmenl's
plan lo bring in more privale
inveslmenl in lhis seclor, nol much
|has] happened,¨ he vriles. ¨|An]
unslable polilical climale |and a] poor
securilv silualion are bul a fev reasons
oflen ciled for lhe lack of adequale
privale parlicipalion in lhis seclor.¨
While pover generalion pro|ecls
languished, demand conlinued lo rise,
prompling lhe governmenl lo declare
a nalional eleclricilv crisis in lale 2OO8.
Lov valer levels and a damaged
lransmission line caused pover
oulages lasling up lo 16 hours a dav,
crealing even more public oulcrv, NLA
Managing Direclor Iivendra Iha slales
in lhe annual reporl.
¨Conlingencies caused bv nalure are
bevond conlrol of NLA,¨ Iha vriles.
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¨ßul ve had lo absorb mounling
dissalisfaclion of consumers expressed
as lockups, agilalions, phvsical assaull
on our emplovees, and damage lo NLA
properlv al manv places.¨
ßv 2OO8, despile vears of ambilious
plans for hvdropover planls, less lhan
half of lhe populalion in Nepal had anv
access lo eleclricilv.
In areas lhal lack service, residenls
use lradilional fuels such as hrevood,
crop residues, and animal manure for
healing and cooking. These malerials
are inefhcienl fuel sources and
problemalic on manv levels. When
burned, lhev release loxins, vhich are
blamed for more lhan 1.6 million dealhs
a vear vorldvide, mosllv among poor
vomen and children, according lo a
2OO5 Uniled Nalions reporl. Chopping
dovn lrees for fuel is also leading lo
¨unconlrolled¨ deforeslalion, Tervav
savs. ¨Thal has lo be slopped.¨
emissions is expecled lo climb lo 43/
in 2O3O from 3O/ in 2OO6, according lo
lhe ADß reporl C|ccn |ncrgu in |ccus.
The Copenhagen Accord noles lhal
¨social and economic developmenl
and poverlv eradicalion are lhe hrsl
and overriding priorilies of developing
counlries.¨ Hovever, il also slales
lhal ¨a lov-emission developmenl
slralegv is indispensable lo suslainable
developmenl.¨
Residenls in lhe Asia÷Iacihc
region have a lol lo lose if sleps are
nol laken lo conlrol emissions. Wilh
denselv populaled coaslal areas, high
poverlv levels, and a heavv reliance
on agricullure, lhe region is especiallv
vulnerable lo droughls, ßoods, and
increased cvclone aclivilv. There are
signs lhal climale change is alreadv
affecling Soulheasl Asia, vilh higher
lemperalures, lover rainfall, rising sea
levels, and slronger and more frequenl
slorms, according lo a 2OO9 ADß reporl,
|ccncmics cj C|imcic Cncngc in Scuinccsi
Asic. Iroperlv deslruclion, disease,
and crop loss can have devaslaling
effecls on communilies and nalional
economies.
CLEAN, SECURE, EXPENSIVE
SOLUTIONS
While coal and oil slill pover lhe
region in large measure, advocales
of renevable energv are nol merelv
lilling al vindmills. Some counlries are
increasinglv lapping ¨green¨ sources
in an efforl lo increase lheir energv
securilv bv reducing lheir reliance on
fossil fuels vhile also laking lhe chance
lo diversifv.
¨You're seeing a reallv signihcanl
inveslmenl lhal China is making.
Thev had lhe slrongesl grovlh of
anv counlrv in lhe vorld in lhe vind
induslrv,¨ savs David Iumphrev, a
senior fellov of lhe Cenler for Slralegic
and Inlernalional Sludies and depulv
direclor of ils Lnergv and Nalional
Securilv Irogram. ¨Il's lo diversifv
lheir energv mix so lhev aren'l
dependenl on |usl one fuel.¨
1O Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
ENERGY SECURITY: THE BIG READ
vvv.developmenl.asia
Worldvide, vind pover is a
groving induslrv allracling increased
allenlion in Asia. Hovever, pro|ecls are
harder lo fund because vind pover
requires subslanlial capilal inveslmenl,
especiallv for lhe lurbines, vhich can
accounl for up lo 8O/ of inslallalion
cosls. Òffshore vind planls are even
more expensive, allhough beller vind
condilions also resull in higher oulpul
for lhese inslallalions. The lechnologv
is slill relalivelv nev, vilh onlv a
handful of counlries having planls, so
cosls vill likelv drop if and vhen il
becomes more popular.
Tidal pover, vhich converls lhe
energv of lhe lidal ßovs inlo eleclricilv,
is anolher energv source lhal some
analvsls expecl lo see developed more
in lhe nexl 1O lo 15 vears, especiallv
among island nalions. The Òcean
Lnergv Council noles lhal lides are
prediclable and don'l ßucluale like
rivers or vinds, making lheir energv
oulpul more reliable. Hovever, as vilh
manv olher renevable energv sources,
slarl-up cosls remain prohibilivelv
high, especiallv for cash-slrapped
governmenls.
Solar pover is anolher oplion lhal
is expensive and difhcull lo mainlain,
As|a s£oergyN|x
East Asia and South Asia depend
heavily on coal while other areas in the
region draw on oil and gas reserves.
Pe|centage of o||ma|v ene|gv demand
fµ|f|||ed |n 2006 and o|o|ected fo| 2030,
oased on fµe| tvoe.
Note: Totals may not add up because of rounding
* Nat. gas = Natural gas; Other includes renewables,
geothermal, solar, wind, and electricity export/import
Source: Ene|gv Oµt|oo| fo| As|a and t|e Pac|f|c, October 2009
(Asian Development Bank)
RESEARCH AND DESlGN:4(92)3(*2>,33
2006
2030
O||
76
Nat.
gas
9
Other
11
O||
47
Natura| gas
41
Other
9
The Pacific
Hydro 5
Hydro 3
2006
2030
Ooa|
16
O||
21
Natura| gas
47
Other
12
Ooa|
15
O||
22
Natura| gas
50
Other
9
CentraI and West Asia
Hydro 3
Hydro 4
Nuc|ear 1
Nuc|ear 1
2006
2030
Ooa|
64
O||
24
Nat.
gas
4
Other
11
Ooa|
50
O||
23
Nat.
gas
9
Other
8
East Asia
Hydro 2
Hydro 2
Nuc|ear 3
Nuc|ear 8
2006
2030
Ooa|
37
O||
24
Nat.
gas
7
Other
30
Ooa|
37
O||
27
Nat.
gas
11
Other
20
South Asia
Hydro 2
Hydro 2
Nuc|ear 1
Nuc|ear 5
Ooa|
46
O||
25
Nat.
gas*
10
Other*
16
Ooa|
40
O||
26
Nat.
gas
14
Other
12
2006
2030
Hydro 2
Hydro 2
Nuc|ear 2
Nuc|ear 6
DeveIoping Member Countries
2006
2030
Asia and the Pacific
Ooa|
43
O||
27
Nat.
gas
11
Other
14
Hydro 2
Nuc|ear 4
Ooa|
38
O||
27
Nat.
gas
15
Other
11
Hydro 2
Nuc|ear 7
"ReneuabIe energµ has
a greaI fuIure. The nosI
dlfflcuII µarI ls µou
hate hlgh olI µrlces.
buI noI hlgh enough
Io sµend on reneuabIe
energµ...The IargeI
seens Io be µronlslng.
buI Ihe µrocess can be
dlfflcuII"
—Kang Wu, a senior fellow in
economics at East-West Center in
Honolulu

ßiomass÷organic malerial produced
or galhered for energv use÷can
be converled lo biofuels, biogases,
and biochemicals, vhich are lhen
used lo drive pover planls or lo fuel
vehicles. Somelimes, crops are grovn
specihcallv for conversion lo energv.
Grains and sugarcane can be used lo
make elhanol: sovbean oil and palm oil
can be converled inlo biodiesel.
Iood securilv concerns collide
vilh lhe concepl of using agricullural
land lo produce fuel, ADß's Tervav
explains, and inslilulional coordinalion
lo resolve lhis conßicl is oflen lacking:
one minislrv handles agricullure:
anolher handles energv: and ofhcials
and agencies oflen have lrouble
vorking logelher.
Iood÷fuel conßicls can be avoided
bv using agricullural and foreslrv
vasle as a source of energv. Rice
husks and olher vasles lhal vould
ordinarilv be burned in lhe held can
be used as fuel. Iiggeries, halcheries,
and dairies provide anolher polenlial
fuel source. ¨You gel a lol of cov dung
and droppings lhal can be converled lo
biogas,¨ Tervav savs.
Some of lhese melhods are alreadv
being used lo produce energv in
limiled capacilv in lhe region. In
parls of Indonesia, biomass has been
used lo generale eleclricilv, and in
Thailand, gasohol has been made from
bul mav prove allraclive for remole
communilies across Asia and lhe
Iacihc as lhe cosl of lhe lechnologv
decreases. Solar pover can provide
heal, be converled lo eleclricilv
lhrough pholovollaic cells, and be
used lo produce various fuels. Solar
home svslems, vhich slore pover
generaled during lhe dav in balleries
for use laler, mav prove ideal in
communilies lhal are nol connecled lo
a pover grid.
BIOFUELS TO GEOTHERMAL
ßevond lhe sun, vind, and vaves,
some Asian counlries are exploring
allernalive energv sources ranging
from converling organic maller inlo
biofuels lo lapping lhe Larlh's crusl lo
exploil geolhermal energv.
COMMON FIXTURES SoIar energy
water heaters are instaIIed on the roof
of apartments in Zhejiang province in
the PRC.
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 11
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12 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
ENERGY SECURITY: THE BIG READ
vvv.developmenl.asia
Indonesia, Iapan, Nev Zealand, Iapua
Nev Guinea, lhe Ihilippines, and some
Iacihc Island nalions. Lxpenses for
geolhermal energv include drilling÷
vhich makes up aboul a lhird lo a half
of pro|ecl cosls÷and exploralion and
conslruclion. Geolhermal heal provides
a sleadv and reliable energv slream,
bul il is dependenl on lhe qualilv of lhe
resources.
Wu, of lhe Lasl-Wesl Cenler, savs
renevable energv vill likelv be more
allraclive lo inveslors in lhe fulure,
vhen demand for limiled fossil fuels
drives prices up.
¨Ior lhe long lerm, renevable energv
has a greal fulure,¨ he savs. ¨The
mosl difhcull parl is vou have high oil
prices, bul nol high enough lo spend
on renevable energv. Il's al a difhcull
slage nov. I lhink lhal vou have lo
lake small sleps. The largel seems lo
be promising, bul lhe process can be
difhcull.¨
CONNECTING GRIDS
In lheorv, lhe regional energv securilv
oullook should be more promising
lhan il is for individual counlries.
ßv building pipelines and olher
conneclions and lrading resources,
nalions vilhin lhe region could
have a beller chance of diversifving
fuels, vhich vould make lhem less
vulnerable lo supplv disruplions.
¨Iolilical barriers nolvilhslanding,
if vou increase inlerconneclivilv in a
pover grid, vou increase lhe polenlial
for consumers lo receive a supplv,¨
savs Medlock, of Rice Universilv. ¨If
vou can connecl lo lhe grid and lie
mulliple sources of generalion logelher
. lhen vou have oplions.¨
Hovever, he adds lhal such
cooperalion is unlikelv lo happen on a
large scale in lhe near fulure.
¨Inlerconneclivilv is one of lhe besl
vavs lo make sure lhe grid is reliable,
and lhal consumers can access manv
differenl lvpes of generalion. The
lrouble is lhal lransmission lines are
expensive, and vhen lhev lraverse
borders÷be lhev inlernalional or
local municipalilies÷conslruclion
faces polilical conslrainls,¨ Medlock
explains. ¨This lends lo raise cosls
and can render some generalion
oplions÷lhal mav be localed far avav
from ma|or populalion cenlers÷less
effeclive. The poinl is cosl mallers.¨
¨The currenl polilical climales
are nol reallv conducive lo lhese
barriers falling. If ve gel 1O or 15
vears dovn lhe road and ve see lhese
massive shorlages emerge, vou'll see
negolialing lines change,¨ he savs.
¨Righl nov ve're nol lhere.¨
Iumphrev, of lhe Cenler for Slralegic
and Inlernalional Sludies, noled lhal
in manv cases lhe crealion of regional
energv conneclions vould require
cosllv infraslruclure inveslmenls in
polilicallv sensilive areas. ¨You have lo
build lhe level of lrusl vhen vou build
a pipeline lhal connecls lvo parlies,¨
he savs.
Analvsls poinl lo lhe Turkmenislan÷
IRC nalural gas pipeline as a
nolevorlhv accomplishmenl. The
pipeline expands Cenlral Asia's reach
lo energv cuslomers in lhe easl, and
provides lhe IRC vilh a grealer supplv
of nalural gas.
¨Thal vill be a realilv lhal benehls
bolh China and Turkmenislan in lhe
long run,¨ Iumphrev savs.
Zha Dao|iong, professor of
inlernalional sludies al Ieking
Universilv in ßei|ing, savs lhe pipeline
has an added benehl for neighboring
counlries. The line vill serve inland,
veslern, and cenlral regions of lhe
IRC and ¨lhe supplv of nalural gas
vill replace coal consumplion,¨ Zha
savs. ¨This has an impacl on Iapan and
Korea, because air pollulanls migrale
lo lhose regions.¨
There are olher regional conneclions
and inler-counlrv pro|ecls in place.
The Associalion of Soulheasl Asian
Nalions (ASLAN) agreed in 1997 lo
develop lhe ASLAN Iover Grid lo
encourage conneclions belveen 15
pro|ecls bv 2O2O. The hrsl phase calls
agricullural crops. Also in Thailand,
vasle÷lo÷energv is being used on a
commercial scale lo provide energv
lo pig farms, according lo ADß's
|ccncmics cj C|imcic Cncngc in Scuinccsi
Asic. Allhough lhe lechnologv alreadv
exisls, lhe cosl of producing pover
from agricullural sources is slill
high. Incenlives vould be needed lo
encourage commercial pro|ecls, as is
alreadv lhe case in some counlries in
lhe region, and a sleadv and abundanl
supplv of eilher crops or vasle vould
have lo be ensured.
Òlher energv sources alreadv in use
in Asia and lhe Iacihc are nuclear and
geolhermal. Nuclear energv provides
aboul 4/ of lhe region's eleclricilv, and
il is expecled lo be lhe faslesl groving
energv source from 2OO5 lo 2O3O,
mosllv because of increased capacilv in
lhe IRC.
The use of nuclear energv is nol
vilhoul concerns, and chief among
lhem is safelv. In lhe Ihilippines,
conslruclion of lhe ßalaan nuclear
pover planl began in 1976 and vas
compleled in 1984. ßul afler accidenls
al Three Mile Island in lhe Uniled
Slales and Chernobvl in Ukraine, lhe
planl vas never made operalional. In
2OO8, lhe Inlernalional Alomic Lnergv
Associalion conducled a sludv al lhe
requesl of lhe Ihilippine governmenl
lo look al recommissioning lhe planl.

Since lhen, lhe Korea Lleclric Iover
Corporalion conducled anolher sludv
and eslimaled il could cosl up lo
$1 billion lo rehabililale lhe facililv.
Allhough Luzon is expecled lo face
pover shorlages in lhe near fulure, and
nuclear energv is relalivelv inexpensive,
lhere is some communilv opposilion lo
lhe planl based on safelv grounds.
The Ihilippines is one of lhe vorld's
largesl consumers of geolhermal energv,
vhich uses heal from lhe earlh as an
energv source. Large-scale produclion
of geolhermal energv is reslricled lo
areas vilh leclonic aclivilv such as
volcanoes, gevsers, and hol springs. In
lhe Asia÷Iacihc region, lhis includes
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 13
connecl lhe Lao Ieople's Democralic
Republic (Lao IDR) and Thailand, lhe
Lao IDR and Viel Nam, Indonesia
and Malavsia, Malavsia and lhe
Ihilippines, ßrunei Darussalam and
Malavsia, and Mvanmar and Thailand,
according lo an ASLAN reporl on
energv cooperalion. A regional gas
grid, knovn as lhe Trans-ASLAN Gas
Iipeline, is also planned.
Lnergv agreemenls belveen ßhulan
and India have long been muluallv
benehcial. India has helped ßhulan
for conneclions belveen counlries,
lhen expanding lo a subregional
basis, and hnallv linking lhe enlire
Soulheasl Asia pover grid. The pro|ecls
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POWER TIES Turkmenistan President
GurbanguIy Berdymukhamedov
(RIGHT) attends the opening ceremony
in December 2009 at a reñnery in
Samandepe in the Karakum Desert, where
PRC President Hu Jintao inaugurated
a pipeIine to transport naturaI gas from
Turkmenistan to the PRC.
develop hvdropover, and ßhulan
exporls much of lhe pover il generales
lo India. India benehls because some
of ils pover needs are mel bv ßhulan,
and revenue from pover sales have
helped ßhulan develop. In 2OO6, lhe
counlries agreed lo expand lheir
cooperalion.
ADß eslimales lhal belveen $7
lrillion and $9.7 lrillion in inveslmenls
vill need lo be made bv 2O3O lo
supporl lhe region's groving energv
requiremenls. In addilion lo planl
conslruclion cosls and fuel cosls, cross-
border conneclions need lo be buill,
secured, and mainlained.
SEIZING OPPORTUNITIES
As lhe need for energv increases across
Asia, nalions vill explore differenl
solulions lo close lhe gap belveen
supplv and demand.
¨Looking al lhe energv piclure for
lhe region, il's a lillle hard lo make
Asia-specihc dehnilions and slalemenls
because lhere's lremendous variabililv
belveen lhe counlries,¨ Iumphrev
savs. Larger and veallhier counlries
vill likelv lrv lo offsel lhe expense of
increased imporls bv improving lheir
energv efhciencv. ßul counlries lhal are
slill slruggling lo provide energv access
lo lheir residenls von'l have as manv
oplions.
Rice Universilv's Medlock believes
lhal despile lhe gloomv oullook
among some analvsls, il is unlikelv
lhe gap belveen energv supplv and
demand vill lhrealen Asia's grovlh,
because lhe markels vill nalurallv
ad|usl.
¨Imbalances don'l |usl happen
upon us,¨ he savs. ¨We see lhem
coming. If demand grovs, prices rise,
people vill invesl in nev capabililies.
Il's imporlanl lo be able lo see lhose
signals so vou can see opporlunilies, lo
look 2O or 3O vears oul and sav demand
exceeds supplv.¨
He adds oplimislicallv: ¨If il creales
opporlunilies lhal can be seized upon,
lhen lhev vill be seized upon.¨ Q
14 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O vvv.developmenl.asia
ENERGY SECURITY: THE BIG PICTURE
Night lights
across Asia
NASA composite image
£|ectr|I|cat|oo8ateaod60P
The percentage of population with access
to electricity correlates with GDP per
capita, but some nations buck the trend.
2005 figures
E
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0
0
500
100%
80
60
40
20
1,000 1,500 2,000 2,500 3,000
GDP per capita
(US$, constant 2000 prices)
Ma|d|ves
Tha||and PRO
Ph|||pp|nes v|et Nam
Sr| |anka
Mongo||a
lnd|a
Pak|stan
lndones|a
|ao PDR
Bhutan
Bang|adesh
Nepa|
Oambod|a
Myanmar
Afghan|stan
99 100
99
P
R
C
100 100
99
B
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i

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a
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s
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99
100
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99 100
9c
M
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86
97
55
P
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100 100
100
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99
100
99
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Total U|oa| |µ|a|
Accessto£|ectr|c|ty
Percentage of population with access to electricity in 2008
|mport|og£oergy
Dependency on imported energy is a great factor in energy security. The more reliant an
economy is on energy imports, the more vulnerable it is to instabilities in world markets
and politics. The Asia and Pacific region is a net importer of energy, and of its subregions,
only Central and West Asia exports more energy than it uses, albeit by a small fraction.
IMPORT DEPENDENCY
The higher the percentage, the more imports exceed exports.
2006 figures
Asia and
the Pacific
16%
CentraI and
West Asia
-0.5%
East Asia
21%
South Asia 23%
Pacific 262%
Strategies for reducing
dependency
Better utilization of
current resources
Improving and extending
infrastructure to foster
intraregional trade
Cooperative strategies
within the region
Developing new
energy sources
SOURCES: http://www.worldenergyoutlook.org/database_electricity/electricity_access_database.htm ; Improving Energy Security and Reducing Carbon Intensity in Asia and the Pacific (Asia Development Bank); Ene
Note: Figures rounded to nearest percent. Totals may not add up because of rounding. GDP = Gross Domestic Product Lao PDR = Lao Peoples Democratic Republic PRC = Peoples Republic of China
1 2 3 4
£oergy$ec0r|ty
Ava||ab|e
where needed
at all times
AIIordab|e
to all who
need it
$0|tab|e
for a wide range
of uses
$aIe
for people and
the environment
4

F
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s
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 15
Diversifying energy sources, better harnessing of resources, and improving access to energy are key concerns.
0ha||eogesaodPoteot|a|
Central and West Asia
Oil, gas reserves, and uranium
deposits exceed domestic needs.
Nepal
Undependable power supply hinders
development. Tapping hydropower
resources could make the nation a
net energy exporter.
India
Domestic energy
supply is growing,
but not as fast
as demand.
Singapore
Diversification of
supply needed.
South and Southeast Asia
Use of fuels such as wood or
manure for fires is labor-intensive
and poses health and
environmental dangers.
Brunei Darussalam
Oil-rich, but economy
overly dependent on
energy sector.
Indonesia
lncreased energy investment
would reduce gap in
ruralurban electrification.
The Pacific
Wind, tidal,
and geothermal
resources offer
great potential.
Philippines
More power-
generating
capacity
needed.
Viet Nam
Extensive access
to electricity, but
better generating
capacity needed
to reduce
dependency on
imports.
People’s Republic of China
Transportation growth will drive demand
for oil, increasing dependence on
imports. Coal is plentiful, but carries
heavy environmental concerns.
65
91
32
I
n
d
o
n
e
s
i
a
67
90
35
M
o
n
g
o
I
i
a
65
93
53
I
n
d
i
a
7
c5
75
24
55
13
C
a
m
b
o
d
i
a
22
52
11
T
i
m
o
r
-
L
e
s
t
e
13
19
10
M
y
a
n
m
a
r
55
c1
12
L
a
o

P
D
R
14
22
12
A
f
g
h
a
n
i
s
t
a
n
41
75
2c
B
a
n
g
I
a
d
e
s
h
44
90
31
N
e
p
a
I
58
7c
15
P
a
k
i
s
t
a
n
Energy Statistics in Asia and the Pacific (19902006) (Asia Development Bank); World Energy Outlook 2009 (lnternational Energy Agency)
RESEARCH: MARK BLACKWELL, DANA WILLIAMS DESlGN: MARK BLACKWELL
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16 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O vvv.developmenl.asia
W
hen Gloria Macapagal
Arrovo became
presidenl of lhe
Ihilippines in Ianuarv
2OO1, she searched for dvnamic voung
Iilipinos vilh successful inlernalional
careers vho could bring lhal experlise
home lo serve lheir counlrv. Vincenl
Ierez vas one of lhose she found.
An MßA graduale of lhe
Wharlon School al lhe Universilv of
Iennsvlvania, Ierez al lhe lime had
amassed 17 vears of experience in lhe
vorld of inlernalional banking and
hnance. His background included
rough-and-lumble experiences vilh
Lalin American credil and debl
reslrucluring during lhe currencv crisis
in lhal region and laler dealing in debl
lrading, capilal markels, and privale
equilv in emerging counlries from
London, Nev York, and Singapore.
Al 35, Ierez vas lhe hrsl general
parlner of Asian descenl al lhe Nev
York inveslmenl bank Lazard Iròres,
serving as head of ils Lmerging
Markels Group. He relurned lo Asia lo
serve as managing direclor of Lazard
Asia in Singapore from 1995 lo 1997,
and he laler founded lhe Singapore-
based privale equilv hrm Nexl Cenlurv
Iarlners, vhich invesled in high-prohle
companies in lhe Ihilippines.
Ierez vas a rising slar in lhe vorld
of inlernalional hnance al a voung age,
bul he harbored misgivings aboul his
chosen career palh. ¨There vas a sense
lhal I had |oined lhe ral race and had
climbed lo lhe lop. Whal did lhal make
me` The biggesl ral`¨ savs Ierez, onlv
TaI!wInds

In an exc|usive interview, former Phi|ippines Energy Secretary
Vincent Perez discusses the impact of energy po|icy on poverty
and the cha||enges for a green energy revo|ution in Asia
ßY Ilovd Whalev
£h£86Y$£008|TY:Th£8|6V0|0£
half in |esl. Though he vas al lhe lop
of his game in lerms of hnance, he savs
lhe achievemenls vere becoming less
salisfving. ¨Afler a ma|or deal, I fell ve
had |usl made several million dollars
bul nolhing else had changed.¨
When Iresidenl Arrovo called
Ierez in 2OO1 and asked him lo serve
in her cabinel, he envisioned a cushv
ambassador's posl. ¨I had images
of being driven bv a chauffeur lo
cocklail parlies,¨ he savs vilh a grin.
ßul Arrovo had a more subslanlive
posl in mind, hrsl inslalling him in
lhe Ihilippines' Deparlmenl of Trade
and Induslrv and laler, in Iune 2OO1,
appoinling him lhe voungesl energv
minisler in lhe counlrv's hislorv.
Coming from lhe vorld of
inlernalional hnance, Ierez did nol
make a comforlable landing in lhe
public seclor. The energv secrelarv's
porlfolio vas riddled vilh crises. The
var in Iraq vas raging, quadrupling lhe
price of oil for lhe imporl-dependenl
Ihilippines, vhile pover shorlages
anlagonized a public alreadv agilaled
aboul lhe slale of lhe counlrv's energv
supplv. ¨Had I knovn vhal I vas
gelling inlo I vould have resisled lhe
energv posl. ßul somelimes, ignorance
is bliss. I said, okav if lhal's vhal lhe
presidenl vanls, I'll see vhal I can do.¨
Ierez served as energv secrelarv
from 2OO1 lo 2OO5 and eslablished a
repulalion as a champion of clean,
renevable energv. Since leaving public
ofhce, Ierez has been serving as chief
execulive ofhcer of lhe renevable
energv companv Allenergv Iarlners.
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He is also an inveslor in NorlhWind
Iover, lhe hrsl commercial vind
farm in Soulheasl Asia. In addilion,
he is chairman of lhe environmenlal
organizalion WWI-Ihilippines. Al his
ofhce in Manila, Ierez sal dovn vilh
Dctc|cpmcni Asic senior edilor Ilovd
Whalev lo discuss lhe challenges of life
in lhe public seclor and lhe hopes for a
renevable energv revolulion in Asia.
DA: How wouId you compare working in
the private sector to government service?
VP: In lhe privale seclor, ve are
focused on resulls. Did ve hil our
nel income largel` Did ve make our
budgel` In governmenl, il's nol |usl
aboul resulls. Lquallv imporlanl is lhe
process. Did ve consull evervone` Did
ve engage all lhe slakeholders` Did
ve communicale lhe pros and cons`
Whv vas lhis public policv pursued`
Hov does il benehl lhe consumer`
Hov does il benehl lhe slale` Òflen,
lhere are verv sharp people vho have
done vell in lhe privale seclor, bul once
lhev |oin lhe public seclor lhev lrip up
because lhev ignore lhe process.
DA: How do you define energy security?
VP: Lnergv securilv is verv simplv lhe
reduclion of risk lo vour energv supplv.
Il is aboul lrving lo ensure lhal a
shorlage in anv one fuel vill nol resull
in a loss of energv lhal vill reduce
lhe economic grovlh of lhe counlrv.
Lnergv securilv is a kev componenl of
nalional securilv, parlicularlv in Asia.
Ior lhe Ihilippines, energv securilv
means reducing our dependence on
imporled fuel. In 1973, lhe hrsl oil
shock, ve vere imporling 9O/ of
our oil. ßv 2OO8, ve had broughl lhal
dovn lo 1O/ of our energv needs
bv diversifving inlo indigenous
nalural gas, geolhermal energv, and
hvdropover: using coal, vhich ve
slill need lo imporl: and invesling in
emerging renevable pover, such as
vind.
Lnergv securilv means relving on
more lhan one lvpe of fuel. Norvav
is 9O/ hvdro, vhich in manv vavs is
verv good. Thev don'l have lo imporl
fuel. In facl, lhev found oil in lhe
Norlh Sea and lhev are exporling il.
ßul if lhere is a droughl due lo climale
change, Norvav vould be severelv
impacled bv lheir over-dependence
on hvdro. Nalions need a diversihed
energv mix.
DA: As energy secretary, how did you
address the reIationship between
energy poIicy and poverty?
VP: Wilhin 2 monlhs of mv
appoinlmenl as energv minisler, lhe
Iresidenl asked each cabinel member
lo conceplualize and develop a
poverlv allevialion program in lheir
respeclive deparlmenls. I fell, afler a
lol of inlernal discussion, lhal lhe kev
poverlv program lo promole should
be rural eleclrihcalion. There is an
indispulable correlalion belveen lhe
lack of eleclricilv and poverlv, as vell
as high populalion grovlh rales, lov
educalional allainmenl, and even a
lack of peace and order.
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 17
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A PROUD FATHER Vincent Perez
heIped to bankroII the wind farm project
in Bangui Bay (LEFT) in northern
PhiIippines.
In 2OO5, vhen lhis pro|ecl vas buill,
il vas onlv viable because of sofl loans
from lhe Danish governmenl because
Danish equipmenl vas used. Since
lhen, lurbine prices have come dovn
and lhe shorlage has eased, vilh nev
equipmenl coming from developing
counlries like China and India. Also,
oil and coal prices have risen. Thal
means lhal eleclricilv prices have risen,
so lhe pro|ecl is quile compelilive
nov, lhough il mighl slill need a small
subsidv. ßul lhe lechnologv is nov
proven, and increasing lhe scale vill
furlher reduce cosls. The pro|ecl nov
supplies aboul 4O/ of lhe energv
needs of lhe province vhere il is
localed.
Mv vision is lo see lhe norlhern
Ihilippines vilh a long coaslline of
clean, eleganl vindmills povering
lhe norlh of lhe counlrv. When lhis
pro|ecl vas buill, lhere vas onlv one
large inveslmenl in lhal province, a
resorl and casino. This pro|ecl has
led lo more inveslmenl, bul more
imporlanllv il has encouraged lourism.
This lillle sleepv coaslal lovn |ßangui]
has become a lourisl deslinalion, vilh
reslauranls, cafós, and handicrafl shops
opening up.
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18 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O vvv.developmenl.asia
DA: Arenҋt there significant chaIIenges
associated with wind power, such as
the stabiIity of the power it produces
and the IogisticaI chaIIenges of
importing the equipment?
VP: The onlv shorlcoming of vind
is lhal il is inlermillenl. You cannol
predicl vhen il vill blov. The nexl
vave of lechnologv and research
vill involve predicling vind. Thal
is lhe nexl challenge for inlermillenl
resources such as vind and solar.
Ior vind pover, lhe lurbines are lhe
mosl high-value ilem. These lurbine
blades are almosl like a proprielarv
design, like an aircrafl maker spending
millions of dollars designing an
aerodvnamic aircrafl design. Thal
inlelleclual properlv is based in Lurope
and lhe Uniled Slales (US), bul lhe sub-
manufacluring and assemblv are being
done in India and China and soon
in Korea as vell. The kev equipmenl
Òur largel vas lo eleclrifv four
villages a dav. Il vas a massive
colleclive efforl. We venl from 83/
of lhe counlrv's villages receiving
eleclricilv vhen I look over, lo aboul
9O/ vhen I lefl in 2OO5. Il's nov al 98/.
I vould lrv lo do a rural eleclrihcalion
evenl everv Iridav. Thal's vhen I
vould see hrslhand hov much ve lake
eleclricilv for granled vhile millions
around lhe vorld live vilhoul il. In
(lhe Ihilippine province of) Ialavan,
ve broughl solar panels lo a nalive
hul and an elderlv ladv came oul and
embraced me. She vas crving and said
she lhoughl she vas going lo die before
eleclricilv came lo her home. Thal
momenl encapsulaled vhal lhis vas
all aboul. Anolher lime ve venl lo (lhe
remole Ihilippine province of) Tavi-
Tavi, vhere ve inslalled a solar pover
pavphone. Iishermen used il lo call
Manila lo check markel prices before
lhev sold lheir calch lo local lraders.
To celebrale mileslones of village
eleclrihcalion, such as lhe 5,OOOlh
village or 1O,OOOlh village, ve vould
give a gifl. I vould ask lhem vhal kind
of eleclrical appliance lhev vanled.
Thev didn'l vanl an air condilioner
or refrigeralor. Thev alvavs vanled
karaoke machines. We gave avav more
lhan a fev karaoke machines.
DA: Youҋve invested in NorthWind Power,
a project in the northern PhiIippines that
is Southeast Asiaҋs first commerciaI
wind farm. Is that a viabIe producer
of energy or more of a prototype?
VP: Thal inveslmenl is crediled lo
privale enlrepreneurs, Danish and
Iilipino, vho slarled il. I vas impressed
vilh lheir lenacilv lo build lhis
pioneering pro|ecl. Thev came lo me
and asked if I could help raise monev lo
pav for addilional equipmenl. I slarled
looking for polenlial inveslors for lhem,
bul lhe more I looked al lheir business
model, lhe more I lhoughl I should
probablv |usl pul lhe monev in mvself.
Thal's hov I gol involved, pulling mv
monev vhere mv moulh is.
£h£86Y$£008|TY:Th£8|6V0|0£
SOCIAL COST Perez inspects a gasoIine
station during his term as energy
minister of the PhiIippines. He says the
oiI spiII in the GuIf of Mexico (RIGHT) is
a vivid exampIe of the sociaI costs of
fossiI fueI.
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 19
aggressiveIy pursuing traditionaI forms of
energy that are Iinked to cIimate change.
Do you see a contradiction in that?
VP: Òne of lhe difhcullies of a counlrv's
energv porlfolio is lhal il lakes vears lo
make a denl in vour energv mix. There
is a long geslalion period for building
pover planls. The economies of China
and India have been groving al aboul
8/ a vear. Iusl lo keep up vilh lhal
grovlh lhev somelimes have lo opl
for lhe faslesl solulion or lhe leasl-cosl
solulion, vhich is coal. Thev have lo
do lhal |usl so lhal lhe lighls von'l go
off. When vou are running al lhal clip,
vou |usl don'l have much ßexibililv lo
impose a climale change imperalive in
vour energv policv.
Thal is slarling lo change nov. China
is avare lhal il is nov lhe largesl carbon
emiller in lhe vorld, and lhal lhere are
heallh and environmenlal cosls lo lhis
indiscriminale coal pover explosion.
I'm pleased vilh lhe signals lhev
are sending. Thev have passed verv
aggressive aulo emissions slandards.
Thev are going lo be lhe leader in eleclric
car produclion in lhe vorld. Thev have
buill huge vind pover capacilv, and
ve're seeing more policv slalemenls lhal
indicale lhal China recognizes ils need lo
diversifv avav from coal.
DA: What has been your reaction
watching the catastrophic oiI
spiII in the GuIf of Mexico?
VP: We're all vorried aboul vhal's
happening in lhe Gulf of Mexico. Thal
is a verv vivid example of lhe social
cosls of fossil fuel. I vill lell vou lhis,
lhere vill never be a vind spill. Q
and India have led lhe vav for olher
Asian counlries.
The ma|or challenge for renevable
energv is access lo lransmission
capacilv. Hundreds of vindmills
in China are spinning bul are nol
connecled lo lhe grid. Renevable
energv pro|ecls are sile-specihc, unlike
coal or nalural gas. You can sel up a
coal planl anvvhere: il's |usl a maller
of bringing in lhe coal supplv. ßul vou
cannol sel up a geolhermal planl or
vind farm in anv localion: vou have lo
build lhe facililv vhere lhe resource is.
Thal is vhv lransmission access is one
of lhe biggesl challenges.
Anolher challenge is building
regulalorv capacilv. In India, lhe
various slale eleclricilv boards have
done a good |ob in delermining a fair
price for vind, solar and biomass
energv. Òlher counlries, like Germanv
and Auslralia, as vell as some slales
in lhe US, have verv progressive
legislalion in lerms of promoling
renevable energv. We need lo bring
lhis lo more counlries in Asia.
DA: WhiIe promoting renewabIe energy,
some of the regionaI Ieaders, such as
the PeopIeҋs RepubIic of China, are aIso
can nov be imporled from Asia. The
lovers are |usl lov-value sleel lovers
lhal can be produced locallv. The
gear box and lhe generalor have lo be
imporled from Lurope.
DA: Across the region, what do you see
as the prospects for the deveIopment
of renewabIe energy resources?
VP: Asia has become one of lhe grovlh
areas for renevable energv. China has
made a ma|or inveslmenl in promoling
vind lhrough a verv ambilious
renevable energv lav lhal vas passed
in 2OO5. In a cenlrallv planned economv,
somelimes il is easier lo do lhal. You can
lell lhe slale-ovned pover companies lo
build so manv percenl renevable pover
pro|ecls. And lhev have an induslrial
policv of saving lhal lhev vanl 7O/ of
lhe componenls lo be buill in China.
Thev are able lo do lhal because of
lhe size of lheir economv. Thev have
homegrovn companies, such as
Goldvind, lhal have slarled lo develop
lheir ovn in-counlrv lechnologv.
India has also done verv vell vilh
companies like Suzlon in India lo
produce homegrovn lechnologv vilh
Danish regional design. Thev have a
separale minislrv of renevables. China
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"We´re aII uorrled
abouI uhaI´s
haµµenlng ln Ihe GuIf
of Mexlco.... l ulII IeII
µou Ihls÷Ihere ulII
neter be a ulnd sµlII"
2O Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O vvv.developmenl.asia
C!nggcd ArtcrIcs

New power p|ants have sprung up across Asia, but the construction of grids and the upgrading and
extension of the existing patchwork of power |ines have not kept pace
ßY Iohn Òlis
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f pover planls represenl
lhe pumping hearl of
Asia's eleclricilv nelvork,
lransmission lines serve as lhe
blood vessels. ßul from lhe Ieople's
Republic of China (IRC) lo Cenlral
Asia lo Indonesia, eleclricilv grids
are anliqualed and overvhelmed.
Allhough greal slrides have been made
in some nalions, more lhan 8O9 million
people in lhe region slill have no access
lo eleclricilv, according lo a reporl
published lasl vear bv lhe Inlernalional
Lnergv Agencv (ILA).
To keep pace vilh Asia's rapid
economic grovlh, nev coal, nalural
gas, hvdroeleclric, and vind pover
generalion planls are coming onslream.
ßul lhe conslruclion of nev grids and
lhe upgrading and exlension of lhe
exisling palchvork of pover lines have
nol kepl up. As a resull, some experls
liken Asia's condilion lo a pinched nerve:
lhough lhe bulk of lhe bodv funclions,
some of Asia's limbs and appendages are
disconnecled÷and alrophving.
RAPID GROWTH
Asia's grid voes are hardlv unique. In
lhe Uniled Slales, efforls lo inlegrale
nevlv conslrucled vind farms inlo
regional grids have been delaved
because lransmission lines are alreadv
al full capacilv. ßul lhal's vhere lhe
similarilies end. While lhe US economv
has eilher conlracled or regislered
modesl grovlh rales recenllv, Asia
has posled a sevenfold increase in
economic grovlh over lhe pasl 25 vears
vhile energv consumplion has lripled,
according lo a recenl reporl bv lhe
World ßank.
¨There's a direcl relalionship
belveen economic and populalion
grovlh and eleclricilv demand,¨ savs
Ionalhan Dover, direclor of slralegv
and developmenl al IHS Lmerging
Lnergv Research of Cambridge,
Massachusells, vhich provides
analvsis on clean and renevable energv
markels. ¨In lhe US, vhere grovlh
in eleclricilv demand has been 1/ or
so annuallv, il hasn'l been such a big
burden. ßul in Asian counlries, lhere's
been an enormous |ump in eleclricilv
demand.¨
Meanvhile, as more coal,
geolhermal, hvdroeleclric, vind,
and solar pro|ecls are buill, grid
improvemenls across Asia vill have lo
slav in slride. Indonesia, for example,
could expand geolhermal pro|ecls, bul
for nov ils lransmission lines vould
be unable lo handle lhe nev load, savs
De|an Òslo|ic, lhe World ßank's seclor
leader for energv in lhe Lasl Asia and
Iacihc region.
¨The queslion is: 'Do vou have lhe
righl incenlives and policies in place
lo make sure lhe grid is expanding
adequalelv lo receive all of lhis
addilional generalion`'¨ Òslo|ic savs.
¨Al hrsl, ve didn'l see lhis as a limiling
faclor in mosl of lhe region. ßul nov
lhis is an issue because ve are seeing a
fasl and large increase in renevables.¨
Lven vhen governmenls secure
lhe hnancing lo upgrade lheir grids,
lhev face polilical, lechnological,
and geographical obslacles. Hov,
for example, do lhev connecl lhe
lhousands of islands making up
Indonesia and lhe Ihilippines` Should
lhev even lrv` In lhe IRC and lhe
Russian Iederalion, manv gigavalls
of vind, coal, and hvdroeleclric pover
are generaled in remole areas and musl
be lransferred al signihcanl cosl lo
faravav cilies. Subsidized eleclricilv
rales and governmenl monopolies
can discourage foreign inveslmenl.
And because keeping lhe lighls on al
home and viring impoverished rural
communilies are slill ma|or challenges,
Asian nalions have largelv neglecled
lhe long-slanding goal of building
grids across borders in order lo buv
and sell eleclricilv.
Slill, lhe burdens have also led
lo breaklhroughs. The IRC has
become a leader in lhe conslruclion
of so-called ¨smarl grids¨÷vhich
maximize energv efhciencv÷and
high-vollage direcl currenl (HVDC)
lransmission lines. The massive
demand for eleclricilv has acceleraled
developmenl of renevable energv
sources. Governmenls, meanvhile, are
idenlifving lransmission bolllenecks
and pledging lo achieve 1OO/
eleclrihcalion.
¨Gelling eleclricilv lo lhe people
is so imporlanl for economic
developmenl,¨ savs Ieler Harllev, a
professor of energv economics al lhe
Iames A. ßaker III Inslilule for Iublic
Iolicv al Rice Universilv in Houslon,
Texas. ¨Sludenls can read and do
homevork al nighl. Refrigeralion
helps preserve food and prevenl
diseases. Lleclrical appliances can
relieve vomen of a lol of drudgerv in
lhe kilchen. Iover for heallh clinics,
for agricullure, for pumping valer
makes a huge difference. The lisl |usl
goes on and on.¨
RISING DEMAND
Some of lhe mosl imporlanl pover grid
advances can be found in lhe counlrv
vilh some of lhe biggesl lransmission
challenges. In lhe IRC, vhere 99/ of
lhe populalion has access lo eleclricilv,
lhe problem is nol lhe reach of lhe
counlrv's pover lines bul galloping
demand. According lo lhe World ßank,
lhe IRC accounls for 8O/ of lhe energv
consumplion in Lasl Asia and lhe
Iacihc.
To meel exploding demand, lhe
IRC governmenl has launched a
ma|or campaign lo bring renevable
energv pro|ecls, such as vind farms,
on slream. ßul manv of lhese pro|ecls
are localed in remole Gansu province
in norlhvesl IRC or in lhe Inner
Mongolia Aulonomous Region÷vhere
lhe Asian Developmenl ßank is helping
Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 21
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lo hnance a privale-seclor vind farm
lhal vill produce up lo 133 gigavall-
hours annuallv.
The move inlo renevables has made
lhe IRC lhe vorld's second-largesl
producer of vind energv afler lhe US.
In some vavs, hovever, lhe IRC has
moved loo fasl on pover generalion,
crealing lransmission bolllenecks.
Much of lhe vind-generaled eleclricilv
is deslined for cilies along lhe resource-
scarce coaslal regions, vel Dover and
olher experls eslimale lhal more lhan
3O/ of lhe IRC's nevlv inslalled vind
capacilv has nol been connecled lo
lransmission lines. The IRC's lhree
ma|or grids have vel lo be inlegraled
vhile lhe nalion's mosl poverful
lransmission companv÷lhe Slale Grid
Corporalion of China÷has resisled
"There´s a nlsnaIch
beIueen Ihe µace of
reneuabIe µouer
lnsIaIIaIlon and
Iransnlsslon
exµanslon"
-David Fridley, a staff scientist
for the China Energy Group at
the Lawrence Berkeley National
Laboratory in Berkeley, California
lradilional fossil fuels. ¨Nolhing like
lhis exisls anvvhere in lhe vorld,¨ savs
Caillin Iollock, a senior analvsl for lhe
Asia Iacihc Wind Lnergv Advisorv al
Lmerging Lnergv Research. ¨China
has a lremendous capacilv lo leapfrog
lechnologicallv.¨
According lo Live Xiao, direclor of
lhe Inslilule of Lleclrical Lngineering
of lhe Chinese Academv of Sciences,
smarl grids and renevable energv
should be developed logelher ¨like
lvin brolhers.¨
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35/ of households in Indonesia have
no access lo eleclricilv, according lo
ILA. Ralher lhan expensive island÷lo÷
island conneclions, il makes more sense
in some cases lo focus on remole pover
svslems based on hvdroeleclricilv,
vind pover, or solar pholovollaic
pover, savs David von Hippel, a senior
associale al lhe Naulilus Inslilule, a
research cenler based in San Irancisco,
California lhal focuses on energv and
securilv issues in lhe Asia-Iacihc
region.
LOST IN TRANSMISSION
In India, 45/ of households slill lack
eleclricilv, a slubborn facl lhal makes
lhe governmenl's pledge lo achieve
universal eleclrihcalion bv 2O12 seem
unrealislic. ¨In India, lhe shorlages
are more of a generalion problem,¨
explains Tim Charllon, publisher of
Asicn Pcucr magazine. ¨Thev have
5-vear largels bul usuallv lhev are onlv
meeling half of lhe nev demand.¨
Yel a subslanlial share of lhe pover
India manages lo produce is losl in
lransmission and dislribulion. India
has been unable lo cobble logelher
a coherenl nalionvide grid, in parl
because each of lhe counlrv's 28
slales conlrols ils ovn eleclricilv
board in charge of local lransmission
and dislribulion. Manv of lhese slale
companies are near bankruplcv due lo
pilferage.
India ranks hrsl in lhe vorld in
pover lhefl lhrough such schemes as
meler lampering, illegal conneclions,
and billing irregularilies. In lhe slums
of Nev Delhi and olher big cilies,
piraled conneclions are plainlv visible
in lhe snarls of vires prolruding from
governmenl pressure lo connecl vind
pro|ecls because renevable energv is
less prohlable lhan moving eleclricilv
produced bv oil, coal, and gas.
Renevable energv sources produce less
consislenl concenlralions of energv and
are spread over a larger area lhan lhe
more prohlable, concenlraled supplv
provided bv lradilional pover planls.
¨China has ended up vilh slranded
vind pro|ecls vilh no lransmission lo
lake il anvvhere,¨ savs David Iridlev,
a slaff scienlisl for lhe China Lnergv
Group al lhe Lavrence ßerkelev
Nalional Laboralorv in ßerkelev,
California. ¨There's a mismalch belveen
lhe pace of renevable pover inslallalion
and lransmission expansion.¨
Iridlev predicls lhese mismalches
vill soon be ironed oul. Ior one lhing,
lhe IRC governmenl is lenacious
aboul meeling energv largels, and
grid conslruclion and upgrades are
a ma|or parl of ils overall slralegv.
Anolher goal is lo slabilize lhe
lransmission of vind energv since
pover ßucluales vilh vind speed and
lhe resulling inlermillenl energv ßovs
can cause oulages. In lurn, lhe relalive
independence belveen lhe main
grids in lhe IRC makes simullaneous
lransmission difhcull.
The IRC is planning lo conslrucl
lvo 5OO HVDC lines, vhich are more
cosllv lo build lhan convenlional lines
carrving allernaling currenl bul are a
cheaper vav lo move eleclricilv over
long dislances vilh lover pover losses.
The nev lines vill be parl of a smarl
grid, vhich vill use advanced conlrol
soflvare and HVDC lransmission lo
link isolaled grids and move energv
produced bv solar, vind, valer, and
£h£86Y$£008|TY
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lf µou don´I hate
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ln µIace so µeoµIe uho
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·1VUH[OHU+V^LYKPYLJ[VYVM
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,TLYNPUN,ULYN`9LZLHYJO
The IRC's progress conlrasls sharplv
vilh some of lhe delavs and dead ends
experienced bv olher Asian counlries
allempling lo build nalionvide grids.
Indonesia and lhe Ihilippines, for
example, musl deliver eleclricilv lo
lhousands of dispersed islands, some
vilh relalivelv fev inhabilanls. Aboul
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 23
are hindering progress,¨ savs Ieler
Meisen, founder and presidenl of
lhe Global Lnergv Nelvork Inslilule
based in San Diego, California. Meisen
has long promoled an overland and
undervaler link belveen lhe Russian
Iederalion, parls of lhe IRC, lhe
Democralic Ieople's Republic of Korea,
lhe Republic of Korea, and Iapan. ¨Il
vould be a loop belveen hve counlries
and il vould benehl lhem all,¨ he savs.
¨We've been pushing lhis pro|ecl for
over a decade bul I can'l sav lhal il's
moved forvard much al all.¨
ßul Harllev, lhe Rice Universilv
professor, savs lhal in manv cases il
makes more sense for Asian nalions
lo imporl nalural gas or olher fuels lo
produce pover al home. ¨When lhere
are polilical lensions, gas is less riskv,¨
Harllev savs. ¨If vour gas supplv gels
cul off, vou can make eleclricilv in
olher vavs. ßul if vou are imporling
eleclricilv and lhal gels cul off, vou
have blackouls.¨
There are a fev inlerconneclions.
India's pover grid is inlerconnecled
vilh lhe grids in Nepal and ßhulan.
India and Sri Lanka have agreed lo
build a 39-kilomeler-long undervaler
HVDC cable lo connecl lhe lvo
counlries' pover grids bv 2O13. The
Mekong River gives lhe Lao Ieople's
Democralic Republic huge polenlial as
an exporler of hvdroeleclric pover, and
lhe counlrv has been selling eleclricilv
lo Thailand. ßul so far, Asia lags far
behind Norlh America, Lurope, and
lhe nalions of lhe former Soviel Union
in lhe conslruclion of cross-border
svnchronous grids.
Lnergv lrading ¨is fairlv high
on lhe lisl of issues lhal need lo be
addressed,¨ savs Òslo|ic of lhe World
ßank. ¨There are lols of opporlunilies
for lrade in eleclricilv bul lhe levels
of exchange are lagging far behind
olher regions of lhe vorld lhal have
developed |oinl responses lo meel lheir
energv needs. ßul in Asia, developmenl
of nalional grids is slill al lhe lop of lhe
agenda.¨ Q
pover pvlons. ßv some accounls,
anvvhere belveen one-lhird and
one-half of lhe nalion's eleclricilv
consumplion is unpaid.
A 2OO4 World ßank reporl eslimales
lhal annual eleclricilv lhefl equaled
$4.5 billion or aboul 1.5/ of India's
gross domeslic producl. The pilfering
creales havoc for grids because lhe
illegal conneclions furlher boosl
demand vhich oflen oulslrips supplv.
The problem is so acule lhal special
police slalions have been sel up lo
deal specihcallv vilh pover lhefl,
and polilicians are considering life
senlences for people convicled of
slealing pover.
Analvsls sav oulside inveslors
could parlner vilh slale-run
ulililv companies lo make exisling
lransmission lines more efhcienl and
lo upgrade and develop smarl grids.
ßul foreign companies are varv of lhefl
and corruplion. Subsidies can lead lo
eleclricilv being sold for less lhan lhe
cosl of generalion. And even lhough
a lrend exisls lovard privalizing
ulililv companies in parls of Asia,
privale hrms can onlv be minorilv
shareholders.
¨You can'l build pro|ecls if lhere is
no monev,¨ savs Dover of Lmerging
Lnergv Research. ¨ßul even if monev is
available, vou von'l move forvard if
vou don'l have supporlive regulalorv
policies and incenlives in place so
people vho invesl sland lo make a
prohl.¨
Anolher polenlial solulion is lo buv
and sell eleclricilv from neighboring
counlries. ßul lhere has been lillle
efforl lo inlerconnecl eleclricilv grids,
parllv because counlries face so
manv lransmission and dislribulion
challenges al home. In addilion,
regional polilical lensions, differences
in lhe qualilv of grids, and dispules
over hov lo pav for bilaleral pro|ecls
have slvmied allempls al cross-border
eleclricilv lransmission.
¨Manv of lhese pro|ecls vould be
muluallv benehcial bul old rivalries RESEARCH/DESlGN: MARK BLACKWELL, NOEL DE GUZMAN
1,000
kilowatts
1
megawatt
=
100
watts
100
watts
100
watts
100
watts
100
watts
100
watts
100
watts
100
watts
100
watts
100
watts
1 kilowatt =
1kilowattisequaltoten
100-wattlightbulbs
1,000
megawatts
1
gigawatt
=
1megawattcanpowerroughly
700to1,000homes
1 megawatt =
100
homes
100
homes
100
homes
100
homes
100
homes
100
homes
100
homes
100
homes
100
homes
100
homes
World marketed energy use
by fuel type
quadrillionBtu
250
200
150
100
50
0
2007
1995 2005 2015 2025 2035
liquids
coal
naturalgas
renewables
nuclear
1
gigawatt
1 gigawatt =
A1-gigawattpower
planttypicallycan
supplyroughly
700,000to
1millionhomes
Sources:www.eia.doe.gov;www.unc.edu
Energy illustrated
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24 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
O!d
KIng
Cna!
Though controversia|, this inexpensive
and abundant resource fue|s Asia's growth
ßY ßruce Heilbulh
£h£86Y$£008|TY
vvv.developmenl.asia
I
n parls of Shanxi, norlheaslern
Ieople's Republic of China (IRC),
black parlicles color lhe air, and
lhe landscape is coaled vilh hne
carbon dusl. Chunks of coal lie beside
lhe roads leading lo local collieries.
The pollulion is especiallv bad in lhe
Shanxi cilv of Linfen, vhere 4OO mines
and billions of lons of proven reserves
accounl for half of lhe province's coal
produclion.
Inevilablv in such places, pollulion
from coal mining has been lied lo
appalling heallh problems. In lovns
like Gao|iagau, il has been linked lo a
high number of birlh defecls, including
addilional hngers and loes, clefl
palales, congenilal hearl disease, and
menlal relardalion, according lo media
and coal induslrv reporls.
Shanxi province perfecllv represenls
lhe conundrum of coal. Asia loves
coal: ils liger economies have an
insaliable hunger for il in order
lo generale pover for lhe region's
booming manufacluring induslries and
expanding middle class. Al lhe same
lime, lhe mining and consumplion of
coal is causing problems on a massive
scale, from rampanl pollulion lo oul-
of-conlrol greenhouse gas emissions.
¨The |coal pollulion] piclure is grim
in manv parls of developing Asia,¨ savs
ßrian Rickells, a Iaris-based analvsl vilh
lhe Inlernalional Lnergv Agencv (ILA).
These problems vill almosl cerlainlv gel
vorse before lhev gel beller.
Al presenl, Asia consumes aboul 3.5
billion lons of coal per vear, according
lo Geoff Clear, head of Commodilies÷
Asia al ANZ ßanking Group
Limiled, and ils use in Asia is rising
exponenliallv. ßv 2O3O, lhe burning
of coal lo meel Asian energv demand
is expecled lo increase fourfold,
resulling in 13 billion lons of carbon
dioxide (CÒ
2
) ) being emilled inlo lhe
almosphere everv vear.
In addilion lo carbon emissions,
lhe burning of coal is associaled
vilh ¨signihcanl local and global
pollulanls,¨ noles a Uniled Slales
Agencv for Inlernalional Developmenl
(USAID) LCÒ-Asia Clean
Developmenl and Climale Irogram
discussion paper. A recenl reporl from
India conhrms lhal coal-based pover
planls emil huge quanlilies of ßv
ash (a hne, polenliallv loxic airborne
povder), sulfur dioxide, and loxic
melals like mercurv.
The hunger for coal is mosl evidenl in
lhe vorld's mosl populous nalions÷lhe
IRC and India. The IRC is lhe faslesl-
groving coal markel in lhe vorld
responsible for 4O/ of global demand.
A recenl reporl bv lhe Massachusells
Inslilule of Technologv (MIT) conhrms
lhal lhe IRC is conslrucling lhe
equivalenl of lvo, 5OO-megavall (MW)
coal pover planls everv veek. To pul il
in perspeclive, lhal's enough pover lo
run aboul 8 million more 1OO-vall lighl
bulbs around lhe clock everv veek.
The slorv of pover planl
proliferalion is being repealed across
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 25
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HOT COMMODITY A man deIivers
bricks of coaI on a hat-bed tricycIe to
neighborhoods in Beijing in winter. Three
decades of economic reform and growth
have brought about profound changes
in the PeopIeҋs RepubIic of China, Iifting
tens of miIIions out of poverty, but the
countryҋs reIiance on coaI to ensure
economic growth makes poIIution
controI difñcuIt.
Asia, albeil al slover rales. Lnergv-
hungrv ßangladesh recenllv signed a
$1.7-billion deal vilh India lo build
lvo coal-hred planls in ils Soulh.
HUGE RESERVES
Asia is nol running oul of coal÷
vel. Huge proven reserves exisl,
concenlraled in a fev counlries.
Auslralia, lhe IRC, India, lhe Russian
Iederalion, Soulh Africa, and lhe
Uniled Slales hold 84/ of lhe hard
coal (anlhracile and biluminous coal)
reserves, according lo a 2OO7 reporl bv
lhe Luropean Commission's Inslilule
for Lnergv.
Hovever, lhese are being depleled
quicklv as demand oulslrips supplv.
India expecls lo be shorl bv 2OO million
lons per vear vilhin 5 vears. The
IRC's consumplion alreadv oulslrips
produclion. This vear, an induslrv
reporl predicls, lhe IRC's coal oulpul
vill increase 12÷18/ over 2OO9. ¨The
numbers coming oul of China are
scarv,¨ savs lhe ILA's Rickells.
So vill Asia's air inevilablv become
loo dirlv lo brealhe vhile global
varming unleashes unimaginable
environmenlal disaslers, as some fear`
Happilv, lhis seems unlikelv. While
lhere are no panaceas, viable, cosl-
effeclive sleps lo increase lhe efhciencv
of coal combuslion and reduce
pollulanls alreadv exisl.
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vvv.developmenl.asia
soon as 2O2O. Lasl November, Nobuo
Tanaka, lhe execulive direclor of lhe
ILA, lold reporlers in Copenhagen lhal
CCS vas advancing.
¨Technological innovalion is
happening, lhe cosl is coming much
lover, so, I lhink, lhere is a fulure for
lhis,¨ Tanaka savs. He adds lhal for CCS
lo become commerciallv viable, a carbon
price÷lhe cosl of pollulion lo be levied
under emissions lrading schemes÷of
$5O a lon vas needed bv 2O2O.
HOPE FOR THE FUTURE
Though conlroversial, CCS is lhe mosl
promising lechnologv for clean coal.
Il involves lrapping CÒ
2
from ßue gas
vhen il's burned, compressing il inlo
liquid and piping il inlo geological
formalions for long-lerm slorage.
Some scienlisls insisl lhe lechnologv
vill nol vork because lhe full chain
of CCS processes is unlesled on a
commercial scale. The problems
UNSETTLING DUST Workers unIoad coaI
powder on the outskirts of Hyderabad,
India. A recent report from India conñrms
that coaI-based power pIants emit huge
quantities of hy ash (a ñne, potentiaIIy
toxic airborne powder), suIfur dioxide,
and toxic metaIs such as mercury.
MORE EFFICIENT POWER STATIONS
Òf lhe oplions idenlihed bv lhe
USAID paper, one holds lhe grealesl
medium-lerm polenlial lo reduce
emissions: lhe use of lechnologv lo
make combuslion cleaner and increase
lhe efhciencv of coal-povered planls.
These lechnologies could slash
emissions bv 1 billion lons per vear, il
concludes.
Iaradoxicallv, lhe IRC has been
leading bv example in lhe lasl lvo
vears bv building more efhcienl and
less polluling coal pover planls.
Ior inslance, lhe Huaneng 1,OOO-
MW ¨ullra supercrilical¨ (operaling
above lhe lemperalure and pressure
al vhich lhe liquid and gas phases
of valer coexisl) coal pover slalion
unil in Yuhuan has developed unique
lechnologies lo increase lhermal
efhciencv lhal olher counlries could
sensiblv adopl.
The IRC is nov building around
1O more similar planls and is
accumulaling design and conslruclion
experlise. ¨These Asian pover
generalors are much, much more
efhcienl lhan lhe old gerialric slalions
of Lurope and Norlh America,¨
explains Gerard McCloskev of lhe
McCloskev Group, a leading source
of nevs, analvsis, and dala on lhe
inlernalional coal induslrv.
CLEANER COAL
As nighl falls over lhe Norlh Sea, lhe
lovering Sleipner nalural gas plalform
and ßame slacks 25O kilomelers vesl
of Slavanger, Norvav are ablaze vilh
lighl. The main plalform resembles an
aparlmenl block sel in lhe middle of
lhe ocean.
Here, since 1996, Norvegian
companv Slaloil has been implemenling
full-scale carbon caplure and slorage
(CCS), in|ecling 1 million lons of CÒ
2

per vear inlo deep saline aquifers
vilhoul leakage.
The engineering svslems remove

2
from lhe nalural gas al lhe poinl
of exlraclion and rein|ecl il inlo lhe
earlh, lhus avoiding lhe punishing
Norvegian CÒ
2
lax.
While Sleipner is nol a coal facililv,
lhe lechnologv il emplovs is signihcanl
for lhose holding oul hope for cleaner
coal-hred pover in Asia. A greal deal
of research and developmenl is being
done in lhis area, especiallv in relalion
lo CCS.
Inßuenlial voices believe lhis kind
of lechnologv vill be commerciallv
available for coal-hred pover as
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believe lhe nexl decade is a kev 'make
or break' period,¨ savs lhe ILA on ils
vebsile. ¨If ve do nol develop several
large-scale inlegraled demonslralion
pro|ecls in lhis period, il vill be verv
difhcull for lhe lechnologv lo make
a meaningful conlribulion lo CÒ
2

reduclion efforls bv 2O3O.¨
COAL WASHING
Meanvhile, olher clean coal lechnologies
are making a difference. Òne of lhese,
coal vashing, removes unvanled
minerals before burning bv mixing
crushed coal vilh a liquid and alloving
lhe impurilies lo separale and sellle.
Some svslems conlrol lhe coal
burn ilself lo minimize emissions of
sulfur dioxide, nilrogen oxides, and
parliculales. Wel scrubbers, or ßue gas
desulfurizalion svslems, remove sulfur
dioxide, a ma|or cause of acid rain, bv
spraving ßue gas vilh limeslone and
valer.
Anolher lechnique, gasihcalion,
avoids burning coal allogelher. In
inlegraled gasihcalion combined cvcle
svslems, sleam, and hol pressurized
air or oxvgen combine vilh coal in a
reaclion lhal forces carbon molecules
aparl. The resulling svngas÷a mixlure
of carbon monoxide and hvdrogen÷
is lhen cleaned and burned in a gas
lurbine lo make eleclricilv.
OTHER ENERGY SOURCES
Anolher solulion lo lhe problems posed
bv coal vill, inevilablv, be lov-emission
nuclear pover, sav a signihcanl
proporlion of energv experls. As a
Busincss |nsignis reporl inlo lhe fulure of
clean coal acknovledges, ¨Lven al lhe
highesl price, nuclear |pover] vould
PUMPING CARBON DIOXIDE UNDER
THE SEA The Norwegian gas and
oiI company StatoiIHydro has been
impIementing fuII-scaIe carbon capture
and storage (CCS) at its SIeipner gas
pIatform, injecting 1 miIIion tons of
CO
2
per year into deep saIine aquifers
without Ieakage.
include cosl, vhich vill likelv add
aboul $1 billion lo lhe price of a pover
planl, according lo a ßrilish reporl.
And il vill cul efhciencv bv a quarler.
Hovever, lhe IRC's hrsl lrial of
carbon caplure from burning coal
is being raled a success bv China
Huaneng Group, lhe slale-ovned
energv hrm running lhe pro|ecl in
ßei|ing. The companv uses solvenls lo
caplure CÒ
2
from ßue gases and sells
lhe CÒ
2
lo beverage companies lo add
hzz lo lheir drinks.
In Auslralia, lhe coal induslrv
is supporling a pilol pro|ecl lo
demonslrale CÒ
2
slorage in lhe Òlvav
region of Vicloria. More lhan 65,OOO
lons of CÒ
2
have been successfullv
slored underground.
The ILA concludes lhal ¨a ma|or
push¨ is nov needed lo develop and
demonslrale lhe lechnologv. ¨We
020708 Sources: IPCC/USDoE
1 2 3 4
Main options
1
4
Produced oil
or gas
Injected CO2
Stored CO2
2
2
3
3
2
Storage in depleted oil
and gas reservoirs
Pumping into
reserves to flush
out oil and gas
Storage in rock formations
saturated with saline water
below 1,000 metres
(a) offshore, (b) onshore
Pumping into
coal beds to
retrieve
methane
Proposals for carbon
capture and storage
compele favorablv vilh a coal-hred
pover slalion vilh carbon caplure and
sequeslralion.¨
ßul even nuclear pover is no
surehre ansver lo base load pover
demand in Asia, savs Roberl Iassev,
senior research associale al lhe Cenlre
for Lnergv and Lnvironmenlal Markels
al lhe Universilv of Nev Soulh Wales.
The main hope is energv-efhciencv
folloved bv renevable energv, he savs.
Al presenl, hovever, a belief lhal
renevables vill conlribule signihcanllv
lo Asia's pover demand anv lime soon
mav be overlv oplimislic. According lo
lhe MIT sludv, geolhermal, solar, and
vind pover meel onlv O.4/ of global
energv demand.
UNIMAGINABLE SOLUTIONS
Hov vill Asia reconcile coal's
abundance vilh climale change
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vvv.developmenl.asia
lo business as usual, bul slill vilh
increased coal use relalive lo 2OOO in
mosl cases.¨
Lquallv cerlain is lhal, ullimalelv,
users vill have lo pav for cleaner
lechnologies like CCS, ILA's Rickells
believes. The Uniled Kingdom
has recenllv passed legislalion lo
allov a levv on consumers for lhis
purpose, he poinls oul. ILA hopes
lhal Asian counlries vill follov suil
as governmenls respond lo groving
pressures lo clean up lhe environmenl
and reduce emissions.
¨Reconcilialion belveen lhe
cheapness of coal and ils disadvanlages
vill be driven bv lhe marginal cosl of
using pover from cleaner sources,¨
savs Clear of ANZ ßanking Group
Limiled. ¨Sufhce lo sav, lhere should
be incenlive lo do so as a maller of
urgencv.¨
Like all fossil resources, coal is hnile,
and some of lhe solulions for Asia's
energv needs mav be unimaginable al
presenl.
¨The economics of harvesling fossil
fuels changes as vou go deeper inlo
more hoslile environmenls,¨ savs
McCloskev. ¨ßul il's all a bridge lo an
energv fulure lhal vill be much more
efhcienl in carbon lerms.¨ Q
and lhe need for cleaner pover`
Òbviouslv much vill depend on
policv choices relaling lo issues such
as a carbon price÷and lhere are no
easv ansvers.
Whal is cerlain is lhal no maller
vhal allernalives Asia embraces, coal
use vill increase under anv readilv
foreseeable scenario because, despile
price rises of up lo 4O/ in 2O1O, il is
slill cosl-effeclive.
According lo lhe MIT reporl, coal
provides usable energv al a cosl of
belveen $1 and $2 per million ßrilish
lhermal unils (ßlu) compared vilh
$6 lo $12 per million ßlu for oil and
nalural gas.
¨Coal vill conlinue lo be used lo
meel.energv needs in signihcanl
quanlilies,¨ savs lhe reporl. A high CÒ
2

price scenario ¨leads lo a subslanlial
reduclion in coal use in 2O5O relalive
"The econonlcs of hartesIlng fosslI fueIs changes as
µou go deeµer lnIo nore hosIlIe entlronnenIs. BuI lI´s
aII a brldge Io an energµ fuIure IhaI ulII be nuch nore
efflclenI ln carbon Ierns"
·.LYHYK4J*SVZRL`VM[OL4J*SVZRL`.YV\W^OPJOWYV]PKLZJVHSUL^ZHUHS`ZPZ
HUKKH[H
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3O Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
AsIa Gncs Nuc!car
Driven by soaring energy demand, among other factors, Asian countries today
are driving the g|oba| surge in nuc|ear power deve|opment
ßY William ßranigin
£h£86Y$£008|TY
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J
usl a fev vears ago, lhe idea of
building a nuclear pover planl
in Singapore vas considered
unlhinkable. Wilh nearlv 5
million people living on an
island around 5O kilomelers vide,
Singapore's leaders vieved lheir
cilv-slale as loo small and crovded lo
safelv accommodale a nuclear planl.
Todav Singapore is among more
lhan 6O counlries vorldvide lhal are
looking inlo including nuclear pover
in lheir energv plans.
If il lakes lhal slep, lhe prosperous
island nalion mighl look lo anolher
nuclear nevcomer of sorls: lhe
Republic of Korea, a ßedgling supplier
vilh ambilious plans lo caplure a hflh
of lhe vorld markel for nuclear pover
planls over lhe nexl 2O vears.
Al some poinl, induslrv analvsls
sav, lhe Koreans can expecl lo compele
vilh lhe Ieople's Republic of China
(IRC), vhich is rapidlv becoming
self-sufhcienl in nuclear reaclor
design and conslruclion, and is
expecled lo have a nuclear capacilv
of al leasl 6O,OOO megavalls bv 2O2O.
Alreadv lhe vorld's second-largesl
energv consumer÷afler lhe Uniled
Slales÷and facing a groving need
lo supplv eleclricilv lo ils 1.3 billion
people, lhe IRC has 11 nuclear pover
reaclors in commercial operalion, 23
more under conslruclion, 34 olhers
planned, and 12O proposed, according
lo lhe World Nuclear Associalion
(WNA), a London-based inlernalional
organizalion lhal promoles nuclear
energv. And given ßei|ing's slaled goal
of alomic self-sufhciencv, analvsls sav,
lhe IRC mav soon |oin lhe compelilion
lo sell nuclear planls abroad.
Driven bv a combinalion of faclors÷
including concerns aboul fulure
supplies of fossil fuels: lhe need lo
combal climale change: and lhe advenl
of safer, smaller, and more advanced
reaclors÷Asian counlries lodav are
leading lhe vav in a surge of nuclear
pover developmenl.
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 31
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BECOMING SELF-SUFFICIENT The
PeopIeҋs RepubIic of China is rapidIy
becoming seIf-sufñcient in nucIear
reactor design and construction. The
Qinshan NucIear Power PIant in Zhejiang
province began operation in 1991 and
was the ñrst pIant designed by IocaI
engineers.
headquarlers. Il vas originallv driven
bv Iapan and lhe Republic of Korea,
Rogner savs, bul ¨nov China and
India have laken over.¨ Adding lo
lhe momenlum, he savs, is reneved
inleresl bv counlries lhal ¨slepped
avav¨ from nuclear pover in lhe
mid-198Os vhen lhe energv crisis of
lhe previous decade gave vav lo an oil
glul and cheap surplus crude, allhough
manv olher conlribuling faclors have
lo be laken inlo accounl. Among lhe
counlries vilh no operaling nuclear
pover planls lhal are nov laking
a hard look al lhe lechnologv are
Indonesia, Malavsia, lhe Ihilippines,
Thailand, and Viel Nam, Rogner and
olher experls sav.
¨Nuclear pover is en|oving groving
acceplance as a slable and clean source
of energv lhal can help lo miligale
lhe impacl of climale change,¨ IALA
Direclor General Yukiva Amano said in
a speech on 3 Mav lo a Uniled Nalions
conference in Nev York. ¨More lhan 6O
counlries are considering inlroducing
nuclear pover lo generale eleclricilv.
Il is expecled lhal belveen 1O and 25
nev counlries vill bring lheir hrsl
nuclear pover planls online bv 2O3O.¨
The veleran Iapanese diplomal added
lhal nuclear pover ¨musl be accessible
nol onlv for developed counlries bul
also for developing counlries.¨
NUCLEAR CONSTRAINTS: FROM
NIMBY TO THE °RING OF FIRE"
ßul lhe seclor conlinues lo face a
number of conslrainls. In several
Asian counlries, lhere is slrong public
opposilion from advocacv groups on
safelv and environmenlal grounds.
Then lhere is vhal lhe WNA's
Hore-Lacv calls ¨lhe NIMßY issue,¨
referring lo lhe acronvm for ¨nol in
mv back vard.¨ These opponenls lake
lhe viev lhal, as Hore-Lacv puls il,
¨ves, ve'd like some more eleclricilv,
bul don'l build lhe pover slalion
near us.¨ In Iapan and lhe Republic of
Korea, he noles, lhe NIMßY issue has
arisen in conneclion vilh sile seleclion
Òf lhe more lhan 5O nuclear pover
planls nov under conslruclion
vorldvide, 37 are being buill in
Lasl and Soulh Asia, lhe WNA savs.
In addilion, il savs, lhere are ¨hrm
plans¨ lo build 84 more and ¨serious
proposals¨ for anolher 18O. The region
currenllv has 112 nuclear pover
reaclors in operalion, lhe group savs.
¨Asia is lhe main region in lhe vorld
vhere eleclricilv generaling capacilv
and specihcallv nuclear pover is
groving signihcanllv,¨ lhe associalion
savs in ils lalesl updale. Il pro|ecls lhe
grealesl increases in nuclear capacilv in
lhe IRC, India, Iapan, and lhe Republic
of Korea.
¨Il's groving verv rapidlv,¨
savs WNA's Direclor of Iublic
Communicalions Ian Hore-Lacv.
¨Ieople vanl eleclricilv, lhev vanl
eleclricilv lhal's affordable, and lhev
vanl energv securilv and clean air.¨
Hans-Holger Rogner, head of lhe
Ilanning and Lconomic Sludies Seclion
of lhe Inlernalional Alomic Lnergv
Agencv (IALA), agrees.
¨The grovlh momenlum of nuclear
pover is even more acceleraled in
Asia,¨ he savs from lhe IALA's Vienna
´PeoµIe uanI eIecIrlclIµ.
Iheµ uanI eIecIrlclIµ
IhaI´s affordabIe.
and Iheµ uanI energµ
securlIµ and cIean alr´
-Ian Hore-Lacy, director of pubIic
communications, WorId NucIear
Association
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vvv.developmenl.asia
for nuclear pover planls and vasle
reposilories.
According lo lhe IALA's Rogner, lhe
NIMßY faclor ¨is nol reallv an issue¨
for communilies lhal have hosled
nuclear pover planls for decades and
have benehled from lhe emplovmenl
lhev generale and lhe laxes lhev
pav. ¨Il's usuallv vhere locals have
had no previous exposure lo nuclear
planls lhal lhe NIMßY faclor is a more
dominanl issue,¨ he savs.
Larlhquakes and volcanoes÷
manifeslalions of lhe Iacihc Rim's
¨ring of hre¨÷pose olher challenges.
The horseshoe-shaped zone, home
lo 75/ of lhe vorld's volcanoes and
aboul 8O/ of ils largesl earlhquakes,
is oflen ciled bv anli-nuclear groups as
Lxhibil A in lheir argumenls againsl
building nuclear pover planls in Asia.
The risks vere illuslraled in Iulv
2OO7 vhen a 6.8 magnilude offshore
earlhquake damaged lhe Kashivazaki-
Kariva nuclear pover planl in Iapan's
Niigala Irefeclure, forcing an exlended
shuldovn of lhe vorld's largesl
nuclear generaling slalion.
Iroleslers in Indonesia have
periodicallv rallied againsl plans lo
build a nuclear planl on lhe Muria
peninsula, along lhe norlhern coasl
of cenlral Iava, an area fealuring a
large dormanl volcano. And in lhe
Ihilippines, lhe nearbv presence of
earlhquake faull lines and Mounl
Iinalubo (vhich erupled in 1991) vere
among lhe faclors lhal prompled lhe
governmenl of Iresidenl Corazon
Aquino lo molhball lhe ßalaan Nuclear
Iover Ilanl in 1986.
While seismic aclivilv is a faclor,
nuclear pover proponenls do nol
regard il as insurmounlable.
¨You need lo make sure lhe planls
are designed lo vilhsland high seismic
levels¨ and are buill on solid bedrock,
Hore-Lacv savs.
¨Thal is a cosl faclor in lhe end,¨
Rogner savs. ¨You can make anv planl
earlhquake-safe, bul al addilional cosl.¨
Combined vilh lhe nuclear induslrv's
lvpicallv high conslruclion cosls÷
roughlv $3 billion lo $4 billion for an
inilial 1,OOO-megavall (MW) planl÷lhe
exlra expense could ¨rule oul nuclear
pover¨ for some counlries, Rogner savs.
ßul a broader conslrainl could be
a human resources issue: a dearlh
of nuclear experlise in some Asian
counlries. The IRC and India have
been educaling people lo build and
operale nuclear pover planls, ¨bul
vhelher lhis is enough remains lo be
seen,¨ Rogner savs. And olher nalions
NO NUKES Greenpeace joins an
anti-nucIear group from Morong
town in the Bataan peninsuIa of the
PhiIippines in instaIIing paper pinwheeIs
on the gate of the countryҋs House of
Representatives in May 2009. Some
Iawmakers proposed that the nucIear
pIant in Morong, which has never been in
operation, be commissioned to meet the
countryҋs energy needs.
A 2OO8 nuclear cooperalion agreemenl
vilh lhe US changes lhal, raising lhe
prospecl of foreign involvemenl in
pro|ecls lo generale as much as 63,OOO
MW of nuclear pover bv 2O32. And on
7 Mav, lhe induslrv received a furlher
boosl vhen a conlroversial lav vas
inlroduced in parliamenl lo eslablish
a liabililv compensalion svslem for
nuclear accidenls÷a vilal slep lo fullv
aclivale lhe US÷Indian accord and allov
American companies lo build reaclors
in India.
IN SEOUL: AMBITIOUS PLANS
In lhe Republic of Korea, 2O reaclors
currenllv produce aboul 17,7OO MW of
eleclricilv, meeling almosl 4O/ of lhe
counlrv's needs. Six olhers are under
conslruclion, and six more are planned
as parl of a program lo raise nuclear's
share of eleclricilv generalion lo nearlv
6O/ bv 2O3O.
ßul Seoul's plans are even more
ambilious lhan lhal. Working vilh US
companies, lhe Koreans developed lhe
1,OOO-MW ÒIR-1OOO reaclor, vhich
is 95/ locallv made, and a never
model based on il, lhe AIR-14OO. In
December 2OO9, a consorlium led bv
lhe Korea Lleclric Iover Corporalion
(KLICÒ) beal oul a Irench group
and a US÷Iapanese consorlium for a
huge conlracl, vorlh aboul $2O billion,
lo build four AIR-14OO unils in lhe
Uniled Arab Lmirales. KLICÒ plans lo
have lhe hrsl reaclor up and running
bv 2O17, vilh lhe resl onslream bv
2O2O, and expecls lo earn an addilional
$2O billion bv |oinllv operaling lhem
for 6O vears.
¨The Koreans are exlremelv
oulgoing lhese davs,¨ lhe IALA's
Rogner savs. ¨Thev reallv are one of
lhe lexlbook examples of a counlrv lhal
slarled vilh no nuclear infraslruclure
45 vears ago and nov has maslered
nuclear lechnologv. Thev've
announced lhev vanl lo conquer 2O/
of lhe vorld markel.¨
Closer lo home, lhe Republic of
Korea seems lo have ils sighls sel on
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 33
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markels for ils ÒIR-1OOO reaclors.
SOUTHEAST ASIA: NUCLEAR'S
NEW MARKET
Viel Nam plans lo inslall lvo reaclors
lolaling 2,OOO MW in soulheaslern
Ninh Thuan province bv 2O2O,
folloved bv lvo more of lhe same size
in anolher parl of lhe province. Ha
Noi's plans call for nuclear planls lhal
vill provide a lolal of 15,OOO MW bv
2O3O.
Among Soulheasl Asian counlries,
Viel Nam is believed lo have lhe
hrmesl nuclear pover plans. ¨Righl
nov, Viel Nam appears mosl advanced
in lheir nuclear pover developmenl
plans,¨ Rogner savs.
Indonesia, vhere nuclear plans
have ebbed and ßoved for more lhan
2 decades, nov savs il has $8 billion
budgeled for four planls lolaling 6,OOO
MW lo come onslream bv 2O25. An
Indonesian energv companv signed
a memorandum of underslanding
vilh a Korean consorlium in 2OO7 for
a feasibililv sludv on building lvo
1,OOO-MW planls under a governmenl
plan lo have nuclear pover supplv
2/ of lhe counlrv's rapidlv groving
eleclricilv demand bv 2O17. ßul
analvsls sav lhis limelable mav have
slipped.
In lhe Ihilippines, an IALA reviev
mission in 2OO8 assessed lhe currenl
slale of lhe 62O-MW ßalaan 1 reaclor,
molhballed in 1986, and idenlihed
lhe issues lhe governmenl needs lo
consider in rehabililaling lhe planl.
A KLICÒ feasibililv sludv eslimales
lhal il could be refurbished al a cosl
of aboul $1 billion. ßul environmenlal
groups such as Greenpeace have
slronglv opposed lhe pro|ecl, and lhe
governmenl has nol vel given il a
green lighl.
In addilion lo raising safelv and
environmenlal concerns, Greenpeace
has argued lhal lhe pro|ecl is loo
expensive and conlains ma|or hidden
cosls. Il lold Ihilippine lavmakers
eveing nuclear energv ¨cerlainlv
mav have a ma|or calch-up challenge
before lhem.¨ Indeed, nuclear experls
eslimale lhal counlries vilh no exisling
planls need al leasl 1O lo 15 vears lo
build up skills in safelv and conlrol,
dehne a regulalorv framevork, and
eslablish licensing procedures.
NUCLEAR GROWTH: THE PRC
AND INDIA LEAD THE WAY
Chief among lhose is lhe IRC, vhere
eleclricilv demand has been groving
al more lhan 8/ a vear. Lleclricilv
generaled bv nuclear planls currenllv
accounls for onlv aboul 2/ of lhe lolal.
Al leasl 8O/ comes from coal. The
resulling air pollulion causes economic
losses amounling lo nearlv 6/ of gross
domeslic producl, lhe World ßank
eslimales, and has helped make lhe
counlrv lhe vorld's largesl emiller of
greenhouse gases.
ßei|ing plans lo build addilional
reaclors, including some of lhe vorld's
mosl advanced, lo increase nuclear
capacilv more lhan sixfold lo al leasl
6O,OOO MW bv 2O2O, folloved bv
anolher spurl lo a pro|ecled 2OO,OOO
MW bv 2O3O.
In addilion, according lo lhe
WNA, ¨China is rapidlv becoming
self-sufhcienl in reaclor design and
conslruclion, as vell as olher aspecls of
lhe fuel cvcle.¨
In Iapan, vhich currenllv has 54
nuclear pover reaclors operaling, 2
under conslruclion and 12 planned, lhe
nuclear share of eleclricilv-generaling
capacilv is pro|ecled lo increase from
aboul 3O/ lodav lo 41/ bv 2O17.
India, vilh 19 reaclors currenllv
supplving nearlv 4/ of lhe counlrv's
eleclricilv, has 4 more reaclors under
conslruclion and hrm plans lo build
anolher 2O. Up lo nov, il has had lo
be complelelv self-sufhcienl. ßecause
il lesled an alomic bomb in 1974 and
refused lo sign lhe nuclear Non-
Iroliferalion Trealv, India vas barred
from access lo inlernalional nuclear
lechnologv and fuel supplies.
lasl vear lhal lhe pursuil of nuclear
pover conslilules ¨a garganluan
and un|usl burden on Iilipinos¨ and
could become ¨lhe allar upon vhich
lhis counlrv vill bankrupl ilself.¨
The governmenl neverlheless is also
considering lhe purchase of lvo
1,OOO-MW unils from lhe Republic of
Korea, vhich vould build lhe pro|ecl
vilh equipmenl from a deal vilh lhe
Democralic Ieople's Republic of Korea
lhal vas suspended in 2OO3 and laler
abandoned.
Thailand plans lo build a 4,OOO-MW
nuclear pover planl, vilh conslruclion
slarling in 2O14 and lhe hrsl 1,OOO
MW coming onslream bv 2O21. A Thai
research reaclor has been operaling
since 1977, and a larger one is being
buill.
Malavsia, vhich nov produces
nearlv lvo-lhirds of ils eleclricilv from
nalural gas, has budgeled $7 billion lo
build a nuclear pover planl bv 2O23,
according lo lhe WNA.
SINGAPORE: WEIGHING
NUCLEAR POWER
Singapore relies exclusivelv on nalural
gas imporled from Indonesia and
Malavsia lo meel ils eleclricilv needs,
vhich are expecled lo double bv 2O27,
from lhe levels in 2OO7. Unlil recenllv,
lhe cilv-slale vas on no one's radar as
a polenlial markel for a nuclear pover
planl. Nov il is among lhe counlries
looking inlo lhe lechnologv.
¨Singapore has slarled lo shov an
inleresl in il,¨ allhough lhe queslion of
¨planl siling could be a shovslopper,¨
savs Rogner. ¨A fev vears ago, lhev
vouldn'l even enlerlain lhe lhoughl.¨
Òver lhe pasl 6 monlhs, he
savs, Singaporean ofhcials ¨have
been visiling lhe IALA requesling
informalion on lhe inlroduclion of
nuclear pover programs so as lo gel
a beller underslanding on issues like
siling, energv svslem planning, and so
on.¨ Laler lhis vear, lhe governmenl
plans lo launch a feasibililv sludv of
nuclear pover in Singapore. Q
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WEIGHING FUTURE OPTIONS (BELOW)
Singaporeҋs ñrst off-shore power pIant,
the PuIau Seraya Power Station, suppIies
one-third of the nationҋs eIectricity
needs today. The government expects
eIectricity needs to doubIe by 2027 and
is considering tapping nucIear power for
the ñrst time.
NUCLEAR AMBITION (ABOVE) This
handout picture reIeased by Korea
Hydro and NucIear Power Co. shows a
nucIear power pIant under construction.
The RepubIic of Korea, which has spent
decades deveIoping nucIear power to
make up for its Iack of oiI, now hopes to
become a gIobaI Ieader in atomic energy
as the worId turns away from fossiI fueIs.
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losing Asia's energv gap
vhile meeling climale change
commilmenls is a lall order,
bul a suile of clean renevable energv
lechnologies coupled vilh improved
energv efhciencv, sav experls, is lhe
onlv real solulion. Lvervlhing from
mega pro|ecls÷including hvdro
pover, vind farms, geolhermal
planls, and solar concenlralors÷lo
communilv-sized off-grid mini-hvdro
generalors, village biogas digeslers,
biofuels, rooflop solar panels, and even
vave pover, vill plav a crucial role in
Asia's energv fulure.
The Inlernalional Solar Lnergv
Socielv poinls oul lhal because of ils
underdeveloped energv infraslruclure
and unique renevable energv
polenlial, lhe developing vorld, in
parlnership vilh lhe induslrialized
counlries, can leapfrog lo renevable
energv lechnologies vhile benehling
from lhe Kvolo Irolocol.
Through lhese innovalive green
lechnologies, developing counlries in
Asia can also avoid lhe fossil fuel-
inlensive and vasleful praclices of
developed counlries bv launching inlo
a nev era of clean renevable energv.
ßul lhe World ßank reporl Win!s cj
Cncngc. |csi Asic´s Susicinc||c |ncrgu
|uiurc caulions lhal lhe vindov of
opporlunilv is closing fasl and lhe
region risks becoming locked inlo high-
carbon infraslruclure if governmenls do
nol acl prompllv.
MOBILIZING POLICY AND FUNDING
Lasl Asia's six ma|or energv-consuming
counlries vill need lo mobilize
aboul $8O billion in inveslmenl
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 35
polilical vill and unprecedenled
inlernalional cooperalion lo meel lhe
hnancing needs,¨ she adds. To boosl
allernalive energv bv 2O3O and make
renevable energv compelilive vilh
convenlional energv sources, lhe reporl
suggesls hnancial incenlive polices
or a lax on fossil fuels. Il also slresses
lhe need lo accelerale innovalion and
embrace clean lechnologies righl avav.
Renevable energv pro|ecls are alreadv
galhering momenlum in lhe region.
B|ccm|crg BusincssWcck reporled lhal
in 2OO9 Asia and Òceania exceeded
The Green Race
Asia is betting big on renewab|e energy. Can it de|iver?
ßY Iames Hulchison
vearlv, as vell as make domeslic
policv and inslilulional reforms, lo
allain suslainable energv grovlh,
lhe World ßank reporl eslimales. Il
adds lhal lhe Ieople's Republic of
China (IRC), Indonesia, Malavsia,
lhe Ihilippines, Thailand, and Viel
Nam can simullaneouslv slabilize
greenhouse gas emissions bv 2O25
vilhoul compromising grovlh
lhrough addilional hscal inveslmenl in
renevable energv and energv efhciencv.
¨The speed and scale of urbanizalion
presenl an unrivalled opporlunilv lo
build lov-carbon cilies,¨ savs Xiaodong
Wang, lead aulhor of lhe reporl and
senior energv specialisl al lhe World
ßank. ¨The lechnical and policv
means alreadv exisl for lhe necessarv
lransformalion: vhal's needed is
ASIAҋS FIRST OFFSHORE WIND FARM
The PRC put into operation in June the
102-MW Shanghai Donghai Bridge Proj-
ect in the Yangtze River DeIta. It is the
ñrst offshore wind farm outside Europe.
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inveslmenls in clean energv in lhe
Americas for lhe hrsl lime, vilh nev
clean energv inveslmenls lolaling $37.3
billion. The Asian Developmenl ßank's
(ADß) Clean Lnergv Irogram has
invesled $2.8 billion over lhe pasl 2 vears
in renevable energv, energv efhciencv,
and clean lechnologv deplovmenl lhal
encourage ils developing member
counlries lo move lovard lov-carbon
energv generalion and ulilizalion. The
mullibillion-dollar Climale Inveslmenl
Iunds, a collaboralive efforl among
mullilaleral developmenl banks and
counlries, supporl clean lechnologv,
climale resilience, foresl proleclion,
and renevable energv in lov-income
counlries.
The IRC, lhe vorld's mosl populous
counlrv and nov lhe producer of lhe
grealesl share of global greenhouse
gas emissions, is pro|ecled lo become
lhe vorld's largesl consumer of energv
bv 2O15. The governmenl is on lrack
lo reach ils hisloric commilmenl lo
generale 15/ of ils energv needs from
renevable sources bv 2O2O. The billions
invesled in renevable energv make lhe
nalion a global leader in lhe produclion
and use of evervlhing from vind
farms and solar planls lo village biogas
digeslers and solar valer healers.
ßv selling lhe mosl ambilious
green goals in Asia, experls predicl
lhe nexl decade vill see lhe IRC
become lhe vorld's largesl producer
and consumer of allernalive energv.
The nalion is alreadv lhe vorld's
largesl manufaclurer of vind lurbines
and biogas fermenlers, and is al
lhe forefronl of lhe developmenl of
eleclric cars. India, Iapan, lhe Republic
of Korea, and Singapore are also
developing vorld-class renevable
energv lechnologies lhal vill benehl
olher counlries in lhe region even more
as prices drop.
GENERATING GREEN JOBS
The renevable energv induslrv is
crealing lhousands of nev |obs in
lhe region. ßv 2O2O lhe clean energv
induslrv is expecled lo be vorlh
aboul $2,4OO billion a vear globallv,
and is poised lo become lhe lhird
largesl induslrial markel vorldvide,
according lo a World Wildlife Iund
reporl.
According lo lhe Chinese Renevable
Lnergv Induslries Associalion, |obs
in renevable energv induslries are
climbing bv 1OO,OOO a vear in lhe
IRC. The Republic of Korea has made
green lechnologv a priorilv and has
budgeled $6O billion lo be spenl bv
2O12: lhis vill also bring lhousands
of nev |obs. Iapan has sel aside $35
billion of ils slimulus budgel for
developing renevable energv, including
subsidies for residenlial solar pro|ecls.
Singapore is commilled lo foslering
clean lechnologv induslries, vhich
are expecled lo emplov 18,OOO people
bv 2O15. The 55-heclare CleanTech
Iark, lhe conslruclion of vhich begins
in 2O1O, vill provide a large-scale
inlegraled ¨living laboralorv¨ vhere
companies can develop and lesl clean
lechnologv solulions lhal can be scaled
up for applicalion across lhe Asia÷
Iacihc region.
WATER POWER
Large-scale hvdropover pro|ecls dvarf
all olher sources of clean renevable
energv in Asia vilh megapro|ecls
in counlries from lhe Lao Ieople's
Democralic Republic lo Iakislan
and manv more planned in a region
lhal has vasl unlapped polenlial.
Hvdropover has several advanlages:
il is highlv reliable, has lov operaling
cosls, and can ad|usl quicklv lo load
changes. Disadvanlages include high
slarl up cosls, possible displacemenl
of populalions, inundalion and loss
of land, and disruplion of valervavs.
¨Run-of-lhe-river¨ planls, vhich use
lhe nalural ßov and elevalion drop
of lhe river lo generale pover, have
lhe leasl impacl on ecosvslems and
minimize inconvenience lo nearbv
communilies. If climale change goals
go unmel, hvdropover could be
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lhrealened as lov valer ßovs in rivers
mav affecl oulpul.
Micro-hvdropover is being used lo
bring eleclricilv lo lhe poor in remole
communilies and islands vilh suilable
resources in counlries such as lhe
IRC, Indonesia, and lhe Ihilippines.
Viel Nam has over 2,5OO micro-hvdro
schemes supplving over 2OO,OOO
households. Micro-hvdro svslems have
lov environmenlal impacl as lhev
lemporarilv diverl small amounls of
valer from a nearbv river or slream lo
spin a generalor lo produce eleclricilv
before relurning lhe valer lo lhe river.
Lov-vollage local grids can deliver lhe
pover lo homes, and cooperalives can
be lrained lo perform mainlenance and
collecl usage fees lo pav for upkeep of
lhe svslem.
CATCHING THE WIND
Wind-generaled pover is groving
globallv bv 3O/ per vear, and nov
cosls 8O/ less per megavall (MW)
lhan il did 2 decades ago÷good nevs
for Asian developing counlries vilh
high vind pover polenlial, such as lhe
Ihilippines and Viel Nam.
The ßelgium-based Global Wind
Lnergv Council (GWLC) reporled lhal
lhe IRC more lhan doubled ils vind
generalion capacilv belveen 2OO8 and
2OO9. India added nearlv 1,3OO MW in
lhe same period and addilional capacilv
in counlries including Iapan, lhe
Republic of Korea, and Taipei,China,
has resulled in Asia becoming lhe
biggesl regional markel for vind
energv in 2OO9.
Technical problems lhal besel earlv
vind lurbines have been solved and lhe
lalesl vind lurbines have dramalicallv
improved pover ralings, efhciencv, and
reliabililv. Consequenllv, generaling
cosls have fallen precipilouslv over
lhe pasl 15 vears, moving ever closer
lo lhe cosl of convenlional energv
sources. ¨Wind pover is clean, reliable
and quick lo inslall, so il is lhe mosl
allraclive solulion for improving supplv
securilv, reducing CÒ
2
|carbon dioxide]
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 37
SOLAR HOME A worker cIeans soIar
paneIs at Indiaҋs ñrst soIar housing
project in Rajarhat near KoIkata.
emissions, and crealing lhousands
of |obs in lhe process,¨ savs GWLC
Secrelarv General Sleve Savver. ßul like
olher sources of renevable energv, vind
pover is al lhe mercv of lhe elemenls÷
no vind means no pover generalion÷
and unsecured lurbine blades exceeding
lhe vingspan of a |umbo |el can be
damaged bv high vinds associaled vilh
lvphoons in lropical Asia. This makes
sophislicaled vealher pallern analvsis
and forecasling for vind and solar
pover generalion in lhe region crilical,
nol onlv for hnding lhe besl localions
bul also for efhcienl operalion of vind
and solar planls.
Wilh lhe besl vind pover and solar
localions oflen in remole areas far
from exisling nalional pover grids,
large inveslmenls are needed lo
hnance lransmission lines and olher
infraslruclure for lhese renevable
energv pro|ecls. Lxisling nalional
pover grids vere nol designed lo
handle lhe inlermillenl oulpul of
renevable energv sources such as
vind and solar pover. These musl
be redesigned inlo ¨smarl grids¨÷
vhich are nol onlv capable of using
ßuclualing pover sources, bul also
able lo reduce pover loss and improve
reliabililv. Smarl grids use informalion
lechnologv svslems lo provide
delailed informalion lo operalors and
end users in lheir homes. Singapore
is selling up lhe Lxperimenlal Iover
Grid Cenlre and a pilol pro|ecl for an
¨inlelligenl energv svslem¨ lo develop
and lesl comprehensive smarl grid
solulions.
The IRC is aboul lo bring online lhe
nalion's hrsl full-scale offshore vind
farm, lhe 1O2-MW Shanghai Donghai
ßridge Iro|ecl in lhe Yanglze River
Della inslalled bv IRC lurbine producer
Sinovel. The hrsl of several large-scale
offshore vind pover pro|ecls expecled
lo generale up lo 1,OOO MW, il is parl of
lhe governmenl's goal lo supplv clean
pover lo 4O/ of lhe populalion living
along lhe easlern seaboard and lo lead
lhe vorld in bolh onshore and offshore
vind pover. The Asia÷Iacihc region
has lremendous off-shore vind pover
polenlial and olher Asian counlries are
lapping inlo regional experlise.
HARNESSING SUNSHINE
Solar pover could make up as much
as a quarler of lhe vorld's lolal
eleclricilv produclion bv 2O5O vilh lhe
38 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
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use of pholovollaic and concenlraling
solar pover lechnologies, savs lhe
Inlernalional Lnergv Agencv. Nev
sludies of lhe lvo lechnologies bv
lhe agencv shoved pholovollaic
panels÷arravs of cells conlaining
malerial lhal converls solar radialion
inlo direcl currenl eleclricilv÷could
provide aboul 11/ of global eleclricilv
produclion bv 2O2O. Iholovollaic
lechnologies have greal polenlial lo
help relieve Asia's energv poverlv,
especiallv in rural areas nol on nalional
grids: hovever, expense has been a
ma|or slumbling block for developing
counlries. Todav, lhe vorld's largesl
solar-panel producer, lhe IRC, along
vilh Iapan and Singapore, are vorld
leaders in lhe manufaclure of nev-
generalion, higher-efhciencv unils.
Wilh prices expecled lo plummel
vilhin lhe decade, solar panels in
forms ranging from rooflop valer
healers lo huge pholovollaic arravs
should become a common sighl across
lhe region.
Concenlraling solar svslems relv
on huge banks of mirrors lhal focus
solar energv lo raise sleam, vhich
drives lurbines, and are nov capable of
producing eleclricilv around lhe clock
lhrough a svslem of sloring energv
as heal in subslances such as mollen
sall. Allhough nol all experls agree
on lhe lechnologv's suilabililv lo local
condilions, lhe IRC is forging ahead
vilh conslruclion of up lo 2,OOO MW of
pover planls using concenlraling solar
pover over lhe nexl decade, slarling
vilh a 92-MW planl in lhe cenlral IRC.
Cenlral Asian counlries such as
Kazakhslan and Iakislan have vasl
deserl lands, making lhem excellenl
candidales for large-scale solar energv
developmenl. ADß is helping hnance
lhe Asia Solar Lnergv Inilialive
vilh lhe goal of developing large
capacilv pro|ecls lhal vill generale
3,OOO MW of solar energv bv 2O12.
According lo ADß Managing Direclor
General Ra|al Nag, speaking al ADß's
43rd Annual Meeling in Tashkenl,
Uzbekislan, ¨Suslainable solar energv
can be lhe clean pover of lhe fulure
if lhere are appropriale incenlives
and hnancing mechanisms in place.¨
ADß has approved inveslmenl in a
73-MW solar pover planl in cenlral
Thailand likelv lo be one of lhe largesl
solar pholovollaic pro|ecls in lhe
vorld, using innovalive lhin-hlm
pholovollaic lechnologv. ADß's solar
inilialive includes lhe Solar Lnergv
Iorum vhere inlernalional experls
share knovledge aboul lrends in solar
energv developmenl and discuss nev
solar pover proposals and incenlive
mechanisms.
¨The rapid spread of solar lighling
svslems, solar valer pumps, and olher
solar pover-based rural applicalions
in India is beginning lo lighl lhe lives
of lens of millions of India's energv-
poor cilizens,¨ said Indian Irime
Minisler Manmohan Singh al lhe
launch of lhe nalion's cenlerpiece
of renevable energv developmenl
in Ianuarv. The Iavaharlal Nehru
Nalional Solar Mission is expecled
lo boosl deplovmenl of solar energv
svslems and inslall 2O,OOO MW of solar
capacilv bv 2O22. Ònce parilv vilh lhe
convenlional pover lariff is achieved,
lhe prime minisler noled, lhere vill be
no lechnological or economic barrier
lo lhe rapid and large-scale expansion
of solar pover. ßul lhe program's
success depends on hnding vavs lo
reduce lhe space inlensilv of currenl
solar applicalions, including lhrough
lhe use of nanolechnologv. Cosl-
effeclive and convenienl slorage of
solar energv bevond davlighl hours
vill also be crilical lo ils emergence as a
mainslream source of pover.
GROWING ENERGY
ßiofuels, such as lhose derived from
corn, have come under crilicism for
displacing agricullural food crops and
hurling lhe poor, so a nev palh for
groving energv is needed. The |alropha
planl, and olher energv crops, mighl
|usl be lhe kev lo biofuel's fulure:
lhe seeds from ils fruil are rich in a
vellovish liquid similar lo palm oil
and can be made inlo biodiesel. The
planl lhrives in marginal or vasle land
unsuilable for food crops, needs lillle
valer or ferlilizer, and is nol edible.
In India, millions of acres of such land
are beginning lo lurn green as farmers
planl |alropha. The planl is nov also
being cullivaled in lhe Ihilippines
and Thailand. Indian railvavs are
using biofuels in locomolives and have
planled millions of |alropha planls
alongside lracks. Such biofuel could
also be a home-grovn clean energv
solulion for millions of rural villagers
vilhoul eleclrical conneclions lo pover
grids.
The ipunia bush, vhich grovs
in marshv land nol suilable for
agricullure, is being used in India
as biomass lo creale melhane gas,
vhich povers generalors lhal produce
eleclricilv. ßiomass resources such as
vood and bagasse (lhe drv, hbrous
residue of sugar cane lefl afler |uice
exlraclion) and olher agricullural
residues÷rice hulls, palm oil vasle,
and vood vasle÷are abundanl in Asia
and also have good polenlial as fuels
for green pover generalion.
Animal vasle from liveslock farms
is being rendered safe and pul lo use
in counlries such as Viel Nam and
lhe IRC lo generale energv lhrough
biogas lechnologv. Iiggeries comprise
8O/ of lhe liveslock seclor in Asia, and
pigs produce 6 limes more vasle lhan
humans. A household vilh |usl a fev
head of liveslock can generale enough
biogas lo meel much of ils cooking
needs, and even addilional eleclricilv
vilh a gas-driven generalor÷
supplanling kerosene or vood fuel,
vhich are ma|or sources of household
pollulion in Asia. A lvpical household
digesler converls rav manure, lhrough
fermenlalion, inlo clean gas for cooking
and lighling and slurrv lo ferlilize
crops. Hovever, lhe price lag of more
lhan $5OO each puls lhem oul of lhe
reach of millions of rural poor, unless
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 39
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ENVIRONMENT-FRIENDLY Dried cow
dung cakes are used as an environment-
friendIy aIternative to ñrewood in many
parts of India. Dung is aIso used to
produce biogas to generate eIectricity.
hnancing assislance and subsidies are
provided on a large scale.
POWER BENEATH OUR FEET
The Ihilippines' slalus as lhe
vorld's second largesl geolhermal
pover producer highlighls lhe
polenlial of geolhermal resources
lo supplv renevable energv for
olher developing counlries in lhe
region. In an inlerviev vilh lhe
Auslralian ßroadcasling Commission,
Mario Marasigan, direclor of lhe
Renevable Lnergv Managemenl
ßureau of lhe Deparlmenl of Lnergv
in lhe Ihilippines, savs unlike olher
resources÷parlicularlv vind÷lhal
are relalivelv inlermillenl, geolhermal
energv can provide conlinuous,
reliable capacilv al anv given lime.
He noles, hovever, lhe huge upfronl
cosl required for developmenl is lhe
ma|or issue slalling rapid progress,
Marasigan noles.
Indonesia has long produced
geolhermal energv and has huge
resources lhal if fullv exploiled could
fulhll ils enlire nalional energv needs.
Despile lhe enormous developmenl
cosls, experls sav geolhermal energv
offers lhe besl oplion for manv
Asian counlries lo provide cheap,
conlinuous, and lov emission base-
load pover.
If clean renevable energv is lo
have anv chance of vinning lhe ballle
againsl energv poverlv and climale
change and provide for conlinued
economic prosperilv, Asian nalions
musl give ils developmenl lhe highesl
priorilv. World ßank's 1nc Wcr|!
Dctc|cpmcni Rcpcri 2010. Dctc|cpmcni
cn! C|imcic Cncngc concludes lhal a
¨climale-smarl¨ vorld is vilhin reach,
if ve acl nov, acl logelher, and acl
differenllv from lhe pasl. Q
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A
sia's remarkable economic
rise during lhe pasl 3
decades could nol have
occurred vilhoul oil
and gas, lhe lifeblood of lhe region's
dvnamic grovlh. ßul lhe fuel lhal has
moved people and producls across lhe
region÷and around lhe vorld÷has
crealed an unsuslainable dependencv.
¨Asia consumes 3O/ of lhe vorld's
oil, bul has onlv 1O/ of lhe vorld's
produclion,¨ savs Kang Wu, a senior
fellov in economics al lhe Honolulu-
based Lasl-Wesl Cenler. ¨Asia alreadv
needs lvo-lhirds of ils oil from
oulside. Ior lhe nexl 1O lo 15 vears, oil
consumplion vill conlinue lo grov,
and lhe gap vill conlinue lo go up.
Thal's lhe lrend.¨
In 2O vears, lhe Ieople's Republic of
China (IRC) is expecled lo imporl 75/
of ils oil and 5O/ of ils gas demand,
becoming lhe largesl oil imporler in lhe
vorld, according lo lhe recenl World
ßank reporl enlilled Win!s cj Cncngc.
|csi Asic´s Susicinc||c |ncrgu |uiurc.
Despile ils massive oil and gas
reserves, Indonesia is alreadv a nel
crude imporler, vhich forced il lo
drop oul of lhe Òrganizalion of lhe
Ielroleum Lxporling Counlries in
2OO8. Il could even become a nel gas
imporler bv 2O2O. India, meanvhile,
imporls belveen 68/ and 7O/ of ils
oil, and according lo Ruchika Chavla
of lhe Nev Delhi-based Asian Lnergv
Inslilule, lhal vill rise lo 93/ bv 2O3O.
¨Thal's obviouslv huge, and vou
have lo see il in lhe conlexl lhal mosl
of lhe counlries |in Asia] are lalking
aboul. The lrends are similar,¨ she
savs. ¨Irom an energv securilv poinl
of viev, lhere's a dehnile need lo move
avav from lhe currenl energv baskel.¨
FUELING MOVEMENT
As Asia has prospered and ils cilies
have developed, lransporl has become
Crudc AddIctInn
Oi| and gas have he|ped drive Asia's phenomena| growth.
Now the region must face the downside of its dependency
ßY Ioe Cochrane and Dana Williams
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 41
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CRUDE REALITY (LEFT) A worker rides
past barreIs ñIIed with fueI in Jakarta.
Despite its massive oiI and gas reserves,
Indonesia is a net crude importer.
HIGH ROAD TO PROGRESS (RIGHT)
VehicIes converge at a busy interchange
in Shanghai, the PRC. As Asia has
prospered and its cities have grown,
transportation has become a key concern.
a kev issue. ßuses and aulomobiles
carrv commulers lo vork. Trucks,
lrains, and ships deliver lhe producls
of induslrv. Airlines provide a direcl
link lo olher cilies and counlries.
Aboul 44 million people are added
lo lhe populalion of Asia's cilies
each vear, according lo lhe Asian
Developmenl ßank. Larger populalions
creale larger spravl, vhich creales a
grealer need for lransporl. Iersonal
vehicles, such as cars and molorcvcles,
are becoming increasinglv popular,
replacing unreliable and uncomforlable
public lransil svslems as preferred
melhods of lravel.
Consequenllv, lhe demand for
oil in Asia is increasing much fasler
lhan in lhe resl of lhe vorld. While
oil is a signihcanl nalural resource
in a fev counlries in lhe region,
mosl are dependenl on imporls. The
counlries in lhe region lhal do have
oil reserves are expecled lo increase
lheir produclion, bul demand is
rising fasler lhan produclion. Wilh
increasing dependence on oil imporls,
lhe region becomes ever more
vulnerable lo price ßuclualions and
disruplions in supplv.
The slalislics are sobering: Transporl
consumes 17.2/ of all energv sources,
bul approximalelv 9O/ of lhal amounl,
or 556 million lons, is from pelroleum,
according lo a December 2OO9 reporl
bv lhe Uniled Nalions Lconomic and
Social Commission for Asia and lhe
Iacihc (LSCAI), vhich used 2OO6
hgures÷lhe mosl recenl available.
Globallv, Asia accounls for 26/ of
global pelroleum consumplion in lhe
lransporl seclor, and ils grovlh rale has
exceeded lhal of lhe resl of lhe vorld
since 199O.
Nalural gas produclion has
increased in lhe region, mosllv for
domeslic consumplion bv pover and
induslrv. ßecause il is cleaner and more
efhcienl lhan coal, demand for gas is
also groving. ßul il is also relalivelv
expensive.
¨Òne of lhe challenges for nalural
gas use in Asia is lhal coal is loo
cheap,¨ Wu savs. ¨Coal is lhe one
lhal can give vou cheaper pover. If
vou have a coal crisis for anv reason,
lhen coal prices vill go up. If prices
go up, nalural gas vill be preferred.¨
As vilh olher fossil fuels, demand for
nalural gas is increasing fasler lhan
produclion, and nalural gas self-
sufhciencv dropped 8/ from 1999 lo
2OO6, according lo an ADß reporl on
energv securilv.
CLIMATE AND POLLUTION
Asia's voracious appelile for oil has
a direcl negalive effecl on air qualilv,
as vell as large-scale environmenlal
impacls. According lo LSCAI,
lransporl is a ma|or conlribulor lo
global emissions of carbon dioxide
(CÒ
2
), one of lhe kev componenls of
climale change. And il vill onlv gel
vorse.

2
emissions bv lhe lransporl
seclor from fuel combuslion vere
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6,337 million lons in 2OO5, nearlv
2O/ of global emissions. Wilhin lhe
lransporl seclor, 4,648 million lons or
73/ vere from lhe road subseclor, lhe
organizalion reporls.
According lo lhe Wcr|! |ncrgu
Oui|cck 2008, lhe lransporl seclor vill
grov bv 42/ bv 2O3O, and lhe lolal
energv use bv lhe seclor vill be aboul
8O/ higher lhan currenl levels.
Given lhe groving energv demand,
Asian nalions vill have lillle choice bul
lo increase lransporl efhciencv if lhev
vanl lo reduce energv consumplion
and greenhouse gas emissions, analvsls
sav. ßul lhev cannol focus on beller
vavs of lransporling people al lhe
expense of freighl, vhich mav accounl
for up lo half of all consumplion in
some Asian cilies.
¨Some of lhe numbers ve're gelling
al lhe momenl from sludies done
elsevhere are lhal il's 5O:5O,¨ savs
Iohn Moon, chief of lransporl policv
CROSSING THE BORDER The "Maitree
(Friendship) Express," the ñrst direct
passenger train between BangIadesh and
India in more than 40 years, Ieaves Dhaka
for KoIkata with 517 passengers aboard
on 14 ApriI 2008. The United Nations
Economic and SociaI Commission for
Asia and the Paciñc (ESCAP) envisions
a Trans-Asian RaiIway that wouId Iink
countries in the region.
ßarrv Cable, direclor of LSCAI's
lransporl division.
¨In all counlries in lhe region,
lhe coaslal areas have developed
more quicklv due lo lheir access
lo inlernalional markels and lhe
cluslering effecl of induslries
around seaporls,¨ he savs. ¨We're
encouraging counlries lo use more
efhcienl means of lransporl, including
lrving lo increase lhe efhciencv and
compeliliveness of railvav use over
lhal of roads.¨
and developmenl al LSCAI, based in
ßangkok.
Òne of LSCAI's main lransporl
pro|ecls is lhe decades-old Asian
Highvav, a planned nelvork of
141,OOO kilomelers of slandardized
roadvavs crisscrossing 32 Asian
counlries, vilh linkages lo Lurope. The
highvav pro|ecl vas inilialed in 1959,
bul progress sloved vhen hnancial
assislance vas suspended in 1975. In
2OO3, lhe plan vas revilalized. The
Uniled Nalions agencv is also vorking
on lhe complelion of lhe Trans-Asian
Railvav, vhich currenllv has nearlv
81,OOO kilomelers of roules operaling
in 26 counlries.
The Trans-Asian railvav pro|ecl is
lhe backbone of a region-vide plan
lo provide beller access lo seaporls
for landlocked counlries and provide
opporlunilies for increased lrade. The
railvav could subslanliallv reduce
lransporl energv consumplion, savs
also addressing separalelv a range of
logislics issues lhal vould improve
efhciencv as vell.¨
Among lhe ideas being promoled, he
savs, are planning developmenl lo help
reduce lransporl dislances: bringing
logelher lhe planning of produclion and
dislribulion poinls for freighl (folloving
lhe posilive examples in Lurope):
increasing lhe use of valer lransporl in
river and coaslal areas: consolidaling
loads inlo bigger unils lo reduce lhe
number of lrips: reducing emissions
lhrough improved vehicle design
and mainlenance: and inlroducing
allernalives lo diesel for lrucks and
buses as vell as eleclric and hvbrid cars.
Iapan, for example, has developed
nev lechnologies lo increase engine
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 43
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efhciencv, remove parliculale maller,
and reduce noise pollulion. The IRC,
meanvhile, has been verv successful
in implemenling a World ßank pilol
pro|ecl lo inlroduce ¨green¨ lrucks
in lhe cilv of Guangzhou, near Hong
Kong, China.
The World ßank reporl slales lhal
more lhan one-lhird of lhe $85 billion
in addilional vearlv inveslmenl
needed for energv efhciencv in Asia
musl go lo lhe lransporl seclor, vhich
also inquires hnancial incenlives
for consumers lo shifl lo more fuel-
efhcienl vehicles.
Moon of LSCAI savs olher
individual choices, including simple
lhings such as nol revving lhe engine
of vour car, pumping lhe breaks less,
A kev vav lo do lhal, Cable savs,
is for Asian counlries lo develop drv
porls in inland areas as a focus for
consolidalion and dislribulion, so
lhal goods and documenlalion can
be processed closer lo vhere lhev are
produced and lransporled bv rail as
vell as road. Through lhis process, drv
porls can acl as an economic slimulus
in lhe same vav lhal sea porls do in
coaslal areas, crealing demand and
making rail more compelilive.
Cable savs lhe eslablishmenl of a
nelvork of drv porls vill also make
lruck lransporl more efhcienl, so
¨inslead of going one vav full and lhe
olher vav emplv . lrucking services
can be organized lo pick up relurn
loads and lravel bolh vavs full. We're
6--;/,9(03:0505+65,:0(
D
espile lhe benehls of
rail lransporl÷reduced
energv consumplion
and beller logislics÷
Indonesia is invesling in more loll
roads, bridges, and highvavs lhan
railroad lracks, savs Yoga Adivinarlo,
a lransporl specialisl vilh lhe Inslilule
for Transporlalion and Developmenl
Iolicv in Iakarla.
The nalion's railvav nelvork has
been shrinking for decades. According
lo dala from lhe Indonesian Minislrv
of Transporlalion's direclorale general
of lrain services, onlv aboul 3O/ of
Indonesia's 6,8OO kilomelers of railvav
lracks vere in use in lale 2OO9.
¨There's no lrusl in rail developmenl
anvmore. As ve have seen over
lhe lasl decade, no measures have
been implemenled lo improve rail
performance,¨ Adivinarlo savs. ¨Toll
roads use more energv, bul lhev are
seen as beller because lhev're fasler.¨
To ils credil, Indonesia is lrving
lo inlroduce allernalive fuels for
ils public lransporl svslems. In lhe
capilal Iakarla, lhe buses lhal plv lhe
rapid busvav svslem are povered bv
compressed nalural gas (CNG), and lhe
cilv adminislralion has issued a bvlav
mandaling lhal all public lransporl
vehicles, including laxis, svilch lo
CNG or liquid pelroleum gas bv 2O12.
There is onlv one problem: lhe
public lransporl companies vill
never be able lo make lhe deadline.
ßul lhal is nol necessarilv lheir faull,
savs Reslili Sekarlini, lhe Inslilule
for Transporlalion and Developmenl
Iolicv's depulv direclor.
She savs lhe infraslruclure needed
for CNG-povered vehicles, such as
service slalions and specialized aulo
repair garages, are nol in place. In lhe
199Os, lhere vere 19 service slalions
in Iakarla selling CNG, bul lodav
lhere are onlv 4 because of lhe high
price of eleclricilv lo run lhem and lhe
uncerlain CNG supplv.
¨Todav, lhev vould need dozens or
hundreds of |CNG] slalions¨ lo meel
demand, she savs.
Il is inconceivable lhal Iakarla vill
gel lhose slalions anvlime soon, she
savs. Larlier lhis vear, Indonesia's
Minislrv of Transporlalion donaled
aboul 1,OOO CNG conversion kils for
public lransporl minibuses in lhe Wesl
Iava cilv of ßogor, bul lhe converled
vehicles conlinue lo sil idle in a parking
lol because lhe local CNG service
slalion does nol have anv CNG. Q
FIRST COME, FIRST SERVED
A passenger Iooks out the window of an
overcrowded train Ieaving Jakarta. OnIy
about 30% of Indonesiaҋs 6,800 kiIometers
of raiIway tracks were in use in Iate 2009.
smoolhlv pulling avav from a lrafhc
lighl or slop sign and, of course, using
public lransporl, save gasoline.
¨If ve're going lo have an impacl
on reducing energv in general, lhere's
an educalional process required in
moving people and goods around,¨
Moon savs. ¨We are exlremelv vasleful
in lerms of lhe kinds of cars ve buv, in
lerms of lhe vav ve drive a car.¨
¨We could each reduce our
consumplion bv 3O/ vilhoul anv
adverse impacls on our slandards
of living,¨ he savs. ¨There's an
opporlunilv oul lhere for individuals
lo make a big conlribulion bv making
good decisions.¨
HUMAN TRANSPORT
ßul more Asian governmenls, bolh
nalional and local, also need lo slarl
lhinking oulside lhe box, in parlicular
vilh human lransporl. While some
Asian megacilies have advanced,
inlegraled mass rapid lransil svslems,
olhers do nol even have a subvav
svslem. Singapore has a nalional policv
limiling lhe number of privalelv ovned
cars on lhe road, and also has road
pricing in cerlain areas of lhe island
slale, bolh of vhich encourage lhe use
of ils public lransporl svslem.
ßul lransporl analvsls sav lhal
unreliable public lransporl onlv
encourages people lo drive lheir cars
and molorcvcles inslead of laking
lhe bus or subvav. In lhe Indonesian
capilal of Iakarla, for example, onlv
3O/ of people use public lransporl,
vhile 7O/ use privale vehicles,
according lo lhe Indonesian Consumer
Iroleclion Ioundalion, vhich savs lhal
lhe reverse should be lrue.
The World ßank reporl savs lhal in
2OO7, Lasl Asian governmenls spenl
$7O billion on fossil fuel subsidies for
induslries and molorisls, vhich runs
counler lo ils calls for fuel laxalion or a
carbon lax and olher measures lo reduce
lransporl-relaled energv demand.
¨The energv price is a kev
delerminanl of energv fulure,¨
44 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
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svslem, and in lhe long lerm vou reallv
have a molivalion for coal gasihcalion
and clean coal lechnologv÷il
generales eleclricilv al lhe source of
lhe coal, ralher lhan moving lhe coal
lo lhe faclories. Il's easier lo move
eleclricilv over lines lhan coal over
railvavs.¨
ßul looking al lodav, lhe IRC is in an
enviable posilion because of massive
nalionvide infraslruclure pro|ecls,
including conslruclion of roads,
railvavs, high-speed lrains, airporls,
and urban mass rapid lransil svslems.
¨In lerms of produclivilv, vhere vou
are dehning incremenlal increases in
nalional income, vou're going lo hnd
lhal in Soulheasl Asia il runs al 2/
lo 3/. In China, il's 7/,¨ ßroadfool
savs. ¨Thal doesn'l mean lhe Chinese
faclorv laborer moves lvice as fasl.
ßul if vou look al China, lhe reason il
has grovn so rapidlv is lhere's been a
disproporlionale amounl of inveslmenl
in infraslruclure.¨
Sadlv, lhe opposile can be said
aboul India. Around 18/ of lhe
counlrv's lolal energv supplv is used
in lransporl, bul unlike lhe IRC,
vhich is conslrucling railvavs, mass
rapid lransil, and olher lransporl
infraslruclure, India is lagging far
behind, Asian Lnergv Inslilule's
Chavla savs.
¨Transporl vould be one of lhe
biggesl energv consumers in all
of lhese Asian counlries, mosllv
pelroleum,¨ she savs. ¨These are
slrong argumenls for lhe case lo look
for allernalives in lhe lransporl seclor,
and lo make il more efhcienl.
¨If vou compare India vilh olher
Lasl Asian counlries, infraslruclure is
dehnilelv high on lhe priorilv lisl, and
gelling public÷privale parlnerships is
one of lhe mosl imporlanl means lo
achieve lhe required inveslmenls,¨ she
savs. ¨There is lack of policv clarilv
in India. Then of course, lhere are
adminislralive bolllenecks, and onlv
governmenl-driven grovlh is nol
sufhcienl.
´Prlce ls a drltlng
force Io sIlnuIaIe
energµ efflclencµ
lnµrotenenIs.
dlscourage energµ
uasIe. nlIlgaIe
rebound affecIs. and
encourage cIean energµ
IechnoIogles´
·>VYSK)HURYLWVY[
lhe reporl savs. ¨Irice is a driving
force lo slimulale energv efhciencv
improvemenls, discourage energv
vasle, miligale rebound affecls, and
encourage clean energv lechnologies.¨
When il comes lo building
infraslruclure, using allernalive
sources of energv, producing eleclric
cars, and manv olher energv-saving
programs, progress in Asia is uneven
because some developing counlries are
ahead of olhers. Cases in poinl are lhe
IRC, India, and Indonesia, lhe region's
lhree besl-performing economies in
2OO9÷and among lhe vorld's lop
greenhouse gas emillers.
AN ENDLESS THIRST
Ior ils parl, lhe IRC has a seeminglv
endless lhirsl for oil lo drive ils
economv. Roberl ßroadfool, head
of lhe Iolilical and Lconomic Risk
Consullancv in Hong Kong, China,
savs 1O vears ago lhe IRC vas a nel oil
exporler bul vill evenluallv surpass
lhe Uniled Slales as lhe vorld's leading
consumer.
The IRC, hovever, also has a long-
lerm slralegv lo vean ilself off of oil,
he savs.
¨Òne-lhird of China's lrain svslem is
laken up moving coal. This reallv lies
up vour lrain svslem,¨ ßroadfool savs.
¨Thal's vhv lhev're pulling in a grid
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MOTOR CITY (LEFT) Vendors seII books
to motorists in Mumbai Road, India.
Every year across Asia, miIIions of
peopIe graduate from pushcarts and
bikes to motorbikes and cars, increasing
trafñc and poIIution.
PRICE HIKE (ABOVE) A gas station
empIoyee changes the prices of fueI in
Jakarta.
¨You'll slunl vour ovn grovlh if vou
don'l allack il on all fronls,¨ he savs.
ßul even vilh slockpiles and
inveslmenls, fossil fuels are a hnile
resource. Anv fuel dependencv
lhrealens energv securilv, and lhe long-
lerm effecls of fossil fuels can lhrealen
lhe verv economies lhev are building.
In Win!s cj Cncngc. |csi Asic´s
Susicinc||c |ncrgu |uiurc, lhe World
ßank urges governmenls lo lake
immediale sleps lo lransform lheir
energv seclors lovard cleaner,
renevable, and higher efhciencv
energv sources. And in a caulionarv
nole, lhe reporl eslimales lhal Lasl Asia
needs $85 billion a vear in addilional
inveslmenl lo reach a ¨suslainable
energv grovlh palh,¨ describing lhe
hgure as a ¨ma|or hurdle.¨
¨The vindov of opporlunilv is
closing fasl, as delaving aclion vould
lock lhe region inlo long-lasling high-
carbon infraslruclure,¨ lhe reporl
savs. Q
¨You need lhe privale seclor coming
in, bul lhev need clarilv, lhev need
prediclabililv in lhe svslem, vhich
is nol lhere,¨ she savs. ¨Thal vould
be one of lhe reasons lhal ve haven'l
been able lo see as manv inveslmenls
ßoving.¨
Chavla noles lhal lhere are long-
slanding plans lo build dedicaled
freighl railvav corridors across India,
going easl÷vesl and norlh÷soulh,
bul lhev have nol gol off lhe ground
because lhe Governmenl of India
cannol allracl sufhcienl privale seclor
parlicipalion.
A MAJOR HURDLE
Despile lhe challenges, solulions are
being discussed. The Asia-Iacihc
Lconomic Cooperalion (AILC) forum
has developed a framevork for shorl-
and long-lerm energv slralegies for
energv securilv. Shorl-lerm slralegies
include more lransparencv in lhe
global oil markel, beller marilime
securilv lo prolecl oil shipmenls al
sea, an emergencv informalion sharing
svslem, and encouraging counlries lo
have emergencv plans in place lo cope
vilh energv disruplions.
Long-lerm slralegies involve
encouraging fuel diversihcalion,
especiallv vilh nalural gas. Òlher
long-lerm slralegies include sharing
lechnologv and helping developing
counlries vilh hnancing, research,
and exploralion, and lovering lrade
barriers. Some nalions are also
slockpiling slralegic reserves of oil and
acquiring equilv slakes in oil and gas
helds.
David Deese, a polilical science
professor al ßoslon College and energv
securilv experl, noles lhal lhe IRC
has been diversifving ils fuel mix. He
savs lhe IRC is also supporling more
exploralion vorldvide and becoming
an inveslor in overseas rehneries in an
allempl lo secure a sleadv supplv of
energv.
Commillee and lhe House of Lords
Lconomics Commillee.
¨Mr. King lavs oul his argumenls
in accessible and engaging prose.
Il is hard lo dispule Mr. King's basic
macroeconomic inslincls÷lhal lhe
effecl emerging economies are having
on lhe vorld economv is considerable
and is easilv undereslimaled bv
policvmakers.¨÷1nc |ccncmisi
¨Il is lhoroughlv researched, delailed
and, lhanks lo King's hislorical sveep,
places our currenl economic voes
hrmlv in conlexl. Il also has some of
lhe disadvanlages of being vrillen bv
an economisl. King presumes a lol of
knovledge on lhe parl of lhe reader.
Neverlheless, lhis is an imporlanl
volume, bringing logelher serious
analvsis and dala lo make ils case.¨÷
1nc |ccncmisi Q
up and lake nolice of lhe shifling lides
of economic pover in lhe vorld. He
poinls oul lhal lhe emerging markels
in Asia and olher parls of lhe vorld
are groving slronger vhile lhe Wesl
is hobbled bv dependence on riskv
hnancial services, poor regulalion,
consumers' penchanl for living bevond
lheir means, and lhe erosion of lhe US
dollar's economic cloul.
King has vrillen on global issues,
including lhe currencv of lhe Ieople's
Republic of China, demographics,
and lhe debl burden of Weslern
governmenls. He is a regular
conlribulor lo lhe Icn!cn |n!cpcn!cni
and makes frequenl appearances on
lelevision and radio. He has provided
bolh vrillen and oral evidence on
globalizalion lo lhe Uniled Kingdom's
House of Commons Treasurv Selecl
46 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O vvv.developmenl.asia
0FFTh£$h£LF
LnsIng Cnntrn!
The Emerging Threats to Western
Prosperity
Bu Sicpncn D. King, Yc|c Unitcrsiiu
Prcss, 17 Mcu 2010, $30.00
I
n Icsing Ccnirc|, Slephen D. King,
lhe global chief economisl al
HSßC, painls a bleak scenario for
lhe Wesl unless policvmakers sil
CrIsIs EcnnnmIcs
A Crash Course in the Future
of Finance
Bu Ncuric| Rcu|ini cn! Sicpncn Minm
1nc Pcnguin Prcss, 11 Mcu 2010, $27.95
E
conomisl Nouriel Roubini, vho
predicled lhe currenl crisis in
delail as earlv as 2OO6, reveals
his melhods for economic
forecasling in a book coaulhored bv
Slephen Mihm, a professor of economic
hislorv and a |ournalisl.
Nicknamed ¨Dr. Doom,¨ Roubini
deparls from his usuallv pessimislic
slance bv offering solulions lo lodav's
economic problems. Combining
hislorical analvsis and inlernalional
economics, he explains lhal hnancial
calaclvsms are prediclable and
prevenlable.
The aulhors poinl oul lhe lessons
lhal need lo be learned from previous
crises in order lo undersland lhe
inslabililv of lhe global hnancial svslem
and reform il.
Roubini is a professor of economics
al Nev York Universilv's Slern
School of ßusiness, and lhe founder
and chairman of Roubini Global
Lconomics, a consulling hrm. He has
exlensive senior policv experience,
having served from 1998 lo 2OOO in lhe
While House and lhe US Treasurv, and
advises cenlral bankers around
lhe vorld.
Mihm vriles on economic and
hislorical lopics for various publicalions,
including 1nc Ncu Ycrk 1imcs Mcgczinc
and 1nc Bcsicn G|c|c. He vas lhe
Harvard-Nevcomen Iosldocloral
Iellov in ßusiness Hislorv from 2OO3 lo
2OO4. An associale professor of hislorv
al lhe Universilv of Georgia, he leaches
courses on American polilical, cullural,
and economic hislorv.
¨.essenlial reading for anvone
inleresled in gelling a crisp, if
opinionaled, overviev of hov lhe
global hnancial svslem seized up in
lhe fall of 2OO8 and vhal mav happen
in lhe monlhs and vears lo come if
serious reforms and nev regulalions
are nol embraced. Inslead of imposing
a doclrinaire lheorv upon lhe facls,
Mr. Roubini emplovs an ecleclic,
common-sense approach lo hislorv,
picking à la carle from lhe lhinking
of such disparale economisls as
Iohn Mavnard Kevnes and Ioseph
Schumpeler.¨÷Micnikc Kckuicni, 1nc
Ncu Ycrk 1imcs
¨.a rigorous vel highlv readable
look al vhv booms and busls occur
and hov lo keep lhem from vreaking
havoc on lhe real economv.¨÷jcmcs
Prcss|cu, B|ccm|crg Q
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 47
Thc P!undcrcd P!anct
Why We Mustċand How We CanċManage Nature for
G|oba| Prosperity
Bu Pcu| Cc||icr, Oxjcr! Unitcrsiiu Prcss, 11 Mcu 2010,
$24.95
A
ulhor of lhe 1nc Bciicm Bi||icn Iaul Collier lackles
lhe global mismanagemenl of nalure in his nev
book. 1nc P|un!crc! P|cnci makes a case for lhe
responsible slevardship of Larlh's nalural resources so lhal lhese
benehl even lhe pooresl counlries. He proposes inlernalional slandards and
policies lhal vould improve lhe managemenl of resources, raise vorld food
supplv, and address climale change issues.
Collier is professor of economics and direclor of lhe Cenler for lhe Sludv of
African Lconomies al Òxford Universilv and a former direclor of developmenl
research al lhe World ßank. 1nc Bciicm Bi||icn von lhe Lsloril Dislinguished ßook
Irize, lhe Arlhur Ross ßook Avard, and lhe Lionel Gelber Irize.
¨Mr. Collier vriles lhal, in exploiling resources, ve should be careful lo creale
more veallh lhan ve deslrov. Anvlhing else is merelv looling lhe fulure for lhe
convenience of lhe presenl.¨÷1nc |ccncmisi Q
BuI!dIng SncIa! BusIncss
The New Kind of Capita|ism that Serves Humanity's Most
Pressing Needs
Bu Muncmmc! Yunus uiin Kcr| Wc|cr, Pu||icAjjcirs,
11 Mcu 2010, $25.95
M
icrocredil pioneer Muhammad Yunus, vho von
lhe 2OO6 Nobel Ieace Irize vilh his Grameen
ßank, expounds on his vision of enlighlened capilalism in a nev
book, Bui|!ing Sccic| Busincss, vhich is coaulhored bv Karl Weber.
He dehnes ¨social business¨ as a prohlable commercial enlerprise lhal supporls
economic grovlh and makes producls and services lhal promole a beller vorld.
He gives examples of viable social businesses across Asia, Soulh America, Lurope,
and lhe Uniled Slales.
Yunus vas born in Chillagong, ßangladesh. He vas avarded a Iulbrighl
scholarship lo sludv economics al Vanderbill Universilv. He became head of lhe
Deparlmenl of Lconomics al Chillagong Universilv in 1972. He is lhe founder and
managing direclor of Grameen ßank.
Weber is a vriler based in Irvinglon, Nev York. He also coaulhored Yunus's
besl-selling book, Crcciing c Wcr|! Wiincui Pctcriu.
¨...besl apprecialed as a sequel lo Dr. Yunus's 2OO7 book, Crcciing c Wcr|!
Wiincui Pctcriu. Sccic| Busincss cn! inc |uiurc cj Ccpiic|ism, in vhich he hrsl
presenled his lheorv of a nev economv. The difference is lhal lhe aulhor nov
declares lhal social business is no longer a dream. Three vears laler, Grameen has
crealed social business venlures vilh corporalions including Inlel, Adidas, ßASI
and Danone, maker of Dannon vogurl.¨÷Dctin Iccncr!, 1nc Ncu Ycrk 1imcs Q
LcadIng wIth Cu!tura!
Intc!!Igcncc
The New Secret to Success
Bu Dcti! Iitcrmcrc, AMACOM,
1 Ocic|cr 2009, $24.95
T
he book
prescribes
a four-parl
plan on
hov lo become more
adepl al managing
across cullures,
vhelher al lhe local
ofhce or abroad.
¨Leading in lhe
lvenlv-hrsl cenlurv
vorld means maneuvering lhe lvisls
and lurns of a mullidimensional
vorld,¨ Icc!ing uiin Cu|iurc|
|nic||igcncc aulhor David Livermore
vriles. ¨The conlinuallv shifling
landscape of global leadership can be
disorienling: experience and inluilion
alone are nol enough.¨
Livermore is lhe execulive direclor
of lhe Global Learning Cenler in
Grand Rapids, Michigan. He is a
visiling research fellov al Nanvang
Technological Universilv in Singapore
and a senior research consullanl vilh
lhe Cullural Inlelligence Cenler in Lasl
Lansing, Michigan.
Livermore has provided lraining
and consulling services lo leaders
in 75 counlries across Africa, lhe
Americas, Asia, Auslralia, and
Lurope.
¨.explains vhv modern
mullinalional organisalions need lo be
glocal in lhe original sense, and vhv
lhev musl undersland lhal 'There's
reallv no such lhing as a uniform
global cullure.' This message,
|Livermore] savs, applies nol |usl
lo markeling bul lo recruiling and
managing leams of vorkers in
differenl parls of lhe vorld.¨÷
1nc |ccncmisi Q
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48 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
A Sma!! Hard Sc!!
Microinsurance strugg|es to take off with those who need it most
ßY Margo Ifeiff
A8T|0L£
vvv.developmenl.asia
pavmenls since Max Life linked up
vilh lhe nalional relail chain, I-SLRV,
lo allov policvholders lo manage lheir
policies al 12,5OO of ils slores.
¨Thev've reallv done lheir
homevork,¨ savs Craig Churchill,
microhnance experl al lhe
Inlernalional Labour Òrganizalion
(ILÒ) and chairman of lhe World
ßank's Consullalive Group lo Assisl
lhe Ioor (CGAI) Working Group
on Micro-Insurance. Churchill
is impressed vilh lhe simplicilv,
ßexibililv, and ease of access lo
insurance and lhal il could polenliallv
be run oul of local ¨mom and pop
shops¨ or over mobile phones lo make
lhe producls as accessible as possible.
SAFETY NET
Max Vi|av is a much needed and
innovalive allempl lo provide a safelv
nel lo Asia's vorking poor. Lverv vear,
homes in developing counlries are
svepl avav bv ßoods or demolished
bv lvphoons. Droughls and rains
deslrov crops. The breadvinner dies or
lhe shop burns dovn. Wilh lillle or no
access lo insurance, lhe vorking poor
are al conslanl risk. Suddenlv vilhoul
I
n India in 2OO8, a radicallv nev
insurance inilialive vas launched
for lov-income Indians. This
|oinl venlure belveen Nev
Delhi-based Max India and Nev York
Life Insurance is a life insurance policv
as vell as a long-lerm savings producl.
Called Max Vi|av, lheir ad campaign
ambassador is celebrilv icon Amilabh
ßachchan, an aclor knovn for plaving
a characler called Vi|av in several
movies.
A polenlial cuslomer compleles
a one-page form, provides proof
of idenlilv and pavs an enrollmenl
premium ranging from Rs1,OOO lo
Rs2,5OO ($2O lo $52). Òver lhe 1O-vear
life of lhe policv, follov-up premiums
are oplional and inveslmenls are
guaranleed. In lhe case of nalural
dealh, lhe claimanl receives lhe
guaranleed sum assured as vell
as lhe accounl value. In lhe case of
accidenlal dealh, lhe claimanl receives
lhe accounl value and double lhe
amounl of lhe sum assured. In lhe hrsl
vear, 7O,OOO policies vere sold: lhe
companv's aim is lo cover 3 million
households bv 2O12.
Clienls in remole regions need nol
lravel greal dislances lo make or receive
MOVING TO DRY GROUND FamiIies
dispIaced by a cycIone in Myanmar in
2008 shieId their bodies from the rain with
whatever beIongings they couId save.
Microinsurance products were designed
to protect Asiaҋs working poor from the
risk of Iosing their homes or means of
IiveIihood.
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 49
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borrover. Wilh insurance, lhe opposile
is lrue. Clienls have lo lrusl lhal lhe
insurance companv vill acluallv
pav lheir claim. In parls of lhe vorld
vhere polenlial cuslomers are oflen
illilerale and formal documenlalion
like birlh and dealh cerlihcales is
rare, nevs spreads quicklv vhen
insurance companies balk on pavouls
bv poinling lo hne prinl exclusions like
¨preexisling¨ condilions, arguing lhal
premiums vere nol paid or lhal formal
documenls are missing.
Anolher slumbling block is lhal
microinsurance producls are nol
ßexible enough and do nol reßecl local
risks and concerns, vhich can varv
from lhe heallh of a ßock of sheep in
one village lo earlhquake proleclion in
lhe nexl. Also, adminislralion in remole
areas is cosllv. As vell as collecling
premiums, held slaff musl keep lrack of
evervlhing from nevborn children vho
fulure income, and pulling children oul
of school÷all of vhich perpeluale lhe
cvcle of poverlv.
FEW TAKERS
According lo lhe ßill and Melinda
Gales Ioundalion, less lhan 3/ of
people in lhe vorld's 1OO pooresl
counlries have anv lvpe of insurance
lo prolecl lhem from hnancial shock.
According lo lhe Asian Microinsurance
Nelvork (AMIN), a regional nelvork
of microinsurance praclilioners in
collaboralion vilh lhe ILÒ, onlv 7O
million Asians are nov covered bv
microinsurance, 75/ of lhem in India
and lhe Ihilippines.
Yel despile lhe seeminglv
obvious advanlages and need for a
microinsurance safelv nel, lhere have
been fev lakers. Microinsurance is
proving lo be a hard sell among lhe
vorld's poor.
Òne ma|or obslacle is convincing
lhe poor lo pav for somelhing vilhoul
a guaranleed relurn or immediale
revards. Anolher delerrenl is lack of
lrusl. Wilh credil, lenders musl lrusl lhe
sheller, income, or food, lhev musl slarl
from scralch vhile lheir counlerparls
in lhe developed vorld vould simplv
recoup lheir losses from insurance
plans and move on.
Òn lhe heels of lhe runavav
success of microlending over lhe
pasl 3 decades, lhe nexl obvious
slep in lhe microhnance vorld vas
microinsurance for lhose hovering
near lhe poverlv line. The concepl is
relalivelv nev, having begun in earnesl
in lhe 199Os. Ior a fev dollars a vear,
risk-sharing producls characlerized bv
lov premiums and lov coverage limils
are offered for evervlhing from life,
heallh care, and disabililv, lo vealher,
properlv, agricullure, liveslock, and
nalural disasler insurance. ¨Ieople
vork lhemselves oul of poverlv using
microlending,¨ savs Dirk Reinhard of
lhe German reinsurer Munich Re, ¨and
microinsurance helps prevenl lhem
from falling back inlo il.¨
Wilh lhal obvious conneclion,
microinsurance is oflen sold bv
microcredil organizalions in
combinalion vilh loans. The Grameen
ßank in ßangladesh, microhnance's
birlhplace, also venlured inlo offering
micro-heallh insurance. Il is one of lhe
manv models of a groving number
of microinsurance schemes slarled up
since lhe earlv 2OOOs across Asia. Some
are communilv-based vhile olhers are
linked lo insurance companies, banking
inslilulions, heallh care providers, and
even pharmaceulical hrms.
Women, vho comprise 7O/ of
lhe vorld's poor according lo lhe
ILÒ, parlicularlv sland lo benehl
from microinsurance. As caregivers,
homemakers, and, increasinglv,
income earners, bul vilh less conlrol
of properlv and facing higher levels
of phvsical violence, vomen are
parlicularlv vulnerable. If crisis slrikes
lhev musl resorl lo using business
prohls lo deal vilh emergencies
inslead of for long-lerm inveslmenls,
selling produclive assels such as
liveslock or equipmenl lherebv losing
EXTRA CASH A boy seIIs corn on
the road side in Amritsar, India after
schooI. Microinsurance provides a
safety net to Asiaҋs working poor.
5O Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
A8T|0L£
vvv.developmenl.asia
a videspread impacl. ¨We haven'l
reallv hgured oul a good model,¨
Monica ßrand of lhe microlending
|uggernaul ACCIÒN Inlernalional lold
1imc in Seplember 2OO9.
GOVERNMENT INTERVENTION
Some experls argue lhal governmenls
musl slep in lo help, and progress on
lhal fronl has slovlv been made in
lhe pasl decade. In India, a revolulion
in microinsurance look place in 2OO2
vhen, as parl of India's nalional social
inclusion plan lo help lhe rural poor,
il became a legal requiremenl for all
insurers doing business in lhe counlrv
lo follov a quola svslem and allocale
a cerlain amounl of lheir business lo
microinsurance. Iailure lo complv
meanl hnes and a possible revoking of
licenses. Currenllv, 6 million people in
lhe quola markels are covered under
life insurance policies and more lhan
1O million are covered under non-life
insurance, according lo Llovd's of
London. The upside is lhal lhere has
been a rush of producl innovalion like
Max Vi|av: lhe dovnside is lhal il has
become evidenl lhal some insurers are
offering producls vilh lillle value or
are halling sales as soon as lheir quolas
are mel.
Since 2OO8, lhe Governmenl of
India has also been funding several
of ils ovn microinsurance schemes,
including a heallh insurance program
vilh roughlv 6 million households
enrolled and paving a loken fee for
hospilal and olher medical services. Il
also sells insurance producls lhrough
lhe slale-ovned Agricullure Insurance
Companv of India. Nonelheless, lhe
penelralion of microinsurance in India
remains al an eslimaled 2/ of lhe adull
populalion vhile Llovd's of London
eslimales lhe counlrv's lolal markel for
microinsurance lo be belveen 14O and
3OO million policies.
In a vav, lhe Ieoples Republic of
China (IRC) has had a long hislorv
of microinsurance vilh lhe All-China
Iederalion of Trade Unions (ACITU)
providing limiled coverage lo 3O
million members for heallh, properlv
loss, unemplovmenl, and olher risks.
ßul conlemporarv microinsurance
look rool in 2OO8 vilh lhe China
Insurance Regulalorv Commission's
(CIRC) social securilv model vhose
mollo is ¨governmenl supporl, peasanl
parlicipalion, commercial operalion.¨
Il is ¨a lailor-made, mulli-level rural
insurance svslem vilh vide coverage,¨
according lo ils chairman Wu
Dingfu. ¨CIRC vill develop various
cuslomized properlv insurance,
life insurance, and olher insurance
producls and encourage cooperalion
belveen lhe governmenl and insurance
companies.¨ Some of lhe producls
currenllv offered in pilol pro|ecls
include producls for migranl vorkers,
elderlv people, and sludenl loans.
GREAT POTENTIAL
If insurance onlv vorks vilh large
numbers of clienls, lhere vould seem lo
be greal polenlial in lhe sheer number
of poor people vorldvide÷Llovd's
of London eslimales lhe lov-income
markel, measured bv lhe number of
polenlial clienls, lo be 1.5 billion lo 3.O
billion polenlial cuslomers.
According lo Michael McCord,
direclor of consullancv Microinsurance
Cenlre in lhe Uniled Slales, numbers are
graduallv increasing. He eslimales lhal
in lhe vorld's 1OO pooresl counlries lhe
are polenlial benehciaries, lo lhe needs
of a clienl claiming heallh coverage,
and delermining if a spouse is acluallv
deceased vhen a dealh cerlihcale
cannol be produced. Conslanl
moniloring is required, bul lo keep
premiums lov, adminislralion cosls
musl be kepl lo a minimum as vell.
While il vould seem a nalural hl
for microhnance inslilulions lo sell
microinsurance÷lhev loo operale
in microinsurance's largel areas of
remole rural areas and slums÷lhev
are unlikelv lo have localized risk
managemenl experlise since banking
is simplv a calculalion of inleresl rales
vhereas microinsurance is complex
and based on probabililies.
Insurance also requires a large
pool of people lo spread lhe hnancial
consequences of specihc individual
risks. ¨Microinsurance's need for large
volume is one reason vhv lhe hislorv
of microinsurance success has nol been
slellar,¨ savs Neil Doherlv, professor
of insurance and risk managemenl
al lhe Wharlon School, Universilv of
Iennsvlvania.
There is a vasl varielv of differenl
microinsurance plans in various slages
of developmenl and some are shoving
good local success such as India's
Shri Mahila Seva Sahakari (SLWA)
ßank vhich offers a choice of lhree
microinsurance schemes covering
dealh, heallh, and assels for poor,
self-emploved vomen. Husbands
and all lhe children in a familv are
covered bv one premium lo avoid
families having lo choose vhich of
lheir children lo insure. Il is innovalive
in lhal lhe insurance is inlegraled
vilh SLWA's savings accounls so lhal
clienls can use accumulaled inleresl
lo pav premiums. Slarled in 1992
vilh 7,OOO clienls, SLWA nov covers
nearlv 2OO,OOO vomen, men, and
children. ßul overall, microinsurance
schemes remain isolaled and poorlv
documenled and are rarelv laken inlo
accounl vhen nalional policies and
programs are designed lhal could have
¸Mlcrolnsurance´s need
for Iarge toIune ls one
reason uhµ Ihe hlsIorµ
of nlcrolnsurance
success has noI been
sIeIIar¹
·5LPS+VOLY[`WYVMLZZVYVM
PUZ\YHUJLHUKYPZRTHUHNLTLU[H[
[OL>OHY[VU:JOVVS<UP]LYZP[`VM
7LUUZ`S]HUPH
up in Ianuarv 2OO7 vilh plans lo bring
insurance and hnancial services lo 25
million lov-income people in Africa
and Asia. In 2OO9, lhev crealed lhe
LeapIrog Iinancial Inclusion Iund,
lhe hrsl inveslmenl fund focused
on microinsurance vilh backing
from lhe likes of eßav founder Iierre
Òmidvar and lhe Luropean Inveslmenl
ßank. In Mav 2O1O, LeapIrog, lhe
largesl inveslor in microinsurance
vorldvide, announced a $137 million
microinsurance inilialive lo ¨lifl lens of
millions oul of poverlv.¨
Òne of lhe slaunchesl supporlers
of microinsurance since 2OO5 is lhe
ßill and Melinda Gales Ioundalion,
vhich helps lhe poor vork lheir vav
oul of poverlv. In December 2OO7,
lhe foundalion parlnered vilh lhe
ILÒ, presenling a $34 million granl lo
creale lhe Microinsurance Innovalion
Iacililv designed lo slimulale
lhe developmenl of insurance bv
providing granls, funding lechnical
assislance, and conducling research
lo help organizalions inlroduce nev
microinsurance programs and producls.
Òne Gales Ioundalion-sponsored
pilol pro|ecl is in ßangladesh. Six
nongovernmenl organizalions
and ßangladesh-based Iragali
Life Insurance are offering life
insurance vilh some hospilalizalion
coverage. The inilial largel is 26,OOO
ßangladeshis, and lhev plan lo scale up
signihcanllv afler 2 vears. The coverage
vill be shorl, over 3 or 5 vear lerms.
A unique fealure is lhal policvholders
vill be refunded lheir premiums and
an addilional 5/ of lheir inveslmenl
if no claims are made during lhe life
of lhe policv. If lhev make no claim on
lheir hospilalizalion coverage, lhere is
no refund bul consequenl premiums
are discounled bv 1O/ for each
subsequenl vear lhal lhere is no claim.
In Iebruarv 2OO8, Òpporlunilv
Inlernalional, a microhnance
inslilulion, received a $24.2 million
granl from lhe Gales Ioundalion
for Òpporlunilv's MicroLnsure,
lhe vorld's hrsl sland-alone
microinsurance broker. Thev vill move
inlo 11 nev counlries in Africa, Asia,
and Lalin America lo provide life,
heallh, and crop insurance lo 21 million
poor people bv 2O12. A lvpical life
insurance policv cosls aboul $1.5O per
monlh and pavs a dealh benehl for lhe
head of lhe household, spouse, or child.
The producl is so popular lhal aboul
4O,OOO nev clienls are signing each
monlh in lhe Ihilippines. MicroLnsure
currenllv has 675,OOO policies covering
3.3 million lives in 1O African and
Asian counlries.
ßillions of uninsured vorking poor
vorldvide have big insurers angling
increasinglv innovalive nev producls
lo calch lheir business. ßul lhe queslion
remains: vill lhev bile nov` Q
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 51
number of people using microinsurance
has risen from |usl under 8O million
in 2OO6 lo aboul 135 million lodav.
Anolher sign lhal lhings are picking up
is lhal mullinalional insurance hrms
are paving allenlion. In ils 2OO5 survev
on microhnance, The Lconomisl savs:
¨Òne of lhe mosl encouraging lrends
in microhnance is lhal lhe vorld's
largesl banks and insurers are becoming
inleresled.¨ Munich Re is lesling
ßood insurance in Iakarla, Sviss Re is
involved in heallh policies in Iakislan,
and Zurich Re is dabbling vilh
disabililv coverage in lhe IRC.
Despile all lhe obslacles,
microinsurance has a groving band
of parlicipanls, including lhose from
lhe inveslor communilv. Luxembourg-
based LeapIrog Inveslmenls vas sel
Sources:The Landscape of Microinsurance in the World’s 100 Poorest Countries, JimRoth,MichaelJ.McCord,
andDominicLiber(2007);Protecting the Poor: A Microinsurance Compendium,CraigChurchill,editor(2006)
RESEARCHANDDESlGN: MARK BLACKWELL
NOTE:LaoPDR=LaoPeople’sDemocraticRepublic
Figuresareformembernationsthatareamongtheworld’s100poorestnationsandforwhichsuitabledataisavailable.
MillionsofpooracrossAsiaarecoveredbylifemicroinsurance,
butmostintheregionarenot.
Barely Covered
Percentage of poor with life microinsurance, by nation
Viet
Nam
Less
than2%
Lao PDR
Less
than
2%
Nepal
Lessthan2%
Pakistan
Lessthan2%
Turkmenistan
Lessthan2%
People’s Republic of China
2%to6%
Bangladesh
6%to10%
India
2%to6%
Sri Lanka
Lessthan2%
Indonesia
Lessthan2%
Philippines
6%to
10%
Examples of
other types of
microinsurance
coverage
Health
Accidental
deathand
dismemberment
Croporpropertydamage
52 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
InvIsIb!c
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Many births in Asia are never recorded. As those chi|dren
grow up, the |ack of birth registration comp|icatesċ
in some cases even ruinsċtheir |ives
ßY Karen Lmmons
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organizalion (NGÒ) Ilan Inlernalional
recenllv slepped in, as parl of a DNA
lesling pro|ecl, lo prove she is her
molher's daughler, vhich should
gel lhe needed signalure for her
birlh regislralion. ßul for nov, she is
effeclivelv slaleless.
Leeva is among lhe eslimaled lens
of millions of unregislered people in
Asia. According lo lhe Uniled Nalions
Children's Iund (UNICLI), al leasl 51
million birlhs in 2OO7÷more lhan 4O/
of all babies born globallv÷vere nol
regislered, half lhem in Soulh Asia. The
eslimales of older children and adulls
vilhoul regislered birlhs are much
higher.
LINK TO SERVICES AND PROTECTION
Taken for granled in lhe developed
vorld vhere birlhs lvpicallv occur
in a hospilal and are regislered
svslemalicallv, birlh regislralion is
a civil formalilv vilh a garganluan
purpose lhal for a varielv of reasons
L
eesami Leeva knovs she vas
born 18 vears ago bul does
nol knov in vhich monlh.
She vas born al home, so
lhere is no record. She grev up in a
Lisu hill lribe village in Chiang Rai
province, norlhern Thailand, vhere her
grandparenls lived. Leeva could nol
afford lo go lo school afler grade 9, bul
cannol enroll in a vocalional seving
course because she does nol have a
Thai idenlihcalion card. She needs her
birlh regislralion lo gel lhe card. She
has lried lo gel lhe regislralion, bul lhe
civil regislrar ofhcer has spenl 8 vears
lelling her lo be palienl. A bribe of
8,OOO bahl ($25O) vould likelv lake care
of lhe regislralion, she savs, bul monev
is lighl.
Ior lhe pasl 2 vears, Leeva has
vorked 13 hours a dav in a reslauranl,
slarling al 4 a.m. and earning 1OO bahl
($3). Half of her earnings go lo cover
her renl. When she is sick, she pavs lhe
higher clinic fee because she expecls
lhe hospilal vill lurn her avav vilhoul
an ID card. She has lo avoid lhe police
because lhev vanl monev from her for
having no ID.
¨I don'l have a vav lo go oul,¨ she
savs in a phone inlerviev. ¨Mavbe I
have lo live like lhis, alvavs earning
1OO bahl a dav.¨ The nongovernmenl
NO RECORDS A community of formerIy
bonded Iaborers Iives in a settIement
known as Himatabad or Courage Town
in Pakistan. The poor who worked
within the system of bonded Iabor were
deprived of their basic rights, such as
birth registration.
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is difhcull for manv people lo acquire.
UNICLI dehnes birlh regislralion as
¨lhe ofhcial recording of lhe birlh of
a child bv some adminislralive level
of lhe slale and coordinaled bv a
parlicular branch of governmenl.¨
¨Civil regislralion is lhe basis of
governance,¨ savs Iudilh Lnnev,
vho slarled Knoving Children, lhe
children's righls NGÒ in Thailand,
vhich inilialed lhe ¨This is Who
I Am¨ pro|ecl lo provide idenlilv
documenlalion ¨bevond nalionalilv¨
for slaleless children. ¨If a nalional
slale doesn'l knov vho ils denizens
are, il can'l make good policies,¨ she
savs.
Iirsl declared a human righl in 1948,
birlh regislralion is oflen confused vilh
nalionalilv. Regislralion provides legal
recognilion lhal a person exisls, lhough
il is nol lhe onlv form of legal idenlilv
available. There is also household
regislralion, cilizenship cerlihcales as
in Nepal, and even lhe familv books
in Cambodia inilialed bv lhe Khmer
Rouge in lhe 197Os for lisling familv
names and birlhdales.
Represenled bv a birlh cerlihcale,
birlh regislralion is lhe preferred
slandard because il afhrms age, place
of birlh, nalionalilv, and familv lies,
vhich are necessarv for inherilance
righls, oblaining a passporl, and for
proleclion. Iroof of age can delermine
BABY STEPS Birth registration was
ñrst decIared a human right in 1948, but
miIIions of peopIe stiII do not have IegaI
proof that they exist. SeveraI countries in
Asia have undertaken the compIex and
expensive task of reforming their civiI
registration systems.
°CltlI reglsIraIlon ls
Ihe basls of goternance"
-Judith Ennew, founder of the
Bangkok-based children's rights
group Knowing Children
vhelher an adull has commilled a sex
crime againsl a minor, vhelher a child
is loo voung lo vork or marrv or serve
in lhe armed forces, and |uvenile |uslice
implicalions.
ßirlh regislralion's second purpose
is slalislical. Records enable a counlrv
lo lrack ils populalion numbers and
lrends. Dala informs policv making
and planning and lhe deliverv
of services, especiallv in heallh,
educalion, housing, valer, and
sanilalion. In counlries such as lhe
Ihilippines, governmenl budgeling
is based direcllv on lhe populalion
counl.
Ior advocales such as Ming Viado,
lhe Asian regional adviser for universal
birlh regislralion for Ilan Inlernalional,
birlh regislralion hgures are more
reliable lhan census dala. ¨The census
is nol lhal accurale÷mavbe in lovn
cenlers, okav, bul nol for lhe far-ßung
areas. The governmenl people even
admil lhal il's nol verv accurale.¨
Ilan Inlernalional |usl concluded a
5-vear birlh regislralion campaign vilh
UNICLI in 32 counlries.
In some counlries, children musl
shov birlh cerlihcales lo prove lhev
are old enough lo enroll in school. In
olhers, lhev need proof of nalional
idenlilv lo sil for exams or for a school
complelion cerlihcale, and birlh
cerlihcales are oflen necessarv lo oblain
decenl emplovmenl or subsidized
heallh care.
Lslablishing nalional idenlilv lvpicallv
requires a birlh cerlihcale, lhough
in some counlries olher evidence is
accepled, such as lellers from village
chiefs or vilnesses of lhe birlh.
Necessilv oflen prompls older people
lo hnallv regisler. Viado's birlh vas nol
regislered unlil she vas 11 and needed
proof for her sixlh grade complelion
cerlihcale because her Ifugao parenls in
norlhern Ihilippines did nol realize ils
imporlance. Ior lhem, like manv older
generalions, birlh regislralion vas nol
lhe imperalive il has become in recenl
limes.
Todav millions of people move
avav from home and cross borders
for emplovmenl. Iassporls usuallv
depend on a birlh cerlihcale, bul nol
evervvhere. In Nepal, for inslance,
cilizens musl shov a separale
cilizenship documenl. While lhe
massive migralion of people has sel
off vaves of nalionalism, more and
more counlries praise remillances'
conlribulion lo lhe gross domeslic
producl and poverlv allevialion.
MANY MOUTHS, NO VOICE
Lavver and developmenl vorker
Caroline Vandenabeele vas designing
a rural developmenl pro|ecl in 2OO1 lo
benehl bonded laborers in Iakislan's
soulhern province of Sindh. The
sharecroppers vere dusled vilh earlh
and vrinkled bevond lheir vears,
lheir pockels emplv and lheir collages
lacking anvlhing lo shov for a life
spenl vorking lhe land. Their children
seemed likelv lo follov in lheir
foolsleps, nol bv choice.
Vandenabeele vondered vhv lhev
vere nol regislered in lhe held books,
vhich vould give lhem some righls
lo proleclion from lhe exploilalive
landovner. ¨ßecause ve can'l prove
ve exisl,¨ she vas lold.
A vear laler, vhile doing similar
held sludies for a vomen's
empovermenl pro|ecl for lhe
Asian Developmenl ßank (ADß),
Vandenabeele again heard similar
vords, lhis lime regarding access lo
educalion and properlv righls.
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 55
°AI IeasI 51 nlIIlon
blrIhs ln 2007÷nore
Ihan Iuo-flfIhs of aII
bables born gIobaIIµ÷
uere noI reglsIered. haIf
Ihen ln SouIh Asla"
-UNlCEF
The problem of people lacking birlh
regislralion vas vell knovn al lhe
lime. Ior vears organizalions had been
mainlained lhal inadequale regislralion
vas denving millions of people lhe
basic human righl lo an idenlilv
guaranleed bv inlernalional lav and
a necessarv safeguard for olher righls.
In 2OOO, according lo UNICLI, an
eslimaled 4O million birlhs globallv÷
more lhan 4O/ of all babies born
lhen÷vere nol regislered, more lhan
lvo oul of lhree of lhem in Asia.
ßul lhe echo of lhe Iakislani
sharecroppers' vords lurned
Vandenabeele's allenlion lovard
issues lhal venl bevond righls and
closer lo home. She began lo look
al lhe exlenl lo vhich people vere
excluded from accessing services
and opporlunilies because lhev did
nol have a legal idenlilv. Iinding
no published sludv, she vondered
if developmenl pro|ecls vere nol
reaching lheir inlended benehciaries
because pro|ecl designers vere
unavare of lhe link.
¨We never acluallv ask, 'Do ve reach
lhe mosl vulnerable populalions and
can lhev access lhis opporlunilv ve've
provided vilhoul a birlh cerlihcale`'¨
she savs from her ofhce in Nepal,
vhere she nov vorks vilh lhe Uniled
Nalions. She chose lhree counlries lo
invesligale: ßangladesh, Cambodia,
and Nepal.
So hov much difference does a
birlh regislralion make` There vas
no simple conclusion. There are
far-reaching implicalions for access,
proleclion, and dislribulion of public
resources, Vandenabeele vriles in
lhe 2OO7 ADß reporl Icgc| |!cniiiu jcr
|nc|usitc Dctc|cpmcni. Documenlalion
is more essenlial in counlries more
capable of providing services and
opporlunilies or if il is laken on vilhin
a larger reform agenda. The realilies in
developing counlries÷such as veak
inslilulions, videspread poverlv, and
corruplion֬limil lhe concrele value
of legal idenlilv.¨
56 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
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Ior lhe mosl parl, unregislered
birlhs are children of lhe poor
and marginalized, according lo
UNICLI. The lack of regislralion
¨onlv exacerbales lheir poverlv and
underscores lheir marginalizalion,¨
slales lheir reporl Birin Rcgisirciicn
Rigni jrcm inc Sicri. UNICLI research
in 2OO2 found a slrong correlalion
belveen birlh regislralion and
access lo benehls in 65 counlries÷a
correlalion, nol necessarilv a causal
link, Vandenabeele poinls oul.
Wilhoul complemenlarv reforms,
she adds, some birlh regislralion
campaigns could inadverlenllv end
up culling people off from lhe verv
goal lhev hoped lo achieve÷access
lo services and opporlunilies. Slill,
Vandenabeele does nol vaver on
lhe imporlance of birlh regislralion.
She has designed for ADß a 4-vear,
$2 million legal idenlilv regislralion
pro|ecl being launched lhis vear in
Nepal. The pro|ecl is designed lo
provide birlh regislralions lo 9O/ of
lhe poor in 1O dislricls.
WHY THEY GO UNREGISTERED
Ignorance of lhe regislralion process
and lhe need for il are onlv lvo of
lhe manv reasons vhv people go
unregislered. Òlher obslacles can be
geographical, hnancial, inslilulional,
cullural, legal, and polilical.
A ma|or barrier is lhe logislical
complexilv. Some people live in such
remole areas lhal lhev cannol afford
lhe lransporl, lhe lime off vork, or lhe
food for a 2-dav lrip or a 2O-dav valk
lhrough lhe Himalavas. Regislralion
svslems are under-resourced, unable
lo sel up ofhces lo serve remole areas.
Some counlries charge a small fee: olher
are free bul levv hnes for nol regislering
vilhin a cerlain lime. Alas, some
parenls do nol vanl lo name lheir babv
righl avav for cullural reasons.
Regislralion pro|ecls are vorking
lo link hospilals direcllv lo lhe
regislralion svslem. To cope vilh lhe
large number of children born al home
slill, midvives in some counlries can
nov handle regislralion, even bv
mobile phone.
The lack of polilical commilmenl
lo lhe purpose leaves svslems under-
slaffed. Ior example, 1.2 million rupees
($14,OOO) vas budgeled for Nepal's Vilal
Lvenl Regislralion Svslem for hscal vear
2OO8. Mosl of lhal covers lhe 11 cenlral
slaff salaries, including lea bovs, leaving
a pillance for lhe process, avareness-
raising, and prinling of forms.
In Thailand, some regislrar ofhcers
do nol believe lhe Civil Regislralion
Lav acluallv changed in 2OO8. The nev
lav allovs anvone born in lhe counlrv
lo regisler lheir birlh, bul ralher lhan
be held accounlable for a mislake, civil
servanls refuse lo acknovledge manv
birlhs.
Llhnic discriminalion is a huge
obslacle in lhe region. ¨The people and
ofhcials slill largelv do nol knov aboul
lhis lav,¨ savs Surapong Kongchanluk,
direclor of lhe Karen Sludies and
Developmenl Cenler and a member
of lhe Lavvers Council of Thailand.
¨ßul in mv viev, lhe discriminalion is a
bigger problem.¨
Some Thai ofhcials refuse lo
regisler elhnic Thais, believing il vill
aulomalicallv lead lo cilizenship. Legal
aclivisls spenl 4 vears convincing lhe
Minislrv of Inlerior, vhich is in charge
of birlh regislralions, lhal a birlh
regislralion does nol enlille people lo
cilizenship if al leasl one parenl is nol
Thai. Iarl of lhe bias is based on lhe
belief lhal hill lribe people are from
neighboring counlries.
An eslimaled 2 million lo 3 million
migranls from Mvanmar are living in
Thailand. Undocumenled parenls÷
manv of vhom do nol have cilizenship
in Mvanmar eilher÷vill nol regisler
lheir children for fear of being arresled
and deporled. ßv lav, cerlain ofhcers,
including civil regislrars, musl reporl
anvone in lhe counlrv illegallv.
The Rohingva are nol vanled in lheir
nalive Mvanmar or in ßangladesh,
vhere lhev have soughl refuge
since lhe lale 197Os. No birlh is ever
regislered vilhin lheir squalid camps.
Òlher biases kev off gender issues.
Ior example, a child in lhe Ihilippines
born lo unmarried parenls could nol
be regislered vilh lhe falher's surname
and vas considered illegilimale unlil
2OO4. Manv molhers skipped lhe
process lo avoid lhe sligma, savs Viado.
In ßangladesh, onlv falhers can regisler
lheir children.
Children born al home in Malavsia
cannol be regislered, and foreign
parenls need a passporl and marriage
cerlihcale lo regisler a child. Manv
Malavsian-born Iilipino children of
undocumenled vorkers in Sabah do
nol have a birlh cerlihcale, vhich lhev
need lo go lo school.
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 57
NOT EASY TO FIX
The Ilan Inlernalional]UNICLI birlh
regislralion campaign, vhich ended in
2OO9, invesled in educaling regislrars
and improving civil regislralions
svslems as vell as regislering 4O million
people÷12 million in Cambodia alone.
ßul building capacilv in developing
counlries is a ma|or expense. ßrazil,
for example, vhich has a birlh
regislralion rale of 9O/, discussed
a civil regislralion modernizalion
pro|ecl in 2OO8 vilh lhe Inler-American
Developmenl ßank, savs Vandenabeele.
The eslimaled cosl vas $1.8 billion.
In ßangladesh, advocacv inilialives
succeeded in lving access lo services,
opporlunilies, and even ulililies lo a
birlh regislralion. ßul vilh onlv 7/ lo
1O/ of an eslimaled populalion of 15O
million regislered, a 5-vear backlog
of unprocessed regislralions emerged
in lhe capilal cilv, savs Vandenabeele.
Slaff in anolher cilv did nol have lhe
skills lo operale lhe nevlv inslalled
compuler svslem. Thal leaves people
vilh lhree oplions, she savs: don'l gel
lhe services, bribe for lhe services, or
bribe for lhe birlh cerlihcale.
Thal is vhv Vandenabeele savs
campaigns lhal are hxaled on universal
birlh regislralion or demand lhal
services and opporlunilies be lied
lo a birlh regislralion risk excluding
poor and marginalized people or
adding addilional barriers. A push lo
regisler people has lo be coupled vilh
building a svslem, she varns, and
lhe sequencing of aclivilies spells lhe
difference belveen real developmenl
and backlog.
Taking on lhose realilies, including
reducing slruclural vulnerabililies,
adds David Ieingold of lhe UNLSCÒ
Highland ßirlh and Cilizenship
Regislralion Iromolion Iro|ecl, ¨slarls
vilh birlh regislralion÷bul il doesn'l
end lhere.¨ Q
A BOOST FROM BOLLYWOOD PIan India
Iaunched the UniversaI Birth Registration
Campaign in New DeIhi in May 2006
with actor AniI Kapoor (right, beside
ñImmaker Govind NihaIani) as its goodwiII
ambassador. At that time, the estimated
totaI backIog in the issuance of birth
certiñcates was 150 miIIion.
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58 Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
KIng nI Hcarts
India's most famous surgeon has brought cardiac care
within reach for mi||ions of working poor
ßY Iames Hulchison
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n lhe vav lo his ßagship
Naravana Hrudavalava
mullispeciallv hospilal
on lhe oulskirls of
ßangalore, one of several hospilals Dr.
Devi Irasad Shellv and his leam have
buill lo care for poor and rich alike,
India's mosl celebraled hearl surgeon
saves lime bv changing inlo surgical
greens in lhe back seal of lhe car. Wilh
infeclious enlhusiasm and seeminglv
inexhauslible energv he slrides inlo
one of lhe hospilal's 24 cardiac surgical
lhealers lo begin a grueling dailv
schedule lhal lesls doclors half his age,
14-hour davs vilh onlv Sundavs off lo
be vilh his vife and lhree children.
¨I have a verv underslanding vife,¨
he savs vilh lvpical underslalemenl.
ßelveen his manv responsibililies,
including acling as hospilal direclor,
he hnds lime lo perform lvo or lhree
open-hearl surgeries dailv. Hov
manv has he done in lolal` ¨I slopped
counling al 2O,OOO,¨ he shrugs. Mosl of
lhem have been for free and lhousands
of lhem have saved lhe lives of poor
children. Al 57, Shellv has vorked
ceaselesslv for more lhan 2 decades lo
provide heallh care for India's vorking
poor, evervlhing from building 1,OOO-
bed hearl hospilals and slreamlining
hearl surgeries lo developing a global
lelemedicine nelvork lo lreal rural
dvellers and a heallh insurance
scheme for millions of farmers.
AFFORDABLE SURGERY
ßorn in Karnalaka Slale in Soulhern
India, he gradualed from Karslurba
PHYSICIAN OF THE POOR After training
in cardiac surgery in the United Kingdom,
Dr. Devi Prasad Shetty returned to India
to serve the poor. He has Iowered the
cost of open heart surgery, brought
expert heart care to ruraI areas through
teIemedicine, and started a micro heaIth
insurance program.
Medical College in Mangalore in 1982.
Afler lraining in cardiac surgerv in lhe
Uniled Kingdom, he relurned lo India
in 1989 lo fulhll a life-long dream of
serving lhe poor and sel up lhe ß.M.
ßirla Hearl Research Cenlre in Kolkala,
India's hrsl speciallv hearl hospilal.
When Molher Teresa fell ill from hearl
disease, he became her doclor.
Indians are falling viclim lo hearl
disease bv lhe million, he explains,
nol onlv because lhev are more
susceplible lo hearl disease lhan
Luropeans, bul also due lo lhe
adoplion of lhe same deadlv lifeslvle÷
including lack of exercise, fal-laden
diels, and smoking÷lhal crealed an
epidemic of cardiovascular diseases
in developed counlries. The World
Heallh Òrganizalion eslimales lhal
bv 2O1O, 6O/ of lhe vorld's hearl
palienls vill be Indians, vilh poor
families parlicularlv devaslaled vhen a
breadvinner is felled bv hearl disease.
Millions of Indians need hearl surgerv
bul onlv lhe vell-heeled vere able lo
afford il.
Through innovalive ¨produclion line¨
approaches using expensive medical
facililies around lhe clock and high
palienl volumes, Shellv and his leam
have broughl lhe cosl of open hearl
surgerv dovn lo aboul $2,OOO÷1O
limes cheaper lhan in counlries such
as lhe Uniled Slales. ¨Unless vou have
a fev lhousand palienls using such
infraslruclure dailv vou cannol reduce
cosls and improve efhciencv,¨ he savs.
As an example, he savs lhe cosl of a
CT scan can plummel lo near lhal of a
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Hearl Care on Wheels is anolher
innovalive efforl lo bring diagnosis
and lrealmenl lo remole regions. The
mobile hearl clinic roams Karnalaka
Slale, lrealing up lo 5OO palienls a dav
vilh medical slaff in communicalion
vilh Naravana Hrudavalava.
HEALTH INSURANCE
In collaboralion vilh lhe Karnalaka
Slale Governmenl, Naravana
Hrudavalava launched a micro
heallh insurance program called
Yeshasvini. India's largesl, il insures
nearlv 3 million poor farmers for
1O rupees a monlh÷lhe price of a
pack of cigarelles÷and has grovn
inlo lhe vorld's largesl self-funded
heallh care insurance scheme. Similar
programs inspired bv Yeshasvini have
been launched in olher Indian slales.
Shellv believes il is a model of heallh
insurance lhal can vork for olher
developing counlries.
The recenl opening alongside
Naravana Hrudavalava of Mazumdar
Shav Cancer Cenlre, lhe vorld's largesl
cancer hospilal vilh 1,4OO beds, vill
help cope vilh an expecled lripling of
cancers in India over lhe nexl 2 decades.
Whal has become Naravana Heallh
Cilv also includes a modern lrauma
simple chesl x-rav vhen il is in conslanl
use in a 1,OOO-bed hospilal. Working
in shifls, surgeons perform 5O ma|or
hearl surgeries dailv and do lhe largesl
number of hearl surgeries on children in
lhe vorld, achieving success rales equal
lo hospilals in developed counlries.
Ior lhose loo poor lo afford lrealmenl,
pavmenls are based on a sliding scale
vilh veallhier palienls subsidizing lhe
poor vho also receive help from lhe
hospilal's charilv ving.
Despile lhe large number of poor
palienls, Shellv's facililies slill earn
prohls comparable lo US hospilals,
according lo a reporl in 1nc |ccncmisi,
vilh people coming for lrealmenl from
73 counlries.

REACHING OUT TO THE RURAL POOR
Wilh doclors fev and far belveen in
rural India, Shellv sav lhe need lo
reach oul lo millions of poor unlrealed
hearl palienls in remole areas, manv
of vhom spenl lheir life savings
lravelling greal dislances lo bring a sick
relalive lo lhe hospilal for lrealmenl
onlv lo discover all lhal vas needed
vas medicalion, nol surgerv.
In 2OOO, Shellv and his leam enlisled
lhe supporl of lhe Indian Space
Research Òrganisalion and ßangalore's
famed compuler induslrv lo creale
lhe Inlegraled Telecardiologv and
Teleheallh Iro|ecl, a sophislicaled
lelemedicine svslem of small clinics in
remole regions slaffed vilh speciallv
lrained medics linked lo lhe hospilal
bv salellile. In lhe lasl decade, hearl
specialisls silling al video screens
discussing lrealmenl oplions vilh
palienls and medics lhousands of
kilomelers avav have saved lhousands
of lives and counlless vasled lrips,
and have remolelv lrealed close lo
7O,OOO hearl palienls. The svslem has
expanded lo over 8OO localions across
India and inlernalionallv, including
Africa and olher Asian counlries. ¨The
real benehl of lelemedicine is vel lo
come lhrough educaling communilies
lo prevenl disease,¨ savs Shellv.
cenler and an eve hospilal. Shellv's
organizalion is currenllv involved
in selling up a nev hearl hospilal
in Dhaka, ßangladeshand plans lo
build more medical cenlers across lhe
nalion lo raise lhe number of beds bv a
slaggering 3O,OOO over lhe nexl 5 vears.
Despile lhis exhausling pace, Shellv
rarelv misses an opporlunilv lo help
lhose in need, especiallv children.
When Malavsian discounl airline
AirAsia launched dailv ßighls lo
ßangalore in Mav 2O1O, he made sure
15 children vilh congenilal hearl
disease vere aboard lhe inaugural
ßighl so he could operale on lhem lo
give lhem normal childhoods.
The enormilv of lhe heallh crisis
facing India's poor is daunling, bul
Shellv's belief lhal il can be solved is
unshakeable. ¨God does nol creale a
problem vilhoul a solulion,¨ India's
King of Hearls is fond of saving lo his
Who can argue vilh lhal` Q
SAVING LIVES Shetty and his surgeons do
the Iargest number of heart surgeries on
chiIdren in the worId with success rates
equaI to deveIoped countries. One patient
was 2-year-oId Noor Fatima of Pakistan,
who underwent a successfuI operation in
2003 and now Ieads a normaI Iife.
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6O Dcvc!nµmcnt AsIa Iulv÷Seplember 2O1O
AncIcnt Grass Rcbnrn
Bamboo he|ps Asia's rura| poor cut a green path out of poverty
ßY Iames Hulchison
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llahabad dislricl farmers
in lhe Indian slale of Ullar
Iradesh vere happv lo
lease oul 5,OOO heclares
lo brickmakers for soil mining and
earned good monev for lhe hrsl fev
vears. When lhe monev and 3 melers
of lopsoil vere gone, leaving barren
red earlh scoured bv erosive dusl
slorms, 6,OOO families in 25 villages of
Kaurihar block vere poverlv slruck,
lhe men forced lo seek |obs as laborers
in Mumbai and Iune.
In 1996, lhe presidenl of lhe Ullhan
Cenlre for Suslainable Developmenl
and Ioverlv Allevialion, Dina Nalh
Tevari, convinced deslilule village
vomen lhal he could help lhem
rehabililale lheir land. Wilh assislance
from lhe Inlernalional Nelvork for
ßamboo and Rallan (INßAR), Tevari
and his leam sel up nurseries and
laughl lhe vomen hov lo cullivale and
planl lhousands of bamboo saplings.
Wilhin a vear, a sea of green bamboo
had slabilized lhe soil alloving hardv
fodder, fuel, and medicinal planls,
along vilh fruil and limber-vielding
lrees lhal lhe vomen also planled, lo
ßourish.
¨This vas lhe mosl degraded area
I had ever seen,¨ savs Tevari, ¨vel
bv lhe second vear lhe vomen vere
gelling relurns from lhis agroforeslrv
efforl.¨ The former direclor general
of lhe Indian Council of Ioreslrv
Research and Lducalion expounds
lhal lhe 1,2OO species of lhe vorld's
faslesl groving planl have over 1,5OO
recorded uses and provide poor
of almosl $5OO each. ßv lhe hflh vear,
male familv members had relurned lo
begin dairv farming.

RISING GREEN STAR
ßamboo's benehcial role as a
pioneer planl in land resloralion and
agroforeslrv is |usl one of a mullilude
of 21sl cenlurv dulies for a limeless
Asian icon. The vorld's lallesl species
of grass is en|oving a modern global
reincarnalion inlo evervlhing from
lrendv mounlain bike frames and
bamboo-encased laplops lo eco-friendlv,
high-qualilv ßooring and plvboard.
ßul ils mosl imporlanl nev role is lo
creale a renevable green palhvav oul of
poverlv for millions in developing Asia.
¨Òver a billion people vorldvide
depend on bamboo,¨ savs Coos|e
Hoogendoorn, INßAR direclor general
al lhe organizalion's head ofhce in
ßei|ing, Ieople's Republic of China
(IRC). ßv far lhe vorld's largesl
producer and exporler of bamboo
producls, lhe IRC also has lhe mosl
lechnologicallv advanced induslrv
of INßAR's 34 member counlries,
folloved bv Viel Nam, Indonesia,
lhe Ihilippines, Malavsia, and India,
vhich are helped bv IRC experlise
and lechnologv lransfers facililaled
bv INßAR lo modernize lheir bamboo
induslries. The INßAR pavilion al
lhe 2O1O World Lxpo in Shanghai is
one of manv shovcasing nev and
lradilional uses for bamboo producls.
Hoogendoorn savs global consumers
like lhe nev bamboo because prices
are compelilive and il is ¨green.¨
´Oter a blIIlon
µeoµIe uorIdulde
deµend on banbooµ
·*VVZQL/VVNLUKVVYU
KPYLJ[VYNLULYHSVM[OL0U[LYUH[PVUHS
5L[^VYRMVY)HTIVVHUK9H[[HU
villagers vilh nulrilious bamboo
shools, poles for building houses,
leaf liller for animal feed, and income
from handicrafls. ßv lhe end of lhe
fourlh vear, lhe prohls pushed 22,OOO
families in Kaurihar block back above
lhe poverlv line, vilh annual earnings
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 61
make evervlhing from aclivaled
charcoal lo fabric, and if properlv
managed il vilhslands harvesling÷
unlike hardvood limber÷simplv
regeneraling lo produce more bamboo.
Ieler S|ovall, chief hnancial ofhcer
of Asian ßamboo÷a leading producer
of moso bamboo, one of lhe besl
species for bamboo-based producls, in
lhe IRC's Iu|ian Irovince÷savs his
companv is expanding due lo a global
lrend lovard suslainable malerials
and a groving inleresl in organic
food. Aboul 6O/ of prohls come from
bamboo shools, mosl for domeslic
consumplion, and lhe resl for exporl.
The olher 4O/ comes from sales lo
nearbv lhird-parlv manufaclures of
ßooring, paper, and bamboo plvboard
Al a RÒNA building supplv chain
slore in ßrilish Columbia, Canada,
ßooring specialisl Suzanne ßubboil
savs more cuslomers are choosing
bamboo ßooring lhese davs. ¨Ieople
look for lhe eco-friendlv label lhal
cerlihes il is suslainable and nol
from exploiled labor,¨ she savs. In
recenl durabililv lesls underlaken bv
Ccnsumcr Rcpcris, bamboo ßooring
oul-performed 21 hardvood ßoors,
including oak.
The renevable credenlials of bamboo
are impeccable: il reaches maximum
size in |usl 6O lo 9O davs, can be
commerciallv harvesled afler 3 lo 6
vears, and grovs vilhoul ferlilizer
on land unsuilable for agricullural
crops. The enlire lree is used lo
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EVERGREEN A market in Viet Nam seIIs
freshIy cut bamboo poIes. VersatiIe and
fast-growing, this taII grass is wideIy
cuItivated in Asia and has many uses, yet
it remains underutiIized, say experts.
and furnilure, vhich emplov local
labor. The companv manages around
4O,OOO heclares of bamboo planlalions,
vhich are leased from cooperalives of
small farmers. The farmers make more
monev lhan lhev could on lheir ovn,
as lhev receive bolh an up-fronl lease
fee and gel paid for harvesling vork.
Aboul 7,OOO farmers are involved in
harvesling and around 1,OOO people
vork in local bamboo shool processing
faclories. The companv eslimales lhal
bamboo generales 4 lo 8 limes more
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income per unil of land lhan Chinese
hr or pine planlalions.
Viel Nam is forging ahead vilh
lhe developmenl of ils bamboo
induslrv vilh lhe help of lechnologv
lransfers and experlise from lhe IRC
facililaled bv INßAR, an example
of hov INßAR brings experls from
ils member counlries logelher lo
learn from each olher. INßAR aims
lo sel up demonslralion pro|ecls
in Africa, Asia, and Lalin America
lo highlighl besl praclices for soil,
valer, and biodiversilv conservalion,
rehabililalion of degraded lands, and
carbon sequeslralion.

IMPROVING INCOMES FOR THE POOR
Iasl groving, suslainable, and righl
in lhe backvard of millions of poor
Asians÷bamboo is an underused
resource vilh lhe polenlial lo lifl rural
dvellers oul of poverlv, according
lo INßAR's Hoogendoorn. She and
olher experls slress lhal one of lhe kev
vavs lo increase household incomes
is lo keep as much pre-processing
as possible close lo lhe producing
areas vhere lhe farmers live, ralher
lhan vasling energv lransporling
rav bamboo lo dislanl facililies. This
mav involve siling faclories nearbv
or underlaking simple pre-processing
preservalion, vhich involves leaching
lhe slarch from rav bamboo because il
allracls insecls and fungus.
Arief Rabik, coordinaling direclor
of lhe Lnvironmenlal ßamboo
Ioundalion in ßali, Indonesia, savs
lhis process can raise lhe price per
pole from aboul $O.6O for rav bamboo
lo $1O for a preserved pole÷a clear
example hov lrained farmers can add
value.
When Rabik visils Iseh in easlern
ßali, lhe village headman poinls oul
lhal almosl all lhe infraslruclure in lhe
village vas funded vilh prohls from a
3O-heclare grove lhal lhe communilv
has carefullv managed for more lhan
5O vears. Rabik helped lhe villagers
sel up lhe manufaclure of bamboo
roof shingles, vhich nels lhem $36
a pole. His organizalion also runs
vorkshops in bamboo managemenl
and cullivalion of valuable associaled
underslorv species such as lurmeric,
ginger, and vanilla. ¨This means
farmers go lo lheir bamboo clumps
more frequenllv and beller mainlain
lhem. Well-managed bamboo grovs
slraighl and slrong. Òver 6 vears, lhis
kind of care increases prohls bv up lo 5
limes,¨ savs Rabik.
ßamboo represenls a lremendous
opporlunilv for millions of lhe rural
poor, he savs, bul farmers need
help lo undersland lhal suslainable
managemenl praclices go hand in
hand vilh good business and lhal
lhev need lo form beller nelvorks and
cooperalives, vhich vill help lo creale
a slandard pricing svslem for bamboo.

GROWING YOUR OWN HOUSE
ßamboo could solve lhe scarcilv of
suslainable building malerials in
urban and rural areas, savs Shavam
Iaudel, coordinalor of INßAR's Global
ßamboo Housing Irogramme. The
program seeks lo creale affordable
housing for lhe poor and a viable
supplv chain from rav bamboo lo
engineered prefabricaled houses.
Under Iaudel, lhe group has sel up
HARDY GRASS The use of bamboo as
construction materiaI can heIp make
houses more earthquake-resistant.
vvv.developmenl.asia Iulv÷Seplember 2O1O Dcvc!nµmcnt AsIa 63
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a supplv chain in his nalive Nepal,
and has alreadv buill 1OO lov-cosl
bamboo houses al less lhan half lhe
cosl of convenlional unsuslainable
malerials÷vood, concrele, and
sleel. Whal's more, lhe prefabricaled
bamboo houses are earlhquake
resislanl: lesls in India have shovn
lhev can easilv vilhsland a magnilude
7.O earlhquake. ¨These prefabricaled
bamboo houses are easv lo conslrucl,
have good insulalion characlerislics,
and packed ßal are cheap lo
lransporl,¨ savs Iaudel. The use of
bamboo in house conslruclion also
helps lo prevenl deforeslalion.
Research conducled in Cosla Rica
revealed lhal as lillle as one-eighlh
lhe area of nalural foresl is needed for
a bamboo planlalion lo supplv 1,OOO
bamboo houses. This is because of
ils slrenglh, fasl grovlh rale, and lhe
groving slock of bamboo clumps.
INßAR's Carmelila ßersalona has
helped 1,5OO bamboo makers in Abra÷
one of lhe pooresl areas in lhe norlhern
Ihilippines÷raise lheir earnings bv
making bamboo mals for high-value
furnilure and house componenls
inslead of lover value baskels.
The developmenl of nev bamboo
lechnologv and designs bring higher
earnings lo communilv producers.
Moreover, lhe mechanizalion of
produclion has increased produclivilv,
enabling more people lo become
co-ovners of communilv bamboo
enlerprises.
EROSION CONTROL ViIIagers construct
a bamboo waII to protect the Iand aIong
the seaside in Kok Karm, in ThaiIandҋs
vast Chao Phraya river deIta, which is
sinking because of river damming and
the cIearing of mangrove forests.
Òne problem lhal musl be overcome
in Nepal and elsevhere in Asia,
according lo Iaudel, is lhal bamboo
is seen as poor man's limber, a sligma
lhal undermines lhe bamboo's
polenlial in providing affordable
housing. Hovever, Iaudel believes lhal
lhis image vill change as people across
lhe social speclrum accepl bamboo as a
conslruclion malerial.
CARBON HERO
ßamboo is efhcienl al sequeslering
carbon dioxide, making il a valuable
plaver in greenhouse gas miligalion,
savs Rabik of lhe Lnvironmenlal
ßamboo Ioundalion. Òver 9O/ of
lhe carbon conlained in bamboo
can be sequeslered in long-lasling
producls, such as ßoors, furnilure,
and buildings. INßAR's suslainabililv
and carbon-hxing capacilv sludies
conclude lhal bamboo's biomass
and carbon produclion has been
found lo be roughlv equivalenl lo
lhal of fasl groving vood species.
The organizalion is invesligaling lhe
polenlial of carbon credils for bamboo
cullivalion vilh a viev lo supporling
lhe developmenl of olhervise
marginal bamboo planlalions in poor
areas.
In 2OO7, Tevari's Ullhan Cenlre for
Suslainable Developmenl and Ioverlv
Allevialion received lhe $1 million Rio
Tinlo Alcan Irize for Suslainabililv
for lheir vork in resloring soil mined
areas around cilies, degraded foresl
lands, drv lands, and vaslelands. Their
efforls in 1O dislricls in Ullar Iradesh
successfullv used bamboo lo reclaim
85,OOO heclares of degraded land,
benehling 9O,OOO families. ¨ßamboo
can reslore and repair even lhe vorsl
soil,¨ savs Tevari. Q
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0hTh£8£0080
¸Thc gaµs bctwccn thc µn!ItIca!
µartIcIµatInn nI mcn and nI wnmcn
In thc AsIa-PacIIIc arc amnng thc
!argcst In thc wnr!d.¹

He|en C|ark, administrator of the United Nations
Deve|opment Programme, on the occasion of the |aunch
of the report 7V^LY=VPJLHUK9PNO[Z!(;\YUPUN7VPU[MVY
.LUKLY,X\HSP[`PU(ZPHHUK[OL7HJPÄJ in March
¸Wc can hand!c
dIµ!nmatIc Isn!atInn,
but ccnnnmIc Isn!atInn
Is Iata!.¹
Taipei,China President Ma Ying-jeou exp|ains his rationa|e
for entering an economic cooperation framework
agreement with the Peop|e's Repub|ic of China
¸RMB
lrcnmInbI,
a!sn knnwn
as vuan!
aµµrccIatInn
wnu!d ncIthcr
ba!ancc SInn-US
tradc nnr sn!vc thc
uncmµ!nvmcnt
µrnb!cm In thc
UnItcd Statcs.¹
President Hu Jintao of the Peop|e's Repub|ic
of China in a meeting with US President
Barack Obama in Washington in Apri|
¸Bv strcngthcnIng thc ccnnnmIc
basc nI a mu!tIµn!ar wnr!d, thc
BRIC cnuntrIcs arc nbjcctIvc!v
hc!µIng tn crcatc cnndItInns Inr thc
strcngthcnIng nI g!nba! sccurItv.¹
Russian President Dmitry Medvedev quoted at a BRIC summit
in Brasi|ia in Apri|
¸And II It mcans swa!!nwIng snmc
humb!c µIc and II It mcans catIng snmc
nI vnur wnrds, I cannnt thInk nI a mnrc
cxcc!!cnt dIct nn whIch tn µrnvIdc thc
cnuntrv wIth gnnd gnvcrnmcnt.¹

Britain's new Prime Minister David Cameron on working with po|itica| riva| Nick C|egg,
now Deputy Prime Minister
¸Mv TwIttcr
accnunt Is
nµcn Inr vnu tn
dcnnuncc thcm.¹
Venezue|an President Hugo Chavez urges
supporters to use Twitter to report currency
specu|ators on his week|y radio and
te|evision show
1 billion people potentially affected by climate change
75 percent of the world’s illiterates
620 million people living on less than $1 a day
5HGXFHSRYHUW\LQ$VLDDQGWKH3DFLÀF
by reducing these numbers
www.adb.org/poverty
FIGHTING POVERTY IN ASIA AND THE PACIFIC
©Pokonobe Associates ©Hasbro, Inc. ©1986 Panda symbol WWF-World Wide Fund For Nature (also known as World Wildlife Fund ) ®WWF Registered Trademark

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