Ecuador : rural electrification

This assessment of A.I.D.'s 1964-75 sponsorship of four electrification projects in Ecuador concludes that, although implemented along with other development projects such as road construction, the program was a key factor in upgrading the towns of Santa Elena, Santo Domingo de los Colorados, Daule, and Ambato into regional market and service centers. The main benefits of this program, which was not originally designed to benefit the poor, were job creation, access to agricultural product processing facilities, and increased opportunities for small commercial enterprises. The growth of Santa Elena into a successful summer resort, with tourism and its related services the major economic activities, was made possible by electricity. Santo Domingo now features small industries of metal mechanics and automotive repair, as well as 67 crop processing plants for coffee, hemp, and milk. Electricity in Daule also led to local processing plants, as it led to the growth of small industry/artisanry activities in Ambato. Residential electricity has been mainly used for appliances of convenience and recreation, which is not to diminish its importance to those who made sacrifices for this luxury. The direct impact of electricity upon agricultural production has been nil, however, as has been its effect upon delivery of social services to rural areas. Since, in the absence of the development potential provided by a market town or service center, rural electrification has a low cost-benefit ratio, it should be designed as part of an integrated development process. The issue for A.I.D. is not whether electrification is worthwhile, but whether A.I.D. should alter its role from funding the purchase of equipment to providing technical assistance and training. In addition, A.I.D.'s marginally successful use of cooperatives did not correspond to local conditions and improperly employed a top-to-bottom approach. In future impact evaluations, local scientists should conduct advance field surveys. Appendices include a description of the evaluation's methodology and a 24-item bibliography (1972-80).