CAPITAL GOODS FOR ENERGY DEVELOPMENT: POWER EQUIPMENT FOR DEVELOPING COUNTRIES.

Abstract

The procurement of electric power equipment by developing countries concerns not only them alone, but also the developed countries. Of the total world trade of about US45 billion, the share of developing countries was nearly 32% in 1983. To reduce foreign exchange payments and to increase self-reliance, the developing countries need to increase their efforts in domestic manufacturing of electric power equipment in whatever modest way is possible. Behind the goals of indigenization lies the basic desire for participation in the process of industrialization. At present, the most important factor militating against the domestic manufacture of power equipment in the developing countries is the surplus capacity that exists at the global level due to falling or stagnant demand for capital goods for electricity in the western world.