Tuesday, August 26, 2008

South Asia: Energy trade, and trade and transport facilitation

Both these links come from the World Bank publications. Lately, I have been studying/working on prospects and scope of energy trade (hydropower), especially Nepal as an exporter. Does Nepal has a comparative advantage? How far can this trade go in the present investment and supply chain constraints? I will try to write an Op-Ed on this issue this weekend!

South Asia Energy: Potential and Prospects for Regional Trade

  • Energy trade is very minimal in South Asia. Only Nepal, India, and Bhutan currently trade electricity.
  • Despite being one of the most richest sources in current/flowing water having potential to produce huge amount of hydro energy, this region produces just 45 of the world's electricity.
  • Bhutan’s unexploited hydropower potential exceeds 23,000 MW and Nepal's exceeds 43,000 MW.
  • Bhutan’s electricity export in 2007 is expected to be 25% of its GDP and 60% of its state revenues.

South Asia: Trade and Transport Facilitation

  • Intra-regional trade constitutes less than 5 percent of total trade.
    South Asia's share of global trade is less than 2 percent.
  • International air freight is less than 1 percent of total trade volume.
  • Over a third of the South Asia’s exports consist of textiles and clothing.
  • The ports in the Bay of Bengal have low levels of productivity.
  • The South Asian logistics sector is at a formative stage but it is developing quickly.

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