Evaluation Step 2: How Optimal Is the Sequencing of the Reform?

  • Leila Benali
Part of the Perspectives on Development in the Middle East and North Africa (MENA) Region book series (PDMENA)


MENA countries followed different reform paths in terms of the number of steps taken, the length of the process and the sequencing. A Herfindhal-Hirschman index (HHI) analysis shows that there are only two countries in the region where the dominant player is not the national utility or any other government-owned entity: Abu Dhabi and Morocco. In MENA, despite market concentration, wholesale prices are not volatile and kept at a relatively low level. However, increasing industry consolidation could translate into potentially higher wholesale tariffs, and higher subsidies. The dual market model of dual firms could be the response of developing countries to the “textbook model” as it was implemented in the UK or New ZealandSome countries are moving towards that pragmatic direction with the creation (re-creation) of national champions, staffed with highly educated technocrats, and partially publicly-listed. A strong regulation to prevent market abuse is key.


Market concentration Wholesale prices Dual firm National champion 


  1. Bacon R, Besant-Jones J (2000) Global electric power reform, privatization and liberalization of the electric power industry in developing countries. Annu Rev Energy Environ 26:331–359CrossRefGoogle Scholar
  2. Jaime M, Eduardo L, Alejandro M (2001) Sustainability of the electricity sector reform. Inter-American Development Bank, Washington, DCGoogle Scholar
  3. Victor DG, Heller TC (2007) The political economy of power sector reform: the experiences of five major developing countries. Cambridge University Press, New YorkCrossRefGoogle Scholar
  4. World Bank (2002) Building institutions for markets. The World Bank, WashingtonGoogle Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2019

Authors and Affiliations

  • Leila Benali
    • 1
  1. 1.Institut d’Etudes PolitiquesParisFrance

Personalised recommendations