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Energy and Development

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Energy is fundamental to daily life. Whether it is providing lights for our classrooms, refrigeration for our food and medicine, pumps to irrigate our crops, or electricity to run our commercial and industrial enterprises, energy provides the means for economic growth and social and political development.

The current state of global economic and social impoverishment is reflected in the levels of energy poverty we witness around the globe. Today, one out of every three people in the world lacks access to modern energy services. Furthermore, the number of people without modern energy continues to grow year after year. For the most part, families throughout the developing world continue to rely on traditional fuel sources such as firewood, charcoal and dung, the use of which has severe health, environmental and social effects.

Because energy is inherently connected to each of USAID’s development goals, the Agency works to illuminate those linkages that exist between energy and poverty alleviation, improved health and education services, gender and inter-generational equity and social justice. USAID programs around the world integrate energy issues into the broader complex of development programs. In addition, USAID is at the forefront of the U.S. Government’s effort to increase access to clean, efficient and healthy forms of energy through the U.S. Government Clean Energy Initiative, announced at the 2002 World Summit on Sustainable Development.

USAID focuses its efforts on a constellation of themes universally acknowledged as being of primary importance. These themes include:

The governance of the energy sector in the form of policy, regulatory and market development matters are central to the provision of clean, reliable, and affordable energy services. USAID spends considerable time and effort working with developing country officials, industry and NGOs on getting the rules right for the public and private delivery of energy services.

Building institutional and individual capacity in the country to sustain an enabling policy environment. The Agency devotes a sizeable portion of our resources to strengthening the ability of stakeholders to govern the energy sector, increase access to energy services by rural and urban populations, and improve efficiency in energy production and use.

Increasing public understanding and involvement in decision making on energy issues. The public’s informed participation in the energy economy beyond that of consumer helps increase the efficiency of its operations and ensures the equity of its impact.

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