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Full text PDF - International Policy Network

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198 Fighting the Diseases of PovertyThis problem afflicts up to half of the world’s population, almostentirely in the poorest countries. Globally, ALRI represent the singlemost important cause of death in children under five years of age,and contributes to approximately two million deaths annually inthis age group (Bruce et al., 2002).Thus, if the poor were able to use more efficient, cleaner formsof energy, the positive impact (in terms of reducing the globaldisease burden) would be immense. Unfortunately, governmentstend to restrict the ability of people to use cleaner fuels and technologiessuch as electricity, liquefied petroleum gas (LPG) or evenkerosene. The impact of these restrictions falls primarily affectspoorer households, who must then resort to burning wood, lowgradecoal, crop residues and animal dung, which in turn exacerbatesboth indoor and local air pollution.In India, for instance, the country’s 2001 census revealed thatless than 44 per cent of households have an electricity connection(Goswami, 2004). Because the national and state governments haveintervened extensively in the supply of electricity, the country hasan artificial shortage – so merely possessing an electricity connectiondoes not mean that a household actually receives electricity.Policies of the Indian government have also contributed heavilyto a shortage of petroleum-based fuels in the country, which particularlyaffects the rural poor. Kerosene is subject to governmentrationing. Only two government-run companies in India supplyLPG – thus, these companies are not competing in a dynamic, competitivemarket. Although LPG production is in principle subsidisedby the state, it is unclear whether these subsidies are passed on toconsumers (in the form of lower costs) or whether the companiesinflate their production costs (thus absorbing the subsidy).Moreover, there is little if any distribution network for LPG – soprivate suppliers are unlikely to enter the market. This explainswhy rural access to LPG is extremely low; India’s 2001 censusrevealed that fewer than 10 per cent of rural households utilizeLPG (Goswami, 2004).These examples show why government policies towards can

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