Global Electrification: Multinational Enterprise and International Finance in the History of Light and Power, 1878–2007 (Cambridge Studies in the Emergence of Global Enterprise)

This book examines how multinational enterprises and international finance influenced the course of electrification around the world. Multinational enterprises played a crucial role in the spread of electric light and power from the 1870s through the first three decades of the twentieth century. Their role did not persist, as over time they exited through "domestication" (buy-outs, confiscations, or other withdrawals), so that by 1978 multinational enterprises in this sector had all but disappeared, replaced by electrical utility providers with national business structures. Yet, in recent years, there has been a vigorous revival. This book, a unique cooperative effort by the three authors and a group of experts from many countries, offers a fresh analysis of the history of multinational enterprise, taking an integrative approach, not simply comparing national electrification experiences, but supplying a truly global account. Cover......Page 1 Half-title......Page 3 Series-title......Page 5 Title......Page 7 Copyright......Page 8 Contents......Page 9 Tables and Illustrations......Page 11 Series Editors’ Preface......Page 13 Preface......Page 15 Acknowledgments......Page 23 Authors and Contributors......Page 25 Part I Concepts......Page 27 1 The Invention and Spread of Electric Utilities, with a Measure of the Extent of Foreign Ownership......Page 29 The precursors of electric light......Page 32 Electrical technology and the birth of electric utilities......Page 34 Beyond edison: the advantages and early development of large networks......Page 38 Electric traction......Page 41 The pattern of development of the electric utility industry......Page 44 The capital intensity of the central-station electric utility and its implications......Page 45 Governments and the electric utility industry......Page 49 Trends in electricity production and the implication for capital investment......Page 50 Characteristics of a maturing industry: a snapshot at 1933......Page 53 The Extent of foreign ownership and control of electric utilities......Page 56 2 Multinational Enterprise and International Finance......Page 61 The framework......Page 62 Manufacturers’ satellites and extended manufacturers’ satellites......Page 68 Banks and other financial intermediaries......Page 72 The enclave form......Page 76 Large power consumers......Page 77 Holding companies......Page 78 Operating companies: holding/operating companies, ‘‘free standing companies,’’ and others......Page 81 Operating companies: concessions and franchises......Page 83 The many business actors: clusters, networks, and business groups......Page 85 Enlarging our thinking on multinational enterprise forms......Page 87 Railroads......Page 89 Considering the actors and the forms: a summary......Page 90 The political dimension......Page 93 Liberalization, restructuring, and privatization......Page 97 Part II Changes......Page 99 3 Every City, 1880–1914......Page 101 Banks and other financial intermediaries......Page 108 Enclave electrification......Page 115 Large power consumers......Page 116 Manufacturers and their satellites......Page 117 Holding companies......Page 121 Operating companies: clusters, engineering, construction, and trading firms......Page 131 Operating companies in latin america (mexico in particular) and europe ( russia in particular)......Page 137 Finance......Page 144 The status of multinational electrical investments on the eve of world war I......Page 146 4 War, the First Nationalization, Restructuring, and Renewal, 1914–1929......Page 151 Nationalism, government enlargement , and the wartime economies......Page 153 Takeovers of german assets, responses, protective measures, and changes......Page 157 New political boundaries: the end to the russian, german, austro-hungarian, and ottoman empires......Page 163 The british dilemma......Page 164 The role of canadians......Page 168 The coming of age of the united states......Page 170 Enclaves......Page 172 Large power consumers......Page 173 Electrification in the late 1920s......Page 174 The old and the new......Page 182 Holding companies......Page 187 U.S. business and finance......Page 195 Conclusions......Page 212 5 Basic Infrastructure, 1929-1945......Page 216 1931......Page 221 1932......Page 223 American & foreign power co., 1929-1932......Page 224 1933-1939......Page 226 1933-1939: Latin America......Page 236 The u.s.-canadian connection......Page 240 The middle east, asia, oceania, and africa......Page 241 Summary table, 1937......Page 243 World war II......Page 247 Part III Conclusions......Page 257 6 Summary of the Domestication Pattern to 1978......Page 259 The end to overseas empires: new countries and their new aspirations......Page 268 1960s and 1970s......Page 269 Latin america in the 1950s, 1960s, and 1970s......Page 270 Canada......Page 276 The rest of the world in the 1950s, 1960s, and 1970s......Page 277 The sequencing......Page 278 A perspective......Page 282 7 Coming Full Circle, 1978–2007, and a Global Perspective......Page 288 The resurgence of foreign ownership at the end of the twentieth century......Page 290 Lessons......Page 295 Conclusion......Page 298 Appendix A: Abbreviations, Acronyms, Company Names, and Variations on Company Names......Page 303 Appendix B: Notes to Table 1.4 Foreign Ownership of Electric Utilities, Four Periods......Page 317 1 The invention and spread of electric utilities, with a measure of the extent of foreign ownership......Page 335 2 Multinational enterprise and international finance......Page 346 3 Every city, 1880-1914......Page 359 4 War, the first nationalization, restructuring, and renewal, 1914-1929......Page 397 5 Basic infrastructure, 1929-1945......Page 432 6 Summary of the domestication pattern to 1978......Page 451 7 Coming full circle, 1978-2007, and a global perspective......Page 458 Select Bibliography......Page 465 Index......Page 487 9780521880350 Cover 1 Half-title 3 Series-title 5 Title 7 Copyright 8 Contents 9 Tables and Illustrations 11 Series Editors’ Preface 13 Preface 15 Acknowledgments 23 Authors and Contributors 25 Part I Concepts 27 1 The Invention and Spread of Electric Utilities, with a Measure of the Extent of Foreign Ownership 29 The precursors of electric light 32 Electrical technology and the birth of electric utilities 34 Beyond edison: the advantages and early development of large networks 38 Electric traction 41 The pattern of development of the electric utility industry 44 The capital intensity of the central-station electric utility and its implications 45 Governments and the electric utility industry 49 Trends in electricity production and the implication for capital investment 50 Characteristics of a maturing industry: a snapshot at 1933 53 The Extent of foreign ownership and control of electric utilities 56 2 Multinational Enterprise and International Finance 61 The framework 62 Manufacturers’ satellites and extended manufacturers’ satellites 68 Banks and other financial intermediaries 72 The enclave form 76 Large power consumers 77 Holding companies 78 Operating companies: holding/operating companies, ‘‘free standing companies,’’ and others 81 Operating companies: concessions and franchises 83 The many business actors: clusters, networks, and business groups 85 Enlarging our thinking on multinational enterprise forms 87 Railroads 89 Considering the actors and the forms: a summary 90 The political dimension 93 Liberalization, restructuring, and privatization 97 Part II Changes 99 3 Every City, 1880–1914 101 Banks and other financial intermediaries 108 Enclave electrification 115 Large power consumers 116 Manufacturers and their satellites 117 Holding companies 121 Operating companies: clusters, engineering, construction, and trading firms 131 Operating companies in latin america (mexico in particular) and europe ( russia in particular) 137 Finance 144 The status of multinational electrical investments on the eve of world war I 146 4 War, the First Nationalization, Restructuring, and Renewal, 1914–1929 151 Nationalism, government enlargement , and the wartime economies 153 The russian shock 157 Takeovers of german assets, responses, protective measures, and changes 157 New political boundaries: the end to the russian, german, austro-hungarian, and ottoman empires 163 The british dilemma 164 The role of canadians 168 The coming of age of the united states 170 Enclaves 172 Large power consumers 173 Electrification in the late 1920s 174 The old and the new 182 Holding companies 187 U.S. business and finance 195 Conclusions 212 5 Basic Infrastructure, 1929-1945 216 1931 221 1932 223 American & foreign power co., 1929-1932 224 1933-1939 226 1933-1939: Latin America 236 The u.s.-canadian connection 240 The middle east, asia, oceania, and africa 241 Summary table, 1937 243 World war II 247 Part III Conclusions 257 6 Summary of the Domestication Pattern to 1978 259 The end to overseas empires: new countries and their new aspirations 268 1960s and 1970s 269 Latin america in the 1950s, 1960s, and 1970s 270 Canada 276 The rest of the world in the 1950s, 1960s, and 1970s 277 The sequencing 278 A perspective 282 7 Coming Full Circle, 1978–2007, and a Global Perspective 288 The resurgence of foreign ownership at the end of the twentieth century 290 Lessons 295 Conclusion 298 Appendix A: Abbreviations, Acronyms, Company Names, and Variations on Company Names 303 Appendix B: Notes to Table 1.4 Foreign Ownership of Electric Utilities, Four Periods 317 Notes 335 1 The invention and spread of electric utilities, with a measure of the extent of foreign ownership 335 2 Multinational enterprise and international finance 346 3 Every city, 1880-1914 359 4 War, the first nationalization, restructuring, and renewal, 1914-1929 397 5 Basic infrastructure, 1929-1945 432 6 Summary of the domestication pattern to 1978 451 7 Coming full circle, 1978-2007, and a global perspective 458 Select Bibliography 465 Index 487 #,Publisher:,Cambridge,University,Press,#,Number,Of,Pages:,487,#,Publication,Date:,2008-04-07 This book examines how multinational enterprises and international finance influenced the course of electrification around the world. Multinational enterprises played a crucial role in the spread of electric light and power from the 1870s through the first three decades of the twentieth century. However, their role did not persist, and by 1978 multinational enterprises in this sector had all but disappeared, replaced by electrical utility providers with national business structures. Yet, in recent years, there has been a vigorous revival. This book, a co-operative effort by the three authors and a group of experts from many countries, offers an analysis of the history of multinational enterprise. The authors take an integrated approach, not simply comparing national electrification experiences, but supplying a truly global account. Multinational enterprises played a crucial role in the spread of electric light and power from the 1870s. However, their role did not persist, and by 1978 multinational enterprises in this sector had all but disappeared, replaced by national electrical utility providers. Yet, in recent years, there has been a vigorous revival This book examines how, from the late 1870s, multinational enterprises and international finance influenced the spread of electrification around the world. Although by 1978 they had been replaced by electrical utility providers, more recently they have had a revival. The result is a truly global account of electrification.