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There are quite a number of reasons. Some are historical and others protectionistic.

When a country developed a plug and socket system they may have done this independent of other countries. They did this either of ignorance, lack of need for harmonization or to protect local companies that wished to produce these products.

Now that there is a need to harmonize the systems, the cost of doing so would in most cases be very large. Also there is still the protectionistic issue. A country's government would in most cases try to protect a single company that produce such equipment at the cost of the taxpayers money.

There are discussion in Europe to create a common system (and the Europlug do exist) but these discussion have been going on for many many years now and are likely to continue at lest until 2050.

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Q: Why do countries have different plugs?
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