Review of Reading #31: Privatizing Water

Summary
This reading is written by Curtis Runyan, from the magazine, World Watch, in the January/February 2003 issue.

This article begins with an event that occurred on April 8, 2000. A Bolivian soldier shot into a crowd of protesters, and killed a 17 year old student. This angered the protesters, and so even more of them were injured. This protest took place in Cochabamba, Bolivia and was a "demonstration against the government's privatization of the city's water works"(McKinney, 128).

In September of 1999, Bolivia was threatened by the World Bank. The World Bank said that they would withhold 600 million in debt relief if they didn't privatize their water utilities. So, Cochabamba signed over its "aging, inadequate waterworks"(McKinney, 128). This lead to a 35% increase in water bills in just one month, and the service was still unreliable and infrequent. The book said that the water ran less than four hours a day in many parts of the city.(McKinney, 128) This really angered the people of Cochabamba, so a coalition of laborers, and environmentalists started a started a strike that shut down the city. All of this chaos led the government officials to call an emergency meeting to cancel the water contract and return the water control to the utility. The article says that the water troubles in Cochabamba are far from over.(McKinney, 128)

The rest of this article goes more in depth with the pros and cons of water privatization. Currently two large water corporations (Vivendi and Suez) are providing water to over 200 million people in more than 120 countries, and are each drawing annual revenues of roughly 10 billion dollars from water and waste water services. (McKinney, 129) More and more governments are turning to water privatization as a means to attract much needed investment in their water systems. (McKinney, 129) This article also explains that in 1992, at the Rio Earth Summit meeting, that water was recognized as a "economic good". (McKinney, 128) This has led to water being viewed more as a "profitable commodity rather than a human right in some areas"(McKinney, 128). The article mentions that the International Monetary Fund (IMF) has been pressuring countries to move to water privatization. Though, some cities are actually turning down large money bids from Suez, and controlling their own water.(McKinney, 129)

Since I learn better with lists than paragraphs, I am going to list the main pros and cons of Water Privatization for you. All of the below came straight from the book, McKinney pages 128-130.

PROS:
-Gives some governments the chance to attract the private capital and expertise needed to build and expand expensive water systems
-Helps connect the millions who currently make do without piped water.
-Provides equatable access to water for poor communities.
-Help improve efficiency and and productivity of water systems.
-Help utilities improve their services by providing the capital and expertise needed to, for example, repair leaks in water mains, expand connections to unserved communities, or improve billing systems.
-Help when governments are weak and cannot meet the basic water needs of their country/city.

CONS:
-Drastic rate increases
-Inadequate customer service
-Loss of local control and accountability
-Undermine conservation programs
-Degrade ecosystems through efforts to tap new water sources.
-Significant job cuts
-Fewer environmental safeguards
-Dropped conservation initiatives
-Halted service to poor or remote communities
-Companies are more motivated by profit than public service. This can leave poor and underserved communities neglected
-Weak governments are unable to provide the oversight and management functions necessary to protect public interests. This can lead to corruption.

My Thoughts

This reading was really interesting to me because I am honestly confused on whether or not their should be water privatization. There are many things about it that really rub me the wrong way, but then there are some things that seem extremely necessary. I think that it is really important that their is equal access to clean water for everyone, and that is one of the things that water privatization will help with. Another thing that really struck me in this article was that many poorer communities are paying much more for safe drinking water than we are. That just doesn't seem fair. I would like to end my review with a great question asked by Sandra Postel, of the Global Water Policy Project. She asked, "How do we mobilize the capital needed to put in the pumps, pipes, and wells that are needed, and do it in a way that is fair, affordable, and environmentally sound?"(McKinney, 130).

Vocabulary

World Bank-an international bank established in 1944 to help member nations reconstruct and develop, esp. by guaranteeing loans: a specialized agency of the United Nations.

International Monetary Fund-an international organization that promotes the stabilization of the world's currencies and maintains a monetary pool from which member nations can draw in order to correct a deficit in their balance of payments: a specialized agency of the United Nations

Privatization-changing something from state to private ownership or control

Rio Earth Summit in 1992-sought to help Governments rethink economic development and find ways to halt the destruction of irreplaceable natural resources and pollution of the planet.

Martial Law-the body of law imposed by the military over civilian affairs (usually in time of war or civil crisis); overrides civil law

Consortium-a combination of financial institutions, capitalists, etc., for carrying into effect some financial operation requiring large resources of capital.

Coalition-a combination or alliance, esp. a temporary one between persons, factions, states, etc.

Rescinded-To make void; repeal or annul.

Commodification-to turn into an article of trade

Global Water Policy Project-aims to promote the preservation and sustainable use of Earth’s fresh water through research, writing, outreach, and public speaking

Municipal-of or pertaining to a town or city or its local government

Infrastructure-the basic, underlying framework or features of a system or organization.

Paternalistic-the system, principle, or practice of managing or governing individuals, businesses, nations, etc., in the manner of a father dealing benevolently and often intrusively with his children

Subsidiary-serving to assist or supplement

Lobbying-to try to influence the actions of (public officials, esp. legislators).

Provision-the providing or supplying of something, esp. of food or other necessities.

Breach-the act or a result of breaking; break or rupture.

Extra Links

I found more information about Water Privatization on Wikipedia, and I found a Water Privatization Overview article on the Public Citizen Webpage.


Have a Great Day!!!