You can survive a few weeks
without food, but only a few days without water. It is essential for life, but
it is increasingly being treated as a private commodity.
Bottled Water
Companies that bottle water not
only turn a public resource into a private commodity, but they do so by
stealing water from communities that actually need it and distributing this
water all over the country. Companies such as Nestle, PepsiCo, and Coca-Cola
use single-use plastic bottles to sell water at a rate thousands of times
higher than water from a tap.
When urban areas in developed and
developing counties are struggling with a crumbling water supply system,
financial institutions like the World Bank, Inter-American Development Bank,
and other corporations push privatization as the solution.They sell their
publicly owned water supply and distribution assets to a private company in
hopes that they can more effectively operate the system using their corporate
resources (money) to improve water quality and lower costs. The problem is that
once the company purchases the water system, they begin acting as a monopoly,
raising rates. this makes it much harder for poor people to buy water.
Water privatization can have
economic impacts such as job losses and corruption. After supplies become
privatized, massive layoffs intended to minimize costs and increase profits
usually occur. Internationally,
corporations often target the most vulnerable countries. The World Bank is the
largest funder of water management in the developing world, offering loans to
developing countries with conditions that require privatization of water and
sewer utilities and increased consumer prices for these essential services.
Since 1995, The World Bank has lent more than $75 billion for water and
sanitation around the world. Loans and finances are channeled through the
International Finance Corporation (IFC).
This privatization has created
disparities that are unacceptable when it comes to water, as extreme inequality
can mean death. The private sector doesn't find it profitable to invest in the
infrastructure needed to ensure access to clean and affordable water, which
creates unsafe, unclean, and unreliable water sources.
Many cities that signed with
water companies with expectations of clean and affordable water are now
choosing to terminate these long standing agreements and return to public water
systems. The World Bank documents a 34 percent failure rate for all private
water and sewage contracts entered into between 2000 and 2010. This is
significantly higher than the failure rates of energy (6%), telecommunications
(3%), and transportation (7%). The
Transnational Institute, Public Services International Research Unit and the
Multinational Observatory report that 180 cities and communities in 35
countries, including Buenos Aires, Johannesburg, Paris, Accra, Berlin, La Paz,
Maputo and Kuala Lumpur, have all returned to public water systems in the past
decade.
In 2013, Corporate Accountability
International along with 70 advocates from around the world released an open
letter to the World Bank calling for "“an end of all support for private
water, beginning with IFC divestment from all equity positions in water corporations.”
With water in the hands of
corporations, decisions are being made in favor of private interests, rather
than in favor of the people. Corporations are focused on making profits,
therefore they lack a social or development mission. They are not in service to
the people, they are in service for the money. In order to restore justice with
regards to water, decisions for funding must be in the hands of the governments
that are naturally accountable to the people.
Clean and affordable water is essential
for maintaining life. Water privatization promises vulnerable people a clean,
reliable, and cheap water supply, and often fails to provide this service.
Prices skyrocket, supply becomes unreliable and unsafe, infrastructure fails
and is not maintained, and then these people are bound to contracts that
require this continued service. Public institutions, not private corporations,
must have authority when it comes to water systems and delivery. Water cannot
be treated as another commodity to be profited from, especially in the name of
human life.