World Savvy Monitor, November 2009
"Bolivia is South America’s poorest country and the site of one of the world’s most controversial water privatization programs. In the 1990s, under World Bank guidance, the water systems of some of Bolivia’s poorest regions were put up for sale to private investors. In the area of Cochabamba, a US-owned company, Bechtel, was awarded a long-term contract to manage and deliver water in that region. The results of this deal shed light on the complexities of water privatization and differences between economic theory and what happens in the real world."
In Cochabamba, Bechtel promised to extend water access to many previously unserved communities. For the most part, Bechtel delivered on this promise. But another effect of their involvement was less welcome to local populations: prices for water shot up. The company took over local wells, water pumps, and the public system infrastructure that was already in place, and added to the existing infrastructure to reach new communities. The costs for these improvements and additions were passed on to customers, sometimes doubling the cost many people had previously been paying when water systems were controlled by the government. Many were unable to pay such high rates, and even though water was now available to them, they couldn’t access it because they couldn’t afford it.
In 2000, riots broke out in Cochabamba as protestors (mainly students, sweatshop employees, and street vendors) became increasingly upset that a private, foreign-owned conglomerate was raising water prices. Hundreds filled the streets in violent protest. The violence shook the confidence of the local government and international investors. Bechtel was forced out, resulting in not only chaos in water delivery in the area, but also in a serious blow to foreign investment in the country."
http://worldsavvy.org/monitor/index.php?option=com_content&view=article&id=731&Itemid=1177
I am more of a policy guy, than a party guy. Over the past decade, I have become just astonished at the wide spread stupidity that pervades the Republican Party. Great idea, let's privatize the water in Detroit! That way, ANOTHER basic life necessity for our people is handed over to a corporation who only cares about making money! I am sure that will work out just great!
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