If the powers that be have their way, we'll all be running for water.
The World Bank's Latest Market Fantasy
By Maude Barlow and Tony Clarke
Polaris Institute
January 2004
The impacts of World Bank and IMF structural adjustment programs on countries in the Global South have been well-documented in the areas of health and education, food security and jobs. However, less is known about the impacts of the World Bank's latest obsession -- the privatization of water services. In country after country in recent years, the World Bank has been quietly imposing a for-profit system of water delivery, leaving millions of people without access to water.
The Bank is taking advantage of the "Washington Consensus" model of development now adopted by its donor countries and promoting the interests of a handful of transnational water corporations. Instead of using its massive funds to promote expertise in the public sector, thereby acknowledging that water is a human right and an essential public service, the Bank is forcing many countries to commodify their water resources and put them on sale to the highest bidder.
There are ten major corporate players now delivering fresh water services for profit. Between them, the three biggest -- Suez and Vivendi
of France and RWE-AG of Germany -- deliver water and wastewater services to almost 300 million customers in over 100 countries, and are in a race, along with the others such as Bouygues SAUR, Thames Water (owned by RWE) and Bechtel-United Utilities, to expand to every corner of the globe. Their growth is exponential; a decade ago, they serviced around 51 million people in just 12 countries. And, although less than 10 percent of the world's water systems are currently under private control, at the rate they are expanding, the top three alone will control over 70 percent of the water systems in Europe and North America in a decade....
The World Bank serves the interests of water companies both through its regular loan programs to governments, which often come with conditions that explicitly require the privatization of water provision, and through its private sector arm, the International Finance Corporation, which invests in privatization projects and makes loans to companies carrying them out. Lending about $20 billion to water supply projects over the last decade, the World Bank has been the principle financer of privatization. A year-long study by the International Consortium of Investigative Journalists, a project of the Washington-based Center for Public Integrity, released in February, 2003, found that the majority of World Bank loans for water in the last five years have required the conversion of public systems to private as a condition for the transaction. The performance of these companies in Europe and the developing world has been well documented: huge profits, higher prices for water, cut-offs to customers who cannot pay, little transparency in their dealings, reduced water quality, bribery, and corruption.
http://www.globalpolicy.org/socecon/bwi-wto/wbank/2004/01waterpriv.htm