Water Privatization


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Water Privatization, as seen by students from ISS (International School Stuttgart)

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Water Privatization

  1. 1. International School of Stuttgart Water: It’s a Human Right Water privatisation and its effects
  2. 2. <ul><li>Water is being privatized by many companies worldwide, which can sometimes severely impact the population of the area. </li></ul><ul><li>In Rajasthan, India Coca Cola is exploiting ground water. Farmers are no longer able to grow crops and the access to water is significantly reduced. </li></ul>What is happening?
  3. 3. <ul><li>Coca Cola set up its plant in Kala Dera in 2000. In a matter of 5 years, the groundwater table level fell by 10m, a huge amount. </li></ul><ul><li>Farmers have since not been able to have successful crop yield. Even without Coca Cola’s intervention, the area received insufficient rainfall. </li></ul><ul><li>People have to walk miles to get access to potable water. </li></ul><ul><li>Around 60 villages in the region have been affected by Coca Cola’s exploitation. </li></ul><ul><li>Coca Cola also has taken away land from the local people and has dumped harmful materials such as sludge outside it’s premises. </li></ul>Exploitation of wells by Coca Cola in India
  4. 4. The villagers have organized protests and have gone to the company demanding information. They were brutally attacked by the local military. Coca Cola did not produce any statistics when being asked to do so. The issue captured the attention of International protesters .The government also started to work with the people. Coca Cola is now banned from all cafeterias. The government has attempted to negotiate with Coca Cola and has proposed solutions such as water neutrality. Attempts have been unsuccessful, so far. However, a few Coca Cola plants in the region have been shut down. Efforts against Coca Cola
  5. 5. <ul><li>What Happened? </li></ul><ul><li>World bank makes Water Privatization an explicit need in order for LEDCs to receive aid. </li></ul><ul><li>In 1997 World Bank pressured Bolivia to privatize water. </li></ul><ul><li>French Water Giant Suez takes control of the newly privatized water, the World bank now has an arm in Bolivia’s water industry. </li></ul><ul><li>Cochabamba’s poor water user’s experience a raise in water cost of up to double than that before water was privatized. </li></ul><ul><li>Citizens in Cochabamba riot, and the Bolivian Government declares martial law. </li></ul><ul><li>Thousands of poor citizens left without access to water. </li></ul><ul><li>El Alto-La Paz water privatization declared “a success”, however causes further riots. </li></ul>Water Privatisation in Bolivia
  6. 6. The Resolution. President Banzer terminates the water contract between Aguas del Tunari and Bolivia. The control of the city’s water system is given to the protest group la coordinadora de defense del agua, alongside a $35 million debt . They wish to form a water system free from government or transnational corporation dependence. The protest group strongly opposes diverting funds to pay for a corporation which has revenues equal to half of Bolivia’s Gross Net Profit. Olivera (founder of la coordinadora .) was awarded the 2001 Goldman Environmental Prize, as well as the 2000 Letelier-Moffitt Human Rights Award from the Institute for Policy Studies. Water Privatisation in Bolivia
  7. 7. A peaceful march was organized demanding the drinking water and sanitation law to be retracted. Protestors were killed and arrested The government was forced to retract the law when Aguas del Tunari ( London based private water company) and Bechtel (another water privatization company ) left Bolivia The water company was handed over to the workers and it’s people (including the debts) Water Privatisation in Bolivia
  8. 8. <ul><li>Conclusive thoughts: </li></ul><ul><li>Is it ethical for the World Bank to pressure LEDC’s into Water Privatization? </li></ul><ul><li>What reasons are there for large corporations to privatize water? </li></ul><ul><li>Should the corporations be trialed for Human Rights violations, if they raise the cost of water too high? </li></ul>Water Privatisation in Bolivia
  9. 9. Why is Water Privatization successful in theory, but not in practice? Debate Question
  10. 10. Live on the Coke Side of Life.