Privatizatizing Water: Another World Bank Disaster

[DuncanK]

This is old news, but it's the first that I'm hearing about it.

In 1999, private water companies and the World Bank, convinced South Africa to stop water subsidies in an isolated area. The outcome was disaterous for the people who lived there. They couldn't afford the water so they had to get water out of polluted streams. It caused a cholera epidemic.

How the hell can these free market economists at the World Bank be soooo stupid?

Anyone else know about other dirt on the World Bank?

Are they stupid or just corrupt?

[Static Universe]

Just corrupt.

Read these:

http://www.observer.co.uk/Print/0,3858,4177445,00.html

http://www.globalpolicy.org/socecon/bwi-wto/wbank/stigindx.htm

[Ramo]

Agreed. The IMF and World Bank are morally bankrupt.

[Wernazuma III]

There was an interview about this with our "economy minister" - one of Austria's finest lobbyist as$holes (one of very few persons I could punch in the face 24/7).
He sat there with a soft smile and just said, "privatizing water is not included in Austria's or EU offer" and then went on praising the fortunes of a completely privatized Education and Healthcare system. I'm sure that although the issue with water to him is "not in Austria's interest", it will be part of negotiations.

Man, everybody should be completely outraged, this is shameless!

[Static Universe]

DuncanK: The private water companies you mention are also synonymous with multinational oil corporations. Same ownership.

Water privatization has been a disaster in every country it has been implemented. Bush wants to privatize water in the United States.

[Dinner]

Utilities should be privitized but regulated to prevent abuse.

[Lawrence of Arabia]

Is this drinking water like Crystal Guyser?

[DuncanK]

LoA,

No, its the water that comes out of the pipes. Normally its subsidized. The government removed the subsidies and allowed private companies to meter the water. The poor folks couldn't afford it, so they used the polluted river water.

[Lawrence of Arabia]

Ah yes. Was there any tariffs or quotas against foreign competitors?

[Static Universe]

Originally posted by Lawrence of Arabia
Ah yes. Was there any tariffs or quotas against foreign competitors?

Exactly the opposite. In order to get World Bank loans, the IMF forces local governments to allow private competition in the utilities market. Foreign firms come in and under bid for the services, then jack up the prices.

[Az]

Utilities, Utilities....

This is not a simple issue. I'll give you an opposite example. in Israel, Water, and Electricity are state corporations. But the Trade Unions hold the government by the balls because there is no competition. They have free elecricity. They made the cost of electricity rise once again. ( though this can be also blamed on fuel costs ). Monopolies' trade unions are just as bad as private monopolies' owners.

I don't know what's the best solution. This requires thinking.

[Dinner]

Let's face a brutal fact. Poor countries can't afford to give endless subsidies for things even if giving those subsidies create greater social acuity. Forcing them to live with in their means will create better conditions for long term growth and thus less poverty in the long run. No one said life was easy being poor but alleviating poverty is a long term problem which requires a long term solution not unsustainable temporary handouts.

[Lawrence of Arabia]

Then they didnt privitize it correctly. If they didnt create enough competiting companies then the price will rise catastrophically.

[Az]

Let's face a brutal fact. Poor countries can't afford to give endless subsidies for things even if giving those subsidies create greater social acuity. Forcing them to live with in their means will create better conditions for long term growth and thus less poverty in the long run. No one said life was easy being poor but alleviating poverty is a long term problem which requires a long term solution not unsustainable temporary handouts.

supplying fresh water is not "unsustainable temporary handouts".

let the government stop funding road building and maitenance. These are unsustainable temporary handouts.

[DuncanK]

There is a water shortage in S.A.. Instead of rationing they cut the poorest folks off basically by privitizing.

I don't think the people could have afforded evian either so basically they were just ass out.