This paper defines privatization of water supply along with its different types as a negative impact on the public, especially the poor people. It shows the risks and benefits of water privatization and how the private sector aims to gain profit with less accountability for the public. At the end, it results that the privatization of water supply has failed, and recommends the governments and private sectors to play an effective role for an improved access to water.
Although water is considered by most people as a natural resource, it has been lately argued that water should be treated as a good. Public Citizen’s Water for All Campaign has been devoting their power to conserve water as a natural resource with adequate access for all people over the world and stop privatizing water for commercial purposes. On the other hand, WTO and OECD are the largest trade organizations which support all types of water privatization. Most points of view see that water should not be privatized in the fact that it is a human right while others think it should be privatized for a purpose of profit.
Table of Contents
1. Introduction
1.1. Problem and Complications
1.2. Scope of Work
2. Privatisation and Water
2.1. The Advent of Privatisation
2.2. Trends in privatisation of water supply
2.3. Actors and International Policy framework
3. Risks and Benefits
3.1. Risks
3.1.1. Accountability for public and Human right to Water
3.1.2. Cherry-picking service areas.
3.1.3. Operating Costs
3.1.4. Transfer of water by countries
3.2. Benefits.
4. Recommendations
4.1. The role of the Public Sector
4.2 The role of the private sector
5. Outlook and Conclusion
Objectives and Topics
This paper examines the implications of privatising water supply systems, specifically analyzing the tension between commercial profit motives and the status of water as a fundamental human right. It investigates how private sector participation affects service accessibility, affordability, and the operational accountability of water utilities, ultimately aiming to determine whether privatization delivers on its efficiency promises or negatively impacts vulnerable populations.
- The historical evolution and global trends of water privatization.
- Economic and societal risks associated with private water management.
- Conflicts between corporate profitability and the human right to water.
- The roles and responsibilities of public versus private sector actors.
- Policy recommendations for improving equitable water access.
Excerpt from the Book
3.1.1. Accountability for public and Human right to Water.
Multinational water corporates don´t take any responsibility for the public when providing them with water services. On the other side, they are accountable to their stockholders in order to achieve their goals such as profitability but not accountable to their customers. Therefore, they focus on the high- or middle-income areas to gain the profits they seek since the capacity of low-income households to pay is too narrow which can create many problems regarding bills collection and less water used and that drives down profits. The United Nations Development Programme stated that poor people in poor countries even pay more than people in rich countries such as in Manila where people pay about 2 times more than people in New York and about 1 time more than people in London as shown in the following figure1:
Furthermore, the privatization of water was a controversy case due to its essential need for survival. In the International Conference on Water and the Environment, held in Dublin (1992), the water was recognized as an economic good which is completely in favor of water corporations. But on the other side, in 2002, the general Comment issued by the United Nations Committee on Economic, Cultural and Social Rights ensures that water is a human right and everyone should have adequate access to water: “The human right to water entitles everyone to sufficient, affordable, physically accessible, safe and acceptable water for personal and domestic uses.”
Summary of Chapters
1. Introduction: This chapter introduces the essential nature of water as a resource and outlines the ongoing global debate regarding whether water should be privatized for profit or managed as a human right.
2. Privatisation and Water: This chapter traces the history of privatization from the 1980s onwards, analyzing the motivations behind private sector participation and the role of international policy frameworks.
3. Risks and Benefits: This chapter evaluates the negative consequences of privatization, such as cherry-picking service areas and rising costs, while also acknowledging the theoretical efficiency gains proposed by proponents.
4. Recommendations: This chapter suggests that both public and private sectors must align their roles to ensure better water access, emphasizing reform of the public sector and effective regulation of private operators.
5. Outlook and Conclusion: This chapter summarizes the failure of privatization to meet its economic expectations and its adverse impact on the poor, advocating for public control to protect water as a human right.
Keywords
Water Privatisation, Human Right to Water, Public Sector, Private Sector Participation, Water Supply, Multinational Corporations, Infrastructure, Economic Good, Social Equity, Water Scarcity, World Bank, Operating Costs, Regulatory Framework, Service Accessibility, Poverty Reduction.
Frequently Asked Questions
What is the primary subject of this research paper?
The paper explores the global phenomenon of privatizing water supply systems, weighing the economic goals of private corporations against the social necessity of providing equitable water access.
What are the core thematic areas discussed in the document?
The core themes include the history of privatization, the conflict between profit-driven motives and human rights, the operational risks of private utility management, and the necessary balance between public and private sector roles.
What is the central research objective?
The objective is to analyze the risks and benefits of privatized water, specifically assessing whether these programs successfully improve service or fail the public, particularly in low-income regions.
Which methodology is employed in this study?
The study utilizes a descriptive and evaluative analysis based on reports from international organizations, economic literature, and institutional policy documents to assess the impact of privatization.
What does the main body cover?
The main body examines the history of privatization, identifies specific risks like "cherry-picking" and high operating costs, discusses the potential benefits of efficiency, and provides recommendations for policy reform.
How can this work be characterized by its keywords?
The work is characterized by terms such as Water Privatisation, Human Right to Water, Public Sector, and Infrastructure, highlighting its focus on the intersection of economics and public utility management.
How does "cherry-picking" affect water services in low-income areas?
Corporations often avoid low-income areas because they are less profitable, leading to a disparity in service quality and creating a divide between those who can afford water and those who are left without adequate access.
What role does the World Bank play in water privatization?
The World Bank has acted as a primary financier and advocate for water privatization, often pushing for reforms that treat water as an economic good to ensure financial discipline.
How do operating costs differ between private and public utilities?
Private utilities face higher operating costs due to profit margins, dividends for shareholders, and tax obligations on investments, which often lead to higher prices for consumers compared to public providers.
- Arbeit zitieren
- Ayman A. (Autor:in), 2016, Privatizing Water Supply. Risks and Benefits, München, GRIN Verlag, https://www.hausarbeiten.de/document/514855
