[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
DAM-L Poverty Reduction by Water Companies? (fwd)
----- Forwarded message from Right to Water -----
Return-path: <right-to-water@iatp.org>
Received: from mail.iatp.org (iatp-2.InnovSoftD.com [208.141.36.66])
by lox.sandelman.ottawa.on.ca (8.8.7/8.8.8) with ESMTP id NAA07565
for <dianne@sandelman.ottawa.on.ca>; Tue, 14 Aug 2001 13:55:00 -0400 (EDT)
Received: from [208.141.36.73] by mail.iatp.org
(Netscape Messaging Server 3.62) with SMTP id 170
for <dianne@sandelman.ottawa.on.ca>;
Tue, 14 Aug 2001 13:05:38 -0500
From: Right to Water <right-to-water@iatp.org>
To: dianne@sandelman.ottawa.on.ca
Subject: Poverty Reduction by Water Companies?
Date: Tue, 14 Aug 2001 12:51:18 -0500
X-Mailer: Allaire Cold Fusion 3.1
Message-ID: <20010814180538905.AAA278.170@[208.141.36.73]>
Right to Water (right-to-water@iatp.org) Posted: 08/14/2001 By svarghese@iatp.org
============================================================
-----------------------------------------------------------------------
WARNING - using reply will send the message to the list
-----------------------------------------------------------------------
Water privatisation: IMF and World Bank at the forefront Poverty Reduction
by Water Companies?
By Katrin Stocker
Water supply operations are being privatised all over the world. The World
Bank and the International Monetary Fund (IMF) are primarily responsible
for pressurising countries to privatise this resource. At the same time,
however, resistance is growing: In Johannesburg, South Africa, unions are
currently protesting a take-over of water supply operations by the French
Suez-Lyonnaise group.
At the beginning of April 2001 Suez-Lyonnaise and two partners took over
water supply operations for the South African metropolis of Johannesburg.
Suez-Lyonnaise is the world's largest water company and supplies over 110
million people with drinking water. But privatisation has met with
resistance in Johannesburg: the South African Municipal Workers Union
(SAMWU) fears higher prices, redundancies and corruption. Defending the
union's resistance, SAMWU spokesperson Anna Weekes said, «Suez-Lyonnaise
has already drastically raised water prices in every city where it was
granted a concession.»
SAMWU's fears are based on a recently-published study on water supply in
Buenos Aires. As the main partner of Aguas Argentinas, Suez-Lyonnaise has
been supplying water to Buenos Aires' 10 million inhabitants since 1993.
Buenos Aires is one of the largest water concessions in the world and has
been hailed as a success story internationally. But the first study
conducted outside the World Bank Group shows the exact opposite. Water
prices were raised by 20 percent after privatisation. Poorer families - if
at all connected to the supply - can no longer afford this vital resource.
The sewerage system, which was to be renewed according to the contract,
does not function. 95% of the city's sewage is dumped into the Rio del
Plata River, causing environmental damage that must in turn be paid for
with public funds. The delivery of water has clearly become twice as
lucrative as the treatment of sewage: Aguas Argentinas and Suez-Lyonnaise
are making record profits that are twice the international average.
Pressure on poor countries
Some of the poorest countries in the world, including Mozambique, Benin,
Niger, Rwanda, Honduras and Yemen, have been forced to privatise their
water supply under pressure from the IMF and World Bank. Ironically, most
countries privatised as a condition for receiving credits from the IMF's
new Poverty Reduction and Growth Facility (PRGF). But rather than reducing
poverty, water privatisation means that the poorest families are no longer
able to afford clean water.
Ghana, too, is to privatise its water supply under pressure from the World
Bank. Negotiations are currently being held with five water companies, but
these are only interested in the lucrative provision of water to the urban
sector. The unprofitable rural sector will be supplied by local
communities. Up to now the urban sector has been subsidising the rural
sector, but this will no longer be possible after privatisation. Here, too,
activists are protesting against the move to privatise, fearing an increase
in prices and hence more restricted access to water by those who are less
able to afford it. More and more, poor families will be forced to choose
between water, food, school and healthcare.
Swiss Coalition Newsletter, Water Campaign
============================================================
How to Use this Mailing List
============================================================
You received this e-mail as a result of your registration on the right-to-water mailing list.
To unsubscribe, please send an email to listserv@iatp.org. In the body of the message type:
unsubscribe right-to-water
To Subscribe, please send an email to listserv@iatp.org. In the body of the message type:
subscribe right-to-water
To view the archive, go to www.iatp.org/listarchive
For a list of other commands and list options, please send email to listserv@iatp.org.
In the body of the message type:
help
Please direct content questions about this list to: mritchie@iatp.org
Please direct technical questions about this service to: support@iatp.org
----- End of forwarded message from Right to Water -----