Thursday, November 19, 2015

Water Privatization

Water privatization is when private corporation obtains the right to buy or operate a town’s public water services. Local governments often give up their water rights to these companies for the pay out or because their water systems are old and need replacing but the current funds are not there. From reading many articles over the years this often leads to higher rates for the citizens that live there and worse service than they had previously. By signing over the property of the city’s water you are losing all control you had previously. The companies that purchase the towns water often do not care about the service they receive because they only care about the stockholder’s opinion. Since the company does not care about the citizen’s opinions the public has lost any input in the new system. When a corporation owns a town’s water supply the public does not get to elect an official like they do in the public system. This destroys the open communication that exists in a public system, where anyone can go to the official’s office and talk to them about the issue. Corporations do not have the same objectives as that of public systems or the needs of the public. An example of this is where the corporation decides to choose to expand their services. They will not expand to areas of low income where they will encounter low bills and issues with collecting the money, whereas a public system would try to expand to every area. This brings up the issue of water as a human right, because corporations will not want to supply water to everyone especially those that do not pay their bills. Humans can live weeks without food but only days without water which leaves public health in jeopardy. The world is facing a water crisis, do want our fate in the hands of some company or do we want to be able to have control of our own services? The World Bank Group sees water privatization as the solution to this water crisis. Many international advocacy and civil society groups are pushing the World Bank to end their support of water privatization. These groups believe that the World Bank is using its position to get water companies rich instead of supporting affordable and clean public water services. Corporations want to make a profit so they will typically hike up the rates, “investor owned utilities typically charge 33% more for water and 63% more for sewer service than local government utilities.” The rates only continue to increase year after year that the company is in control. When a company purchases the water service they often let go one out of three existing workers in the water industry.
A different option to privatization is to construct public-public partnerships. These connections can improve public services and reduce costs while leaving the communities to retain control of their municipalities.
This website is a very good source for various issues we are facing in the United States and around the world, including water privatization.

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