The New Economic Market: Water: Difference between revisions

Almost thirty years ago the discussion about water as an unlasting good started to become a basic problem all over the world. The first world water conference was in 1977 in Mar del Plata in Argentina. Since then water was one of the main topics in political discussions. In the 80ties the aim was to offer worldwide water supply to every one, but the goal could not be fulfilled until today. The UNO (United Nations Organization), UNESCO (United Nations Educational, Scientific and Cultural Organization), UNICEF(United Nations Children's Fund), WHO (World Health Organization), FAO (Food and Agriculture Organization)and a certain number of countries focused on the co-operation with each other and the co-operation with private investors to enable the worldwide water supply. The goals were clear, but every organisation had different ideas and methods to reach them. On the international Conference on Water and Environment in Dublin, 1992 four resolutions were made that formed the guideline:

The World Bank as the international development bank often pointed out, that the deregulation and privatisation of water supply is the best solution to offer poor people access to important water infrastructure. Support from the World Bank as facilities and guarantees for water projects are often linked to the condition that private investors are participants, known as Public Private Partnership.

A basic problem of the privatisation in the form of rent or sell of the public water supply is the lack of the economic competition. The public water supply turns into a monopoly and competition is impossible. The state has the possibility to choose the company that offers the best and efficient offer as good quality and low prices. Because of the privatisation every company has the chance to rent or buy the public water supply all over the world. For example the German company RWE bought the British water company Thames Water, that since then controls the water supply in London, Berlin, Budapest, Shanghai, Jakarta, Bangkok and the supply of different cities in Australia, India, Japan, Singapore and Malaysia.

Through Globalization and the opening of the world market it was possible for beverage companies to conquer the water market basically in developed countries. Worldwide Nestlé, Pepsi, Danone and the Coca Cola company are the marked leaders of mineral water in bottles. Beyond the problem that the production of plastic bottles has a high negative impact on environment, the regional public water quality declines. Water supply changes from a public issue to a private issue, it just depends on money. Rich people can afford high quality water in bottles, in contrast to the poor. That causes a reduced pressure on policy, because public water supply looses its importance, if high quality water is available even if it is in bottles and expensive.

“Worldwide water supply to every one” was the goal in the 80ties. The governments and development organisations thought to reach the goal, to provide the world population with high quality water with public funds. In the 90ties world wide water supply should be organised and improved by private companies. They were equated with characteristics as efficient, productive, profitable, flexible and innovative. On the contrary public suppliers were given characteristics as corrupt, bureaucratic, acting without flexibility and low quality. It is the truth that some of the characteristics of public supplier are correct, in particular in developing countries, but the decline of the public sector is caused by debts, the macroeconomic situation and the absence of democracy. The negative characteristics were used to legitimate the privatisation of the water-sector. Further, in times of low national and regional budgets the water supply is a burden and too expensive. In the future the public water sector will keep its importance, particularly concerning the water supply of poor people, which will not happen without state aid.

Virtual water is the amount of water that is necessary to produce some thing. Per example, to produce 1 kg flour, 1500 L of water are necessary. Water is necessary to clean the corn and the machines, to produce the electricity that is used for the machines, to produce the gas for the transportation and a lot more.

The consumption of food out of the region is never the less an important aspect, even if it is not possible with every kind of goods.

All the aspects that were mentioned are thoughts and developments concerning water supply and the possibilities of its sustainable handling. The fact that water is indispensable to life makes it necessary to find solutions to offer every one a secure water supply.

The meetings and conferences that were held pointed the importance of water and its treatment out and made some important reforms possible. The fight for equal sustainable water supply is not jet won, and it will take a lot of time and energy, but water as a topic and its importance is more and more in the mind of people.

Loewe,Jens: Das Wasser Syndikat.Dornach 2007