Latin America
Related: About this forumThe War for Mexico’s Water
The War for Mexicos Water
Struggling with aging infrastructure, strapped resources, and poor access, privatization is being pitched as the cure to Mexico's water woes. But will it leave people high and dry?
By David Adler
July 31, 2015
EXICO CITYOn March 22, while the United Nations celebrated World Water Day, hundreds of protestors marched down Mexico Citys Avenida de los Insurgentes toward the office of the National Water Commission. Under a smoggy sky, they chanted through loudspeakers, painted posters, and, arriving at the office, scaled the front gates and erected signs. El agua es nuestra, carajo! screamed one poster. The water is ours, goddamnit! A more diplomatic sign read: El H20 no es un negocio. Water is not a business.
For the past several months, however, that has been a matter of debate.
In late February, Mexicos ruling coalition proposed a change to the General Water Act that would allow for the privatization of Mexicos water supply. According to the new legislation, the National Water Commission, known as Conagua for its Spanish name, maintains the right to grant full or partial concessions to operate, conserve, maintain, rehabilitate, modernize, or expand water infrastructure built by the federal government. Approved by Mexicos lower legislative house, the bill was set to pass the Senate until it was waylaid momentarily by public outcry. Now returning to the legislature after Mexicos midterm elections in June, the bills fate remains uncertain.
The new legislation aims to correct Mexicos broken system of public water provision. Close to 5 million Mexicans currently live without access to clean water. The new bill aims to alleviate this deficit by outsourcing water provision to the private sector, which claims it can provide water better, cheaper, and cleaner than the Mexican government.
Mexicos ruling right-wing parties and its allies in the business sector view the privatization effort as a simple matter of efficiency. The participation of the private sector is the same as we have seen in all of Mexicos infrastructure they construct, finance, and operate, said Kamel Athié Flores, president of the Commission on Drinking Water and Sanitation, a federal agency under the direction of President Enrique Peña Nieto. The public investment is not sufficient.
More:
http://foreignpolicy.com/2015/07/31/the-war-for-privatization-mexicos-water/
Environment & Energy:
http://www.democraticunderground.com/112789170
GitRDun
(1,846 posts)Privatization leads to economic extraction from the public, not infrastructure investment!
Corporations want profit. That means higher rates, possibly cutting quality corners to save money.
Corporations are private. Good luck getting information from them on water safety, security or holding them to account like a publicly run utility.
There's no savings for the public related to capital investment! First, corporations will pass on all capital costs to its customers. Second, those costs will likely be higher as corporate borrowing rates are usually higher than those of government.
What about the nightmare scenario where an irresponsible corporation overproduces an aquifer, decides to not supply certain areas because exporting regionally makes more profit, etc.
The stupidity of politicians never ceases to amaze me.