Water For People and Nature:
The Story of Corporate
Water Privatization
Janet M Eaton & Ruth Caplan
Released April, 2003
Technical Assistance:
Samara T Eaton
We Hope This Presentation Will:

Create greater awareness of the issues
surrounding corporate privatization of water &
water services
 Provide background documentation and
resources for campaigns in the USA
 Strengthen campaigns through public education
 Demonstrate how global governance by IMF,
World Bank, NAFTA, & GATS/GATT under the
WTO promote corporate privatization of water &
water services
Water for People and Nature
Outline of Presentation

Threat of Bulk Water Sales in California, Texas

Bottled Water Impact on Springs & Groundwater

Global Water Corporations & Public Water Services

World Wide Crisis

Privatization in the Developing World

Global Rules and Governance

Taking Action

Resources
Corporate Water
Privatization

Bulk Water Sales

Bottled Water

Privatization of Public
Water Systems
Threatens
People & Nature Worldwide
Photo National Park Service
Water Privatization
Campaigns USA
 Bulk Water Sales


Mojave Desert
Albion/Gualala Rivers
 Bottled Water

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Florida
Michigan
Texas
 Public Water Systems
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
Photo National Park Service
Atlanta, GA
New Orleans, LA
Stockton, CA
Bulk Water Sales
Threaten Mojave Desert
Photos National Park Service
Cadiz Threat

The beauty of the Mojave Desert was threatened by a
proposal from Cadiz , an agribusiness corporation, to pump
water from the aquifer beneath the desert.

Cadiz proposed to store water from the Colorado River in
the aquifer for the Los Angles Water District in years of
excess water and pump it out for LA during dry years.

Cadiz also proposed to pump water originating in the
aquifer which is when water activists stepped in and
mobilized to stop the project.
Cadiz Environmental Threat
"Environmentalists contend that the existing underground water would
be pumped out faster than it could be replenished. If that happens,
they argue, springs in the region may dry up, killing wildlife like
bighorn sheep and coyotes.....The problems this is going to create are
going to be very expensive to fix, more expensive than any benefits.”
-- Elden Hughes, Chair Sierra Club Desert Committee
“The project …..could drain the aquifer, sap natural springs, create
dust bowls, and further imperil the desert tortoise and other
threatened species.” - Public Citizen
Source: http://www.polizeros.com/stories/2002/08/12/water.html
Cadiz Threat Summary

Corporation: Cadiz, an agribusiness corporation, was losing money
growing fruit trees in the Mojave Desert and saw “Blue Gold” in the
aquifer.

Proposal: Cadiz proposed to sell up to 47 billion gallons of water a
year to the Los Angeles Metropolitan Water Board. Cadiz stood to
earn $500 million to $1 billion over 50 years by investing just $75
million in the project. This would introduce a new level of market
influence over municipal water supplies in Southern California.

Status: Thanks to intense work by Sierra Club and other activists, the
LA Water Board voted down the proposal on Oct. 8, 2002.
Bulk Water Exports Threaten
Albion & Gualala Rivers, CA
Photo Courtesy Of: Nordic Water Supply
Bulk Water Bladder
Photo By: Nick Wilson
Photo Courtesy Of: Nordic Water Supply
Bulk Water Tug
Photo Courtesy of: Sierra Club
Albion Estuary
Gualala Estuary
Alaska Water Exports Inc.
Threatens CA Coastline
Alaska Water Exports, a division of Arctic Ice and Water
Exports Inc., proposed to extract and transport water
from Albion & Gualala Rivers. California Coastal
Commission reviewed proposal and determined - Two endangered species of salmon threatened
 Kelp & eel grass in sensitive estuary destroyed
 Food chain in critical fresh/salt water interface disrupted
 Migration paths for grey whales & other marine
mammals disrupted
 Adverse visual and scenic impacts
Alaska Water Exports Threat Summary
L

Corporation: Alaska Water Exports, a division of Arctic Ice and
Water Exports, a domestic company with ties to Saudi financiers and
with Norwegian and Japanese shippers. President Ric Davidge.

Proposal: Withdraw water from the Albion and Gualala Rivers along
northern California coast, pump offshore and load into bladders the size
of football fields to be pulled by tugboats for use by San Diego.

Status: ANOTHER VICTORY ! After the California Coastal
Commission voted unanimously on December 13, 2002, to oppose the
projects, Ric Davidge withdrew his applications.

But the fight continues: Ric Davidge, now operating Aqueous
International, proposes to withdraw 20,000 acre feet annually from the
Mad River for delivery by water bags to Monterey or...San Diego!
T. Boone Pickens Threatens
Ogallala Aquifer

Speculator: Junk bond dealer T. Boone Pickens has found "Blue Gold"
in the Ogallala Aquifer under his ranch in the Texas Panhandle.

Proposal: Pickens formed a consortium of ranchers, Mesa Water Inc.,
to pump large quantities of water from the aquifer and sell to thirsty cities
in Texas and possibly New Mexico.

Environmental Impact: Ogallala runs through America's breadbasket
which is already under threat. Annual withdrawal from the Ogallala is
three times the recharge rate. Locally, withdrawals could deplete
Canadian River, home to endangered species like Arkansas River
shiner, and cause slow death of the high plains.

Status: Panhandle Groundwater Conservation District approved project
May 2002, but environmental concerns are unresolved.
Sources: New York Times, April 16, 2001; The Dallas Morning News, 05/21/2002;
Country World, 4/25/02
Bulk Water as a Commodity





Bulk water sales treat water as a commodity to be
bought and sold in the marketplace based on ability &
willingness to pay.
State laws governing use of surface & groundwater were
written when water was viewed as plentiful.
Groundwater laws are often weak & sometimes nonexistent.
In general, state laws set out the right to use water, but
do not address the right to sell water as a commodity.
Commodification of water means water itself is being
privatized.
Global Water Corporations
European transnational water
corporations are seeking big profits in
the USA market

Buying up natural springs and aquifers for
bottled water

Taking over operation of municipal water
and sewer systems
Global Water Corporations
Perrier - Profile

Corporation: Known originally for its bottled water from
Switzerland, Perrier is now a subsidiary of Nestle, the world's
largest food corporation. With yearly sales of US $1.7 billion,
Nestle controls one-third of the US bottled water market. Nestle
has just dropped Perrier name, preferring "Nestle's Waters of
America.“

Profile: After arsenic contamination was found in its bottled
water, Perrier changed its marketing strategy, buying up local
spring water companies and marketing under their labels.
Perrier owns 75 springs throughout the U.S. and is actively
developing new sites such as Red Boiling Springs TN.
Global Water Corporations
Perrier Brands:

Arrowhead -Dates from 1894 San Bernadino Mountains, CA Springs
 Calistoga - Dates from 1924 in Napa Valley, CA
 Deer Park - Dates from 1873 in Allegheny Mountains
 Great Bear - Dates from 1888 in undisclosed East Coast location
 Ice Mountain - Dates from 1987 in “Midwest”, primary location is
Mecosta County, Michigan. One of Perrier’s “hottest brands”

Oasis - Dates from 1946 in Texas. Uses legend Butch Cassidy
 Ozarka - Dates from 1905 in Ozarka, Texas and other locations
 Poland Spring - Dates from1845. Marketed as embodiment of Maine
 Zephyrhills - Dates from 1960 and drawn from Crystal Springs, FL
Source: http://www.perriergroup.com/water/us
Perrier/Nestle Subsidiary Destroyed
Environment of Crystal Springs, FL
Before Perrier / Nestle
Photos Courtesy Teri Wolfe
http://www.saveourspringsinc.org/
Under Perrier / Nestle
Care & Management
Perrier/Nestle Subsidiary Destroyed
Environment of Crystal Springs, FL
Victor Eikeland remembers paddling a canoe up the
Hillsborough River in the early 1920s, cruising slowly
past the ancient cypress and oak trees that guarded
Crystal Springs. Dorothy Pricher said she did the same,
rowing right up to the springs' bubbling mouth before it
was blasted with dynamite and dammed in the 1950s.
"You could take a canoe and go all the way from the
springs to the river," said Pricher, now an 81 year-old
Tampa resident.
Source: http://www.saveourspringsinc.org/news/3stateclaim.htm
Perrier Threatens Crystal Springs

Corporation: Perrier subsidiary, Three Sisters Springs Water Company,

Proposal: Expand pumping from Crystal Springs near Tampa 10 fold from 3.5
gallons to 30 gallons every second.

Status: After Perrier lost court cases, the city agreed to more pumping if
Perrier could replace the water, angering environmentalists and water activists.

But the Fight Continues: Replacement water has been found. "Tanker
trucks carrying thousands of gallons of well water are rumbling from Dade City
to Crystal Springs and dumping it into the headwaters of the Hillsborough
River."
-- Detroit News 5/20/01
Source: http://www.saveourspringsinc.org/news/2profit.htm
http://www.saveamericaswater.com/fl/bw031801.html
Local Activists March Against Perrier
in Mecosta County, Michigan
Following a blue banner more than 200 students, farmers, tribal members,
citizens and local activists marched the mile or so to the Ice Mountain
water bottling facility.
Photo by Eartha Melzer
Perrier Seen as Threat in
Mecosta County, Michigan

Corporation: Ice Mountain, owned by Perrier

Proposal: Perrier plans to pump over 700,000 gallons of water per day in rural
farming community of Big Rapids in Mecosta County. Bottling facility will cost
$100 million and could become one of Perrier's biggest operations in the U.S.

Environmental Impact: “Mecosta County is suddenly the epicenter of a new
public reckoning over the security of the Great Lakes, where 20 percent of the
world's surface freshwater is stored, and the underground aquifers that supply
them. .... the fate of Perrier in Mecosta County will have legal, political and
environmental ramifications for every Great Lakes state and far beyond."
“Perrier vs. the People,” by Keith Schneider, Grist October 30, 2002

But the Fight continues! Newly-elected Michigan Governor Jennifer
Granholm stated during her campaign that pumping is a diversion of
Great Lakes water which is illegal under federal law. Activists are calling
for her to shut down Ice Mountain.
Sources: http://www.alternet.org/story.html?StoryID=14413
Perrier in the Texas Panhandle

Corporation: Perrier subsidiary Ozarka

Proposal: Ozarka had an employee pose as college student doing
research to study spring on land owned by Bart Sipriano. Employee then
returned and offered to buy spring. When Sipriano refused to sell,
Perrier bought the property next door and started pumping.

Status: Bart Sipriano's well dried up four days after Ozarka
started pumping water nearby. Under the state's 1903 'rule of capture’
law, he has no right to complain. But the fight continues.
Source: http://www.saveourspringsinc.org/news/eustance.htm
Corporate Privatization of
Public Water Systems

Across the USA and around the world public water and sewage
systems are under threat from the world’s largest water corporations.

The two largest water corporations - French based Suez and Vivendi
Universal manage water for 230 million people, mostly in Europe and
the developing world.

Now they are seeking access to a vast, untapped market in the USA
where 85% of people get water from public utilities.
Source: Mother Jones, “Water for Profit,” Nov. 2002
Corporate Privatization of
Public Systems





In the USA local private companies have provided drinking water to
some localities for many years.
Many of these companies are being bought up by multinational
conglomerates like Vivendi and Suez.
These same mega-corporations have been lobbying mayors to
contract out their water/sewer services, arguing that this will result in
better services at lower cost.
While the municipality still owns the system, the contract can turn
over important public functions to the private sector.
If the public is not informed and alert, this kind of privatization can
happen without any opportunity for a public vote.
Global Water Corporations
Vivendi Universal/ US Filter

Operated as water/sewer services company until became
media/publishing conglomerate in 2001

Bought US Filter in May 1999 for $8 billion


US Filter, largest US water services company, grossed
$4.2 billion in 2001
Vivendi’s stock plummeted in 2002. Resulting debt was shifted to
high-earning water/sewer division. Debt was equivalent to 4%
surcharge on all Vivendi water/sewage bills around the world.
Source: "Profiles of Public Service Privatizers: Suez, Vivendi, Wackenhut”
Polaris Institute, Canada, August 2002
Global Water Corporations
Vivendi's Environmental Record

Great Britain's environmental agency rated Vivendi one of top 5
polluters.

Puerto Rico Office of Comptroller found i) deficiencies in
maintenance, repair and operation of PR's water and wastewater
systems; ii) failure to provide running water in many areas; iii) billing
customers when water was not provided.

Argentina faulted Vivendi for poor performance and poor water
quality in Tucuman. Vivendi took Argentina to international dispute
center under bilateral agreement with France claiming Argentina had
not fulfilled its obligations.

In New Orleans, US Filter subsidiary PSG had contract with city. In
July 2001 PSG diverted raw sewage into Mississippi River for two
hours after electrical fire.
Sources: The Big Greedy. Public Citizen, 2001; Polaris Ibid
Global Water Corporations
Suez / United Water

Suez bought United Water in August 2000 for $1.02 billion

Water division now operates under the name ONDEO

ONDEO has more than 3000 water management contracts around world,
serving 110 million people in 30 countries

Contracts for water services are not made public so citizens cannot hold
Suez accountable, a major problem in South Africa

Senior Suez executive was sentenced to prison for bribing government
officials in Grenoble France
Sources:
PSIRU 1999. "Privatization, Multinationals, and Corruption”: http://www.psiru.org/reportsindex.asp
Polaris Institute Corporate Profiles Suez
http://www.polarisinstitute.org/corp_profiles/public_service_gats/corp_profile_ps_suez.html
Global Water Corporations
Suez Environmental Record

La Paz, Bolivia -- Suez violated contract with city to extend water
connections to poor households, arguing service should be based on
ability to pay.

Sao Paulo, Brazil -- When Suez failed to build sewage treatment plant
required under contract, over 95% of raw sewage flowed directly into
LaPlata River, onto streets and open fields.

United Kingdom -- Despite 110% rate increase and 800% increase in
profits, Suez subsidiary, Northumbrian Water, claimed they could not cut
rates and meet EU environmental standards.
Sources: PSIRU Report - Water in Public Hands, June 2001; http://www.psiru.org/reportsindex.asp
Polaris Institute Ibid
How About Public Systems?

Pollution of water sources by industry & agribusiness,
degrading of watersheds by urban sprawl, loss of wetlands,
lack of adequate funding to upgrade water and sewage
treatment facilities have taken a severe toll on public systems.

US PIRG reported that in half the states, one-third or more of
the municipal systems were in significant non-compliance with
the Clean Water Act during 1997-98.

It is critical to ensure that municipal systems are brought into
compliance. This means adequate funding and strict
enforcement of the Clean Water Act.
Source:http://www.pirg.org/reports/enviro/poison/waterb.pdf
Privatization of Public Water Systems:
Can Democracy Survive? Stockton, CA



Corporations: United Water/Suez , US
Filter/ Vivendi and OMI-Thames with local
partners.
Proposal: Stockton, California Mayor
Gary Podesto has proposed a 20 year
contract with a private corporation to
provide water, sewer and storm water
services.
Status: Citizens have gathered over
18,000 signatures to qualify for a March,
2003, special election. Mayor & Council
did end run in Feb. and Council voted 4
to 3 to contract with Omi / Thames.
Citizens now circulating a referendum
petition to force City Council to rescind
privatization or put it to a vote of the
people.
Source
http://privatization.home.attbi.com
Utility workers join protest rally
on steps of City Hall

Photo by Juliet Chi, Public Citizen
Privatization of Public Water Systems:
Broken Promises / Atlanta, GA
Atlanta learned the hard way that privatization isn’t what it
proclaims to be when United Water/ Suez took over the
city’s water/sewer system in 1999.

Residents were hit with five 5 ‘boil water’ alerts due to unsafe tap
water in 2002.
Some residents waited months for basic repairs.

United Water failed to complete more than half of scheduled repairs

in 2001.
Rust and debris were allowed to build up in pipes. When pipes were
flushed, brown water flowed from taps.

Source: Mother Jones Nov/Dec 2002
Privatization of Public Water Systems:
Broken Promises / Atlanta, GA
In mid-August 2002, Atlanta Mayor Shirley Franklin
announced that United Water had not lived up to its
responsibility and formally notified the company that it
had 90 days to fix the problems or the city would
terminate its contract. Source: Mother Jones, Nov/Dec 2002
And terminate the contract they did ! On January 24th,
2003, Mayor Franklin announced the termination of the
contract. Source: New York Times, 2/10/03
Now it is up to local officials and citizens of Atlanta to
make sure their public system is well run, adequately
funded, and in compliance with water quality laws.
Privatization of Public Water Systems:
Fight Back / New Orleans

Suez/ United Water, Vivendi/ US Filter, RWE/Thames (the German/
British conglomerate) were major contenders to take over New
Orleans water system.

New Orleans spent three years and $4 million preparing for bids.

Consumer, church and environmental groups argued corporate suitors
can’t be trusted with fundamental public services.

The City Council rejected all three bids in October 2002. Citizens are
now mobilizing for the next round.
Source: Sacramento Bee, Nov. 9, 2002
Privatization of Public Water Systems:
Take Back/ Reclaim Public Assets
Washington Court House, Ohio

Unhappy with rate hikes & poor service by Ohio Water Service, city
residents voted for municipal control.
After 2 years settlement was reached setting a sale price.

City sold bonds to buy the system.

City built new water storage tank and reservoir, and still gave 3 -year
10% rate cut to customers.

Lesson Learned: It is possible for public systems to be run more
efficiently than private systems.

Source: “Reclaiming Public Assets,” Public Citizen Sept 2002, pp 8-9
Privatization of Public Water Systems:
Take Back/ Reclaim Public Assets

Duval, Nassau, St. Johns Counties, FL


Peoria, IL


successful - rates lowered
in process
Lexington, KY

under consideration
Source: “Reclaiming Public Assets,” Public Citizen Sept 2002, pp8-9 ; “Water Privatization: A
Broken Promise - Case Histories Throughout the United States,” Public Citizen. 2001
http://www.citizen.org/publications/release.cfm?ID=7099
What are the Advantages of a Well-run
Public System?
Funding and bonds are available at lower interest rates.
 Executives do not receive outlandish salaries.
 No dividends have to be paid to shareholders.
 Essential jobs are not cut in order to increase profits.
 Ratepayers money stays in community.
 Citizens can hold their public officials directly accountable for
providing good quality water to all residents.
 Water, the basis for all life, is treated an essential public service.
Source: http://www.polizeros.com/stories/2002/08/12/water.html
World Water Crisis: Scarcity
Charts by Janet M Eaton & Samara T Eaton
World Wide Water Crisis
Pollution, Depletion, Drought Exacerbated by …

Corporate agribusiness

Industrial facilities

Mining

Burning of fossil fuels

Corporate -friendly
“free trade” rules
Scarce fresh water, polluted
by mining industry
Photo Courtesy Mining Watch Canada
What is the Best Solution to
the Public Health Crisis?
"The World Health
Organization estimates that a
total of more than five million
people die each year just
from diseases caused by
unsafe drinking water, and a
lack of sanitation and water
for hygiene.”
Source: Executive Summary, Comprehensive
Assessment of the Freshwater Resources of
the World Report of the Secretary-General
http://www.un.org/esa/sustdev/freshwat.htm
Photo Courtesy Greenpeace
World Wide Water Crisis
“There is no resource that is more essential to biodiversity, social
and economic development - and indeed , civilization itself - than
water. Growing scarcity and widespread misuse of water pose a
serious and growing threat to sustainable development and all
aspects of human health and welfare, food security, industrial
development and the ecosystems on which these all depend.”
-- Steven Schrybman, 2000. “The Citizen’s Guide to the WTO.”
Toronto:CCPA/Lorimer
“The result could be a series of local and regional water crises
with global implications. ”
-- Executive Summary, “Comprehensive Assessment of the Freshwater
Resources of the World,” Report of the UN Secretary-General
http://www.un.org/esa/sustdev/freshwat.htm
Global Corporations See
$Blue Gold$ in the Water Crisis

“Global corporations are pressuring governments around the world
to privatize water as the solution to the water crisis.”
-- Maude Barlow, “Blue Gold”

"Water promises to be to the 21st century what oil was to the 20th the precious commodity that determines the wealth of nations."
-- Fortune magazine, May 2000

The World Bank projects the private water management business
could reach $1 trillion by 2021
Water Privatization in the
Developing World
Water privatization is being pushed by the World Bank &
IMF in the developing world. Research shows that it is not
working for the world’s poorest people in many parts of the
world.
 Ghana
 Bolivia
 South Africa
Water Privatization in the
Developing World / Ghana

The World Bank and IMF have promoted privatization of water services
in Ghana.

Cities no longer have sewer services. The water corporations have no
interest in providing this low-profit service.

Rural communities which had gotten national assistance in providing
safe drinking water when there were health threats are now to be
served by municipalities under a policy of "full cost recovery." These
rural areas cannot afford the resulting costs imposed.
Water Privatization in the
Developing World / Ghana
Who Wins?
Corporate bidders such as Vivendi and Suez
 Can borrow funds at just 1% interest under World Bank terms
 Contribute only $140 million out of the $400 million contract
 Serve only the most lucrative market - urban drinking water
Who Loses?
The people of Ghana, especially the poor who
 suffer from cholera, typhoid and other water-born diseases
already increasing in the cities
 now have second highest incidence of Guinea worm in the world,
second only to war-torn Sudan
Source: Rudolf Amenga-Etego, National Coordinator, Ghana National Coalition
Against Privatization of Water. [personal communication]
Ghana - the Fight Goes On !
Through mass mobilization &
alerting the international
community, activists like Rudolph
Amenga-Etego, National
Coordinator of the Ghana
National Coalition Against
Privatization of Water, are
fighting the World Bank and
corporate water profiteers in
order to keep water in the hands
of the people of Ghana
Photo by Sierra Club
Water Privatization in the
Developing World / Cochabamba
The People of Bolivia vs. Bechtel and World Bank

Bechtel subsidiary, Aquas del Tunari - given 40-year lease to run the water system
in Cochabamba, Bolivia's 3rd largest city, after the World Bank forced privatization
policies on Bolivia.

Within weeks of taking over in 1999, Bechtel imposed huge rate hikes on local
water users -- up to 25% of families' monthly income.

Peasants, workers and community activists joined in city - wide protests under an
alliance known as "La Coordinadora'' . The city declared martial law, deploying
thousands of soldiers and police.

The people shut down the city and prevailed. Bechtel pulled out.

Now Bechtel, through a Dutch subsidiary, is using a bilateral trade agreement to
sue Bolivia for a portion of its lost profits. "Bechtel is demanding $25 million from
some of the poorest families in the world," said Oscar Olivera, leader of La
Coordinadora.
Source: Earth Justice at http://www.earthjustice.org/news;
Public Citizen: http://www.citizen.org/documents/Bolivia_(PDF).PDF
Cochabamba - Bolivia
Mass Protest Against Water Privatization
“El pueblo unido jamas sera vencido” !!
Photo by Tom Kruse
Bolivia-Chile Bulk Water Sales
Linked to Mining Industry
Pablo Solon is
fighting the export of
bulk water from the
Bolivian high desert to
Chile for expansion of
mines operated by
Canadian & other
companies.
“Mining is mostly about water”
Joan Kuyek, MiningWatch.Canada
Photo by Barbara Arisi
Bolivia-Chile Bulk Water Sales
Linked to Mining Industry

CORPORATIONS: Falconbridge, Canadian nickel and copper mining
corporation, has 8 copper mines in Chile. It operates the Collahuasi
mine in the high desert of northern Chile as part of consortium Dona
Ines de Collahuasi .

ENVIRONMENTAL IMPACT: The copper mines have depleted and polluted
local water resources in northern Chile and now are pressuring Bolivia
to export non-renewable fossil water in aquifers beneath their high desert
where evaporation rates exceed annual rainfall.

THE STRUGGLE CONTINUES: Pablo Salon and other Bolivian activists
have prevented the Bolivian Congress from passing a law allowing the
export of water to Chile. Now activists are again taking on the mining
interests which are pressing for a bilateral trade agreement between Chile
and Bolivia to allow the export of water.
Source: Pablo Solon (Personal Communication) http://www.aguabolivia.org/
Mining Watch Canada (Personal Communication)
The South Africa People’s Story
Activists attending the World Summit on Sustainable
Development (WSSD) learned what it means for water to be
privatized and denied as a human right!
The official story told by South Africa and
Suez corporation officials was about:
 “Greater economic efficiency”
 “Better service”
 “Water for all”
 “Repairs to crumbling infrastructure”
The South African People’s Story
The folks we met told their story…
Photo by Maj Fiil-Flynn
The South African People’s Story
While highway billboards promised water for all
Photo by Maj Fiil-Flynn
The South African People’s Story
Suez officials promote pre-paid water meters as just what
people in Orange Township need. Activists disagree.
Photo by Maj Fiil-Flynn
The South African
People’s Story
Prepaid water meters deny
South Africa’s poor their right
to water guaranteed by their
constitution
Photo by Maj Fill-Flynn
South
Africa
StoryStory
TheThe
South
African
People’s
Families in Townships with final
water cutoff notices
“This formal notice serves to remind you that if the
amounts shown below are not paid by 31-08 2002 your
water supply will be disconnected…”
Photo by Maj Fiil-Flynn
The South African People’s Story
“Let them drink coke” is not the answer !!
Photo by Maj Fiil-Flynn
The South African
People’s Story
The right to water is about environmental justice.
Photo by Sierra Club
Water is a Human Right
On November 27, 2002 The United Nations Committee on
Economic, Social and Cultural Rights adopted the ‘General
Comment’ on the right to water and described the State’s legal
responsibility in fulfilling that right.
“The human right to drinking water
is fundamental to life and health.
Sufficient and safe drinking water
is a precondition for the realization
of human rights.”
Global Rules & Institutions
Promote Water Privatization


IMF - International Monetary Fund
WB - World Bank

GATT - General Agreement on Tariffs & Trade
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WTO-GATS - General Agreement on Trade in Services
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NAFTA - North American Free Trade Agreement
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FTAA - Free Trade Area of the Americas
IMF Imposes Market-based Pricing
As Condition for Loans
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In the USA, the federal Clean Water Act and the Safe Drinking
Water Act mandate subsidies for water and sanitation services.
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But the IMF promotes "full cost recovery" of water and sewer
services in developing countries, without allowing any subsidies for
these essential services.
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During 2000, IMF loan agreements with 12 borrowing countries
included conditions imposing water privatization or full cost recovery
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Recent examples include:
- In Nicaragua, a 30 percent increase in consumer water fees was
enacted in 2001 as a result of IMF and Inter-American Development
Bank policies.
- In Ghana, a 95% increase in consumer water fees was mandated in 2001
by the IMF and World Bank.
Source: Nancy Alexander. Citizen's Network for Essential Services. (Personal Communication)
http://www.challengeglobalization.org/
World Bank & Regional
Development Banks are…
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Promoting policies to privatize infrastructure including water
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Refusing to fund public water systems
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Promoting allocation of water to "high profit uses” such as industry and
agribusiness
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Helping water corporations in their "cherry picking" by separating profit-making
from loss-making sectors of the water market
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Linking developing country institutions with more "mature" entities. Result is big
profits for corporations in industrialized countries which provide the equipment
and service.
Source: Nancy Alexander. Citizen's Network for Essential Services. (Personal Communication)
http://www.challengeglobalization.org/
GATT Protects Bulk Water Exports
 General Agreement on Tariffs and Trade (GATT), the first global
trade agreement, covers goods and commodities.
 GATT provides basic legal structure for 146 member countries in
the World Trade Organization (WTO).
 Bulk water exports are governed by GATT.
 GATT rules prohibit ANY MEASURES which restrict quantity of a
good being exported except for “duties, taxes or other charges.”
 Most water is categorized as renewable so exception for
conservation of non-renewable resources does not apply.
NAFTA Makes Matters Worse

NAFTA Article 309 states that constraints on exports of any
good must be shared proportionally across the signatory
countries --Mexico, Canada, USA.
This means if corporations in the USA started exporting water to
Mexico and then the USA suffered a drought, it could not simply stop
exporting. The USA would have to reduce its consumption of water in
proportion to the reduction in the export to Mexico.
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NAFTA Chapter 11 allows corporations in one member
country to sue other member countries over any regulation
or law that can be considered "tantamount to
nationalization or expropriation" without compensation.
When British Columbia banned the export of bulk water in 1998, Sun
Belt Water in Santa Barbara CA sued Canada because it had a
contract to export water from British Columbia.
Great Lakes Compact
Great Lakes governors hope to trump GATT
and NAFTA by drafting interstate compact to
prohibit exports of Great Lakes water except
under conditions that provide net ecological
benefit to the Great Lakes.
General Agreement on Trade in Services
(GATS)
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GATS applies to all levels of government.

GATS covers all services from banking to fast foods to environmental services.
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GATS commits member countries to "progressive liberalization" which comes
down to more privatization and deregulation of their services.

Under GATS, countries can decide what services they want covered by Market
Access and National Treatment rules, but other rules like Most Favored
National apply to all services.

GATS says domestic regulations must not be “more burdensome than
necessary to ensure the quality of the service.” What about the burden on the
environment, workers, consumers? This rule may apply to all services.
GATS Negotiations on Water:
Victory in USA
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RIGHT NOW trade negotiators are engaged in SECRET bilateral negotiations
called “requests” and “offers” in order to have more of their countries’ services
covered by GATS rules.
The European Union listed collection, distribution and treatment of water for
human use as an environmental service. The USA did not contest this. Water
activists objected strenuously.
Thanks to leaked documents, activists learned that the European Commission
wants the USA and many other countries to open up their public water/sewer
services to foreign competition.
In response to mounting public pressure, the USA made its GATS offers public
on March 31, 2003.
The USA refused the EC’s request to include water/sewer services for human
use. This is a major victory!!!
Have other countries stood up to Europe and refused to put water
into GATS? Will the USA hold firm on its refusal? We’ve had a
victory but the organizing must continue!
Activists Call for Water Out of
Trade & Investment Agreements

Bulk water should be governed by federal and
state laws and by river basin agreements and
interstate compacts, not by trade & investment
agreements promoting commercial interests.

Access to safe and affordable drinking water is a
human right and should not be subject to GATS
rules or other services agreements which
promote the rights of foreign corporations.
Taking Action - Tips
We can all take action personally to
preserve water for people and nature.
Thinking Twice About Bottled Water

When you are thirsty, do you turn on the tap or reach for
a bottle of water?

When you travel, do you bring an empty bottle to fill
along the way or reach for a bottle of Perrier's spring
water?

When you are concerned about local water quality, do
you make sure your local water authority is doing its job
to provide good quality water, or do you buy bottled
water?

If you have an immediate problem with water quality at
your tap, do you get the best filter available or do you
buy 5-gallon drums of water?
Taking Action in Our Communities

Be on the lookout
- Monitor city agencies/mayor's office for first warning of water privatization
initiatives
- Map aquifers and watersheds in order to monitor unusual land purchases

Research your laws
- Research local and state water laws. Are they adequate to protect
watersheds and aquifers?

Research your rights
- Research local and state public participation regulations
* Do they provide for public participation at every stage?
* Do they assure the public is fully informed?

Require public votes
- Get local and/or state referendum requiring public vote regarding any
privatization of water/sewer services
Access to Water is About:

Environmental Justice

Habitat Protection

Human Rights

Citizen Action to Protect the
Commons

Public Trust not Corporate Control
® used by permission of Hank Ketchum Enterprises
© by North America Syndicate
Water Privatization Resources - References
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The New Economy of Water, The Risks and Benefits of Globalization and
Privatization of Fresh Water.
Peter Gleick et al., Pacific Institute, February 2002
Who Owns Water?
Maude Barlow and Tony Clarke, The Nation, September 2002
Letter from Bolivia, Leasing the Rain
William Finnegan, The New Yorker, April 8, 2002
A Price On Every Drop Mother Jones, Nov/Dec 2002
Blue Gold, Special Report
Maude Barlow, IFG, June 1999
The Water Manifesto, Arguments for a World Water Contract
Riccardo Petrella, Zed Books
Water in Public Hands
David Hall, PSIRU University of Greenwich, England, June 2001
Profiles of Public Service Privatizers: Suez, Vivendi, Wackenhut
Polaris Institute, Canada, August 2002
Thirst For Control New Rules in the Gobal Water Grab
Steven Shrybman for the Council of Canadians, 2002
Water Privatization Resources - Websites
International & National Websites:

Public Services International (excellent research): http://www.psiru.org/reportsindex.asp

GATS Watch (has the leaked “requests” and “offers”):
http://www.gatswatch.org

USGS Water Watch (with US water data): http://water.usgs.gov/waterwatch/
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Council of Canadians: http://www.canadians.org
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Polaris Institute, Canada: http://www.polarisinstitute.org
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Public Citizen's Critical Mass Energy and Environment Program:
http://www.citizen.org/cmep/Water/
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Citizens Network on Essential Services (CNES): http://www.ServicesForAll.org
Water Privatization Resources - Websites
Local - USA Websites:
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Michigan / Ice Water / Perrier: http://www.waterissweet.org/
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Wisconsin/Perrier: http://www.saveamericaswater.com/wi/
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Great Lakes: http://www.greatlakesdirectory.org/
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Friends of the Gualala River, Mendocino CA: http://www.gualalariver.org/
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Save Our Springs, Cyrstal Springs, Florida: http://www.saveourspringsinc.org/
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Concerned Citizens Coalition, Stockton CA: http://www.cfac.org