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The privatization of basic public services has become a dominant issue in policy discourse in industrialized as well as developing countries. Over the last few years, policies affecting water, electricity, health and education in some countries have generated as much political controversy and social mobilization as taxation, land reform or even trade.
What makes basic services so special? Market-oriented service provision policies have been subject to an unprecedented level of public scrutiny. From the perspective of diverse civil society movements, the issue of basic services cuts across a wide range of issue areas, such as: accountability and transparency of international governance institutions, human rights, poverty reduction, democratization, national sovereignty, gender equality, debt reduction and cancellation, and environmental protection.
Policy-oriented NGOs that advocate for a particular cause are now putting public services on their agenda. For example, a number of citizen organizations with experience in monitoring the Bretton Woods institutions have taken a sudden interest in the General Agreement on Trade in Services (GATS), a WTO agreement that could “lock in” privatization (making it practically irreversible) and undermine the ability of governments to regulate or even finance public services.
In the current negotiations, which were launched in November 2001, governments are pressuring each other to open up services to private sector and non-profit (NGO) providers, even in socially sensitive areas such as water, health and education. For the most part, it is the powerful Northern governments and their corporate constituencies that are driving the process of liberalization of services. The GATS could undermine progress toward social and environmental goals because it limits the ability of governments to regulate or provide services. For instance, it could jeopardize access to water and other services by poor and vulnerable groups.
On one hand, the Bretton Woods institutions and their major shareholder governments tout the benefits of privatizing the public sector. A discussion draft of the World Bank’s 2004 World Development Report, whose theme is services for the poor, states that neither growth nor public spending increases will improve services enough to reach the Millennium Development Goals (MDGs). It then argues that achieving the MDGs requires a rejection of the current government provision model of service delivery and the adoption of reforms that largely bypass the state, including private concessions and sub-contracting.
On the other hand, civil society organizations across the global North and South are increasingly resisting the adoption of policies that put basic services into private hands. Some privatization measures have led to spontaneous citizen mobilizations, threatening the survival of national governments.
Versión
en español
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News |
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current affairs information. |
Mon Sep 26 2005
Blocking the wave of privatisation of water
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In-depth
reports |
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reports on key issues. |
GATS - trade in services
A 'development-friendly' agreement, but not necessarily for the poorest countries.
World Bank
The World Bank's main self-proclaimed objective is to eradicate poverty. Yet, evidence suggests that its programmes often harm the poor and the environment.
Corporate accountability
How big business handle big issues like human rights and sustainable development.
Education on the market
The pros and cons of the slow but relentless process of integration of education into the market.
The water crisis
If access to water is a basic human right, should its provision be left in the hands of private corporations?
Health and health services, goods for sale
Is privatization the answer to health care problems that affect the poor?
World Trade Organization - WTO
Trade at the service of people, or people subjected to trade? The WTO makes the difference.
Millennium Development Goals - MDGs
A comprehensive list of resources from the United Nations and civil society organizations.
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From Social Watch |
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Civil society |
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The World Bank |
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Water corporations |
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Alternatives to privatization |
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The Bolivian water scandal |
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Other countries and regions |
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Articles and reports |
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South could become stage for wars over water
Source: IPS - Inter Press Services
Mario Osava
Developing countries rich in water resources could become the stage for wars similar to what happened in Iraq if water continues to be privatized and sold like any other merchandise or good.
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A Fact Sheet on water sector privatization
Source: The Water Observatory
Up until the 1990s water and sewerage services in most countries were a state/ public responsibility. It was only in the 1990s that multinational-led water privatization increased, along with infrastructure privatization in general in the developing world (doc version).
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Are the debates on water privatization missing the point?
Source: International Institute for Environment and Development
Jessica Budds and Gordon McGranahan
This paper has two principal aims: first, to unravel some of the arguments mobilized in the controversial privatization debate, and second, to review the scale and nature of private sector provision of water and sanitation in Africa, Asia and Latin America (pdf version).
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Nature for sale: the impacts of privatizing water and biodiversity
Source: Friends of the Earth International
This report discusses the impacts of privatisation of water supply and biodiversity on the poor throughout the world, especially women. Thirty four documented cases describe what happens when the privatisation agenda is pushed through and the public sector leaves the exploitation and management of natural resources to the private sector. February 2005.
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Dirty aid, dirty water
Source: World Development Movement
Clare Joy and Peter Hardstaff
This report exposes the continuing push by donor governments and institutions to privatize water and sanitation in poor countries and calls for a different approach by donors to the global water crisis. In particular, the report demonstrates how, despite the many water privatization failures around the developing world the UK Government is using its aid budget to pursue privatization through funding ‘water privatization consultants’. The report explains how a relatively small group of consultants – many based in the UK – are a key part of the privatization process and how they have expanded their operations using UK aid. Case studies are provided demonstrating how consultants funded by the UK taxpayer have promoted privatization in the developing world against the wishes of many people in those countries. February 2005 (pdf version).
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