Privatisation

• Privatisation occured as it was believed efficiency, services, quality and supply would improve.
• When ran by governments (especially in emerging economies), high corruption and low efficiency
• Developing countries normally = free water but limited transportation infrastructure
• Poor infrastructure seen in Ghana. Slums in Accra Ghana would buy bottled water. Informal vendors 2x as expensive as water from standard taps
• Riots in Cochabamba:

  • 80,000 protested against massive price hikes to fund infrastructure and make profit
• Riots in Cochabamba:

  • US TNC subsidary Bechtel had a monopoly to collect water charges. Water costs increased. (1999 - 2000) They left the country soon after.
• Riots in Cochabamba:

  • Indian and Chinese companies taken their place often using local companies to help with their work. Care less about the risk.
• SAP:

  • Privatise water and other utilities to overcome debt. Was imposed / forced by World Bank + IMF