Water Privatization

What is water privatization? Water privatization is defined by FEW Resources as, “the water sector that involves transferring some or all of the assets or operations of public water systems into private hands.” Water privatization is becoming a global trend.  Water privatization is the controlling and maintaining of water systems through private companies. Partnerships between the public and private sectors have advanced over the last 25 years. Within these partnerships both the public sectors and private sectors share the rewards and risks that come with operating the water systems. There is a lot of controversy surrounding the idea of water privatization. One of the main questions that people have is where is their water coming from?

There are many problems that come with privatizing water. One major problem with water privatization is that it has led to the decrease in immediate access to water. This leads to further complications, lower income individuals will not have the funds for water because the prices continuously rise. When private companies take away the public access of water that people have always known to have it adds to the controversy. Lower income communities and developing countries that privatize there water has the risk of leading to water shortages throughout the areas. This creates a severe impact because the privatization of water prices increase and is not as accessible, whereas public water did not come with as high of a cost. Furthermore, with the lack of access to public water, it can have multiple effects on individual’s health. When people do not have the means to afford water they find alternative sources in which they can find water. Most of these alternative water sources are heavily contaminated. People all over the world in developed and developing countries are facing problems with water being privatized. Another reason why people oppose the privatization of water is that privatization leads to a loss of jobs within the communities of the water system plants. The loss in jobs comes from companies trying to use methods in which minimize the cost and create an increase in profits. Layoffs are both bad for the individuals losing their jobs but also the people consuming the water. Privatization is also very hard to reverse. When the government who is in charge of public water gives the water system to private companies they have signed an agreement and a plan in which they hope to see for the water within their counties. Once two parties have agreed to the writing of the contract it is very difficult and very costly to get out of. Also, both parties are very powerful. Privatization also leads to rate increases. These large private organizations are all about making profit, and are usually less efficient at getting the water out to consumers.

There are also positives that come from privatizing water. Water privatization advocates that private companies must continue to comply with federal and local regulations on water and safety. When the government hands over the controlling and maintaining of the water to private companies, the financing is extremely expensive for these private companies. Private companies are not capable of applying for tax free bonds.  Another positive that comes from privatizing water is that it reduces public sector risks. This is because one the transfer has been made from public sector to private sector it reduces the amount of workers compensation risk. 

https://www.citizen.org/documents/Top10-ReasonsToOpposeWaterPrivatization.pdf

http://www.fewresources.org/water-privatization-and-global-prospecting.html

http://www.wisegeek.com/what-is-water-privatization.htm