Privatization of Water in Bolivia Will Kevin Bolivia

Privatization of Water in Bolivia Will, Kevin

Bolivia § South America’s poorest country

How it started § In 1990’s Bolivia’s water was privatized § Pushed by the World Bank and International Monetary Fund. § Intention was to create a free market society. § Foreign investors came in and took over the water supplies § U. S. company Bechtel awarded long term contract to manage and deliver water in Cochabamba area.

What It Did § Extended water across the nation to places that previously were not reached § BUT prices for water shot up and local pumps and wells were taken § Even though water was accessible, too expensive

Cochabamba riots § Riots broke out in 2000 over water issues § Thousands protested § Forced Bechtel out of Bolivia § Hurt foreign investment greatly § Chaotic water delivery followed

Global Importance § Many South American countries are short on water § Outsourcing the water industry is a viable and easy concept § But Bolivia shows with privatization comes increase in price § Most people in South America cannot afford this increase § This was a failure

Future Issues § Many believe that privatization is good but nobody thinks the prices should be raised. § Bottom line, Bechtel was driven out but this has cause issues of its own: § Water cannot reach all the places it did § In general, really hurt economy because no foreign company wants to come to Bolivia.