Home
Archive
Columnists
Video
Blogs
Discuss
About
Search
Donate
Advertise
Advertisement
Advertisement
Advertisement
Advertisement
Register to Vote: Rock the Vote, powered by Working Assets Wireless
Advertisement
  • AlterNetYour turn

Support AlterNet
Do you value the information you're getting from AlterNet? Please show your support with a tax-deductible donation.


Feedback
Tell us how we're doing.

Advertisement
Advertisement

Water

The New Corporate Threat to Our Water Supplies

By Alan Snitow and Deborah Kaufman, Tomdispatch.com. Posted October 6, 2008.


Neglect of public infrastructure has private companies swooping in to buy public systems, like water, with grave consequences.
bookssizedwccoverweb
Advertisement

The following is an adaptation of an excerpt from AlterNet's newest book, Water Consciousness.

In the last few years, the world's largest financial institutions and pension funds, from Goldman Sachs to Australia's Macquarie Bank, have figured out that old, trustworthy utilities and infrastructure could become reliable cash cows -- supporting the financial system's speculative junk derivatives with the real concrete of highways, water utilities, airports, harbors, and transit systems.

The spiraling collapse of the financial system may only intensify the quest for private investments in what is now the public sector. This flipping of public assets could be the next big phase of privatization, and it could happen even under an Obama administration, as local and state governments, starved during Bush's two terms in office, look to bail out on public assets, employees, and responsibilities. The Republican record of neglect of basic infrastructure reads like a police blotter: levees in New Orleans, a major bridge in Minneapolis, a collapsing power grid, bursting water mains, and outdated sewage treatment plants.

Billions in private assets are now parked in "infrastructure funds" waiting for the crisis to mature and the right public assets to buy on the cheap. The first harbingers of a potential fire sale are already on the horizon. The City of Chicago has leased its major highway and Indiana its toll road. Private companies are managing major ports and bidding for control of local water systems across the country. Government jobs are also up for sale. For the first time in American history, the federal government employs more contract workers than regular employees.

This radical shift to the private sector could become one of history's largest transfers of ownership, control, and wealth from the public trust to the private till. But more is at stake. The concept of democracy itself is being challenged by multinational corporations that see Americans not as citizens, but as customers, and government not as something of, by, and for the people, but as a market to be entered for profit.

How the Water Revolt Began

And a huge market it is. About 85% of Americans receive their water from public utility departments, making water infrastructure, worth trillions of dollars, a prime target for privatization. To drive their agenda, water industry lobbyists have consistently opposed federal aid for public water agencies, hoping that federal cutbacks would drive market expansion. So far, the strategy has worked. In 1978, just before the Reagan-era starvation diet began, federal funding covered 78% of the cost for new water infrastructure. By 2007, it covered just 3%.

As a result, local and state governments are desperately trying to figure out how to make up the difference without politically unpopular rate increases. A growing number of mayors and governors, Republicans and Democrats, are turning to the industry's designated solution: privatization.

Providing clean, accessible, affordable water is not only the most basic of all government services, but throughout history, control of water has defined the power structure of societies. If we lose control of our water, what do we, as citizens, really control?

The danger is that most citizens don't even know there's a problem. Water systems are generally underground and out of sight. Most of us don't think about our water until the tap runs dry or we flush and it doesn't go away. That indifference could cost us dearly, but privatization is not yet destiny.

A citizens' water revolt has been slowly spreading across the United States. The revolt is not made up of "the usual suspects," has no focused ideology, and isn't the stuff of headlines. It often starts as a "not-in-my-backyard" movement but quickly expands to encompass issues of global economic justice.

In Lee, Massachusetts, the revolt began against potential water-plant layoffs. In Felton, California, it was initially about rate increases and local control; in Atlanta, broken pipes and sewage lines. In other communities, it focused on corruption, cover-ups, and complicity between politicians and giant corporations.

One of the epicenters of this nascent movement has been Stockton, California, in the heart of the state's agricultural San Joaquin Valley. A citizens' group there took on not only the mayor and city council, but also some of the world's largest private water corporations in a preview of the corporate water wars to come.

When private water companies case a city as a potential privatization target, they look for a "champion" in city government, someone who will take the lead in selling off the city's water services. In Stockton, they found their champion in Mayor Gary Podesto, a former "big box" grocery store owner. In his view, it was "time that Stockton city government treat its citizens as customers."

But Mayor Podesto had other reasons to privatize. Stockton was already under pressure from state and federal environmental agencies to modernize its sewage plant to reduce San Joaquin River pollution. This was an expensive project, and the mayor thought that a private company could do it cheaper, if not better.


Digg!

See more stories tagged with: water, water privatization, water consciousness

Alan Snitow and Deborah Kaufman are award-winning filmmakers whose PBS documentary "Thirst" was the first film to bring attention to the global movement against water privatization. Their book by the same name exposed how the corporate drive to control water has become a catalyst for community resistance to globalization.

Liked this story? Get top stories in your inbox each week from Water! Sign up now »

Advertisement
Advertisement

 

Comments Turn comments off sitewide Give us feedback »
Comments closed.
The comments for this story have been closed. Thank you to everyone who participated.
View:
A worldwide problem
Posted by: Hans B on Oct 6, 2008 3:15 AM   
Current rating: 5    [1 = poor; 5 = excellent]
I live in Toulouse, France, a city that used to be run by a right wing claiming to have reduced the municipal debt to zero. As the left - which won the latest election partly on this dossier - pointed out, this debt reduction had been achieved by selling out the city's water supply rights to Veolia. Thus inhabitants paid less taxes and more water fees - but since part of the latter was profit, the total payment was higher.

In France there is a real backlash against water companies, led by NGOs which do not hesitate to point out the vast increase in the price of water as soon as its supply is privatized. But short-term budgetary considerations often lead to privatization of water and other public infrastructure anyway. The former French government sold the country's freeways to private investors, despite the fact that its own experts called this economic nonsense. The reason: the one-time cash infusion was an easy way to reduce the public deficit for the duration of one single year.

So corruption - which is probably rampant - aside, the problem with privatization is that it is interesting in the short term, and there are always politicians willing to sacrifice the long term for a pretty balance sheet. Their short-term decisions bind future governments and municipalities, while the more responsible decision to stay public does not prevent a future government from privatizing. This means that privatization takes place even if politicians who favor it are only in power once in a while. The way back is very costly.

To summarize, there's always someone who wants to sell the nest egg, and when it's sold, it's hard to buy it back.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

I've been getting less thirsty and hungry as a result of doing yoga.
Posted by: maxpayne on Oct 6, 2008 6:02 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Plus I have been staying off the corn-fed versions of most food products and trying out healthy substitutes. If more people would try those kind of ideas, then the companies trying to cash in on the languishing public infrastructure would be whacked by a vigilant public. That in itself would go a long way's towards undoing the privatization of water. Sorry folks but this water privatization mess didn't happen overnight. It's been a long ways coming right under our noses.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Sad
Posted by: RedFoxOne on Oct 6, 2008 6:11 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Thats the problem with todays society. Its all about money and personal gain at whatever the costs. very sad indeed.

Jiff
Online Privacy when it Matters

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Sad but true.......
Posted by: Spiritgirl on Oct 6, 2008 8:37 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
The fact is folks, the phrase "big government" only applies when Repugnikans want to give monopolies to their cronies in the "private sector"! As long as Americans believe the "big government" lie, we the people will continue to be seen as consumers and made to pay the price, quite literally!

It is time that we the people realize that it is up to all of us to keep "our" elected officials on our side by demanding that they work for "our" interest! Infra-structure is neither democratic nor republican, infra-structure does not recognize color, infra-structure does not discriminate along class or gender lines! Infra-structure is used by everyone!

As the drowning of the city of New Orleans should be a lesson to all Americans - our government has been working for the rich, corporate, and well connected! It is well past time that we the people must demand that power that has been taken from us, back!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Water is the next big issue coming up after they take our wealth.
Posted by: Prophit on Oct 6, 2008 8:49 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
... they have already taken total control of our food with shipping the ag business overseas and corporatizing the rest that is here, filling both our primary source of supply like beef with hormones and chemicals, filling alll processed food with the same.

Then genetically engineering our seeds and plants with life shortening "roundup" pecticides that sit in your stomach and weaken your immune system. Then they did NAIS which is forced registration of all domestic animals and a $1,000 per animal fine if you don't.

The regs on that if you read them state that these "domestic animals" become "shared resources" once they are finally registered.

Ask yourself, why is the carlyle group sitting on a global non profit org that is dealing with fresh water issues in third world countries??? The Carlyle group is a military industrial private investment firm owned by the saudi's and run by Georg Bush Sr in the US? They don't do anything out of the kindness of their hearts.

That org is trying to privatize water in third world countries. Then you have GW Bush Jr and Rev moon who bought over 800,000 acres between them over the largest fresh water aquifir in the world. They now have 500 marines stationed there on a camp on their land which the paraguay government is protesting... Foreign soldiers on sovereign land is not going down very well there.

I have collected a huge box of information on this that I haven't even had time to read, so this may prove bigger than any of our other issues since its CRITICAL TO LIFE FOR EVERY HUMAN ON THE PLANET. I think they saved this for last becuase it is that critical in creating a real rebellion by billions of people for protect their water supplies, as without them you can only live for about 3 to 4 days AS HURRICAN KATRINA PROVED..... nice war game there.

US withheld all rescue, water supplies etc for three days in New Orleans and wouldn't let even locals go in and bring water, they stopped the Wal mart huge tanker of water from going in as well. No one could understand why, including me, but the 3 days fits the test for how long can people survive and at what age would it begin to impact life.... It was a brutal experiment and that is when I knew we were dealing with pure EVIL....

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

call your reps and tell them NO MORE PRIVATIZATION
Posted by: cori on Oct 6, 2008 6:01 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Privatization means no oversight or reguLation. It meanS our tax dollars go to the corporations who want to own our asses and don't care if we live or die and if they could get their greedy hands on the air we breath they would. Phillip K Dick got it right in TOTAL RECALL. Soooo I called my senator and congresman up today and said NO MORE PRIVATIZATION. We need regulation, oversight in order to protect our lives and tax dollars. The time to speak out is NOW!!!! 202 224 3121.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

PERHAPS PEOPLE THINK IF ITS NOT THEIR PROBLEM ITS NOT WORTH WORRYING ABOUT
Posted by: cori on Oct 6, 2008 6:16 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
In my documentary that aired nationally on PBS in the 80's MOTHER EARTH IS NOT FOR SALE, contamination from the millions of ton's of redioactive waste that was left all over the southwestern United States didn't become a problem to the ranchers until it contaminated their water supply. It didn;t become a problem until people, not realizing it was radioactive, mixed it with concrete and built foundations out of it. People don't know it but when you mine Uranium for power plants, only 1% of the ore is used and 99% has been left on the Earth as radioactive waste. And they've left millions of tons of it next to rivers and schools and shopping centers. So you may not be worrying about your water now but it's coming your way and you better start taking action now. Call your reps 202 224 3121 and tell them no privatozation of water!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Our Species
Posted by: wormfarmer on Oct 7, 2008 4:50 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
needs regulation, as we have seen, if the free market is left to its own devices will bleed our society and environment dry. How many times do we have to be hit in this manner? Hit hard enough or long enough, the recipient of the abuse will either, 1. Rebel, or 2. run away. There is nowhere to run, and I won't have myself or the environment abused. The private control of the resources needed for survival is off limits to profit! Lets be good stewards of this planet, I like it.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Wrong the First Time, Wrong this Time
Posted by: davidzet on Oct 9, 2008 11:12 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
This article was posted at Grist 2 weeks ago.

So I repeat my critique from then:

http://aguanomics.com/2008/10/other-peoples-money.html

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]