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Blogs by Arthur Jackson
Hello 11/18/2006 5:00:15 AM
The realities of todays world are often hard to see. A recent question in one of my classes caused me to do some research on the issues of water. Should it be privatized or not? The answer I found was quite surprising. Water realities
If you ask people the importance of a barrel of oil in today's world, almost everyone can tell you how important energy is in the global marketplace. Yet, ask the same individual about water and most will stare at you blankly. The simple truth is that we live on a planet composed of 75% water, but where only 1% of all that water is available for human use. From that 1 percent we must currently allocate 75% to agricultural needs of the world, and of the remaining amount, 20% goes to industrial needs. This leaves a bare 5% of 1% for human consumption and sanitation. As the world's population has grown, the requirements for fresh water have increased 600 percent as referenced by Kofi Annan, in "We the Peoples”, 2000. It is this increase in demand for fresh water which prompted the United Nations through its United Nations environmental project, the World Bank, the International Monetary Fund, and a number of governments around the world to begin an effort to protect this resource. Yet in today's world the sad truth is that many governments find themselves without the economic ability to address this problem. Some are to poor, or unstable, and others are more interested in military might, than allocating appropriate resources to protecting critical water sources. Even in the United States the government is moving toward privatization in areas that had traditionally been reserved as the sole responsibility of government. Most notable of these efforts in the U.S. is the move toward privatization of Social Security. In the area of water resources the move toward privatization in many states and cities began in this country long ago. Privatization is a reality of today’s world.
This move toward privatization of certain critical resources is necessary, and proper. As governments find themselves unable to fulfill their obligations in certain key areas, it is necessary to turn to the private sector to generate resources to preserve the public good. It is true private companies bring with them mixed blessings. It is not disputed that the primary driving force for most private organizations is profit. Yet, until the face of the emergency can be placed in economic terms, the public will not recognize it as an emergency. When the price of a barrel of oil was $10 a barrel few people in this country, or around the world recognized the problem of a growing population consuming from a fixed pool of resources. Now with oil prices above $57 a barrel, everyone recognizes the problem. So it is with water. There's a need to attach an economic face to the commodity before people will recognize its value and worth as a critical resource. Private companies fulfill that goal. As referenced in Fortune magazine in their article, "Water, Water Everywhere", written by Shawn Tully in 2005, the financial stakes are tremendous. Water privatization represents a $400 Billion a year industry. That is 40 percent the size of the oil sector. By placing it in these terms we make it possible to attract private industry to the problem and we place it in perspective so that the average person can understands it in economic terms. The simple truth of the matter is that without help from private investment much of the work needed to preserve fresh water will not be accomplished. Does this mean increasing prices for poor? The simple answer is yes. But, without privatization the problem will not be resolved. That would be far more disastrous for everyone.
Currently it requires 450,000 gallons per year of water, to meet the needs of the average person in the modern world. This amount is based on an allocation per person to meet the need for agriculture, industry, sanitation and drinking. Falling below that level, means becoming water stressed. By 2025, two out of every three people on this planet will be living in areas that are water stressed. They will not have enough water to survive, according to reports from the United Nations, the Global Water Project, the IMF, World Bank, and a host of other sources. To prevent this disaster, privatization is the only available answer.
This was not the answer I expected to find. But, as life teaches us, the answers we find may not be the ones we seek. I hope you find this information useful.
