By Fedrik Segerfeldt
This e-book exhibits why the protesters are improper and the way extra reforms might keep the thousands of lives and increase the lives of hundred of others.
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Additional resources for Water for Sale: How Business and the Market Can Resolve the World's Water Crisis
Example text
Water that cannot be traded is pent up in the use that politicians have determined for it. Its yield is then suboptimized and the whole country left so much the poorer. It is quite common in poor countries for big farmers with good water supplies to grow water-intensive crops instead of those needing less water. In the latter case they could sell the surplus, for example, to industry. But you can’t sell what doesn’t belong to you. If farmers can sell their water at prices freely negotiated with the buyers, some of them will sell it for more useful purposes, such as to other farmers or to nearby towns and cities.
Water supply has grown faster than in any other country. Thirty years ago only 27 percent of Chileans in rural areas and 63 percent in urban communities had steady access to safe water. 47 But the most important reform was the introduction of the right to own water and to buy and sell it at freely determined prices. Trade in water increased people’s access to water in two ways: • The amount of water available increased, because the owners (farmers) now had a strong incentive to avoid spillage and produce and deliver as much as possible.
The politically determined allocation is insufficient for their needs, and they have no possibility of buying water, because there is no such thing as a water market. But in other parts of India the appearance of tradable water rights has made water legally procurable. Added to which the water trade has led to more efficient use and, consequently, less shortage, which in turn reduces tensions and the likelihood of conflict. Markets and Conflicts 41 It should be noted, though, that there is a growing body of research arguing that the threat of conflict over water is exaggerated.