privatization of water

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Water Privatization
In the article “The Case for Water Privatization,” Louis Glinzak makes a case for water privatization. Societies have always embarked on two different options: public and private utilities for the provision of water. There are many theories in support and against both privatized and public water service systems. Although there have been successful cases of water privatization, critics argue that there is low social equality in water supply and it is expensive. The Economist contradicts this by saying that when privatization of water services is expensive, it will cater for higher rehabilitation, more improved the water services, and better quality of water. Glinzak suggests that water privatization will help the devolution of the government, and eliminate the corrupt entities from controlling the water services. He further says that privatization is efficient and profitable that it can use various alternatives to supply water to the people rather than through a fixed service by the central government. There are challenges of privatization as it can be mismanaged by a corrupt government, where the government may choose to favor desired companies in the bidding process. Even though water privatization will help devolution of government, in this paper, I will oppose the privatization of water services due to following reasons. One, demand for water is not affected by the market shifts. Two, water privatization is for profits, not a public concern.

Three, privatization can make the poor not to access the clean water. Four, private corporations are not likely to charge of the environmental dangers. Lastly, water privatization would hike prices and offer low quality.
Firstly, the demand for water is directly proportional to population growth, and it is not affected by the market signals just like other resources. Therefore, I disagree that if water is untreated as an economic benefit, it is wasted. For example, the wealthy consumers in developed nations frequently waste water through their extravagant usage of amenities such as swimming pools, garden sprinklers and so on and they will prosper. This is a problem that will worsen as income disparity raises, both amid and within nations. According to the article, “The Race to buy up the world’s water,” privatization will divide the world into different boundaries: the rich will have their water separately, and the poor will be left to fight over on the other side. To handle this problem, demand control needs must be induced to curb waste and to safeguard access for everyone, including the underprivileged, an incentive which water privatization in an economic manner will not attain. This is the sole work of the government to control water supply services, accountable to the citizens, not the private firms.
Secondly, water privatization is for profits, not a public concern. For the worldwide water objectives to be attained, a large amount is required. However, the private companies will engage only if there are higher financial returns. According to the article, “The Race to buy up the world’s water,” Interlandi confirms that there is no substitute for water. Markets are not concerned about the environment, neither do they care about human rights, but the profits. This means that the actual expenditure of the venture will ultimately be expensive compared to public funding. So investment from privatization is less preferable compared to that of the public as they will concentrate on the investment in areas of need, instead of focusing on the most lucrative chances. This is a natural resource, and the private firms will have no competitive forces to deliver quality at affordable prices. Even the developed countries experience that water privatization is not positive. The shareholders are the most beneficiaries, and the foreign companies control most of the industries. They hike up the prices at will, and whenever there is a drought, they experience widespread water rationing. For example, California has recently experienced an electricity supply crisis, which demonstrates how severely regulation of private services can go wrong. Therefore, the water supply should not be privatized, but should be managed under the public control.
Thirdly, privatization can cause the poor not to get the clean water. Water treatment as the only economic good will be unfavorable for the poor. The wealthy people might benefit from badly directed grants in some undeveloped nations; nevertheless, that still means that these supports are important to the unfortunate. Many farmers depend on the state-funded irrigation water, and privatizing the irrigation water would make the farmers look for other options such as fetch water from a distance river or depend on rain water, which does not come frequently. So this will lead to poor farm produce and low living standards. This shows that the poor will not pay for the low prices offered by the private firms. They would prefer the state-funded water than the new cost.
Fourthly, Private corporations are not likely to charge of the environmental dangers. Their responsibilities are to attain the stakeholders’ demands, not to the public and the environment in general. According to the article, “Top 10 Reasons to Oppose Water Privatization,” (1) private companies’ major concern is to satisfy the shareholders, not the public. Their intention will be to reduce cost and maximize profits, most probably at the cost of high environmental principles. Trying to utilize market devices, for instance, water exchanges to safeguard the ecological system is also not a good move. The worth of a healthy ecological unit and biodiversity cannot easily be calculated. Attempting to achieve this will just expose the environment as another resource to be exploited, instead of being protected for its sake.
Lastly, water privatization would hike prices and offer low quality. It is true that water is a natural resource conditional on supply and demand. Nevertheless, it should not be treated as an economic benefit. The fact that it is natural, it should be collected, well managed, processed and supplied, but not an expensive system of tanks, waterways, and pipes. According to the article by Montag, on civil society demanding firms to drop their bids for public water corporations, confirms that water privatization would hike prices and offer low quality. The article explains that international water companies have failed to deliver high quality of water as they charge high prices. There should be measures to treat the contaminated water and human wastes. Water should not be privatized since it is a natural resource and free. It is also important to life and humanity. Inadequate or inaccessibility of water is the cause of most diseases and ill health in the developing nation, and without it, individuals cannot participate in farming as a source of income to support themselves. Over-extraction or polluting of the water sources damages the environment. As a result, water is essential and must be viewed as a common, and the primary responsibility of the government to its citizens. Everyone has a right to access clean water, and should not be traded away or privatized based on cost.
In conclusion, even though privatization is efficient and profitable that it can use various alternatives to supply water to the people, it should not be accepted since the demand for water is not affected by the market shift, it is for profits, not public concern and it can make the poor not to access the clean water. In addition, private firms are not likely to protect the environment degradation, and it would hike prices and offer low quality.
Works Cited
“Top 10 Reasons to Oppose Water Privatization.” Water for all. N.p., n.d. Web. 29 Nov. 2016. <http://www.citizen.org/documents/Top10-ReasonsToOpposeWaterPrivatization.pdf>.
Interlandi, Jeneen. “The Race to Buy up the World’s Water.” NewsWeek. Jeneen Interlandi, 08 Oct. 2010. Web. 29 Nov. 2016. <http://europe.newsweek.com/race-buy-worlds-water-73893?rm=eu>.
Montag. “Civil Society Groups and Meps Call On Companies to Drop Bid for Public Water Company in Greece.” Right to water. Montag, 26 Aug. 2013. Web. 29 Nov. 2016. <http://www.right2water.eu/de/news/civil-society-groups-and-meps-call-companies-drop-bid-public-water-company-greece>.