ODT: Water Privatization

Water privatization is a short-hand for private sector participation in the provision of water services and sanitation, although sometimes it refers to privatization and sale of water resources themselves[1] Opening Water Privatization is often labeled as a highly controversial topic. Many opponents of the action raise points about Privatization decreasing economic efficiency, or that water is considering a God-given innate right and should not be treated as an economic resource. The most debated point is that Water privatization hurts the environment. I will address these point as my main contentions throughout this debate. Contention One-Economic Efficiency of Water Privatization Private companies are simply out to make profit. While this may seem non-caring initially, It actually is actually a positive way of working. Since the private company is out to make a direct profit, all business decisions affect the company in a positive(Profit) of negative(No Profit) manner. This spurs the private companies to invest more in the private water market, specifically better water infrastructure and improved water systems. If these systems turn out superior then not only will the people most likely frequent the private company's water product/service. Government based services are not out for any profit. While this sounds great, this means that their decisions don't actually affect their economic outcome. So thus, there is no motivation to innovate or provide a good product/service. Another great point about the economic efficiency of water privatizations is that market competition between rival private companies will naturally lower. Because consumers have a choice between the rivals each which seek to establish a balance between a low cost product and a well made product. Whichever product/service is more appealing to the people, that company will succeed. Government based water service don't have the luxury of having to compete, as they are backed by a Government entity. Contention Two-Water should be treated as an economic good not as a fundamental right "The idea of 'water as an economic good' is simple. Like any other good, water has a value to users, who are willing to pay for it. Like any other good, consumers will use water so long as the benefits from use of an additional cubic meter exceed the costs so incurred. "[2]- "Water as an Economic Good" The World Bank 1996 Usually rights are considered to ideals that are protected by the governments, that we can often discuss and make decisions over. Rights were not meant to be items that can be contained. When this happens the said item can now be considered to be an economic good. Another reason water should not be a fundamental right is the burden is puts on the already strained government to provide for the people. With governments worldwide being abused for breaking their respective social contracts with the people(Constitutions and such) and causing human rights violation this adds a new twist to the social contract. Now the government actually has to provide an item the human eye can see. So what happens if the government cannot provide water to the people? Should the people revolt? Should the government say sorry? This is the a valid problem with water being an right. Again, private companies have the obligation to provide water to, but if the people are dissatisfied then all they have to do is find another company that will cater to their needs. Contention Three-Water privatization is good for the environment Due to companies wanting to maximize profits for the longest amount of time possible ,many take strides to innovate and find more environment efficient ways to produce a product that does not harm their future product. Also, if the public does not agree with a company whose policies harm the environment, then they are free to boycott the product and seek more environmentally efficient companies. This checks the companies into making sure the have the best interests at their(private company) and the people's heart. The government usually regulates the environmentally based regulation of most private companies. What the government fails to bring to light is the fact that A-These regulations only apply to private companies and not government based ones. B-If the regulations apply to government based companies then the requirements can be changed by the government. This gives government based water companies a "One-up" over the people. Closing With privatization there is a series of checks and balances that are directly dependent upon the Consumer. Having a government based water system takes out the direct power of the people to determine what a good product/service actually is. Thank you. I now open the floor to the con. Sources- [1]-. http://en.wikipedia.org... [2]-. http://lnweb90.worldbank.org...