Quote:
|
Originally Posted by dantonac
Quote:
|
So for me, the question is not how to find the money to pay for the potable water but how do we control the costs so it is low enough to be accessible by even the poorest? Just like your Teleco example, a monopoly is a formidible barrier to entry. Does privatization lead to competition?
|
It can, but for utilities it is difficult to increase competition. |
Well, this is why the government does things like require leasing agreements for infrastructure owners, as in the telco system in the US.
It may not be ideal, and of course, there are disagreements as to fair pricing structures and so forth, but that's why, to me, it makes sense for the infrastructure--water delivery systems, power grids, telco--to be publicly held. Then, providers, including water treatment plants, power generation, and telecommunications providers--can actually compete to provide better services for lower prices. (Or where there is, at the very least, the potential for real competition, assuming we maintain and enforce ownership regulations.)
Quote:
|
The problem is the government in question wasn't able to provide potable water for everyone nor was it able to bill those it provided water to. The bank said privatise your water. Why? I don't really know but I can speculate that the bank wanted to ensure that business could get the water it needed. This makes sense. Who would open a business if basic things like water weren't assured?
|
Actually, in these cases, the privatization of the water systems is, by all accounts, boilerplate. The IMF consistently requires this as a condition of the loan, and they do specify which private company will have the monopoly on water treatment and delivery. If they were genuinely concerned about the welfare of the nations to which they lend money, wouldn't they at least put that sort of thing up for bid?
They are, simply, not interested in the welfare of the nations they lend money to. It's not even their stated goal. Their stated goal is to protect the interests of international trade.
Quote:
|
It may seem like people are getting screwed in favor of business, but in reality the people were already being screwed and any improvement in the infrastructure due to business will only help people.
|
Are they really, though? I guess I'd need to look into this more, but it is my understanding that many more people are left without access to sufficient clean water after these IMF privatization schemes than there were before.