Cochabamba! Cochabamba! Bolivia ’ ’s Water War s Water War Bolivia Amy Chan Amy Chan Victoria Kahn Victoria Kahn Cherish Scott Cherish Scott Peter Vetere Vetere Peter
Leading to the Water War Leading to the Water War Leading to the Water War Leading to the Water War � Cochabamba and the water scarcity problem Cochabamba and the water scarcity problem � � Commodification of resources Commodification of resources � � Law 2029 (1999) Law 2029 (1999) � � Rural/Urban drilling conflicts Rural/Urban drilling conflicts � � Aguas del Tunari contract Aguas del Tunari contract �
The Water War The Water War The Water War The Water War � Riot 1 (December 1999) Riot 1 (December 1999) � � Law 2029 (prohibits guarantee of water to rural areas, rain Law 2029 (prohibits guarantee of water to rural areas, rain � collection … ) collection … ) � Aguas de Tunari gains exclusive rights Aguas de Tunari gains exclusive rights � � Traffic blockade Traffic blockade � � Agreement to revise law and contract Agreement to revise law and contract � � Riot 2 (February 2000) Riot 2 (February 2000) � � Agreement not honored Agreement not honored � � Peaceful protest turned violent Peaceful protest turned violent � � Agreement to revise law and contract Agreement to revise law and contract � � Riot 3 (April 2000) Riot 3 (April 2000) � � Two day street war Two day street war � � Aguas de Tunari leaves voluntarily Aguas de Tunari leaves voluntarily � � Law 2029 modified, control returned to SEMAPA (municipal Law 2029 modified, control returned to SEMAPA (municipal � company) company) � Problems still remain Problems still remain �
State and Private Control State and Private Control State and Private Control State and Private Control � What went wrong? What went wrong? � Why? Why? � � � Abuse of power Abuse of power � Centralized bureaucratic Centralized bureaucratic � � control control Haves ” ” versus the versus the “ have- -nots nots ” “ Haves “ have � Unequal distribution Unequal distribution � “ ” � � � Decisions based on technical Decisions based on technical � Lack of communication Lack of communication � � convenience rather than convenience rather than consumer demand consumer demand � Governmental officials as Governmental officials as � Accountability Accountability � � stakeholders in Aguas Aguas del del stakeholders in Tunari Tunari � Lack of popular Lack of popular � Exclusion from decision Exclusion from decision- - � � consent/sovereignty consent/sovereignty making process making process
Solutions: Well Solutions: Well- -Implemented Implemented Implemented Solutions: Well Solutions: Well Implemented Privatization Privatization Privatization Privatization � Role of the state government � Role of the state government � Regulation Regulation � � Monitoring (water quality and waste treatment) Monitoring (water quality and waste treatment) � � Representation Representation � � Accountability/ Overseer Accountability/ Overseer � � Role of the private consortium � Role of the private consortium � Fulfill contractual obligations Fulfill contractual obligations � � Service provider (infrastructure and supply) Service provider (infrastructure and supply) � � Innovator Innovator � � Constrained operations Constrained operations �
Solutions: Decentralization Solutions: Decentralization Solutions: Decentralization Solutions: Decentralization � Role of state government � Role of state government � Similar to private approach (regulation, monitoring, Similar to private approach (regulation, monitoring, � accountability) accountability) � Role of local water committees � Role of local water committees � Small service providers Small service providers � � Greater participation Greater participation � � Independent and community Independent and community- -specific specific � � Market Incentives � Market Incentives � Tradable water rights Tradable water rights � � Infrastructure support (grants and loans) � Infrastructure support (grants and loans) � State government State government � � International organizations International organizations � � NGOs NGOs �
Decentralization in Cochabamba Decentralization in Cochabamba Decentralization in Cochabamba Decentralization in Cochabamba � Low susceptibility to privatization due to past Low susceptibility to privatization due to past � failure failure � Access to Access to “ “tacit knowledge tacit knowledge” ” � � Lower transaction costs Lower transaction costs � � Increased legitimacy Increased legitimacy � � Increased transparency Increased transparency � � Clearly articulated property rights Clearly articulated property rights �
Sources Sources Sources Sources Barlow, Maude, and Tony Clarke. “ “The Struggle for Latin America The Struggle for Latin America’ ’s Water. s Water.” ” NACLA NACLA Barlow, Maude, and Tony Clarke. � � Report on the Americas. 38.1 (2004): 15 . 38.1 (2004): 15- -18. 18. PAIS International PAIS International. CSA. Cornell . CSA. Cornell Report on the Americas University Library. 12 April 2007 www.csa.com. www.csa.com. University Library. 12 April 2007 De la Fuente, M. “ “ The water war in Cochabamba, Bolivia: Privatization triggers an The water war in Cochabamba, Bolivia: Privatization triggers an De la Fuente, M. � � uprising.” ” Mountain Research and Development. Mountain Research and Development. (February 2003): 98 (February 2003): 98- -100. 100. uprising. Franz Ch vez, “ “LA PAZ BOLIVIA: AFTER COCHABAMBAS WATER WAR, LA PAZ BOLIVIA: AFTER COCHABAMBAS WATER WAR, Franz Ch vez, � � PROBLEMS REMAIN” ”, , IPS IPS - - Inter Press Service Inter Press Service, 8 Nov. 2006. , 8 Nov. 2006. PROBLEMS REMAIN Ostrom E. 2000. Private and common property rights. In Encyclope Ostrom E. 2000. Private and common property rights. In Encyclopedia of Law and dia of Law and � � Economics, Vol. II: The History and Methodology of Law and Economics, Boudewijn mics, Boudewijn Economics, Vol. II: The History and Methodology of Law and Econo Brouckaert and Gerrit De Geest (eds). Edward Elgar: Cheltenham; 332 332– –379. 379. Brouckaert and Gerrit De Geest (eds). Edward Elgar: Cheltenham; Ringler, Claudia, Ruth Suseela Meinzen- -Dick, and Bryan Randolph (ed). Bruns Dick, and Bryan Randolph (ed). Bruns Water Water Ringler, Claudia, Ruth Suseela Meinzen � � Rights Reform: Lessons for Institutional Design. International Food Policy Research . International Food Policy Research Rights Reform: Lessons for Institutional Design Institute, 2005. PAIS International PAIS International. CSA.. Cornell University Library. 12 April 2007 . CSA.. Cornell University Library. 12 April 2007 Institute, 2005. http://www.ifpri.org/pubs/books/oc49/oc49.pdf. http://www.ifpri.org/pubs/books/oc49/oc49.pdf. “The fight for water and democracy: an interview with Oscar Olive The fight for water and democracy: an interview with Oscar Olivera ra” ” Multinational Multinational “ � � Monitor June 2000 June 2000 Monitor < <http://multinationalmonitor.org/mm2000/00june/interview.html http://multinationalmonitor.org/mm2000/00june/interview.html> >
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