Friday, April 4, 2014

Calorie Companies versus Water Privatization

            When considering all the mounting environmental and resource availability problems our modern society is facing, many people turn to advances in technology and neo-liberalisation as potential solutions.  In Paolo Bacigalupi’s novel The Windup Girl, powerful agro-businesses, known as “calorie companies”, specializing in genetically modified organisms hold almost absolute economic and political control in a future society. One relationship I noticed between Bacigalupi’s world and our world is between the control of calorie companies in the future world and the potential for water privatization today.  Both are examples of the so-called “solutions” where industry takes over control of a necessary resource, with the expectation that pressures of supply and demand coupled with technological advances can solve societal problems better than government regulation.  I’m arguing that both Bacigalupi’s novel and modern cases of water privatization are examples of this theory going awry.  Although water privatization can benefit the public and help create water security, when implemented incorrectly it can lead to ramifications similar to the result of calorie company control in The Windup Girl.

            Water privatization involves transferring the control of water operations and distribution from the public sphere into private hands, and is a very controversial topic.  Those who advocate for privatization argue that the private sector, operating on the principles of supply and demand, would be much more efficient in setting prices, updating infrastructure and technology, and distributing water than the government.  Those opposed argue that water is a fundamental human right, and should be controlled by the public sector to avoid problems caused by high prices or poor water quality. 

Today food is, of course, controlled by the private sector and sold in markets operating on the principles of supply and demand—but it is regulated by the government and not nearly as monopolized as it is in The Windup Girl.   The monopoly of food resources that the calorie companies hold in futuristic Thailand allows them to engage in bio-warfare and create a market for their products because they control such an important resource.  Similarly, businesses that exercise a monopoly over water resources have the option to manipulate the resource to their benefit, because water is an even more essential human need than food.  I am not arguing that water privatization leads to bio-warfare, but it can often lead to pricing out of the poorer class, health problems, and conflict.

            An example of this occurred in Cochabamba, Bolivia in 1998. The Cochabamba government was corrupt and inefficient and therefore unable to provide sufficient water to their citizens. At that time the World Bank was spending a lot of money to promote neo-liberalism in developing countries with transitioning governments, like Bolivia.  The World Bank lent them money on the condition that they privatize their water system.  Cochabamba entered into a 40-year contract with a private firm, giving them total control and ownership over their water system, including the water itself.  Prices of water skyrocketed, traditional water practices were banned, and the water quality actually decreased.  After just two years, public protests and civil unrest led the government to break the contract and take back control of the water system.

            Like in Cochabamba and Bacigalupi’s futuristic Thailand, when companies gain absolute power over a resource that is essential to life, such as water or calories, there is a strong possibility for corruption and greed.  Many people view technological advances and neo-liberalism as keys to solve and adapt to our growing environmental problems, The Windup Girl warns against this growing reliance.  As we discusses in class, human nature tends to be “reactive” as opposed to “proactive” and instead of dealing with issues of climate change and water scarcity head-on favors taking the easy way out and trying to adapt using technology and economic control.  I believe that in order to be proactive we should focus fixing on the systematic flaws of our lifestyles to try to combat the problem, as opposed to relying corporations and technology to combat them for us.



1 comment:

  1. I agree that the privatization of water poses dangerous risks. A shortage of water or food would be devastating, and likely lead to violent conflict. However, water privatization seems to pose a more imminent threat because of the nature of water distribution. In the United States there is typically one water provider for a given area. A private company with sole access to a region is essentially a monopoly. The power a water monopoly would have is too severe to allow.

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