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Deccan Herald » Panorama » Detailed Story
Trading water is not a solution
By Kathyayani Chamaraj
MNCs appear to have no qualms about "profaning" the "sacred, life-giving, goddess-like mother" by hawking her for a sheaf of dollars. Too bad, they seem to be saying, if a few poor are left thirsting by the wayside.


There is a whirlwind of protests whipping up against privatisation of water distribution, already in vogue in several cities of Karnataka. The proposed setting up of a regulatory council for water is seen as a prelude to further privatisation and to the likely introduction of pre-paid water cards.

“Water is life itself, sacred, and a goddess.” “Water is like our mother, how can we sell her?” say agitated activists. These emotional overtones indicate that privatisation of water distribution is seen not just as a policy change, but as an onslaught on our culture.

First of all, say activists, “a lifeline supply” — water of a certain minimum quantity — must be free for sustenance needs to all; secondly, water is a commons and, as such, it cannot be sold as a commodity.

With dwindling markets worldwide, water is being eyed by global investors and MNCs as having the greatest potential for profit, say experts, the world market being estimated at $1 trillion. Public-private partnership being advocated by governments and International Finance Institutions (IFIs) like the World Bank (WB) is a euphemism for the conversion of “public goods into private profits”, say activists.

“Your valve-men are corrupt; your engineers are inefficient; your water boards are making losses. Why don’t you just pull aside and let us do the job for you,” seems to be the implicit refrain of the IFIs and MNCs. Never mind that the water has still to be supplied by the state, as was the case with the Delhi Jal Board (DJB), with the private contractor hardly making any investment of his own. And the company would be assured of profit, whether or not the people got water!

The Bangalore Water Supply & Sewerage Board (BWSSB) is considered one of the most efficient water boards in Asia despite shortcomings. It is providing water free to almost one-third of the citizens.

Several examples around the world have shown that privatisation is not the only alternative for public sector inefficiency and that there are other successful forms, such as through cooperatives of citizens themselves.

SAGUAPAC, a people’s cooperative, has been providing water since 1979 to one million residents of Santa Cruz, Bolivia. Each resident is an automatic member of the cooperative and they elect members to the administrative board. The board approves tariffs and ensures that there is full cost recovery from water users. A lower price is charged for the first 15 cu mts consumed by a household per month. There is no free supply as such, but those failing to pay are not disconnected, so that the poor get self-selected.

SAGUAPAC is considered as a successful model for its 100 per cent metered connections and 24-hour water supply, which has also been commended by the World Bank itself for its efficient and virtually corruption-free administration.

The National Water Policy 2002 also says that the ultimate goal should be to involve water users’ associations and the local bodies in water supply “with a view to eventually transfer the management to them”. Then, why is the opposite being done?

MNCs appear to have no qualms about “profaning” the “sacred, life-giving, goddess-like mother” by hawking her for a sheaf of dollars. Too bad, they seem to be saying, if a few poor are left thirsting by the wayside.

(The writer is a trustee, CIVIC-Bangalore)

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