For a disturbing read, this whole article is worth a read for everyone here:
http://www.corp-research.org/archives/may02.htmProfits, Profits Everywhere – And Soon Not a Drop to Drink
by Mafruza Khan
In a May 2000 special issue on privatization of water, Fortune magazine dubbed water the “oil of the 21st Century.” The worldwide crisis of freshwater supplies is so great that it is now a commonly held belief that the wars of the 21st Century will be fought over water. Water represents the last of the global commons to come under the control of market forces. Cash strapped governments are increasingly acquiescing to fiscal pressures and lobbying by transnational corporations to privatize water. Despite being a relatively new sector, studies show that water privatization has often led to many unfulfilled promises.
THE STAKES
The global water industry is valued at about $400 billion annually. This includes everything from privately owned and/or operated municipal and regional water systems, bottled water, dams and waterways, water desalination and purification systems to large-scale water exportation via supertankers. The private water sector in the United States generates more than $80 billion a year in revenues. “Water stock fundamentals look good, and over time, the stocks should continue showing gains, ... if not outperforming the market,” says Schwab Capital Markets analyst Debra Coy.
In the United States, local governments have generally assumed responsibility for providing water services. About 80% of municipal and regional water systems in the United States continue to be in the public domain. The remaining are served by corporations. Cities such as Atlanta and Indianapolis have only recently privatized their municipal water systems, while cities such as New Orleans have had privatized water systems since the early Nineties. Europe’s leading water companies see the United States as the last bastion of water services not yet under private control. Still largely unknown to the public, private water companies are quietly pushing the agenda for privatizing municipal water in the United States and in third world countries to gain control of this new market.
The stakes for communities, particularly poor ones, are also very high. In 2000, in Cochabamba, Bolivia, a seventeen-year old student was shot in the face by the Army during protests sparked by an increase in local water rates. The government had declared martial law. The chief demand of the protesters - peasants, ordinary citizens and trade unionists - was the removal of a private foreign-led consortium dominated by United States-based Bechtel Corporation. The company’s executives fled after they were told that the police could no longer guarantee their safety. The Bolivian government revoked the contract with the consortium as it had abandoned its concession. A new national water law was passed, which protected small independent water systems, guaranteed public consultation on rates and gave social needs priority over financial goals. Bechtel is suing the Bolivian government for $40 million at the World Bank’s Center for Settlement of International Disputes.
much more on the impact within the U.S. at the link above