16 Facts About Water privatization

Water privatization is short for private sector participations in the provision of water services and sanitation.

Water privatization has a variable history in which its popularity and favorability has fluctuated in the market and politics.

Full privatization of water supply and sanitation is an exception today, being limited to England, Chile and some cities in the United States.

Motives for water privatization vary from one case to another, and they often determine which mode of privatization is chosen: management and lease contracts are used to increase efficiency and improve service quality while asset sales and concessions primarily aim to reduce the financial burden or to expand access.

Water privatization is seen by some as a solution to improving poorly managed public water utility systems.

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Critics claim that these external influences are problematic and argue that influencing water privatization is part of a broader movement of Western powers imposing neoliberalism on countries in the Global South.

Fiscal motives for water privatization are common in countries where water access and service quality is poor.

The Pinsent Masons Water privatization Yearbook uses a broader definition including wastewater services.

Water privatization concessions are frequently renegotiated, often resulting in better terms for the private company.

Water privatization wanted the construction of a large dam, the Misicuni dam, and a pipeline from the dam to the city to be included in the concession.

The Cochabamba protests became a worldwide symbol of struggle against neoliberalism and the Cochabamba privatization is probably, both among activists against globalization and the general public, by far the best known example of the failure of water privatization.

However, in other countries such as Nigeria and Ghana where the governments fail to distribute access to water to the people, water privatization led to expansion of services to low-income districts.

One of the most effective measurement to analyze the effectiveness of water privatization is child mortality rate since children are more likely to be negatively affected by contaminated waters.

Water privatization has historically had mixed impacts on child mortality and the overall health of the people affected by it.

Water privatization companies working on a commercial basis might find it too costly to implement systems to better the water quality beyond what is necessary by law.

However, there are some other cases that tariffs under water privatization did not increase in a long run, typically in Sub-Saharan Africa, where most of investments are funded through development aid.