Thirsty for Change: Considering Water Privatization in Developing Countries

Abstract

Access, maintenance, and distribution of clean water are daunting tasks for developing nations. Efforts to provide clean drinking water have often fallen short, which has prompted the World Bank to advocate for privatization. From a theoretical perspective, privatization blends the advantages of corporate efficiency with responsible management on behalf of the national government. Analysis of attempts to privatize water in the Philippines, with the establishment of the Metropolitan Waterworks Sewerage System (MWSS), shows mixed results. Between 1997 and 2003, citizens with access to water increased from 58 percent to 84 percent, yet water became five times costlier due to privatization. Advocates may applaud the efficiency of the model, but developing nations must emphasize accessibility and affordability of the resource. Privatization, as a model for water distribution, remains contentious. * The following authors include MPA candidates at Columbia University’s School of International and Public Affairs and a researcher at the Earth Institute. The authors would like to thank Casey Brown, from the International Research Institute for Climate and Society. He provided precise commentary and motivation that aided in writing this report. Jack Foshee, an MPA candidate, has a research focuses on renewable resource systems and sustainability issues. He can be reached at jf2425@columbia.edu. Anirban Ghosh, an MPA candidate, has a primary research interests in the maintenance of large water systems and urban energy use. He can be reached at ag2638@columbia.edu. Christopher Graham, an MPA candidate, can be reached at cjg2131@columbia.edu. William Thomas Murray, an MPA candidate, has a primary interest in the development and implementation of a comprehensive emissions-reducing bill in the United States. He can be reached at wtm2102@columbia.edu. Celine Ruben-Salama is a Swedish American living and working in New York City pursuing her MPA. Her main focus is private sector solutions to Environmental issues and private-public partnerships. She can be reached at csr2109@columbia.edu. Dr. Tobias Siegfried is currently working at the Earth Institute, Columbia University. He studies a broad range of issues related to the management of scarce freshwater resources and its improvement. He can be reached at ts2392@columbia.edu.