Transnational corporations and the global water industry

Abstract

AbstractThis article takes stock of foreign direct investment (FDI) undertaken by transnational corporations (TNCs) in the global water industry and examines the evidence on the impact of their operations in host countries. Between 1996 and 2006, approximately $12 billion were invested in water‐related sectors, of which 75% came from the private sector (including TNCs) from just four countries, while tentative calculations put the global share of investment by TNCs at 56%. Presently, 243 enterprises have interests in 409 water projects in 53 host countries. However, just six countries have received over half of the total investment. A survey of the evidence reports mixed results of the impact of TNCs' investment in host countries. It is argued that the biggest issue here is pricing, a dilemma that, alongside the privatization issue of host countries' water industry, is discussed in the concluding section. © 2011 Wiley Periodicals, Inc.