Big Water Companies Quit Poor Countries (Privatisation failing)

[Gloria]

From the new World Media Watch up now at http://www.zianet.com/insightanalytical
Tomorrow at Buzzflash.com


5//The Guardian, UK Wednesday March 22, 2006

http://www.guardian.co.uk/water/story/0,,1736511,00.html



BIG WATER COMPANIES QUIT POOR COUNTRIES

· Political and consumer pressure forces rethink
· British firms identified as seeking less risky markets

John Vidal, environment editor


Millions of people could have to wait years for clean water as some of the world's largest companies pull out of developing countries because of growing doubts about privatisation projects, a major UN report reveals today.



(SNIP)

Water privatisation was seen by the World Bank and G8 countries as the most effective way to bring clean water to large numbers of poor countries throughout the 1990s, but in spite of investments of $25bn (£14bn) between 1990 and 1997, the rich have mostly benefited at the expense of the poor. Sub-Saharan Africa has received less than 1% of all the money invested in water supplies by private companies in the last 10 years.



(SNIP)



The UN report, which urges private firms to partner local authorities or governments, says the trend of privatisation is now reversing and that local and small-scale water companies are mushrooming. "Their potential to improve water supply remains unexplored ... There is a need to refocus privatisation. It is high time to bring the government back in," it says.



The report was broadly welcomed by development groups. "Water privatisation in developing countries has failed. Despite this, the UK government and the World Bank insist on supporting it at the expense of the world's poor. Governments and international institutions must ... invest public money in proven public solutions," said Peter Hardstaff of the World Development Movement in London.



In a separate report, the UK relief and development charity Tearfund claims that aid for water and sanitation from the EU and its members has been falling for five years, despite the fact that 6,000 children die every day as a result of poor water and sanitation. More aid money is going to middle-income rather than low-income countries, it says.