SIGUIENDO LA CORRIENTE: CÓMO EL COMERCIO, LAS FINANZAS Y LOS REGÍMENES DE INVERSIÓN INTERNACIONALES INFLUYEN SOBRE EL SUMINISTRO DE AGUA A LOS POBRES

This briefing by the Center for International Environmental Law examines how international financial institutions, investment treaties, and trade agreements pressure national governments to privatize water services, potentially compromising the human right to water and limiting regulatory flexibility.

• International Financial Institutions (IFIs), specifically the World Bank and the International Monetary Fund (IMF), promote privatization as the primary solution for water scarcity, often making loans conditional on the adoption of private sector participation in water and sanitation services.
• The document argues that access to water is a fundamental human right, linked to the right to life and a healthy environment, which obligates governments to protect water access from market volatility.
• Bilateral Investment Treaties (BITs) and concession contracts can 'trap' governments by allowing private investors to bypass national courts and sue states in international arbitration tribunals, such as the ICSID, if regulatory changes diminish the value of an investment.
• The General Agreement on Trade in Services (GATS) converts IFI policy suggestions into binding international obligations, making it difficult for countries to reverse structural adjustments and exposing them to the WTO's dispute settlement system.
• The case of Cochabamba, Bolivia, serves as an example of the combined impact of IFI pressure and BITs; after the World Bank pressured Bolivia to privatize water, the company Bechtel increased prices by over 50%, leading to protests and a subsequent $25 million lawsuit against Bolivia via a BIT between the Netherlands and Bolivia.
• Privatization does not universally improve water access and can lead to negative health outcomes for the poor, as seen in South Africa where the imposition of water prices in 1999 did not expand piping in Kwagulu-Natal, contributing to a 2001 cholera outbreak.

APA

Center for International Environmental Law (2003). SIGUIENDO LA CORRIENTE: CÓMO EL COMERCIO, LAS FINANZAS Y LOS REGÍMENES DE INVERSIÓN INTERNACIONALES INFLUYEN SOBRE EL SUMINISTRO DE AGUA A LOS POBRES. https://www.ciel.org/Publications/Waterbrief_3Sep03_Spanish.pdf

Chicago

Center for International Environmental Law. SIGUIENDO LA CORRIENTE: CÓMO EL COMERCIO, LAS FINANZAS Y LOS REGÍMENES DE INVERSIÓN INTERNACIONALES INFLUYEN SOBRE EL SUMINISTRO DE AGUA A LOS POBRES. 2003. https://www.ciel.org/Publications/Waterbrief_3Sep03_Spanish.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=SIGUIENDO LA CORRIENTE: CÓMO EL COMERCIO, LAS FINANZAS Y LOS REGÍMENES DE INVERSIÓN INTERNACIONALES INFLUYEN SOBRE EL SUMINISTRO DE AGUA A LOS POBRES |date=July 2003 |url=https://www.ciel.org/Publications/Waterbrief_3Sep03_Spanish.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2003siguiendo, author = {{Center for International Environmental Law}}, title = {{SIGUIENDO LA CORRIENTE: CÓMO EL COMERCIO, LAS FINANZAS Y LOS REGÍMENES DE INVERSIÓN INTERNACIONALES INFLUYEN SOBRE EL SUMINISTRO DE AGUA A LOS POBRES}}, institution = {Center for International Environmental Law}, year = {2003}, month = jul, url = {https://www.ciel.org/Publications/Waterbrief_3Sep03_Spanish.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }