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

The document argues that the combined influence of International Financial Institutions (IFIs), Bilateral Investment Treaties (BITs), and the General Agreement on Trade in Services (GATS) creates a mechanism that forces developing nations toward the privatization of water services. It asserts that while privatization is presented as a universal solution for water scarcity, it often fails the poor and marginalized, as seen in South Africa and Bolivia. The text emphasizes that access to water is a fundamental human right, and that international legal frameworks can 'trap' governments by making liberalization irreversible and exposing them to costly international arbitration (such as through ICSID) if they attempt to re-regulate or reverse privatization to protect public health and human rights.

• International Financial Institutions (IFIs), specifically the World Bank and the IMF, use loan conditionalities to pressure developing countries into privatizing water services. For example, the World Bank indicated in 2002 that some African countries would not receive water and sanitation loans unless they allowed private sector participation.
• Privatization is not a universal solution for water access and can lead to negative outcomes for vulnerable populations. In South Africa, the imposition of water prices in 1999 did not significantly expand pipeline infrastructure, leaving the poor in Kwazulu-Natal dependent on contaminated rivers, which resulted in a cholera outbreak in 2001.
• Bilateral Investment Treaties (BITs) and concession contracts often allow private investors to bypass national courts and sue governments in international arbitration tribunals, such as the International Centre for Settlement of Investment Disputes (ICSID). These tribunals may interpret regulatory changes that protect public health or water access as 'expropriation,' leading to demands for financial compensation.
• The case of Cochabamba, Bolivia, illustrates the 'trapping' effect of combined 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 the contract's termination. Bechtel subsequently sued Bolivia for 25 million USD via ICSID, utilizing a BIT between the Netherlands and Bolivia despite being a US company.
• The European Community (EC) has used GATS negotiations to pressure developing countries, including Mexico, Indonesia, and Pakistan, to open their water markets to private and foreign providers by proposing that water distribution be classified as 'environmental services'.
• Access to water is established as a fundamental human right, linked to the right to life and the right to a healthy environment. This status imposes a legal obligation on governments to ensure equitable access and protect water from being subject solely to market forces.

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} }