waterbrief_mar03-291ad38b91590838.pdf

This policy brief examines how the World Bank, IMF, and international trade/investment agreements (such as GATS and BITs) pressure developing countries to privatize water services. It argues that these mechanisms often create 'lock-in' effects, where legally binding international obligations prevent governments from regulating water prices or reversing privatization to protect the human right to water. The document emphasizes that water is a social and cultural good, not merely a commodity, and urges policy makers to conduct thorough human rights and environmental assessments before committing to liberalization.

• The United Nations Committee on Economic, Cultural and Social Rights has declared access to water a human right, defining it as a social and cultural good rather than just an economic commodity. This designation requires the 145 countries that ratified the International Covenant on Economic, Social and Cultural Rights to ensure clean water access is provided equitably and without discrimination.
• International Financial Institutions (IFIs), specifically the World Bank and IMF, use 'conditionalities' to influence the domestic policies of developing and transition countries. Financial assistance is often linked to the adoption of IFI-preferred policies, with a strong emphasis on the privatization of water services.
• The document cites specific instances where IFI funding was tied to privatization: in 1999, the World Bank granted debt relief to Mozambique only after it agreed to privatize the water supply in Maputo and remove obstacles to private sector participation in water, energy, communications, and transport. Similarly, in 2002, Uruguay communicated a decision to open activities previously reserved for the public sector to private initiative to obtain increased World Bank assistance.
• Bilateral Investment Treaties (BITs) and regional agreements like NAFTA can 'lock' governments into market-oriented policies through legally binding obligations. Expropriation rules in these treaties may penalize governments that implement regulations to protect public health or the environment—such as imposing water price caps—by allowing private investors to claim financial damages through international arbitration tribunals.
• The General Agreement on Trade in Services (GATS) can reinforce IFI policies by creating legally binding obligations subject to WTO dispute settlement. Liberalization of services encouraged by IFIs may inadvertently move water services out of the GATS 'governmental services exclusion,' making them subject to GATS disciplines and making the policy changes difficult to reverse.
• The document warns that by 2025, 3.5 billion people (approximately 48% of the projected population) will suffer from serious water shortages. While privatization is proposed as a solution for efficiency, the author argues that governments must comprehensively assess the impact of such choices on marginalized populations and their own regulatory capacity before making binding international commitments.

APA

Center for International Environmental Law (2003). waterbrief_mar03-291ad38b91590838.pdf. https://www.ciel.org/wp-content/uploads/2015/03/WaterBrief_Mar03.pdf

Chicago

Center for International Environmental Law. waterbrief_mar03-291ad38b91590838.pdf. 2003. https://www.ciel.org/wp-content/uploads/2015/03/WaterBrief_Mar03.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=waterbrief_mar03-291ad38b91590838.pdf |date=March 2003 |url=https://www.ciel.org/wp-content/uploads/2015/03/WaterBrief_Mar03.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2003waterbriefmar03291ad38b91590838pdf, author = {{Center for International Environmental Law}}, title = {{waterbrief\_mar03-291ad38b91590838.pdf}}, institution = {Center for International Environmental Law}, year = {2003}, month = mar, url = {https://www.ciel.org/wp-content/uploads/2015/03/WaterBrief_Mar03.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }