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The document argues that the synergy between World Bank and IMF conditionalities, investment treaties, and WTO agreements creates a 'lock-in' effect that forces the privatization of water services. This process often undermines the human right to water, as legally binding international obligations can penalize governments that attempt to implement social or environmental regulations, such as water price caps, to protect vulnerable populations.

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  • The United Nations Committee on Economic, Social and Cultural Rights has formally recognized access to water as a human right, asserting that water is a "social and cultural good, not merely an economic commodity."
  • International Financial Institutions (IFIs), specifically the World Bank and IMF, use 'conditionalities' to influence the domestic policies of developing countries, often making financial assistance dependent on the privatization of water sectors.
  • Bilateral Investment Treaties (BITs) create a 'lock-in' effect by establishing legally binding obligations that can penalize governments for changing national regulations, even those intended to protect health or the environment.
  • The General Agreement on Trade in Services (GATS) can reinforce IFI-driven privatization; once a sector is liberalized following IFI advice, it may lose its 'governmental services exclusion' and fall under binding WTO rules.
  • Private investors use international arbitration tribunals to challenge national governments over policy changes, such as the imposition of water price caps, which they argue constitute expropriation of their investment.
  • The document warns that by 2025, approximately 3.5 billion people, or 48% of the projected population, will face serious water shortages.

Cite the original document

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} }

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