Summary
The document critiques the global trend of water privatization, highlighting how the World Bank and IMF use loan conditionalities to force poor nations to privatize water services. It details the dominance of French multinationals like Suez and Vivendi, the impact of trade agreements like GATS, and provides case studies from countries such as Bolivia, Malaysia, and Indonesia where privatization led to price hikes and social unrest. It advocates for water as a social and cultural good rather than an economic commodity, promoting community-based management and ecological restoration.
Key insights
- International financial institutions, specifically the World Bank and IMF, drive water privatization by making loans to poor countries conditional on 'la réforme du secteur public' (the privatization of state companies).
- The global water privatization sector is heavily dominated by two French multinationals, Suez and Vivendi Universal, which together distribute water to over 100 million people across more than 100 countries.
- The General Agreement on Trade in Services (GATS) is being used by the European Union to push for the liberalization of water markets in 109 countries, potentially limiting governments' ability to restrict water extraction from natural sources.
- Privatization often leads to dramatic price increases for the poor; for example, in Ghana, World Bank and IMF conditions led to a 95 percent increase in water tariffs in May 2001.
- In Cochabamba, Bolivia, the privatization of water by Aguas del Tunari (a Bechtel and Edison consortium) resulted in price increases of up to 300 percent, leading to mass protests and the eventual removal of the company.
- The World Bank's approach to water management prioritizes economic profit over waste reduction, with a 1996 report suggesting that water leaks should be tolerated if the cost of fixing them exceeds the potential profit from selling the water.
- Large-scale hydroelectric projects, such as the Three Gorges Dam in China, are supported by French entities like Alstom, the COFACE, and the Agence Française de Développement (AFD), despite significant social and environmental costs.
- In Indonesia, the government has granted concessions to companies like Danone and Coca-Cola, turning public water into a commodity where bottled water can cost more than fuel.
Cite the original document
- APA
- Friends of the Earth International (2003). International. https://www.foei.org/wp-content/uploads/2020/12/water_fr.pdf
- Chicago
- Friends of the Earth International. International. 2003. https://www.foei.org/wp-content/uploads/2020/12/water_fr.pdf.
- Wikipedia
- {{cite report |author=Friends of the Earth International |title=International |date=January 2003 |url=https://www.foei.org/wp-content/uploads/2020/12/water_fr.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{friendsoftheearthinternational2003international, author = {{Friends of the Earth International}}, title = {{International}}, institution = {Friends of the Earth International}, year = {2003}, month = jan, url = {https://www.foei.org/wp-content/uploads/2020/12/water_fr.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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