Clean Water for Bitter Pills
Friday, October 9th, 2009By Author Tony Demaio
Once upon a time, in a land far far away, a man rose up among the people and was elected president. He had no real political persuasion, but had a great desire to “do the right thing” for “his” people.
One of the things his people needed was water. His people were hauling water by hand from various shallow wells and rivers that were not safe. This was happening in many villages and cities in his country.
A foreign company came to him and said, “If you will allow us to build the structure, we will supply clean water to the village of Zapal (note reverse spelling). We will absorb all the costs and will then charge the people for water. If they cannot afford our price, they can continue to haul water as they do now. If they can afford our price, they can have clean, pure water delivered to their homes. You and they need do nothing except give us the right to design and build the structure.
The President met with his advisors, who were somewhat hesitant to enter into the agreement. He kept asking, “Where’s the downside? What do you fear?” They could not answer.
Finally, the President made the agreement with the water company. By means of his influence, it was approved by the required governmental agencies. The company began construction and spent hundreds of millions of dollars on the plant and distribution system.
Once the system was installed, the people began to murmur and complain about the cost. They became quite disgruntled and demonstrated. “Water should be free”, they shouted. “Water is a gift from God, who are they to charge us for it?” they screamed.
One man, recognizing the opportunity, began to organize the people. He shrieked, “The president is getting kickbacks. He has betrayed us.” which resonated with the people.
Riots started. Windows were smashed, one man was killed when trampled by a mob trying to escape tear gas. The “leader” screamed, “The president killed this man.” The riots escalated and cascaded. The “leader” shouted, “Elect me president, and I will nationalize the water system.”
The president held an emergency meeting. He asked his cabinet for advice. One member of the cabinet spoke up, “Mr. President, you must abrogate the agreement and nationalize the water company.”
The president was aghast. He asked, “Why must I do that. They have performed well under the contract. Their rates are fair. Even if they are not fair, people need not pay for the water. They can still haul it from wells. The company has done no wrong.”
The cabinet member said, “Sir, that is not the point. The people have been driven almost to insurrection. If we do not act in that fashion, they may well revolt.”
The president said, “If we abrogate the agreement and nationalize the company, there will be no more foreign investment in our country. The people in the other villages will not have water. Already, this company has inquired about expanding its services to other regions of our country. Also, I have received inquiries from other foreign companies about sewage and electricity plants in various parts of our country. If we renege on our commitment, not only will this company leave and not return, but other foreign companies will not invest in our country. Our people will remain poor and always thirsting for water—among other things.
The cabinet member said, “If you wish to help your people, you must stay in office. If you continue to resist the pressure, you will be removed from office. If you are removed from office, you will not be able to help the people.”
The president replied, “What about the other villages? Don’t THEY realize that they will deprive themselves of clean water and other amenities? Won’t THEY rise up and support me?”
The cabinet member said, “THEY have no benefits—yet. You are not taking something away from them. It is much like the ‘Dog That Didn’t Bark’ in the Sherlock Holmes mystery. They do not have it, they have never had it, so they do not miss it.”
In desperation, the president said, “If I nationalize that water plant and drive out foreign investment, I will not be doing my job; I will not be doing what is best for the country.”
The cabinet member wisely said, “Mr. President, sometimes one has to decide whether to DO the job or KEEP the job.”
The president thought about it. Finally, he said, “Nationalize the water company,”
Several years later, one notes that service to outlying regions has been curtailed due to excessive costs. Each year, more of the system was decommissioned. The cost of water to city residents has tripled. There have been no riots since the state owns the water system and no profit is being made. No new water, sewage, or electrical plants have been built in the country. The country is seeking aid from neighboring countries to maintain the water system. Foreign investment has plummeted.
To those of you who do not recognize this story, it concerns a French water company and La Paz, Bolivia. To wit:
“La Paz, Bolivia: President Evo Morales on Wednesday celebrated the departure of French-owned water utility Aguas de Illimani from Bolivia and vowed to continue his administration’s reversal of a decade-old privatization of key Bolivian industries.
“Water cannot be turned over to private business,” Morales said. “It must remain a basic service, with participation of the state so that water service can be provided almost for free.”
OR
President-Elect Evo Morales of Bolivia reiterates his commitment to nationalization of oil and natural gas. He has yet to lay out how exactly he plans to do this, and it is worth noting that he didn’t even add this to his program until the masses demanded it in the streets. Furthermore, he won’t be confiscating refineries or infrastructure owned by multinational corporations. But even still, he aims to pose a major threat to the capitalists of the world; both for his challenge to their domination of the world’s markets and as an example to other exploited peoples.