Water Privatization in Bolivia: Assessment Bolivia is one of the poorest countries on the continent of South America. Under pressure from the World Bank, the water systems of several of Bolivia's poorest areas were put up for purchase by private investors. The privatization of water in Bolivia began in the latter 1990s, just a few years before the turn of the 21st century. The problem, the controversy, and the resistance continue into the 21st century with vigor. There have been uprisings by the local peoples, most recently in the area of Cochabamba, an area in which the water is owned by a private United States investor, Bechtel. Institutions such as the World Bank and the International Monetary Fund have advocated the privatization of water to developing countries as a means to improve their financial standing for decades. These institutions make claim that their intentions behind such support or advocacy was to be a better solution to economic growth as well as move more countries toward free market systems. The war for water in Bolivia rages on, exposing the objectives of the parties involved, the grievances of Bolivians, and the real life, experienced consequences of economic shifts. The situation in Bolivia demonstrates the complexity and the potential for water privatization programs around the globe, as access to drinkable water becomes an issue with increasing significance in the 21st century.

From the perspective of the local Bolivians whom are affected by water privatization, there are multiple reasons that fuel the protests and riots against...

In the example of Bechtel, the company came into Cochabamba and improved the existing infrastructures of their water systems. The improvements were sound and strong, yet the costs of these improvements were passed along to the locals. This is already an impoverished area. The locals complained that they were no longer able to afford the high rates for water and that the system was not only affordable, but also adequately functional when the water was under government control.
Though the improvements that Bechtel made included extended the water systems to reach more communities who already had very limited access to water, yet because of the increased prices, the local people were in a state of suspended anticipation -- now the water was accessible to them, but now they could not afford the access to the water. The water is both within their reach and just without it. Because the resource in question is so essential as water, it is understandable that the emotional dynamic surrounding this issue from the perspective of those affected locally is exceptionally. The response of the citizens of Cochabamba included riots, protesting, intense violence against law enforcement, and ultimately forcing Bechtel out of Cochabamba. These riots occurred in 2000. (Assies, 2003)

The greatest opposition to the new methods of water distribution under the reign of water privatization in Bolivia concerns the high prices and the anti-democratic practices of the private investors toward the citizens to whom they provide water. (Bakker, 2003) From…