Globalization and the Water Sector

Globalization and the Water Sector

• Globalization promotes establishment of global forums and networks such as Global Water Partnership and World Water Council and other think tanks and activists’ groups that benefited from IT advancement in providing cheap means of communication and technology transfer that allows fast exchange of opinions and experience as well as awareness raising on the global water crisis. Accordingly I believe that the role of these new key players in influencing the world water policies and how this impact human development might need to be addressed.

• Globalization is boosting a worldwide wave of privatization of the water supply and sanitation sector that was addressed very well in the HDR on MDGs (2003). Meanwhile, WTO agreements and liberalization of exports and imports are promoting the agribusiness Transnational Corporations (TNCs) to purchase agricultural land all around the world, and it would not be a long time before few TNCs may dominate large portion of the global food production. Operations of these companies will be based on the comparative advantage concept in agricultural production to maximise economic returns but the impacts of this approach on the current water use trends for irrigation and on the environment may need to be analysed. More important some experts are arguing that implementing comparative advantages concepts worldwide instead of ongoing subsistence irrigation in many places in the world would increase economic benefits for farmers but might lead to global food production imbalances.

• Water rights may have new definition under GATT/WTO agreements that need to be highlighted and analysed. This applies to water rights for individuals, TNCs, service providers for water supply and sanitation services as well as water rights for countries in (trans-boundary) shared water resources. Currently in several developing countries, private sector investors in water supply and/or agriculture businesses are negotiating with governments in developing countries these water rights while governments are still sceptical about what could be the consequences of these given rights to private sector. Also water trade between countries may need to be addressed as well as the water rights these type of trade may develop.

• Globalization is also introducing international conventions and commitments on countries related to water such as the MDGs and WSSD. Among these commitments that need to be analyzed is the WSSD target for countries to develop its IWRM plans by 2005. Globalization is also offering financial mechanisms to support cooperation between countries such as the GEF which provides opportunities for developing countries.

• When addressing water supply and sanitation, I would emphasize what was mentioned by my colleagues on the need to set clear definitions to these services that should include reliability and quality for drinking water supply and treatment of wastewater for sanitation.