[lbo-talk] State run vs Private monopolies

[Fernando Cassia]

"In June 1999, the World Bank issued a report on Bolivia discussing the 
water situation in Cochabamba. The World Bank, which along with the 
International Development Bank had made privatization a condition for 
loans, recommended that there be ?no public subsidies? to hold down 
increases in the price of water service. ........ A key component of the 
government?s effort to privatize water was the October 1999 promulgation 
of Law 2029 which governed drinking water and sanitation?. (pg. 8) This 
extraordinary Law 2029 not only wiped out centuries old indigenous 
customs of collective water use but had provisions which were shocking 
in their scope. Bechtel was granted an exclusive monopoly on water 
distribution to the extent that even personal private wells were now 
prohibited. And if that weren?t enough, the people were not even 
permitted to collect rain water! And no matter what happened Bechtel was 
guaranteed by the State to make at least a 16% yearly profit. "

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