Is Water Privatization A Viable Option In Latin America? Case Studies Of Bolivia And Argentina

2773 words - 11 pages

Most contemporary discourse centers on the role of the state in domestic socio-political and economic development. This trend is not really new since the entire classical and liberal debate dealt with reducing or enhancing the state's participation versus the participation of private enterprises. There are many reasons why state owned enterprises continue to exist and are considered paramount to the stability of a country. Certain imperfections of the market result in the creation of anti-consumer situations whereby the average man in any country is greatly disadvantaged. What most of the neoclassical literature ignores is that, in certain situations "decentralized market mechanisms under private information may not handle well some problems of coordination and urgent decisions which could be more readily solved by central direction." (Bardhan; 1990, p 4)There is also a growing perception that the state has certain responsibilities with regards to its citizens which must not be dependent on whether the same are able to pay for them. Rather eligibility for such commodities and services is essentially contingent on a person's citizenship.This paper will investigate the unique place of water provision as an enterprise in Latin America and why there has been a general trend to privatize state-owned water services. At the same time it is contended that with services like water provision and sanitation efficiency arguments are not sufficient in themselves for a motive. If development, and not economic growth, is to be a goal then it is imperative for the state to acknowledge its responsibilities towards the citizens. In this context the cases of Argentina and Bolivia stand out, most especially, due to the conflicting outcomes in these two countries.Throughout time, since the formation of nation-states, most of the essential services have remained part of the state's domain. Provision of utilities like electricity, gas, water and sanitation until a decade ago was still in the hands of government officials. (; Kim and Horn, 1999) Part of the reason for this is that utilities are a natural monopoly. This means that they operate more efficiently when working as the single, thus the largest, supplier or service provider because the initial cost outlay is so large that most entrepreneurs cannot venture to this side. Also the real benefits of being a monopoly can be reaped only after considerable short term losses. Hence, when a monopolist finally 'settles' into a market, it prices higher and supplies lesser than under competitive market structures. It is in this scenario that most governments find it easier to create a public utility rather than regulating a privately owned natural monopoly. In this manner it ensures that the prices remain low and that as many of its citizens as possible are provided for. However through technological advancement, competition in many of the previously...

Find Another Essay On Is Water Privatization a Viable option in Latin America? Case Studies of Bolivia and Argentina

Is Democracy Sustainable in Latin America?

1697 words - 7 pages Is Democracy Sustainable in Latin America? In order to determine if democracy is sustainable in Latin America, it is important to understand or at least have an idea of what democracy is. There are several types of democracy and each is different. According to the English dictionary, democracy is “ a government by the people; especially: rule of the majority by a government in which the

Influence of Colonialism in Africa and Latin America

651 words - 3 pages Africa. The same was the case in Latin America, where military intervention in government has had a poor economic and political performance. Economically, there is almost a startling resemblance between the development of Africa and Latin America. On both continents, the emergence of a monocrop, export-oriented economy created states that immediately became dependent on other states or the international market for other goods. This

"GDP in Ireland and Bolivia"-written in a Macroeconomics class

547 words - 2 pages The GDP stands for Gross Domestic Product and is the mostly closely watched economic statistic. It is composed of the market value of all final goods and services produced within a country in a given period of time. It includes all items produced in the economy and sold legally in markets. The GDP is related to productivity. Productivity is made up of technology, skills, natural resources, and physical capital. Other things that the GDP is

Separation of Church and State in Latin America

7436 words - 30 pages , to change the power structure. Liberation theology changed how poverty was looked at. Now poverty was seen as a sign of evil and is the result of the attitudes and ideas of the ruling rich (Schall, 37). The new philosophy was to look at the scripture and use it in this life. This change in instruction changed the Church’s role from one of a passive teacher to one of an active enforcer of God’s law on earth. For Latin America, liberation

The Power of Baseball and Role Models in Latin America

1983 words - 8 pages The Power of Baseball and Role Models in Latin America In many countries around the world, the socioeconomic problem is so bad that they are granted the title of a Third World country. Countries that are not quite as bad, such as most Latin American countries like Cuba, the Dominican Republic and Puerto Rico, often have trouble, on a smaller level, of creating jobs and job security for its people to inspire work ethic and incentive to raise

Water Scarcity: Privatization is Not the Solution

1053 words - 4 pages countries, despite this an inconsistent price for this substance prevails in the developing world, where the cost for it is the highest but the income of these areas is not. On the other hand, the first world nations represent the contrast of this case because they maintain a formidable profit and an accessible financial value for water. This means that water scarcity is not suffered by the lack of physical sources, it is surfacing due to the absence

Latin America: A Legacy of Oppression

2113 words - 8 pages on monopolies sustained by dominant groups and nations” (Ribeiro). In this case, the dominant nations would include England, Spain, and Portugal and their victims would be the collective native people of Latin America. The same article continues to say, “As far as homogenized powers enforce readjustment on the powerless around market dealings, it is evident that coercion is exercised by the strongest on the weak” (Ribeiro). Through this

Youth Entrepreneurship: A Viable Option for Economic Development

2905 words - 12 pages GDP growth continuously deteriorated during 1960-2008 (Ian Bowen)Some indcators of growth and development in a country are, increased gross domestic product increased per capita income, lowering of illiteracy etc. Two recent studies by federal reserve economist in the United States of America showed education attainment as the strongest driver of per capita income and overall output. Business education is one area of education that deserves

Chinese Influence and Expansion in Latin America

1109 words - 4 pages Chinese influence and expansion has reached Latin America and the Caribbean. Over the past 10 years, the Chinese government has aggressively pursued a trade policy emphasizing a growth in Chinese manufactured imports and exports of Latin American raw materials. China’s focus is on exporting raw materials; such as soybeans, metals, and oil in exchange for a vast amount of Chinese manufactured goods. This aggressive push into the Latin American

Currency crises - 3 case studies: Europe Exchange Rate Mechanism (1992), Asia (1995) and Argentina (2002)

1766 words - 7 pages Case study 1: the ERM crises of 1992-3Put simply, as a precursor to full monetary union (the euro), the economies of the EU undertook a period of exchange rate management in order to create convergence and stability before full conversion to the euro. This took the form of the Exchange Rate Mechanism (ERM). It was a hybrid of fixed and floating exchange rates where currencies were allowed to float against each other but within a pre determined

Gender Roles and Sexuality in Latin America

1179 words - 5 pages a child) this is not the case at all. Another key marianismo belief Craske (2002) found was that women are “dominant in the private world of domestic organization,” while men are dominant in the public sector (p. 11). This is important to know because women lived very secluded lifestyles. This exclusive lifestyle connects to how Catholic women in Latin America had greater transgressions than men when it came to premarital sex. Men typically had

Similar Essays

Is Telework/Telecommutes A Viable Option For Newco?

1399 words - 6 pages out. A recent study of corporate climates suggests a loss of 15% or more in productivity with wasteful meetings and “water cooler” conversations. Open recruitment to larger geographical areas Having telework as an option, allows Newco to pull from a plethora of potential employees. With the implementation of telework, Newco now has no restraints of talent pool and can now recruit from a broader geographical base to support the 24/7 center

Sperm Donation: A Viable Option Essay

1092 words - 5 pages The technology of today’s world is astounding. We have learned how to battle diseases that were once thought to lead to a certain death, we have invented incredible technologies that allow us to communicate with people across the world instantly, and maybe most impressively of all, we are able to create human life. We now hold in our hands the technologies that allow those who may not have been able to conceive naturally to have children they

On Politics And Identity In Latin American Cinema In Regards To The Films Of Peru, Brazil, Argentina, And Cuba

1345 words - 5 pages supporter of the nation, and then slowly becomes aware of the problems within it.Unlike this country, the films of Latin America are not afraid to comment and criticize the politics and national problems that they are facing. To generalize, radical change is a much more common occurrence in South America. Because of this, frustration and anger about the government's inability to stabilize the country is much stronger in these nations. I believe

Using One Case In Latin America, Illustrate What The Biggest Obstacle To Democracy Is.

2390 words - 10 pages , Argentina suffered the same fate as many other countries did in this respect. After the Spanish had left the attempt to establish a united nation proved a difficult task for Argentine nationals; approximately 50 years of bloody civil war ensued shortly after the Spanish had vacated the country. Caudillismo may be one of the causes, it is a Latin American phenomenon and this fact alone arguably carries a lot of weight in the discussion of why democracy