1

“Developments in the Global Waterfront and the

Water Privatization Situation in Asia and the Philippines”

In recent years, neoliberal globalization has become the monster we have anticipated,
wreaking havoc on our economy, politics, culture and sovereignty as a people. This
phenomenon has become more pervasive than ever before through aggressive
promotion by the international financial institutions working hand in hand with the World
Trade Organization (WTO).

Privatization is a key strategy of capitalist globalization. With privatization of public

utilities, particularly water, our right to water is put to a greater risk. There is no evidence
yet that tells us that capitalism as a world-system prioritizes people’s welfare above
profit.

While the painful effects of water privatization in the Asia Pacific Region are already
being felt, there is a great possibility that we will sink even more to greater misery.

On top of the burden of debt payments, additional taxes, and inadequate social
services, poor water services by private companies place us at the losing end. We, as
consumers, are the ones paying for these companies’ failures, their misguided
judgments and decisions and miscalculations.

The Metropolitan Waterworks and Sewerage System (MWSS) privatization is the

classic example of how water privatization failed us. And yet, international financial
institutions (IFIs) continuously push for policies and initiatives that support privatization
leading to unreasonably higher water rates but inefficient services and delivering water
of poor quality. We consumers are held in bondage when an inefficient and
mismanaged water company like MAYNILAD goes bankrupt and is unable to pay its
debt obligations to MWSS and its creditors and the government under Macapagal-
Arroyo prefers to bail out this company at our expense.

Recent developments in the World Trade Organization (WTO) and ongoing discussions
related to the General Agreement on Trade in Services (GATS) make them the latest
mechanisms for the privatization and globalization of services and utilities. Multinational
companies have entered the picture and found a way to ride on the issue of water
scarcity by making available in the market, bottled water – yet the very item that will
contribute further to making water scarce for people in their communities.

These developments will make the battle even more difficult. Water resources and
services are fast becoming commodified and the concept of water as public good and
for the common good of all will become more blurred.

Today’s forum reflects the strong opposition to water privatization. The forum is entitled,
“Developments on the Global Waterfront and the Water Privatization in Asia and
the Philippines.” and is organized by Jubilee South/ Asia Pacific Movement on Debt

Public Forum held on April 6, 2006 at the U.P. CSWCD, Diliman, Quezon City
 2

and Development ( APMDD ), Freedom from Debt Coalition (FDC), NGO Forum on
ADB and the Progresibong Alyansa ng Tagatangkilik ng Tubig sa Kamaynilaan (
PATTAK ).

These organizations believe that proper information and awareness will prepare us with
the appropriate strategies and actions needed to move on with our campaigns to resist
and reverse water privatization. In this forum, we also aim to achieve the following:

Familiarize us with the recent developments and updates to have a better grasp
of the new global players working in the water sector;

Make known the latest trends, both globally and locally, that are at play in the
water distribution industry, and;

Analyze and popularize what has become of the sad tale of water privatization.

The realizations that are about to be revealed to us pose a tremendous challenge. As

IFIs continue to impose us their loan criteria, conditionalities and economic policy
prescriptions in support of water privatization, social movements are building stronger
forces and intensifying efforts to oppose these policies.

However, whether it be public or private ownership or control of the water sector

(although the former is preferred), we must also work for better regulatory mechanisms.
In the end, what we want is to find and create more democratic alternatives to respond
to our growing needs, specifically, our poor communities for better water resources and
services.

It is said, “We can live more than a week without food, but we cannot live for a week
without water.”

Water is our basic human right!

Let justice flow to the poorest communities!
Water should be made equitably accessible to all!

On behalf then of the organizing groups, I bid you welcome to this forum and to an
engaging and productive discussion on the issues at hand.

Maraming Salamat.

Public Forum held on April 6, 2006 at the U.P. CSWCD, Diliman, Quezon City