3.4 - Bolivia Flashcards
In Cochabamba, who was water supply contracted out to?
TNC Bechtel (a US company) operating as Agua del Tunri
How long did the Cochabamba riots last for and how many injuries/deaths were there?
The riots lasted for 4 days, with 170 injuries and 1 civilian death (a 17 year old shot by a policeman)
La Paz and El Alto; which one is the capital city, and which one is the suburb?
La Paz - capital city
El Alto - suburb of La Paz
In Bolivia the government has had responsiblity over water provision-
a) since when
b) why did they then privatise it
a) since 1906
b) because the World Bank wouldn’t renew a $25bn loan unless they did
In La Paz, who was water supply contracted out to?
SUEZ (a French company)
What were the advantages (but then disadvantages) of SUEZ controlling water supply in La Paz?
There was 100% coverage in the city and 50% more of the city had water..
However only 20% of the population could afford it and have an active connection (200,00 people excluded)
What was the average cost for a connection of water supply in La Paz vs. the average wage of the poor?
It cost $450/month for a connection, while poor only earned an average of $17/month
What was the outcome of the privatisation in La Paz?
The government cancelled the contract in 2006, favouring locals creating their own service provider
What did Agua del Tunari operate, and what was the effect on water prices?
They operated a monopoly, causing prices to rocket
After the government cancelled the contract in 2000 with Agua del Tunari what happened to water supply, and when is it now available?
Only 45% of households have connections - water is only available for 2 hours a day, 3 days a week
55% of the population aren’t supplied - which is a failure of one of the UN Millennium goals
What are the advantages of public sector approach to water supply? (government taking control)
– 2 points
- There is a regular water supply (even if its a small amount)
- Cheaper (better access)
What are the disadvantages of public sector approach to water supply? (government taking control)
– 3 points
- Often lack money and investment to put large schemes or plans in place
- Water transfer is more expensive overall
- Corrupt governments can cause inefficiency
What are the advantages of private sector approach to water supply? (TNCs/company taking control)
– 5 points
- (often) Supplied to the majority
- They have access to investment that is needed to make new plans succeed
- (potential) Development of the water system infrastructure
- Increased physical supply
- Could provide the skilled management needed to sort out specialised issues
What are the disadvantages of private sector approach to water supply? (TNCs/company taking control)
– 4 points
- Monopoly competition causing extremely high prices
- Foreign countries ‘taking over’ due to control over water as such an important resource
- The loss of government say in things - trying to help thir people
- Increases the gap between the rich and the poor
