The consequences of water insecurity Flashcards
what 4 main ways affect the price of water?
Physical cost of obtaining supply
Degree of demand for the water
Lack of infrastructure
Who supplies the water
How does the physical cost of obtaining the water affect he price of water?
If the water is imported
Transport costs (more expensive)
Water treatment - recycled water or desalinated water costs more
How does the degree of demand for water affect its price?
When demand increases due to population pressure, but supply can’t match it, the product becomes more valuable
It privately owned the company can make more profit by increase in cost
How does lack of infrastructure affect the price of water?
1) can increase price water because limited supply makes it valuable and can force importation
2) can decrease price as areas with no piped water supply access water from rivers which is free
How does who supplies the water affect price?
Government owned supplies are usually cheaper their aim is to have a working population water is essential for a healthy workforce
Private companies are keen to make a profit so water is usually more expensive
How might the privatisation of water supplies affect water price?
The new owner of the water company will want to recoup the cost of buying the supply usually causes increased price
What is privatisation?
Where governments sell a sector of industry to the highest bidder
How have WB and IMF contributed to a rise in water prices?
SAP force people to sell infrastructure which means that when sold unusually water price will increase
What is a SAP?
Structural adjustment policy
Part of loan agreement
Govement agree to open or sell area of industry to private investors
Brings income to help pay back loan
Competition usually helps lower prices but privatisation cause increase the price
what can have detrimental impact on the price of water?
when governments adopt neo-liberalist policies due to conditions set by WB/ IMF for a loan
what do loans by WB/IMF state?
the government being offered the loan must sell (privatise) water supply
who will usually buy a countries water supply?
TNC’s
After a TNC buys the water supply what will they want to do?
recoup losses and make a profit
what two areas of the globe saw the highest water and wastewater price in 2016?
Merida (Venezuela)
Buenos Aires (Argentina)
how much did water price rise in Merida?
326%
how much did water price rise in Buenos Aires?
217%
What cities implemented tariff reforms to change water prices?
Hanoi
Minsk
Astana
Why did Hanoi, Minsk and Astana implement tariff reforms?
to secure loans from the IMF and European bank for reconstruction and development
what are tariff reforms?
imposition of government taxes on imports or occasionally exports for purposes of protection, support of the balance of payments, or the raising of revenue
where have tariff increases been implemented because of IMF loan requirements?
Egypt
Jordan
how much did price of water increase due to El Niño drought in Sub-Saharan Africa?
12.7%
How much did prices increase in Latin America due to El Niño drought?
10.3%
Why does El Nino cause an increase in water prices?
As utilities were forced to respond to sustained drought conditions
What did a shortage of water lead to in Southern Africa?
surge in electricity prices
Why did electricity prices increase when water supply dwindled in Southern Africa?
tariffs that Eskom levies on its customers, including municipalities
(putting tariffs to qualify for loan)
What was done to introduce tax onto water consumed in Denmark?
20 years ago regulation that required metering of water consumption
What do high water prices deter?
Unnecessary consumption
What has the metering of water in Denmark done to the price of water between 1989-2012?
risen from 2 euros to 7 Euros per cubic metre
what has the dramatic increase in water prices in Denmark led to?
increased public awareness
significant drop in water consumption
How has per Capita litres per day usage dropped in Denmark?
1989- 170 litres/day
2012- 114 litres/day
What can lead to a reduction in water price/ tariffs?
advanced utilities
efficiencies passed onto consumers
Where has reduced the price of water due to increased efficiency?
Norway
Netherlands
What is the water poverty index?
mathematical data-driven tool for gauging the degree of water-related poverty in a community, region, or country.
what are the parameters of the water poverty index?
5 components: resources, access, capacity, use, environment.
What is the water poverty index out of?
0 -100
How does water poverty index relate to GDP?
A higher score links to better water usage
What is a good example of the water poverty index?
Dominican republic & Haiti
Are conditions similar between the Dominican republic and Haiti?
Yes as they are the same island
Are water poverty index scores the Same for the dominical republic and Haiti?
scores on the national level are very different
What is WPI?
water poverty index
What is Haiti’s WPI?
35.1
What is Dominicans republic WPI?
59.4
Why is WPI good? (Water poverty index)
can see where weaknesses lie so actions can be prioritised
