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