A new round of water wars set to begin
As quickly as high gas prices changed the automobile industry, this latest economic crunch is changing our financial institutions. The world’s largest financial institutions like Goldman Sachs are starting to look at what used to be considered the public sector as their new cash cow, and what was once in the hands of our state and local governments such as highways, airports, transit, and most importantly, water utilities, are now seeing a new phase of privatization. Because 85% of Americans receive their water through public utilities, the water infrastructure, worth trillions, is an ideal privatization target, and this may be starting a new set of water wars across the country.
Stockton, California is one city involved in a water battle due to privatization. Mayor Gary Podesto was under state and federal pressure to renovate his city’s sewage systems and clean up their water pollution. His solution was to turn to a private company that he believed could fix these problems more efficiently and ultimately save money for the consumer. What he didn’t account for was the controversy this would create.
There are three private water companies known as “The Big Three” that control subsidiaries in more than 100 countries. Suez and Veolia in France and OMI/Thames in Germany are among the world’s largest corporations and dominate the global water business. Due to a lack of oversight and attention, they are able to get away with some suspect behavior. Some have been accused of falsifying water reports, providing poor quality water, and influence peddling that has gone as far as France’s presidential palace.
In Stockton, many OMI/Thames consumers are upset. Their water rates increased by 8.5%, leakage doubled, maintenance backlogs soared, and staff turnover was constant. To add insult to injury, in the summer of 2006, the wastewater-treatment plant spilled eight million gallons of sewage into the San Joaquin River, and it took ten hours for managers to notice the problem and another three days to notify the public.
As water comes and goes, civilizations rise and fall. Due to overdevelopment, poor planning, and climate change, our water resources are inevitably shrinking. The problems experienced in Stockton are likely just a sign of things to come.
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