BOLIVIA, THE POSTER CHILD FOR HOW WORLD BANK/IMF POLICIES FAIL
Consider the case two years ago, when Bolivia privatized the water system of its third largest city, Cochabamba. World Bank officials told the
Bolivian President, point blank, that if the country didn't privatize the water it would be cut out of the Bank's debt relief program, a decision affecting billions of dollars. The government complied, leasing the water system to a subsidiary of Bechtel Enterprises, the California-based construction giant. Within weeks Bechtel raised water rates for the poor by as much as double or more, forcing people earning $60 per month to pay $15 just to keep water coming from the tap. The water rate hikes were met with massive public protests and the familiar response of a President declaring martial law to protect the company's interests. Eventually the protests forced Bechtel to leave.
Bank and IMF economists are quick to blame such failures on faulty implementation or a lack of public patience rather than on any inherent problem with the policies themselves. For South Americans the message is essentially, "Just bang your head against the wall a little bit longer and the pain will stop." What those who live with these policies know, and what the Bank and IMF fail to understand, is that along with foreign corporate ownership comes the loss of local democratic control over basic services. Bechtel's arrogance was no surprise, nor was the Bolivian government's willingness to use tear gas and bullets to protect the company's contract.
Which basic services we want to place in public hands and which we want to place in private ones is among the most fundamental policy debates a nation faces. The U.S. has that same debate everyday on issues such as health care, schools, and power. South Americans are communicating in the strongest of terms that they are tired of having that debate decided and that control taken away by economists a hemisphere away. The message coming from the streets and the ballot boxes of our southern neighbors is also a simple one, "What part of 'no' don't you understand?"
http://www.democracyctr.org/newsletter/vol45.htm
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