Against The Current Privatization Water Markets And The State In Chile

In 1981 Chile's military government dictated a new Water Code that radically changed the country's previous water rights system by strengthening private property rights, favoring market incentives, and reducing state regulation. Against the Current: Privatization, Water Markets, and the State in Chile is the first empirical and interdisciplinary study of water markets in Chile, which is the leading international example of free market water policies. Against the Current: Privatization, Water Markets, and the State in Chile challenges the glowing reports given by neoliberals in Chile and the World Bank, showing that the results of this economic experiment have actually been rather mixed. Within the agricultural sector the Water Code has worked fairly well, although the market incentives to conserve water have been ineffective and water rights trading has been less active than expected. The Code's impact has been more negative at the level of river basins, where the institutional framework has revealed critical flaws in coordinating multiple water users and resolving conflicts. Against the Current: Privatization, Water Markets, and the State in Chile combines law, political economy, and geography to analyze the disadvantages, problems, and wider contexts of water markets. This book will appeal to everyone interested in property rights, market-friendly environmental policies, the political economy of sustainable development, and the intersection of economics with law and institutions.

Increasing scarcity, conflict, and environmental damage are critical features of the global water crisis. As governments, international organizations, NGOs, and corporations have tried to respond, Chilean water law has seemed an attractive alternative to older legislative and regulatory approaches. Boldly introduced in 1981, the Chilean model is the worlds leading example of a free market approach to water law, water rights, and water resource management. Despite more than a decade of international debate, however, a comprehensive, balanced account of the Chilean experience has been unavailable. Siren Song is an interdisciplinary analysis combining law, political economy, and geography. Carl Bauer places the Chilean model of water law in international context by reviewing the contemporary debate about water economics and policy reform. He follows with an account of the Chilean experience, drawing on primary and secondary sources in Spanish and English, including interviews with key people in Chile. He presents the debate about reforming the law after Chile‘s 1990 return to democratic government, as well as emerging views about how water markets have worked in practice. The resulting book provides insights about law, economics, and public policy within Chile and lessons for the countries around the world that are wrestling with the challenges of water policy reform.

"Water is not only a source of life and culture. It is also a source of power, conflicting interests and identity battles. Rights to materially access, culturally organize and politically control water resources are poorly understood by mainstream scientific approaches and hardly addressed by current normative frameworks. These issues become even more challenging when law and policy-makers and dominant power groups try to grasp, contain and handle them in multicultural societies. The struggles over the uses, meanings and appropriation of water are especially well-illustrated in Andean communities and local water systems of Peru, Chile, Ecuador, and Bolivia, as well as in Native American communities in south-western USA. The problem is that throughout history, these nation-states have attempted to 'civilize' and bring into the mainstream the different cultures and peoples within their borders instead of understanding 'context' and harnessing the strengths and potentials of diversity. This book examines the multi-scale struggles for cultural justice and socio-economic re-distribution that arise as Latin American communities and user federations seek access to water resources and decision-making power regarding their control and management. It is set in the dynamic context of unequal, globalizing power relations, politics of scale and identity, environmental encroachment and the increasing presence of extractive industries that are creating additional pressures on local livelihoods. While much of the focus of the book is on the Andean Region, a number of comparative chapters are also included. These address issues such as water rights and defence strategies in neighbouring countries and those of Native American people in the southern USA, as well as state reform and multi-culturalism across Latin and Native America and the use of international standards in struggles for indigenous water rights. This book shows that, against all odds, people are actively contesting neoliberal globalization and water power plays. In doing so, they construct new, hybrid water rights systems, livelihoods, cultures and hydro-political networks, and dynamically challenge the mainstream powers and politics."--Publisher's description.

Water scarcity is an increasing problem in many parts of the world, yet conventional supply-side economics and management are insufficient to deal with it. One of the key water management options for water demand is water trading. This book explores the role of water trading, as an instrument of integrated water resources management.

While water is an increasingly scarce resource, most existing methods to allocate it are neither economically nor environmentally efficient. In these circumstances, water markets offer developed countries a form of regulatory response capable of overcoming many of the shortcomings of current water management. The debate on water markets is, however, a polarized one. This is mostly a result of the misunderstanding of the roles played by governments in water markets. Proponents mistakenly portrayed them as leaving governments, for the most part, out of the picture. Opponents, in turn, understand commodification of water and administration by public agencies as incompatible. Casado Pérez argues that both sides of the debate overlook that water markets require a deeper and more varied governmental intervention than markets for other goods. Drawing on economic theories of regulation based on market failure, she explains the different roles governments should play to ensure a well-functioning water market, and concludes that only the visible hand of governments can ensure the success of water markets. Casado Pérez proves her case by examining case studies of California and Spain to assess the success of their water markets. She explores why water markets were more extensively institutionalized in California than in Spain in the first ten years since their introduction and how the role of governments in each case study impacted water market operation. This unique analysis of governmental roles in water markets, alongside qualitative studies of California and Spain, offers valuable guidance to understand environmental markets and to face the challenges presented by water management in regions with periodical droughts.

This book evaluates the history, the present and the future of water markets on 5 continents, beginning with the institutional underpinnings of water markets and factors influencing transaction costs. The book examines markets in seven countries and three different U.S. states, ranging from village-level water markets in Oman to basin wide formal water markets in Australia's Murray-Darling River basin. Introductory chapters on the background of water markets and on transaction costs and policy design are followed by chapter length discussion of water markets as an adaptive response to climate change and of supply reliability in a changing climate. Case studies describe a variety of facets of the design and function of markets around the world: California, Chile, Spain, Oman, Australia, Canada, India and China. In analyzing these real-world examples of markets, the contributors explore water rights and trading of rights between agricultural and urban sectors and the principles and function of option markets. They discuss different sized approaches, from large scale, ministry-level administration of markets to informal arrangements among farmers in the same village, or groups of villages which allocate water without large investment in management and infrastructure. Discussion includes questions of why water market practices have not expanded more rapidly in arid places. The book discusses mechanisms for resolving conflicts between water rights holders as well as between water right holders and third parties impacted by water trades and whether or not public ownership of water rights or use rights should trump private ownership and under what condition. Also covered are new and expanding categories of water use, beyond human consumption, agriculture and industry to new technologies ranging from extracting natural gas from shale to producing biofuels. The book concludes with suggestions for future water markets and offers a realistic picture of how they might change water use and distribution practices going forward.