Uruguay Votes YES to ban Water Privatisation

international | rights, freedoms and repression | news report Tuesday November 02, 2004 12:16 by Donnacha O Briain - DAPSE

Important electoral results from Latin America, including historic referendum in Uruguay, in whcih more than 60% of the electorate
supported the Constitutional Reform in Defense of Water, adding water as a
human right to the Constitution and setting the basis for its exclusive
public, participatory and sustainable management. ( Source : Global Exchange)

Dear Friends,

October 31st marks a historic day for the victory of democracy in the social
movements against corporate globalization in Latin America.

*In Uruguay, more than 60% of the population voted for a Constitutional
amendment protecting public ownership and management of water for drinking
and sanitation.
*In addition, a leftist coalition called the Frente Amplio in Uruguay won
the presidency with their candidate Tabaré Vazquez, who shares a vision for
Latin American unity with Argentina's Kirchner, Venezuela's Chávez, and
Brazil's Lula da Silva.
*And the anti-FTAA government of Hugo Chávez and his MVR party won 21 out of
23 governorships, consolidating the victory of government-for-the-poor that
the people reaffirmed in the August 15th referendum on President Chávez's
mandate. For more information, check out the article at
http://www.venezuelanalysis.com/news.php?newsno=1403

We hope that these electoral victories provide inspiration to all of us
working in the US for greater democracy and social justice here in the US.

Please see the article on the victory for public water below.
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*Sovereign decision for water in Uruguay: more than 60% said YES

On a historic day in Uruguay, more than 60% of the Uruguayan people
supported the Constitutional Reform in Defense of Water, adding water as a
human right to the Constitution and setting the basis for its exclusive
public, participatory and sustainable management.

This referendum was promoted by the National Commission in Defense of Water
and Life (CNDAV). The commission was created in 2002 as an answer to the
signing of a Letter of Intent between the Uruguayan government and the
International Monetary Fund (IMF), which committed to extend the
privatization of potable water and sanitation services to the
entire country.

Privatizations started in Maldonado department, firstly with the presence of
French multinational company Suez Lyonnese Des Aux followed by Spanish
company Aguas de Bilbao.

As in most of water privatizations performed last year, these processes have
had negative consequences.

From the social point of view, wide sectors were prevented access to potable
water for not being able to afford the cost of the service, which
considerably decreased its quality in comparison to the services provided by
water state company OSE.

The conditions of the service were of such low quality that quality control
bodies in that matter recommended not to consume water because it didn't
comply with minimum quality standards.

From an economic point of view, the "business" was really bad for the
Uruguayan state. Not only did the companies failed to comply with the
provisions of the contracts, but they didn't make the agreed payments
either. They filed for contractual reconsiderations with the state, which
assumed the losses caused in each of the cases.

From an environmental point of view, Aguas de la Costa company (subsidiary
of Suez) was responsible for draining Blanca Lagoon, which used to be a
source of potable water. Precisely for this cause, neighbors of Maldonado
department filed a lawsuit against the company for environmental damages.

*Water against everything*

The victory of the water plebiscite was actually a social one. CNDAV is a
wide group of social and political organizations which oppose the
commodification of water.

Among their founders are community organizations, FFOSE (water state
company's trade union) and REDES-FOE (Friends of the Earth Uruguay). After
its foundation, the commission became greater, including the majority left
wing political party (Frente Amplio, winner of October 31st elections) and
one nationalist party's sectors.

The companies carrying out privatization -- of water and other sectors such
as bottling companies along with conservative business sectors (including
large estate owners) carried out a strong political and media campaign
against the reform.

During the nine months previous to the campaign, the International Monetary
Fund (IMF) started a public debate with the CNDAV, denying any policy
imposition on the Uruguayan government and refusing responsibility for the
content of the 2002 Letter of Intent.

The work, which enabled the triumph of the Constitutional Reform was based
on the grassroots, which transmitted the spirit and content of the proposed
articles.

The auspicious result of the plebiscite opens the doors for a water policy
designed from a perspective viewing this resource as a common good, to be
publicly managed for social participation and sustainability criteria.


http://www.realworldradio.fm

For more information

CNDAV
aguayvida@adinet.com.uy

FFOSE: www.ffose.com.uy
ffose@adinet.com.uy

REDES: www.redes.org.uy
agua@redes.org.uy


--
Deborah James, Global Economy Director
Global Exchange
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415.255.7498 fax
2017 Mission Street #303, San Francisco, CA 94110
http://www.globalexchange.org