What's new at the Centre for Science and
Environment (CSE), New Delhi, India. ANGRY AIR ACTIVISTS
Join CSE's National activists workshop on air pollution and
citizen's right to clean air. More at
http://www.cseindia.org/html/cmp/air/apc_ad.htm
TRAINING WORKSHOP ON
ENVIRONMENT DOCUMENTATION
Centre for Science and Environment is
organising a training workshop on environmental documentation from December 17-19, at 41,
Tughlakabad Institutional Area, New Delhi. Last date for confirming your participation is 30th
November 2001. Details at
http://www.cseindia.org/html/extra/lib_training_form.htm
GNET NEWSLETTER FOR THE MONTH OF OCTOBER
The
current issue of the G:NET newsletter is now available. This bimonthly newsletter
is for all those who are concerned about our deteriorating environment.
http://www.cseindia.org/html/eyou/envedu/gnet/gnetindex.htm
EQUITY WATCH
Equity Watch is a climate change newsletter from the Southern perspective the latest issue
is available on our website. This issue contains: China does more than the US, Solar power
in Asia, First casualty and more at
http://www.cseindia.org/html/cmp/climate/ew/index.htm
MYSTERY FEVERS
Unknown, unidentified and lethal fevers are striking India. Such fevers have claimed
thousands of lives the world over. Details at
http://www.cseindia.org/html/eyou/health/healthnews/pressrelease.htm
STRUGGLE FOR SURVIVAL
The iron foundries in Agra get some breathing
space but the Supreme Court is determined to save Taj Mahal from these polluting
industries. Details at
http://www.cseindia.org/html/dte/dte20011115/dte_srep1.htm
TAKEOVER BID
The people of Uttaranchal are resisting the government's attempt to wrest control of
the van panchayat forests. More at
http://www.cseindia.org/html/dte/dte20011115/dte_srep.htm
MEDICINE WARS
Who pays for the research and development of new medicines? What medicines get most
of the research and development money? Check out at
http://www.cseindia.org/html/dte/dte20011115/dte_stati.htm
FIGHTING BIO-WAR
Are we prepared to defend ourselves from possible bio-terrorist attacks? Details at
http://www.cseindia.org/html/dte/dte20011115/dte_cross.htm
THE MISSING LINK
Introducing a newsletter that explores this missing link. A bi-monthly. Produced by
the health and environment unit of the Centre for Science and Environment. More at
http://www.cseindia.org/html/eyou/health/publications/missing_link.htm
A
message from the Chairperson, Anil Agarwal:
THE WATER BUSINESS
Water has become a new pet subject for Indian industry. Not because it is concerned
with the depleting water resources or its own contributions to growing pollution. Because
it sees a new and lucrative business opportunity. With support from the World Bank, the
Confederation of Indian Industry (CII) and other associations are competing with each
other to establish their role in the water business. Last month saw a spate of conferences
on this issue, with industry participants drooling about the huge investment requirements
for drinking water and sanitation.
I am not against private sector
involvement in water per se. But given the political economy of water and sewerage in the
country, I believe their role will be extremely limited. The simple assumption of private
sector proponents is that if water is correctly priced - what is known as full cost
pricing - it would facilitate investment from the private sector and provide a solution to
the water crisis facing vast regions of the developing world.
This argument has many holes
unfortunately. Firstly, current water and sanitation technology, based on the flush toilet
and sewage system, would make full cost pricing of water and sanitation services
unaffordable by most in the urban South. It is
important to recognise that private sector involvement cannot be only in the water supply
business. This is just one small and profitable part of the water business. The real cost
is in taking back the sewage and treating it to the quality needed for disposal in water
bodies. This is the real "dirty" business. We know that sewage and drainage
costs can be as high as 5-6 times more than the cost of water supply.
And with increasing chemical pollution, water
treatment costs are only going to increase.
The political economy of defecation is
such that no democratic government will accept the hard fact that it cannot
"afford" to invest in modern sewage systems for its citizens. Instead it will
continue to subsidise the users of these systems, in the name of the poor, who would not
be able to afford the systems otherwise. It is important to realise that almost all users
of the flush toilet and its sewage system are the rich in our cities.
Our political system today literally subsidises
the rich to excrete in convenience. In fact we get a double subsidy.
The logical policy would be to accept the cost and then t o impose
differential pricing so that while the rich pay for the cost of the capital and resource
intensive sewage and waste disposal technology, the poor pay for the cost of their
disposal system, which is invariably unconnected to the sewerage system and hence low
cost. But this is easier said then done.
The democratic framework in our countries
would force political leaders to keep water and waste pricing affordable by large sections
of urban populations. In this situation you will find that private investment looks for an
easy way out. The answer is to invest in water services and to leave the costly business
of cleaning up the waste to government agencies. In most parts of the developing world,
the water industry is bidding and securing contracts primarily for the profitable water
business. This will lead to a distortion in the prices, as profits will be creamed off,
while costs will be left to the already strained public exchequer.
In India, industry has been lobbying for
private investment in the water sector. But it would like to focus on the water supply
business. Or at best it would like to build and operate the treatment plants but will
leave local governments to price and recover costs from consumers.
Secondly, the private sector will have
little to offer to large numbers of urban poor. Most poor urban dwellers are illegal
occupants - living in slums and highly congested areas. The cost of reaching and
maintaining services to these groups is expensive and there is uncertainty about recovery
of dues. The risks are high. The profits low. In this situation, private investment is
rarely available.
Thirdly, private sector with its mantra of
full cost pricing does not even begin to have answers for the millions of people living in
rural South. These communities already pay an enormous cost for water. In fact, here the
community sector has an enormous amount to offer. Given the state-dominated water supply
systems, little effort has been made to get rural communities to develop and manage their
own water supply systems. But where done, it has shown outstanding results, including the
willingness of rural communities to contribute substantially (labour in a big way and
materials to a lesser extent) to the construction and maintenance of the water supply
systems. This reduces the cost of water supply to the public exchequer and gives ownership
to the stakeholders of the water supply projects. Community-based water management has the
potential to become the world's biggest cooperative enterprise.
Rural communities need is financial
support for creating conditions that lead to self-management of water sources. The answer
is not full cost pricing but political decentralisation and empowerment.
It is this community-industry-government
collaboration that we must build in urban areas as well. Public participation and
political process that pushes for good governance in water management are the key
prerequisites for change. Not another contractor. Given the state-dominated water
supply systems, little effort has been made to get rural communities to develop and manage
their own water supply systems
- Anil Agarwal
(This article is also available online at
http://www.cseindia.org/html/dte/dte20011115/dte_edit.htm
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and check out what's new. Our website carries our science and environment
fortnightly Down To Earth, a daily environment news flash by subject categories, a catalog
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