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Monday, December 10, 2012

Is the Privatization of Water a Good Idea?

Everybody always tells me about the benefits of privatization when the theme is the economy, that story about competition between companies, resulting in a better price, efficiency and delivery of services.

In Votorantim, people are without waterHowever, the same people forget frequently some contradictions of capitalism as dumping and monopoly, Nobody here is blindly defending the communism against the capitalism, but... What happens when the privatization of the Water System occurs with such monopoly? What happens to the poor people?

Well, I haven't the theoretical knowledge to respond, but the city that I have just mentioned in the last post can respond to us. Votorantim is in the State of São Paulo, Brazil. The defeated candidate for re-election, Carlos Augusto Pivetta, has privatized the Water System and  the result is people with more expensive bills to pay and no water!

Economists like David Martimort and Stéphane Straub show us with some mathematical formulas the discontent in relation to privatizations expressed by citizens all over Latin America (would it be the case of Votorantim?). In practice, the people around the world can see the population discontent through those images.


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