Water Privatization: An optimal and efficient means for developing countries?

University essay from Växjö universitet/Ekonomihögskolan, EHV

Author: Safahati Adinda; [2008]

Keywords: ;




Privatization of goods and services can be a way to limit a firm's or a market's total costs. Water privatization in developing countries has many different reasons. The outstanding reasons are; the need to promote private investment in water sectors so that, national/private water rights and the millennium goals for water can be reached. Privatization is a process of changing a business ownership from a public to a private sector. By this process, the government loses power to the new private owner and the firm and/or market transfers to more business oriented. The private owner has one main goal in the business and that is to maximize the profit.

Water is a good that we all need in order to survive, regardless our economic conditions, son or later we all have to find a way to satisfy this need. Because of this, water is very important for all human being and a part of the human rights.

The crucial need of water for our existence and the private firm's goal are conflicting. This has created many commotions around the world and raised questions about how water privatization violates the human rights of UN conventions.  But some people are pro water privatization and some of their arguments are that, privatization limits the government's external borrowing and improve the water distribution system.          


Key words: Water privatization, Developing countries, Public sector, Private sector

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