Agua de Vida: Cochabamba

One of the most important and detrimental struggles in water privatization is the Water Riots in Cochabamba, in late 1999 and early 2000. This event is not just the spark that lit the fire, but an important reminder of the power and greed of multinational corporations as well as the ability for the People to truly change the lot they are given.

It all began in September of 1999, when Bolivia sold the water of Cochabamba in a lucrative deal with Aguas del Tunari, a company controlled by the multinational corporation Bechtel, the only bidder that attended. This deal was part of their contract with the World Bank for financial aid. Within a few weeks, water prices rose by an average of more than 50 percent. This sparked a city-wide rebellion, called by participants La Guerra del Agua, the Water War. The first to join the fight for water were not impoverished peasants, but engineers and farmers that were dependent on irrigation. With a banner that read “El Agua es Nuestra, Carajo!” the water is ours, damn it!. Factory workers and farmers alike took to the streets in what they called la toma de la plaza, the takeover of the plaza. The government didn't want to allow this to happen, and sent policemen to shoot gases at the protestors.

However, the protestors availed, and shut down the city, sparking revolts in other cities. The cocaleros, coca growers, were led by Evo Morales. Then-President Banzer, declared a state of emergency and martial law, and in April 14, 2000, Victor Hugo Daza, a seventeen-year-old student, was shot in the face and killed by the Army, and more than a hundred others were injured. The citizens of Cochabamba held their ground, and Bechtel was forced to leave Bolivia when their contract was made null, and replaced with a public company.

In November of 2000, Aguas del Tunari started a case suit for a minimum of $50 million against the Bolivian government, through the International Centre for Settlement of Investment Disputes (ICSID), a mechanism of the World Bank. The claim was not just for recovery of lost investments, but also for lost estimated future profits due to the annulment of the long-term contract with Cochabamba. The case was a closed-door process, in which the press and Cochabamba citizens were not allowed to access the case proceedings.

In August of 2003, more than 300 organizations from 43 countries, including Bolivia, sent an International Citizens Petition demanding that the case be made transparent and allow citizens to participate in the proceedings. The companies garnered international attention and faced a public outcry from around the world, with protests, damaging press, and public demands for the dropping of the case.

On October 21, 2005, ICSID ruled that it had jurisdiction in the case, and would proceed with the case. Defense in the case had cost the Bolivian government millions of dollars of legal fees over the last couple years.

In face of international citizen pressure, on January 19, 2006, Aguas del Tunari main shareholders agreed to drop the case for a token payment of 2 bolivianos, (about 30 cents)

Although this victory changed the overall welfare of Bolivia, including the election of Evo Morales and citizens having more of a voice, the global significance, although less evident, is far greater. In the last several years, cases such as Bechtel vs. Bolivia, wherein a multinational corporation sues the government for acting on the public's behalf, have increase exponentially. The vast majority of the ruling in these cases has been in favor of the multinational corporations and against the public's welfare. In the case of Bechtel vs. Bolivia, it becomes apparent that corporate leaders must be prepared to defend their actions personally, in front of the media, local governments and citizens. Cochabamba not brought to the world's attention the downfalls of water privatization and corporate greed, but also showed the world that sometimes, the underdog can win.

Works Cited

Shultz, Jim. "The Cochabamba Water Revolt, Ten Years Later." YES! Magazine. YES! Magazine, 20 Apr. 2010. Web. 27 Sept. 2013.

Goodman, Amy, and Denis Moynihan. "Cochabamba, the Water Wars and Climate Change."Democracy Now! Democracy Now!, 21 Apr. 2010. Web. 27 Sept. 2013.

Achtenberg, Emily. "From Water Wars to Water Scarcity." ReVista. Harvard Review of Latin America, Winter 2013. Web. 27 Sept. 2013.

"Bolivia Investigations: The Water Revolt." The Democracy Center. Community Iniatives, n.d. Web. 27 Sept. 2013.

Finnegan, William. "Leasing the Rain." The New Yorker. The New Yorker, 8 Apr. 2002. Web. 27 Sept. 2013.

"Bechtel vs Bolivia: Details of the Case and the Campaign." The Democracy Center. Community Iniatives, n.d. Web. 27 Sept. 2013.