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Privatization of Water: An Unsound Policy

Contractor: Development Alternatives Inc. Alma D. Porciuncula, Chief of Party Unit 2401, Prestige Tower F. Ortigas Jr. Road Ortigas Center, Pasig City

In third world countries where the population has poor access to certain needs such as to potable water such is no longer just a resource rather it becomes a strategic asset or resource.

Resource or an Asset?

True that the definition of strategic assets pertain to resources that are essential to and are the cornerstone of the economy but for developing nations this pertains to resource essential for the survival of the people and of the well being of the nation. Such is potable water that it is in the context of the Philippines  treated as a strategic resource or asset.

In a recent report it is said that the water supplying system that has been privatized will be taken under government control. This is in fact a main agenda of the new administration to correct the error of the policy that has access to, distribution of and maintenance of water systems be run by the care of the private sector.

Unburden the Government of Managing Various Utilities

Privatization was the move of the previous administration to unburden the government as to managing various utilities – water works included. This is a common trend in developing countries where the private sector is made steward of various public assets such as utilities. But is this something that should be continued in the Philippine context? This does mean that the private sector in the Philippines is not reliable or capacitated to manage these utilities.  In this  specific situation water is so vital and the people so dependent on it that it is paramount that government be the one to manage water systems in the Philippines.

The Government’s Role for the Welfare of the People

It must be noted that utilities are not just services, but they are also establishments that are impressed with a public character. This means that since the public’s welfare is tied into these establishments the government’s role in this is to directly manage, oversee and control utilities so as to protect public interest in utilities. This is comparable to the stewardship of the government of strategic assets that are essential to the economy.  This is more than that since this involves a resource that is directly related to the well – being of the people.

September 10, 2010 - Posted by Alex Spencer | Legal | government control, Philippines, private sector, Privatization, water privatization policy, water systems