Cornering The Market on Water

Big Corporations, Speculators Making Play

© Robert Dailey

Nov 1, 2006

Fresh Water Stream in Pecos National Wilderness, Robert Dailey

It's the next big thing. There will be a world water shortage in the next half century and big companies see profits to be made.

Water, unlike oil and other commodities, tends to be regulated on a local level, in most countries of the world, and is managed not as a “for profit” item, but as a necessity for public good.
That may change soon.
According to a recent article by Reuters, speculators are buying shares in local water utilities, and in water-related companies, expecting them to make profits from higher rates as water gets scarcer.
There is even a Dow Jones U. S. Water Index (DJUSWU), The International Securities Exchange ISE-B&S Water Index (.HHO), and the Palisades Water Index (ZSI).
Additionally, there is also a Swiss-run water equity fund, which is currently valued at over $2 billion U.S.
Unfortunately, as fresh water becomes scarcer, its price will go up, as profiteers begin controlling it. Fresh water has traditionally been considered in the “public” domain, and, something in the same category as the air we breathe.
The ones who will suffer from rising price of water are, of course, the poor and not just the poor of the world, but also anyone living in poorer nations of the world.
As corporations and richer countries take control of the water, poorer nations will either be controlled and exploited by richer nations, will cease to exist as countries, or will become chaos.
South Africa does have a viable water program in place which not only places high taxes on heavy water use, but also includes affordable water for the poor. This program could become the model for other water programs throughout the world.
Hotspots already coming under heavy water scarcity pressure: the U.S., Spain, China, India, Pakistan, Somalia, Botswana and Namibia.
See Also:
  1. World's Water Supply at Risk
  2. Year of Desertification
  3. Invention Takes Water From Thin Air
  4. U.N. Conference on Desertification

The copyright of the article Cornering The Market on Water in Desert Gardens is owned by Robert Dailey. Permission to republish Cornering The Market on Water must be granted by the author in writing.



Comments
Nov 10, 2006 4:04 PM
Sally Morton :
Bob- a couple of article summaries follow on this subject of fresh water scarcity. This is a major issue the world needs to wake up to quickly, before it's too late and the private corporations DO control all the market, as we see already happening by your article and resources:

Scientists Call for Radical Action to Ease Water Scarcity
It was recently reported in an article by The Associated Press (8/21/06), entitled "Scientists Call for Radical Action to Ease Water Scarcity" that during annual "Water Week" organized by the Stockholm International Water Institute that one-third of the world's population faces water scarcity. More than 700 scientists contributed to the dialogue, along with 1500 experts from 140 countries and U.N. agencies.
Read the full AP article at http://www.truthout.org/issues_06/082106EC.shtml "Scientists Call for Radical Action"

This article on the same subject was published by Reuters. http://www.truthout.org/issues_06/081606EB.shtml

Monday 21 August 2006
Stockholm, Sweden - Scientists on Monday called for radical action to improve global water management, saying one-third of the world's population faces water scarcity.
http://www.truthout.org/issues_06/082106EC.shtml

The report, drawing from the contributions of more than 700 scientists, was presented at the annual water week organized in the Swedish capital by the Stockholm International Water Institute. More than 1,500 experts from some 140 countries and U.N. agencies were attending.
Nov 11, 2006 10:29 AM
Robert Dailey :
Sally:
I agree with you. I covered much of the fproblems facing the world's population in several articles and blogs.
The fact is that despite things like desalination plants and new technology, one-thrid of the entire world populations is currently at risk, and hydrologists are calculating that the world's freshwater supply will not last through 2050.
Nov 11, 2006 11:10 AM
Sally Morton :
On your poll, I voted for "it's an abomination" for water to be privatized. I believe strongly it should be public domain. For goodness sakes, you have got to have water to survive. It should be available to every person on the planet at no cost.

Are there no solutions to the exhaustion by 2050? I realize better water conservation could stretch it out. Doesn't fresh water replenish?

The big question is if people will realize there is an immediate problem that requires immediate solutions.
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