Presentation of the Conflict

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Water Privatization in Asunción would primarily effect the portion of the population that cannot afford to pay utilization fees for water and sanitation. Although this is where the primary effects would be felt, the privatization of water would effect the entire 1.8 million people of Asunción and the surrounding metropolitan area. The question of whether or not the quality of delivery and access to potable water would be improved by privatization is also an important one to consider. In the past, Corposana for example, has not been efficient in providing privatized water and sanitation services. Along with questioning their promises, placing water in the commodities category denies the population of Asunción basic access to a human right and resource.

Some of the poor would also be completely without water if it were only provided to those who can pay the fees of privatization. For others, the money for water would have to be taken from other expenditures, such as education, adequate food, and medical care. Water Privatization would deny all the people of Asunción basic and free access to water.

Through the conflict over Water Privatization and the hardships that come with having a lack of sufficient access to water the people of Asunción are socially and morally united. The people have acted together to discourage and combat the implementation of privatized water.

Yellow fever, dengue fever, malaria, excessive childhood and poverty related illnesses are extensive hardships that continually connect and unify the people of Asunción. This is a collaborative South American city tied by their similarities, differences, and ultimately the hardships and difficulties of their lifestyle.

"Damned if you do, damned if you don't" At this time, over half of Paraguayans are without access to potable water . With privatization, water would be limited to those who could afford to pay for it, those that the corporations provide water to, and ultimately, as in the market place for all commodities, water may end only in the hands of the highest bidder. Where does the emphasis on economic goods trample human rights and access to environmental resources??? Water Privatization is example A, and in Asunción, Paraguay, the people are fighting for their human rights and still do not have sufficient access to water.

-N

Volatile Paraguay

The conflict is one that involves basic human rights, and therefore includes fairness. Maslow’s Hierarchy of Needs shows us that we must have our most basic needs in order to survive and flourish. By taking away a cities right to have public water, we are denying the people of their most basic needs. If one person can not afford to pay a large corporation for their family to use water, what are they to do? True, they will be paying a water bill even without a private company controlling water, but with a privately controlled corporation they are looking to turn a profit. This profit is at the expense of the people. It is completely unethical to charge someone for something that is essential to the human body.

Through what we have found about Asuncion, I feel that volatile emotions are directed toward both people, and social structure. The people have bad feelings toward the private companies trying to make money off of them, as well as the social structure for considering giving up the right to run the water and sewage facilities. Since the deal to stop the privatization of water, people have less volatile emotions toward the social structure.

In any conflict, it is easy to get people mobilized by stirring up emotions. This situation is no different. In order to fight for their rights, the people of Asuncion spread the word about how bad these private companies were, and what negative ramifications the water privatization laws would have. This creates awareness, and awareness leads people to action.

-R

Picking Apart Privatization

The issue of privatization of water in Asuncion is very much a debate about what should and what should not be. Although there are facts about water accessibility and quality, and both sides of the conflict of privatization, facts only discuss what is. This issue is primarily about what should be.

-Should water be a free human right or a commodity?

-If a commodity, is there a line on what can be sold and by and to whom?

-Does this depend on the place (i.e. developed vs. developing)?

-What is the effect of the level of corruption or loyalty of the government to its people?

-Where does this “need to be modernized” arise and what is its validity?

Essentially the basis for judgment of these issues exists within this moral frame, and has no final authority for what is right and what is wrong, yet a decision must be reached and a course of action taken, making this a very difficult conflict to resolve.

The people of Asuncion have been active participants in this conflict, and their position on fairness in this issue, is that privatizing water denies them of their basic human rights, and ability to sustain themselves. As with many water privatization conflicts, the people are aware of the effects of being denied their free right to water, mostly because they suffer from poor accessibility already.

Water Justice for All

“In country after country in recent years, the World Bank has been quietly imposing a for-profit system of water delivery, leaving millions of people without access to water.”

Those in support of privatization in Asuncion feel that they are being fair by increasing accessibility to water and sanitation—for a price. The IMF and World Bank feel that they are being fair by denying the funds they have been providing because it encourages the acceptance of privatization.

Everyone involved in the conflict feels that they are being fair.

And everyone feels that a sacrifice made by the other side will be justified.

“Fairness is rarely as simple as distributing a common good in equal measures.”

-N

The Pros and Cons of Privatization

Now some people argue that the privatization of water is a necessary evil. It may not be positive for the people of Paraguay in the short, financial term, but in the long run-it's effective and will help stave off disease and poverty.

Privatization Pros:

- While most countries are committed to increasing access to safe water and thereby reducing child mortality

- Water will reach more people in a more efficient manner

Privatization Cons:

* As a basic human need, water service should be a responsibility of governments. Transfer of control to a private entity that seeks to maximize profits reduces public accountability and can adversely affect the quality and equity of service.

* Water privatization can negatively impact low-income and underserved communities by unfair rate increases and poor service to these communities.

* Water privatization may lead to lower quality service and higher rates. In cases where communities have tried to reclaim their water systems from private entities, poor water quality, unresponsiveness to customer complaints, and rate hikes have been the most frequent complaints.

* Private multinational companies don't have a stake in the community in which they operate. This can have negative effects on small communities when it results in firing city employees and hiring new staff or significantly cutting benefits to long-time employees.

* Many privatization agreements fail to include adequate public participation. In addition, many of these contracts do not include enough provisions for contract monitoring and accountability.

* Many privatization efforts ignore the impact on local ecosystems and downstream water users, and may have long-term negative effects on the environment.

* Private companies, which stand to make more money for the sale of more water, may neglect the potential for water use efficiency and conservation improvements.

For more information.

Let's look at the victims here: the PEOPLE and the ENVIRONMENT! Both voices are lost in the grand conflict that is raging around the privatization of water.

Now, according to Parlimentary reports much of the aid that grassroots campaigners against the privatization of water has been given by the Parliament. This is hardly surprising when considering that Paraguay has a fairly new democracy (still with a few kinks of course) as its governmental institution. Representatives from all over the country spoke for their people and voted 32 to 7 against the privatization of water in 1994. It was a victory, and assured the Paraguayan people that their political system did speak for them, even in the face of not reaching IMF targets. Privatization by ESSAP was again shelved, but barely, in 2004-an indicator of the battle that Paraguay is losing ground on with every successive year.

Paraguayans have had their fair share of unfair treatments. Recall the era of tyranny of three successive dictators, the reliance on the World Bank and IMF for aid, and of course: being a third world country and dealing with poverty, disease and lack of development. The government, while attempting to be representative is plagued with corruption, and the once self-sufficient agricultural sector is moving toward mass production of products like soybeans and corn, which will not sustain the population. This is just another hurdle that the country must overcome in the pursuit of some sort of stability.

The people in Paraguay have never really had to PAY for such a fundamental thing as water, and if all of a sudden, they are made to spend a portion of what little they have on water-it takes away from things like education and the exact types of opportunities that would pull Paraguay towards modernization.

Look at this conflict: It's not quite a true zero-sum conflict, (where whatever is gained by one side is lost by the other) because both the corporations and people get something. It is unjust and unfair in many ways because the people of Asuncion are losing money, but getting safe water-but this money goes directly into the corporations. It's like paying for water and basic sanitation: the rich people have to pay, and they can, while the poor people have to pay and oftentimes can't.

In the interest of "preventing death" by charging for water that will decrease disease and infant mortality, what about the people in Asuncion that can't afford the high prices of water and end up dying of thirst? Where's the social justice in that?

Think about it...

-L

Paraguay and the Big Corporations

Since the struggle for water and sewage has begun, experts have talked about how it has been a good idea to let the people give up their right to water, and pay for it because service would improve, having a positive effect on the way of life. Since they have been saying this, the people of Asuncion have been opposed to the idea. From our previous posts, and media we have put up it is clearly evident that the people of Asuncion have been opposed to big corporations controlling their water. People in the city have taken it upon themselves to put in the time, and learn what exactly is needed to fight these companies. Since they have put in the effort, and have gained knowledge about how to fight big conglomerates, they have not allowed themselves to be dominated, and have brought control of water back to the state.

Experts go both ways, depending on whether or not they are receiving mucho dinero from big companies or not. Some will say that service will be better and cleaner with private companies, while some experts say a private system will hurt more than help. Opinions, even of experts, can be swayed very easily.

Epidemiologically, despite an outbreak of yellow fever, there is not a whole lot of investigations occurring in the area at this particular time. Yellow fever is transferred through mosquitoes,
and is a nasty disease.

-R

Uncertainty in Public Health-- Major Threats

Yellow Fever

In February 2008, the first outbreak of yellow fever since 1974 of the area erupted in Paraguay in San Lorenzo, about 12 miles from the capital city of Asuncion. Because of the close proximity to the city, where such an illness could spread particularly quickly, vaccinations are necessary.

Vaccinations however, are in short supply. France, Brazil, other bordering nations, and the WHO have had to send vaccinations in hopes of halting the spread of the potentially fatal disease. There are no treatments for yellow fever (although rest and drinking plenty of WATER is suggested...), vaccinations are necessary to limit infection once the disease has been detected.

Urban yellow fever is spead by mosquitos. There has been a dramatic re-emergence of yello fever in poor (and water deprived) areas of Africa and South America since the 1980's. With vaccination, the disease is preventable. But it is important to note the further preventable measures if truely combatting the infection of yellow fever is to occur.

Officials of the Pan American Health Organization have stated that the key to preventing outbreaks is to reduce the breeding grounds for mosquitos who cause the spread of yellow fever.

As stated by Dr. William Perea, the yellow fever chief for the UN Health Agency: "Mosquitos thrive in built-up areas with poor hygiene and sanitation."

An estimated 30,000 people worldwide die annually from yellow fever--a disease preventable by better and more accessible water and sanitation systems and vaccinations.

Dengue Fever

In Asuncion Paraguay, in the first few months of 2007, Dengue Fever hit Paraguay. Dengue Fever has many similarities to yellow fever,including the spread due to mosquitos. However, there is no vaccination for Dengue Fever.

15,000 infected in the first 2 months.

State of Emergency declared for Paraguay on March 1, 2007.

"Uncontrolled urbanization has also produced deterioration of drinking water, severe water and waste-management systems, which has also increased mosquito breeding" --Lyle Petersen, (MD/MPH/Director of the CDC's division of Vector-Borne infectious diseases).

The health problems facing the people of Paraguay clearly extend beyond mosquitos alone.

Check out more on this issue: Video.

-N

Betrayal in Domestic Paraguay

The people in Asuncion aren't acting blindly-desperate to rebel against any cause they can find... they have legitimate reason to be concerned for their welfare and the welfare of their families. In such a communal culture, antagonists that threaten the sanctity of the community carry a heavy reaction.

The people in Paraguay consider water to be a fundamental right, and to pay outlandishly high prices (since the water prices in Asuncion are the highest in South America) puts a burden on families in the lower and middle class in terms of affording education, food, shelter and the basic needs for their families.



Now, the World Bank and the IMF put the citizens of Paraguay between a rock and a hard place. They maintained that they would decrease or cut the funding that they provide the country's government. The World Bank was not looking out for the welfare of the country and its citizens, but for the large corporations that would own the telecommunications and water utility, to charge citizens and make a profit.

Talk about Bad Faith-


The government in Paraguay has been under shaky reforms and controlled by series of dictators, and pseudo-dictators. Although they have claimed themselves independent, and hold "democratic" elections, the corruption is quite significant in all levels of civil service and government. The people of Paraguay are quite right to feel wary about the decisions the government makes for its people. Especially when greater forces like the World Bank have a say in the activity of the larger companies in the country, the voice of the people is in danger. Paraguay may be one of the most poorly represented populations in South America, or indeed the world.

Corruption in the Government-- and Reform.

The government will often go over the head of the people, giving them plenty of reason to be suspicious of the huge companies that want to "modernize" the country at a terrible cost to the people.

With the corporate giants in league with the political machine in Paraguay. Most of the "public" utility enterprises are run by the government with a corporate backing to finance them. However, despite the presence of large companies, most of the poorly run centers depress the overall economy.

Conflict theory emphasizes the role of coercion and power, a person's or group's ability to exercise influence and control over others, in producing social order. The government and large privatization companies are no stranger to this coercion-and will continue to regulate the privatization of utilities to maximize their own profits. The rigidity of the social caste system intensifies because people are forced to pay for utilities to the point where they are denied other opportunities to move up the social ladder. Citizens find themselves in a fixed social position, unable to seek fortune or better their lives. They're paying for WATER! They're paying to wash, to drink, to clean and cook... the government definitely has more control when regulating a substance in which people need to survive.

Classical economics viewed the company as a single decision-unit engaged in maximizing profits. It ignored the possibility of conflict between owners, managers and employees. The obsession with competition failed to take into account the other goals which may take precedence in organizations. Organization theory partly owes its existence to a reaction against such simplistic ideas.

How does this apply to Paraguay? Well, the companies that are putting a price on the fundamental right to water are indeed maximizing profits. The decisions are made with the priority of profit first, and people second. The competition between companies will be eliminated in the monopoly that will be enacted, and the entire framework of public utilities will be divided into small purveyors of water in towns and cities. For the most part, this change has already occurred, much to the unease of the Paraguayan population and the organizational machine is already whirring into a frenzy of profits, ownership and denial and human rights.


Bad Faith will out...

-L

Traditions of the Guarani People in Paraguay

The people in the area of Asuncion, as well as most of Paraguay are mestizo. This means they are a mix of Spanish and the indigenous Guarani people. The Guarani people still have some customs that are traditional in their society.

Guarani Dance

There are not really specific customs linked with certain local resources that I could find, however the Guarani people are an indigenous people that have a strong heritage and still practice old customs passed down from older times.

With the situation the way it is, it threatens to affect everyone’s way of life, as well as their quality of life. If people must pay for good water and sewage maintenance, the big conglomerates will see them only as a number not as a community. Big corporations will be more concerned with profit than providing a service to the community. The places that are affected by this struggle hold tremendous value to the people of Asuncion, and need to be preserved. The Paraguay River is a very important source of life for the people of the city. If the river, as well as other water resources are taken and used for profit, there will be very little left for the people to have for themselves. The Guarani, being an indigenous people, are very close with the land, and to take the resources that have been around for thousands of years and sell them off would be an unfortunate move by the "higher powers".

-R

Combating Corruption

There is absolutely no question about the lack of access to water in Paraguay. There is also no question that the government of Paraguay is extensively corrupt and that the wants and needs of the people are thus not met...

"One of the most serious problems facing Paraguay is the legacy of instituatinal corruption after decades of dictatorship. There have been mechanisms created to combat corruption, such as the comptrollers office, but investingations often become political and are seldom completed. the slow pace of judicial reform and continued impunity are barriers to development." Check it.


With a past rooted in dictatorship and corruption, as it actually occured, the trust of the people of Paraguay is limited. Due to this, and the extremely poor living conditions related to water and sanitation, Paraguayians have been persistant in pushing for their water needs and opposed to the privatization of water and other resources.



The past and the lack of improvement from past conditions is the reason for the instability and poor resource construction, as well as the difficulty of making changes. It is also the spark for the activism and involvement of the people of Paraguay to attain the resources owed to them.

-N

The Cultural Toolbox Inventory

Travel journalist Jamie Borley writes; "The people of Paraguay are a curious thing. Not entirely different in all the different areas across this small country of six million inhabitants. I sensed a somewhat light shyness and ubiquitous down-beatedness among all the people I encountered. Almost sullen. They are an easy-going people. Understated, like the country itself".

Read the whole article HERE!

But for all these "shy" tendencies that she observed, the people of Asuncion can certainly stand up for themselves. For example, the International Herald Tribune reported this past February (2008), "Some 4,000 people demanding vaccinations against yellow fever blockaded a highway near the capital Wednesday, a week after the disease made its first appearance in humans in Paraguay in 34 years".

Read the whole article HERE!

And just this month, on April 14th: "Police in Paraguay have used water cannons to disperse about 400 protesters demanding public housing days before a presidential election".

Read the whole article HERE!

Indeed, the population of Asuncion in particular seems to possess a spark that can be seen when political and economic atmosphere is stirred and there is reason for revolt. In an area that is not considered a First World country by any means, the revolts are more than just the heat. Throughout the history of Paraguay there have been conflicts with colonization (primarily Japan and Brazil), dictatorships and wars.

More recent and related problems are now piling up in Paraguay, and they're doing all they can to overcome natural and environmental conflicts and economic conflict as well.

On September 16, 2004, the IMF issued a report that outlines some of the major conflicts plaguing Paraguay in the past 10 years.

"The Paraguayan economy is beginning to emerge from a long period of slow growth. The regional crisis, problems with drought and foot-and-mouth disease in agriculture, and a banking crisis, all contributed to a drop of 2.3 percent in GDP in 2002. There was a sharp depreciation of the exchange rate in 2002 and inflation accelerated, reaching 20 percent in early 2003. A bumper harvest produced positive GDP growth of an estimated 2.6 percent in 2003. Banking system deposits recovered, the exchange rate appreciated against the dollar, and inflation eased to 9 percent at year-end."

In 2004, the economy has stabilized but growth remains modest. A late season drought depressed output of soy, the largest export crop, reducing expected agricultural output growth to near zero, but nonagricultural output is recovering. The Guaraní has strengthened by 4 percent against the dollar so far in 2004. The strong Guaraní contributed to a sharp fall in inflation. Year-on-year inflation through June was 5.5 percent, with inflation for the year as a whole expected at around 4-5 percent." - IMF EXTERNAL RELATIONS DEPARTMENT

There are certainly economic growth indicators in Paraguay since this report was released, but it has been slow, and conflicts like the privatization which coincides with basic human rights acts as a speed bump in the road. However, like the outbreak of Yellow Fever these past months and the revolting in the demand for vaccine, the Paraguayans have developed an inner strength for fighting for what they believe in and for what are beneficial for the greater good of their brethren.

Check out this VIDEO!

In the 1960s they fought for democracy, holding elections and allowing the Colorado party to be elected and hold office. They were one of the first Latin American countries to enact and then defend democracy so strongly. Read up on it!

In any case, the Paraguayans are able to recognize exploitation having directly faced it in the past. This allows for them to rise against the seemingly impenetrable forces that corporations have been building themselves up to be-and do what is best for the people.

In the beginning of Paraguay's history as an independent nation, after suffering through three oppressive dictatorships, an electoral system was adopted. In 1870, Paraguay acquired a constitution which remains, technically, the basis of political life in the nation until 1940. Two parties are formed - the Liberales and the Colorados which reflect the standard liberal and conservative clash that other countries often see. However, in practice power rarely changes hands through the ballot box. Successive regimes result more often from coups and military intervention. Paraguay remains inward-looking, concerned with its own tumultuous affairs. This was a learning experience for the country but kept them out of international trouble until the 1930s with the start of the Chaco War.

As time goes by, the responses to internal crises grows more swift and effect, and people are not as likely to succumb to honey words of oppressive dictators or let groups like the Jesuits alter their culture, presuming them deaf, dumb and blind. People are no longer afraid to rally the regime. Educate yourself!

Although Paraguay has been able to come to grips with recognizing the problems it faces, outside help is not turned down. There are having been hundreds of Peace Corps volunteers in the country, and Red Cross helps during the massive fires and food shortages. Check out the article! The Ministry of Foreign Affairs in Japan has also extended a helping hand in a 1998 environmental disaster... "The Government of Japan decided on January 14 (Wed.) to extend emergency materials such as tents and blankets (worth about 10,490,000 yen) to the Government of the Republic of Paraguay, which has sustained disastrous rainstorms"

Politically charged conflicts and human rights violations draw the attention to some organizations such as Amnesty International, who paints a bleak picture for Paraguay:

Excessive use of police and military force, impunity, poor prison conditions, and violence against women continue to be key concerns. Conflicts over land, both agricultural and urban, often lead to excessive use of force. The Truth and Justice Commission is investigating past violations of human rights, but impunity for past and current abuses and an illegal delay in compensation for past abuses remain problems. Prisons continue to be sites of new abuses, and the vast majority of prisoners have never been convicted of any crime. Domestic violence is widespread. Thousands of children work in the streets, and women and children are vulnerable to trafficking and other forms of abuse. Judicial protection for vulnerable populations is limited.

Past or present, Paraguay's culture may not have the exact tools to solve all their problems, environmental and social, but who does? The fact of the matter is: that they are working toward solutions by utilizing the freedoms they have fought for in the past. No country is without its bumps and bruises...

There is not a necessary dependence on the outside, but with steady international support and the national action that is palpable in the air-there is hope for Paraguay and its capital, Asuncion.

-L

The Demographic Essentials

To understand the conflict going on in Asuncion, I think it’s important to see some basic, yet essential geographic, demographic, and economic profiles of our city.

Asuncion and its surrounding area has a population that is close to 1.4 million people. Within the actual city there are about 540,000 people. That’s quite a bit of fresh water- and in the eyes of some conglomerates, lots of cash. Even with that many people all living in the same area, Asuncion still has a very close community atmosphere. As the capital city, the people are proud to be the center of many aspects of Paraguayan life. People come together to make each other feel welcome, and like they are a part of the community. People in Asuncion want the fundamental right to have water without being charged too much money. They want everyone to have good sewers and fresh water, not just upscale communities. All of these common goals draw the people of Asuncion closer, and also make them a more formidable force against privatization companies.

The local economy of Asuncion…

"Asunción is the nation’s center for manufacturing, wholesale and retail trade, and commerce. Major industries include food processing and production of consumer products for local consumption. Other manufacturing, principally in small factories and workshops, specializes in wood products, shoes, leather goods, and cotton textiles, some of which are exported to markets in Brazil and Argentina. Much of Paraguay’s agricultural production, the mainstay of its economy, is shipped through Asunción. Cotton, soybeans, oil seeds, timber, and meat products are exported to Brazil, Argentina, Germany, the United States, and The Netherlands."

For more Information: Click Here!

Asuncion lies on the eastern bank of the Paraguay River, where it meets the Pilcomayo River. These rivers are also environmental features that draw a lot of contact from human use. Although conflict over the water that flows through the river is ongoing, it will always remain a beautiful sight.

Asuncion covers about 117 sq. km or 45 sq. miles. Although the urban population as I said was well over 1 million, the city still keeps it small Latin American feel by having few skyscrapers. Traffic volume is also usually pretty low. Asuncion at night …

Overall, Asuncion is a small Latin American city that is putting up a big fight to stop people from coming in and taking advantage if its people. This is just a small glimpse into what Asuncion is like on the outside, and as we dig deeper into our conflict over water privatization I know everyone will see how much fight this small city has.

-R

This Just In!

As mentioned in the previous blog, Paraguay recently held presidential elections. Former Catholic Bishop Fernando Lugo was elected, breaking 62 years of rule under a single party.

For more information on the issues within the government of Paraguay and the new president, click here. Hopefully new political rule offers potential for improvement of the resources and quality of life for the people of Paraguay, such as increasing the much needed availability of water and sanitation.

-N

So, How Does it Work NOW? Looking at the Conflict

After decades of inadequate water and sanitation availability and access within the nation, the need for such resources has become undeniable and an unavoidable topic for electoral candidates. As shown in the following map, the percent of the population of Paraguay that is without access to safe drinking water is 51%-75% (as of 1998).




“Aquastat” sheet evaluating the use of water in Paraguay.

There are many participants in the conflict for access to safe and sufficient water supplies as a natural right, and not as a profit for corporations. As stated, the Public-Private Infrastructure Advisory Facility (PPIAF) has been working to privatize water in Paraguay, and especially Asuncion, and has worked with the government to fund consultations with companies such as Essap (formerly Corposana).

Check out the the Asuncion Metropolitan Area Potable Water Project Proposal!

Local Unions, Constituents (as corrupt as the government may be), and activist groups such as Sobrevivencia have been working to combat water privatization. Sobrevivencia in particular has been working toward the New Law on Water, which was passed by the parliament in June 2007.

The regulation of business and industrial activities of Paraguay are established by three ministries. The Ministry of Industry and Commerce, the Ministry of Finance, and Central Bank (Civil Code and Law 1034/83 provide more information). Each new regulation must be approved by each of the three ministries for regulation to be passed—according to the government.

President Nicanor Duarte Frutos was elected in April 2003 (with 38% of the votes ironically enough) and will serve until April 2008 (elections are currently taking place, as of April 21, 2008) and Duarte cannot choose a successor, or serve another term, so power is expected to shift. When Duarte was elected in 2003, he promised to cease the sale of state companies to privatized companies, such as four major companies that had been sold.

However, Jose Alderete was appointed the Minister of Public Works and Communication and Cesar Cruz Roa designated to coordinate the water and telecommunications reform program. Both have worked to develop case-by-case plans which would improve the efficiency of state-owned companies via contracts with private sector management and private capital participation. Although not technically sold to private companies, the management of “public” sectors is being contracted to be done mostly by private corporations.

The plot thickens...

-N

Putting Events in Perspective

Water Privatization and the history of water and sanitation in Paraguay reaches back over 30 years, when Asuncion first started to devote time and money to water supply and sanitation projects. Here's a time line to put the 30 years of utilities in perspective:

December 1977:

• First Rural Water Supply & Sanitation Project

June 1981:

• Second Rural Water Supply & Sanitation Project

Mid 1980’s:

• Only 50% of Urban and 10% of rural inhabitants had access to potable water (only 25% of the nation’s population).

September 1992:

• Third Rural Water Supply & Sanitation Project

1997:

• Corposana was providing inadequate water and sanitation, and the World Bank $40 million to fund a project to establish a national urban drinking water concession. The requirements were that money would only be spent in communities that would pay 25% of the start up cost and all of the maintaining costs. $11.6 million came from villagers and $4.1 million from Paraguayan government.

1999-2004:

• The World Bank reduced funding to Paraguay because of the nation’s failure to privatize their water and sanitation systems.

2000:

• The PPIAF and the World Bank funded consultation to develop options for a privatized contract with Corposana

June 2002:

• Local Unions stood up against Water Privatization and turned down proceedings.

2003

• Water Privatization became an election issue and political parties supported or opposed the issue. Nicanor Duarte opposed the Essap (formerly Corposana) contract and promoted a public sector.
• Nicanor Duarte then appointed Cesar Cruz Roa as coordinator of water and telecommunications reform program.

Summer 2004:

• Supporters of Water Privatization revamped the legislation promoted in 2002 and were met with 5,000 protestors.

September 2005:

• International Monetary Fund, the Paraguayan government’s back up, drew up plans to introduce privatized water, with Essap

November 2005:

• The World Bank funded an analysis of restructuring privatization options.

May 2006:

• Government signed a management contract with Essap (and 4 others) agree to take hold 12/2006 to privatize water.

June 2007:

• Due to opposition of Water Privatization, the “Law on Water” was approved by parliament.

And that leads to where Asuncion is now in 2008, battling the fundamental human rights violation of privatized water in the capital.
This is not a new conflict.

-N

The Real Story

Now, with all the historical turmoil that Paraguay has undergone a few more human rights violations don't seem like such a big deal. However, let's not take this situation lightly, for the privatization of water in the country's capital is not just a passing phase. This conflict has been a hot debate for years, and it's not settling down any time soon.

Let's start from the beginning...

What is privatization?

Well-- simply put: A basic definition for privatization in the water or sanitation sector involves transferring some or all of the assets or operations of public water systems into private hands.This does not necessarily mean the privatization of water resources themselves occurs because water services are seen as such a key public service. Proposals for privatization of them often evoke stronger opposition than for other sectors. Globally, over two-thirds of modern water and sanitation systems are publicly owned and operated.

For more information on the different types of Privatization Models: Click Here!

Apply this to water... this taking water and charging the public for how much they use. Water! The public will be charged for the water they drink, bathe in, wash their clothes in and use in cooking...

Here's the Story:

In Asuncion, Paraguay, the Public-Private Infrastructure Advisory Facility (PPIAF) had been working toward steering Paraguay towards water privatization even though there was popular resistance against it for ten years running.

In 1995, the World Bank began a sewerage project in Asuncion which would theoretically give more citizens would have access to sanitation. They sought to introduce private sector participation in water supply and sanitation. The World Bank has since reported that this project failed, but again, in 1999 they tried to convert it into "a vehicle for privatizing the water and telephone companies".

(The Paraguayan government changed its mind on whether to refocus the project solely on privatization and eventually the project failed to go ahead.)

This failure to proceed with privatization was one of the reasons that the World Bank reduced its funding in Paraguay between 1999 and 2004.

"Participation of private capital in public infrastructure, as evidenced by, for example, further expansion of water/sanitation services via existing minimum subsidy concession schemes with private operators; taking to point of transaction two PPPs in infrastructure investment."
-World Bank. (2004). Country Assistance Strategy for the Republic of Paraguay 2004/07. World Bank. Washington DC.

In December 2000, PPIAF paid $75,000 (US Dollars) with an additional $15,000 from the World Bank, to fund a consultant to develop options for a concession contract for the primary Paraguayan water utility Corposana.

The project also sought to build a consensus on the sector reforms with all the stakeholders, the government, Corposana, the private water providers, and consumer and business groups.

This consensus was supposed to be obtained through a 'participatory approach', but was at odds with PPIAF's assertion that the required outcome was the yielding of Corposana's urban water services to one or more private operators.

Corposana's name subsequently changed to Essap.

In June 2002, the concession plans were voted against by the Paraguayan senate, because local unions stood up against water privatization. It became an issue in the 2003 elections, when some candidates and parties were for the privatization and some parties were against it.

After promising not to sell any more state-owned companies, Nicanor Duarte won the presidential election and promptly announced there were no plans to award a private concession contract for Essap. Instead a plan was launched to reform the utility from within the public sector.

In February 2004, Jose Alderete, Public Works and Communications Minister, said that the government would be seeking World Bank investment to assist them with reforms in the water sector. BUT the World Bank was clear that privatization would be REQUIRED in order to receive any aid whatsoever.

"Some of the additional or deeper policy areas where the Bank has advised the administration to turn its attention ... include ... promotion of public-private partnerships for infrastructure development and maintenance through concession contracts for operation and construction, performance-based maintenance contracts and minimum subsidy concessions for expansion of water and sewerage."

-World Bank. (2004). Country Assistance Strategy for the Republic of Paraguay 2004/07. World Bank. Washington DC.

Over the summer of 2004, those in favor of privatization tried to revamp the policy that was voted down in 2002. Unsurprisingly, 5000 people protested through Asuncion against the law, and it was voted down again.

In September 2005, Business News Americas reported that in discussions over a new back-up plan with the International Monetary Fund, IMF: the Paraguayan government had to draw up plans to introduce private sector investment to four state-owned companies, including Essap.

Finance Minister Ernst Bergen was quoted as saying, "We are totally open to private sector participation, with the view that administration is passed to the private sector; so that the private sector has an interest in being involved in these companies."

Wait... what?

Two months later, PPIAF approved a new activity to assist the Paraguayan government in developing a new water strategy to enable the participation of local private sector operators in the country. Consultants paid with $175,000, with an additional $114,200 from other sources, would analyze options to restructure the utilities, and PPIAF funded activity also included building a stake-holder consensus for individual utilities.

In May 2006, a management contract for Essap, along with four other companies was proposed, and supposed to be active by December 2006.

Despite public protest, popular elections, and parliamentary votes, the IMF is still pushing water privatization in Paraguay, a process begun and re-launched by PPIAF.

Now, parliamentary members and civil society organizations, SOBREVIVENCIA (Survival) amongst them, are pressing for the final approval of a new law on water.

Check out this video!

This will guarantee access to water as a human right, and declare all water a property of the state.What exactly is the deal here? Consider the violation of rights in this situation.

Democracy is being trampled... and now, Asuncion has some of the highest prices for water in South America.

Drink it in...

-L

Welcome to Beautiful Paraguay!

This landlocked gem in South America boasts a rich variety of natural beauty and is the perfect spot for all those that love a little political spice in their heaping helping of scenery. In Paraguay, the energetic traveler encounters an untamed wilderness of marshes, lagoons, dense forests, jungles, national parks… not to mention the Chaco which is thought to be one of South America’s greatest wilderness areas. Oh, but there’s more! In Paraguay, you can learn about the Guarani Indians, see a jaguar or an alligator. Don’t forget the breathtaking waterfalls where the borders of Brazil, Paraguay, and Argentina come together either! Adventures abound!

As you scale the geographical borders of Paraguay, absorb the natural world while thinking about the year 1811 when this country achieved its independence and fell under a continued chain of oppressive, violent dictatorships. Take a deep breath and let the impact of the frequent, bloody wars that Paraguay has been involved in with its surrounding neighbors. The air is so fresh out here.

Let’s focus Paraguay’s capital Asunción, which is located on the Bay of Asunción which is an inlet off the Paraguay River.

Take a Taxi Ride!

On the way to the waterfront you can enter the old part of town, an area of architectural diversity. There are many parks and plazas left over from the Spanish grid system that colonized areas were built upon. How nice…

A good view of the city can be had from the Parque Carlos Antonio Lopez high above Asunción. The Botanical Gardens are situated in a former estate of the Lopez family on the Paraguay River, definitely worth a visit. There is also a golf-course and a small zoo. Yay! The Lopez Residence has been converted into a natural history museum and library, so you can get your read on.

Now let’s back up… Who is Paraguay?

Let's Look! (Techno Version!)

Indians speaking Guaraní—the most common language in Paraguay today, after Spanish—were the country's first inhabitants. In 1526 and again in 1529, Sebastian Cabot explored Paraguay when he sailed up the Paraná and Paraguay rivers. From 1608 until their expulsion from the Spanish dominions in 1767, the Jesuits maintained an establishment in the south and east of Paraguay. In 1811, Paraguay revolted against Spanish rule for independence and became a nominal republic under two consuls.

During the first 60 years of independence, Paraguay was governed by three dictators. Francisco López, Paraguay’s third dictator, waged war against Uruguay, Brazil, and Argentina in 1865–1870 In this conflict, half the male population was killed. A new constitution was written in 1870, designed to prevent dictatorships and internal strife was unsuccessful until 1912. It was in that year that a period of comparative economic and political stability begin. However, the Chaco War (1932–1935) with Bolivia won Paraguay more western territory.

After World War II, politics became particularly unstable. Alfredo Stroessner was dictator from 1954 until 1989, during which he was accused of the torture and murder of thousands of political opponents. Despite Paraguay's human rights record, the U.S. continuously supported Stroessner. (Of course…)

Stroessner was overthrown by army leader General Andres Rodriguez in 1989. Rodriguez went on to win Paraguay's first multicandidate election in years and thus, Paraguay's new constitution went into effect in 1992. In 1993, Juan Carlos Wasmosy, a wealthy businessman and the candidate of the governing Colorado Party, won a five-year term in free elections.

Raúl Cubas Grau was elected president in May 1998. In 1999, he was forced from office for his alleged involvement in the assassination of Vice President Luis María Argaña. The vice president had criticized Cubas for refusing to jail his mentor, General Lino Oviedo, who had been convicted of leading a failed 1996 coup against Wasmosy.

Luis Ángel González Macchi, appointed caretaker president after Cubas stepped down, was accused of mishandling $16 million in state funds, and former journalist Nicanor Duarte Frutos became president on Aug. 15, 2003. -->

He has pledged to clean up the pervasive corruption in his nearly bankrupt country. Paraguay has been in a protracted recession since the late 1990s.

This gives you a little more insight on to the type of leadership and government that has been established in Paraguay—Keep this mini-history lesson in mind as we explore the volatile human rights issues facing Paraguay, and in particular: Asuncion, Paraguay’s capital and largest city.

So as you pack up your backpack and check to see that you have your plane tickets to this scenic hot spot, browse through some more historical background, and create the TRUE picture of Paraguay in your mind—the Lonely Planet Guidebook will only present to you one side of this amazing country.

-L