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At present more than one billion people on earth lack access to fresh drinking water. By the year 2025 the demand for fresh water is expected to rise to 56% above what currently available water can deliver. To solve the growing water crisis, the solution that was proposed and pushed by world bodies such as WTO is privatization of water.
Water privatization is a short hand for private sector participation in the provision of water services and sanitation, although more rarely it refers to privatization of water resources themselves. Typically there are 4 reasons for attempting to involve the private sector in water supply and sanitation:
• mobilizing financing for investment
• need for technical expertise
• increasing efficiency
• improvement of service quality
In order to achieve stability and economic progress, it is vital that developing countries address the water provision and sanitation challenges by making proper infrastructural investments, implementing solid operational principles, establishing regulatory frameworks and fine tuning economic instruments...
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