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ENVS Research Paper

Epidemics such as cholera are not factored into such

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successfully capture all areas of water needs across the social spectrum. Epidemics such as cholera are not factored into such economics and prevent such theories to be successful. Privatization in Ghana Privatization of water in Ghana was a rational decision based off of the economic needs of the country. With the rising population budgetary pressures were growing in the early 1980s. Facing a debt crisis Ghana sought the safeguard of Western financers. Competitiveness was another reason for privatization. Efficiency was sought through “cutting red tape and deregulation as a way for solving the over accumulation crisis of capitalism” thus privatization appeared as a strong option for capital (Yeboah, 53). Lastly, water emerged as a new capital investment, which would help with Ghana’s debt. There are two consultants’ reports that rationalize Ghana’s decision for privatized water. These are the Halcrow Report, which developed a number of options for public participation, and the Berger Report, which developed a business framework for the restructuring of the water sector (Yeboah, 54). The Coalition Against Privatization of Water (CAP of Water) was the large force against privatization in Ghana. CAP of Water focuses on “sustainable human development” through people- centered development urban poor. Highlighting many low-income families who have been disconnected from water mains due to privatization. Alternative ideas to privatization are hybrids of traditional and modern ways of acquiring water. It is important for the people of Ghana to keep “indigenous values, social structures and identities” that have survived thus far, in future operations (Yeboah, 61). The inability to collect water impedes these structures to be upheld and is a core issue in Ghanaian society.
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Water Allocation in the Private and Public Sector Advocates of water privatization believe that private companies would be more efficient in transporting and providing water to those who currently lack access. Failed government and aid agencies are the reasoning behind this assertion, low efficiency and low levels of “cost recovery of public utilities” result from poor management in the public sector. Privatization and private sector “partnerships” will be more efficient thus gaining “lower prices, improve performance and increase cost recovery, enabling systems to be upgraded and expanded” which is extremely important in countries with many tribes spread out with limited access to water (Bakker, 437). Those who are against the involvement of private companies argue that it introduces “a pernicious logic of the market” which is incompatible with guaranteeing citizen’s basic right to water (Bakker, 437). Shareholders, who overpower the actions of private companies, have an overriding goal of profit. This goal inhibits the ability of private companies to manage water supply sustainably. In 2002 Esache and Rossi studied a well- managed public water system and proved that it was more efficient and less expensive than management via the private sphere. By the late 1990’s Enron had become one of the largest water “multinationals
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