What
if you had to pay $100 a month for the privilege of having water flow
into your home, when you turn on the faucet?
For
those on a fixed income, or those whose income is low to start with,
it could be devastating to have to shell out $1,200 a year for water,
yet that’s what is happening in various communities around the
country because their elected officials thought it would be a good
idea to sell the peoples’ water to a private company. It’s
what has happened in Coatesville, Penn., and Missoula, Mont.
Say
your income is $14,079 a year, which is the per capita income of
Coatesville, where the officials sold off the water system in 2001 to
a private firm, which promised to repair and modernize the water
system that has long been in need of upgrading. The company
promised, but it has yet to deliver on it.
The
good people of Coatesville thought they would take care of some other
longstanding problems with the cash that the company, the
Pennsylvania American Water Company (PAWC), paid as part of the deal.
That money is gone, spent on other, pressing needs of the
community. Since the population did not grow as some expected, the
water system is being paid for by the community of 13,000, a smaller
population than was planned for, so the cost to the remaining
residents is higher than expected.
According
to Al Jazeera America, Coatesville’s population is about half
African-American, about a quarter Latino, and “the dilapidation
of Coatesville is closely intertwined with the growing cost of
water…Now, thousands of low-income people must pay exorbitant
prices to access a basic resource…” PAWC, like many
other companies, has made water a commodity, something to be sold
like mousetraps, rather than something that is vital to human life
and is increasingly viewed as a human right around the world.
Coatesville
was a one-industry city for many decades, supported by a steel mill
and, when the mill closed, the non-Latino white population left for
other parts and, according to the 2010 census, only represented about
27 percent of the population. There has been no replacement for the
steel mill and the community has been in a downward spiral for many
years. No wonder they saw the one-shot, up-front payment by PAWC as
a way out, along with the transfer of the water and sewer system to
the private firm. What they didn’t reckon with was the
increasing cost for every household, when they no longer had any
control over what always had been a public service, controlled by
elected officials and regulatory boards.
The
same thing happened in Missoula, according to In the Public Interest,
an organization that is “committed to promoting the
values, vision, and agenda for the common good and democratic control
of public goods and services.” In the Montana city, the
per capita income is $17,166, somewhat more than Coatesville’s
rate of income, but it is certainly far less than affluent. They too
realized that the sale of their water system to a private firm was
not a benefit to the citizens, but it took the possible sale of their
water to a foreign company, from Canada, for a court to find in favor
of returning the water system to local ownership and control.
When
the pending sale was announced, Missoula went to court, backed by 70
percent of its ratepayers, demanding that the water be returned to
the municipality, rather than be sold to a foreign entity. Judge
Karen Townsend agreed with the citizens and ruled that the water
system should be returned to public control, which would be inclined
to make decisions based on public health and safety, rather than
return on investment. And, that’s the name of the
privatization game: Turning a profit on public service.
Food
and Water Watch, based in Washington, D.C., is a nationwide advocacy
organization, which has studied the sale of public water systems,
said recently that individual homeowners pay about 33 percent more in
water rates to private companies, than they do when their local
municipality owns the system. However, economically struggling
cities can be convinced that salvation lies in privatization and they
take the plunge, not knowing how much the new company will charge
ratepayers or how much the annual increases might be. All they know
is that they will no longer be responsible for either the operation
of the system or the cost to homeowners.
This
control-of-water problem is not just in a few communities across the
U.S., it is in fact a part of a larger plan of “investment”
in the necessities of life across the world. In Missoula, for
instance, the local water company is owned by the Carlisle Group,
which describes itself in this way: “The Carlyle Group is a
global alternative asset manager with more than $193 billion of
assets under management across 130 funds and 156 fund of
funds vehicles. Founded in 1987 in Washington, DC, Carlyle has grown
into one of the world’s largest and most successful investment
firms, with more than 1,650 professionals operating in 40
offices in North America, South America, Europe, the Middle East,
Africa, Asia and Australia.”
The
Carlisle Group claims George H.W. Bush (after his single term as U.S.
president) as one of its heavy hitters, having convinced the Bin
Laden family to invest and the group had for a few years on its board
the second President Bush, George W. As it can be seen, the reach of
this organization is dispersed far and wide and deep into the lives
of real citizens in many countries. It does not appear that the
group makes any political distinctions as it scurries about the
planet piling up profits by making money deals. In the case of
Missoula, it involved the “product” that is vital to the
lives of all Missoulans…water. What saved Missoula’s
people was the prospect of selling Montana water to a foreign firm
and a judge who understood the importance of democratic control.
The
plunge into private ownership of public services is not something
new. Rather, it is the product of decades of propaganda by Corporate
America, that government can do nothing right and that giving the
work to private corporations is the answer. The question is: Why
should citizens give up control of their government and their public
services to companies whose only charge is to make money, profit, for
their shareholders? Citizens and their health and welfare, under
any circumstances, are far more important than shareholders. Yet,
the propaganda keeps flowing outward from the public relations firms
and the think tanks of the rich and powerful. The people haven’t
heard the other side. In Coatesville and Montana, they are hearing
the other side.
When
local officials and the people demanded to know why water rates
increased so sharply in Coatesville, the PAWC official blamed the
community, itself, for failing to maintain the system over several
decades. The alternative story, however, is that there was no
thought about the economic forces (the shutdown of the steel mill was
a corporate decision, not one over which the community had any
control) that impoverished the small city years ago. What’s
left is a majority-minority city with few prospects, even though it
is located in Chester County, one of the richest in Pennsylvania,
possibly in the Northeast.
Water
at reasonable rates may be just one of the problems of Coatesville,
but it is one that should be addressed at the county and state
levels. The problem of corporate ownership of vital elements of life
(water and food) should be addressed at the highest level of
government and Congress has a responsibility to hold hearings to find
out just how much of our government at all levels is controlled by
corporations. Let’s start with water.
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