BSC2009 – Water Commodification Debate

For the positive argument, Marcel Boyer debates that water is scarce – lets use water prices to send signals to users. Marcel wrote – “Freshwater exports of the development of Quebec’s blue gold” – Montreal Economic Institute, 2008.

The true value of fresh water is the cost of desalination of sea water – about $0.65 US per cubic metre.
Need to better control agricultural, heavy industrial and other large water users
need a better legal framework
proper domestic pricing for water demand management
designing and financing investments in water supply, constraints and difficulties = opportunities for imagination
NAFTA

If it is a commodity, we need to control use across national boundaries (and locally)

Do we wait for a crisis, or impose the proper pricing mechanisms and regulatory framework now, ready for the crisis?

Harjap Grewal from the Council of Canadians represents the negative argument for the commodification.

Public opinion still indicates that people view water as property of the commons
Sustainable solutions first, economic issues following
Discussed the impact of Coca Cola on water resources in areas such as India
Needs first, profit is not the solution.
Protect the rights of communities over those of corporations

Harjap Grewal asks about Social Justice and equity for all – how does turning water into a global commodity protect these rights? Marcel responds that markets should pay the fair price of energy, water or any other good – saying that it is the rich who is truly benefit.

My take on the argument is that local regulation on a watershed level is the simplest way to ensure that water is available for all uses. Provincial and Federal Governments should aim to provide a framework that permits local management of their water resources that respects social democratic values.