Cochabamba Water War

Writing in British newspaper ‘The Guardian’ in 2006, Oscar Olivera, a factory workers union leader, wrote ‘In Bolivia we consider water to be a common good – a human right, not a commodity’. It was this issue which stood at the heart of some of the biggest demonstrations Cochabamba had ever seen. 14 years later, the ‘Water War’ still stands as an example of how a united people can take on a multi-national corporation, confront a government, and defy a global organisation.

It began with democracy. In 1985, after years of military dictatorships, Bolivia became a democratic nation; it was, however, also a nation that was hugely in debt. Help was desperately needed to prevent the hyper inflation and poverty that was gripping the country’s economy, so the government turned to the International Monetary Fund (IMF) and the World Bank, a United States based global lender.

In his 'New Yorker' article 'Leasing the Rain', William Finnegan states that over the following years the World Bank effectively took over Bolivia's economy, and loaned money to keep the country going. Many publicly owned industries, such as mines and railways, were privatised, and the World Bank decided that water should follow. In Cochabamba the water service was poor. Many areas didn't have access, and those that did sometimes found they had as a little as a few hours of water a day. It was the belief of the World Bank that SEMAPA, the current controllers of Cochabamba's water, were not doing an effective job, and suffered from widespread corruption. Water was believed to be, as 'The Economist' says, 'crying out' for privatisation, so the Bank made this a condition of a $14 million loan to expand the country’s water system.

In 1999 the Cochabamba water service was auctioned off, but the auction only attracted one bidder, Aguas Del Tunari (ADT), a foreign consortium that was dominated by US giant, Betchel Corporation. Lacking alternatives and in a weak negotiating position, President, Hugo Banzer Suarez signed up to the terms that ADT offered - a $2.5 Billion, 40 year contract.

Finnegan also describes the incredibly favourable terms of the contract. ADT took over all Cochabamba’s systems, had exclusive rights to all water in the district, could install meters and charge for water - even on wells they didn't build- and could also charge people for rain water. The contract also guaranteed the consortium a 15% yearly return on their investment.

To put this in to action, law 2029 was passed, and in return ADT planned to overhaul the entire water network of Cochabamba, as well as continue the work on the stalled Misicuni Dam project. It was a hugely expensive undertaking, and ADT intended to cover the cost by billing Cochabaminos.

Those worried by the deal had already begun to form an opposition. The control of ADT extended to the irrigation systems farmers had built in the countryside, and the Federation of Irrigators, lead by Omar Fernandez, had already staged one blockade. They joined with the Factory Workers union, and their leader, Oscar Olivera, and these discussions lead to the formation of the 'Coordination for the Defence of Water and Life' or the 'Coordinador'. Using the Union headquarters opposite the government offices as their base, they unfurled a large banner which few could miss. It simply read – ‘The water is ours, damn it!’.

When the first bills arrived, in January 2000, the residents of Cochabamba were in for a nasty surprise. Some saw their bills had doubled, now taking up nearly a quarter of their income. The fires of protest were fanned further by ADT company manager, Geoffery Thorpe, who famously stated that those who refused to pay their bills would have their access cut off. Startled environmentalists, and other professionals, called for public meetings with the officials in charge, but were simply told 'there is nothing to negotiate'. The fury of the people was channelled via the Coordinador, and a 3 day shutdown was held. The government agreed to look over the water law, but this was not enough for the Coordinador.

In February the water war really began. A protest group took over the main plaza and barricaded the highways. Olivera called on his retired colleagues, and they were joined by street vendors, informal sector workers, and students. Though Olivera described the occupation as ‘a party’, the government didn’t quite agree. Troops, sent in from Ororu and La Paz, clashed with protestors, leading to nearly 200 arrests and 122 injured police and civilians (source). The coca growers, led by congressman Evo Morales, also joined the protests, angry at rumours the demonstrations had been stoked up by the illegal drugs trade. An indefinite strike was announced, provoking much worry from the government. In April, Olivera and other protest leaders were called in to a ministerial meeting, only to be arrested on arrival. Many, including Olivera, were released later that day; however some went in to hiding, whilst others were taken to jungle prisons in the Amazon.

Two days later, a state of siege was declared, paving the way for mass arrests and martial law. As the protests raged on, they then reached their darkest hour. A televised clip appeared to show army captain, Robinson Iriarte de Fuerto, firing his rifle in to a crowd. Protestors were injured, and one bullet hit the face of a student, 17 year old Victor Hugo Daza. It killed him instantly. A huge outpouring of rage followed Daza's death, and the government told ADT board members that their safety could not be guaranteed, so they fled to Santa Cruz. This became the turning point protestors had been waiting for. With the ADT board gone, and faced with hordes of angry demonstrators, the government finally bowed to public pressure and declared that ADT, by leaving the city, had voided the contract. Four days later Oscar Olivera signed a deal which replaced ADT with the Coordinador and a reformed SEMAPA. Detained demonstrators were released, law 2029 was repealed and, from the balcony of the Union building, Olivera announced victory to the jubilant crowds.

The legacy of the water war has been a varied one for its participants. Oscar Olivera became famous, being asked to speak at anti-globalisation events across the world, and attended protests at a meeting between the IMF and the World Bank later in 2000. For Evo Morales the water war meant a greater public profile, something that he harnessed to eventually become president in 2005. Bechtel, meanwhile, attempted to sue the government of Bolivia for $50 million, applying to the appeals wing of the World Bank. This was eventually resolved with both sides dropping any financial claim against the other. The Bolivian government conceded that the contract had been cancelled due to civil unrest, not ADT, and a statement on the Bechtel website reported the matter closed. Captain Iriarte de Fuerto’s case was referred to a military tribunal, where he was acquitted of all charges and promoted to the rank of Major.

As for the people of Cochbamba, though the battle was won, the war continued. Water services returned to what they had been before, meaning many were still unhappy. ‘yesmagazine.org’ claims that the new SEMAPA, much like the old, was rife with inefficiency and corruption, and though the protests had removed ADT, it failed to build anything positive in its place. Water access has improved over time, but it has been a slow process.

The water war raised many complex issues. The question of blame ranges from The World Bank, to the government, to Aguas Del Tunari, and even to SEMAPA. Writers such as Finnegan are adamant services need to improve, but the solution to Cochabamba’s water troubles remains elusive. Olivera claims that water is a right, not a commodity to be traded; but whose duty is it to provide it? And who should bear the cost? These Questions are still debated to this day.

By: Patrick Hebbert

Projects Abroad Volunteer

West Yorkshire - United Kingdom

Sources

http://www.theguardian.com/society/2006/jul/19/comment.guardiansocietysupplement

http://web.archive.org/web/20070929151555/http://www.waterobservatory.org/library.cfm?refID=33711

http://www.economist.com/node/1906828

http://web.archive.org/web/20130130194043/http://www.bechtel.com/2006-01-19.html

http://www.yesmagazine.org/people-power/the-cochabamba-water-revolt-ten-years-later

http://www.pbs.org/frontlineworld/stories/bolivia/timeline.html

http://www.powells.com/biblio?inkey=2-0896087026-0

http://www.democracynow.org/2010/4/19/the_cochabamba_water_wars_marcella_olivera