The Water Situation In Bolivia Should Be Nationalized
The water situation in Bolivia should be nationalized because in the end, majority of people will have access to water which is crucial for survival. With nationalization there is more equality among the people because everyone has access to the water. The water production would become more organized and have more chance at “economic survival” (Reading #5, The advantages of nationalisation). Because water would be controlled by the government it would be more organized because they are more powerful than a private organization. Water production is a lot of responsibility for a private company to control and it is possible for the it to eventually fail because it gets to hard to be efficient and succeed. If the water production happens to be
failing, with a nationalized company they are more likely to be funded and helped “more quickly” (Reading #5, The advantages of nationalisation) than a smaller, private business. Another con to privatization is that they are “poorly constructed” (Reading #6, From Water Wars to Water Scarcity: Bolivia’s Cautionary Tale). This can be an effect of not having a sufficient amount of money and/or educated workers. In addition, with smaller businesses not as much material is needed therefore it is much more expensive to purchase materials. Whereas in nationalized businesses, materials for water production can be bought in bulk and the “average costs” (Reading #5, The advantages of nationalisation) are reduced. Therefore, with nationalization, the company will save money on materials and could potentially be used for a higher raise for workers. It is necessary to also take in account that Bolivia is a less developed country. “LCD’s lack the ability to provide energy to power resources” (Reffonomics Activity). This means that they do not have the skills and money to invest in resources. In addition, education is extremely low. LCDs have a literacy rate below 50%. Therefore, with no money, no education and no resources it is immensely difficult to create and manage a successful water company.
failing, with a nationalized company they are more likely to be funded and helped “more quickly” (Reading #5, The advantages of nationalisation) than a smaller, private business. Another con to privatization is that they are “poorly constructed” (Reading #6, From Water Wars to Water Scarcity: Bolivia’s Cautionary Tale). This can be an effect of not having a sufficient amount of money and/or educated workers. In addition, with smaller businesses not as much material is needed therefore it is much more expensive to purchase materials. Whereas in nationalized businesses, materials for water production can be bought in bulk and the “average costs” (Reading #5, The advantages of nationalisation) are reduced. Therefore, with nationalization, the company will save money on materials and could potentially be used for a higher raise for workers. It is necessary to also take in account that Bolivia is a less developed country. “LCD’s lack the ability to provide energy to power resources” (Reffonomics Activity). This means that they do not have the skills and money to invest in resources. In addition, education is extremely low. LCDs have a literacy rate below 50%. Therefore, with no money, no education and no resources it is immensely difficult to create and manage a successful water company.