July 31, 2001

The Water Business

By Shiney Varghese

You have probably never heard of the quasi-governmental International Organization for Standards (ISO). They set international standards for consumer products like light bulbs, screws and batteries to help facilitate trade between nations – so light bulbs made in one country and exported to another will fit in lamps made in the latteranother country. Now the ISO is considering a dangerous French proposal that it dramatically expand its scope to include the management of one of our most valued resources – water.

The French proposal, if adopted, would lead to more control over public water supplies by global water corporations. Accelerating private monopoly control will only make the challenges we are facing over our public water supplies more daunting.

and it can be catastrophic at a time when accAccess to clean water is one of our greatest global threats. A staggering 1.3 billion people — one out of every five — do not have access to clean drinking water, and 2.6 billion people do not have access to water for basic sanitation needs such as bathing. The situation is likely to worsen, and spread to developed parts of the world if current patterns of water use continue. Accelerating private monopoly control will only make the challenges we are facing over our public water supplies more daunting.

The results of attempts at privatization have been disastrous, especially when transnational corporations are the main actors, wherever it has taken place. Besides an overall decrease in water quality in many instances, there have been unprecedented hikes in prices (as much as 400 percent in some cases like the Philippines). ItPrivatization efforts have has also caused water riots in Bolivia, protests in Ghana and cholera epidemics and related deaths in South Africa.

While traditionally overseeing the standardization of consumer products, in the last decade ISO members have sought to expand its purview to cover environmental, public health, worker-safety regulations and even crowd management - public issues best left for governments.

As an organization dominated by private sector interests, the ISO has often sought to further trade by reducing environmental standards to the lowest common denominator. Controversy has surrounded ISO efforts to standardize eco-labels, and occupational health and safety standards. A few years ago there was an attempt to use the ISO standards process in the United States to undermine global sustainable forestry standards. A strong backlash from ISO members killed this attempt.

In the area of environmental standards, the ISO The standards havehas been criticized for not including performance requirements or enforcement mechanisms. The result is an industry honor system, which allows corporations to claim that they are engaged in environmental "best practices" without having to demonstrate their performance to anyone. Environmentalists are concerned that these standards, developed almost solely by industry, will become the dominant global rules that will eventually replace a wide variety of domestic rules and regulations as well as international guidelines in this area.

U.S. metropolitan sewage agencies are also concerned. In a letter to ISO, the Association of Metropolitan Sewerage Agencies expressed concern that the ISO proposal was based on existing French standards, which may not be appropriate for operations in the U.S.

A few years ago there was an attempt to use the ISO standards process in the United States to undermine global sustainable forestry standards. A strong backlash from ISO members killed this attempt.

The French proposal to ISO seems motivated more by the needs of French water companies than concern for the looming worldwide water crisis. France is home to world’s largest two transnational water corporations— ‘Vivendi Environment’ and ‘Suez-Lyonnaise des Eaux’. The companies would certainly benefit if the world standard meets specifications these companies have already adopted.

The French proposal suggests that an ISO committee be set up to regulate water services. Effectively, the committee would develop rules on how to manage all aspects of water service and delivery. Those rules would no doubt include a large and formal role for the subcontracting or privatization of all aspects of service. There is little doubt that French companies and others will be working within this committee to advance their business interest though the development of ISO standards that are designed to meet specifications that these companies have already adopted. The ISO will make a decision on whether to proceed with the French proposal on August 16.

The timing of the current proposal to globalize and privatize standard-setting in water is alarming. The proposal is now being circulated amongst member organizations in over 120 countries for comments. ISO will reach a decision in August, and then initiate formal procedures for setting the standards. In November, water services are likely to be included as one of the agenda items during the next WTO Ministerial Meeting in Qatar. The ISO is one of three standard-setting organizations recognized by the WTO. For those who favor the proposal, it will be useful to have the ISO standard setting procedures well under way to smooth the inclusion of water services in the WTO.

The reality is that there are already abundant national regulations governing the quality of water intended for human use. At the international level, strong guidelines for water quality have been formulated by the World Health Organization (WHO), a United Nations body.

The ISO may do a great job handling light bulbs. But water is too important to the fabric of our lives. The management of this invaluable resource must be regulated by democratic institutions that are accountable to citizens.

Shiney Varghese is a Program Associate at the Institute for Agriculture and Trade Policy