[stop-imf] Proposed bill on water privatization and other water issues

[Robert Weissman]

Dear Friends:

A group of Washington, D.C.-based NGOs has worked in the last few months
to draft proposed U.S. legislation relating to water. Groups involved
include 50 Years is Enough, Results, Globalization Challenge Initiative,
Center for Economic Justice, Center for Economic and Policy Research, the
Quixote Center and Essential Action. We've also solicited comments from a
significant number of NGOs inside and outside the United States.

We are now circulating the draft proposal to seek the widest possible
review, comment and criticism from activists worldwide. We will do our
best to incorporate comments, and then will hope to find Members of the
U.S. Congress to introduce the bill in the near future. Please send
comments on the materials that follow to:

Robert Weissman at rob@essential.org.

A few words on the thinking behind the draft: With the increasing
importance of water issues in popular struggles around the world, we want
to draft concrete proposals that would advance campaign work both in the
United States around the world. As U.S. groups, we hope to leverage the
influence of the U.S. Congress. This has significant advantages, but also
imposes constraints. While we are not optimistic that the version of the
draft we present will become law, if it is to gain any support in
Congress, it must be well grounded. (Also, we hope that pieces of what we
draft might be incorporated into legislation that does become law.) So,
for example, we propose a right to a minimum water "lifeline" -- a free
amount of water for every person. We have used the figure of 25 liters,
because it references a WHO estimate on minimum amount of water needed for
survival. We are very open to suggestions that the level should be
increased. But for us to adopt such suggestions, they would have to be
grounded in some external authority like WHO -- a credible entity that we
can cite to Members of Congress.

The draft of the bill that follows is written in legislative language, and
may be difficult to follow. Here's a summary of what the bill does:

* No U.S. federal money to support water privatization in the United
States or overseas. U.S. representatives to the IMF and World Bank and
other international financial institutions (IFIs) must vote against loans
or programs that include or promote water privatization.

* No U.S. foreign assistance for water projects that do not include a
guarantee that every person be provided a water lifeline -- access to 25
liters of free, clean drinking water per day. U.S. representatives to the
IMF, World Bank and other IFIs must vote against water loans or programs
that fail to include this water lifeline.

* No U.S. foreign assistance for water projects that end subsidies for
residential water consumers, and public subsidies for the water system
overall. U.S. representatives to the IMF, World Bank and other IFIs must
vote against water loans or programs that end such subsidies.

* Prevents the United States from including water as a commodity in
international trade, services or investment agreements.

* No U.S. federal money for large dams, in the United States or overseas,
that fail to comply with the recommendations of the World Commission on
Dams. U.S. representatives to the IMF, World Bank and other IFIs must vote
against loans or programs for dams that do not follow the World Commission
on Dams recommendations.

Below follows our draft of the bill.


SEC. 2. POLICIES TO FACILITATE ACCESS TO CLEAN WATER AND RESPONSIBLE USE
OF WATER IN DEVELOPING COUNTRIES

1. The Secretary of the Treasury, the Secretary of State and the United
States Trade Representative shall notify their counterparts in writing
that it is the policy of the United States that

(a) government policies concerning the provision of clean water for
drinking is a matter to be determined by democratic processes, and should
not be subject to disciplines of international trade or investment
agreements, or mandates from international financial institutions; and

(b) it is the right of each person, regardless of income, to obtain clean
water sufficient to sustain life and health, and that [25] liters (6.6
gallons) per day is the minimum level to sustain life and health.

2. The Secretary of the Treasury and the Secretary of State shall notify
their counterparts in writing that it is the policy of the United States
to oppose the construction of any large dam unless it complies with all
recommendations of the World Commission on Dams.

SEC. 3. LIMITATION ON USE OF FUNDS.

(a) Funds appropriated or otherwise made available to any department or
agency of the United States may not be obligated or expended to support
any water system or water system-related construction, refurbishment,
reorganization, restructuring, adjustment, decentralization,
corporatization, reform or other program that:

(1) would privatize public water distribution or management, including
through leasing or concessionary arrangements; or shift distribution or
management of water from a public supplier to private corporations,
including through leasing or concessionary arrangements; or facilitate the
shift of distribution or management of water from a public supplier to
private corporations, including through leasing or concessionary
arrangements.

(b) Funds appropriated or otherwise made available to any department or
agency of the United States may not be obligated or expended to seek,
through negotiation or otherwise, the inclusion of water as a commodity in
international trade, services or investment agreements.

(c) Funds appropriated or otherwise made available to any department or
agency of the United States may not be obligated or expended to fund
directly or otherwise support construction of any large dam (15 meters or
higher) unless it complies with all recommendations of the World
Commission on Dams.

 SEC. 4. LIMITATION ON USE OF FUNDS BY CERTAIN AGENCIES.

(a) Funds appropriated or otherwise made available to the U.S. Agency for
International Development, the Export-Import Bank and the Overseas Private
Investment Corporation may not be obligated or expended to support any
water system or water system-related construction, refurbishment,
reorganization, restructuring, adjustment, decentralization,
corporatization, reform or other program that:

(1) does not include a guarantee that no person shall be charged for the
first [25] liters of clean drinking water they use each day.

(2) would promote or require full cost recovery for all residential water
consumers; or would promote or require an end to public subsidy of water
by mandating full cost recovery for the water service; or does not include
a progressive tariff structure for residential water consumers, providing
for intersectoral subsidization.

SEC. 5. POLICY AT INTERNATIONAL FINANCIAL INSTITUTIONS.

(a) The Secretary of the Treasury shall instruct the United States
Executive Director at each international financial institution (as defined
in section 1701(c)(2) of the International Financial Institutions Act) and
the International Monetary Fund to oppose any loan, project, grant or
other program of these institutions for:

(1) any water system or water system-related construction, refurbishment,
reorganization, restructuring, adjustment, decentralization,
corporatization, reform or other program that:

((a)) does not include a guarantee that no person shall be charged for the
first 25 liters of clean drinking water they use each day;

((b)) would privatize public water distribution or management, including
through leasing or concessionary arrangements; or shift distribution or
management of water from a public supplier to private corporations,
including through leasing or concessionary arrangements; or facilitate the
shift of distribution or management of water from a public supplier to
private corporations, including through leasing or concessionary
arrangements; or

((c)) would promote or require full cost recovery for all residential
water consumers; or would promote or require an end to public subsidy of
water by mandating full cost recovery for the water service; or does not
include a progressive tariff structure for residential water consumers,
providing for intersectoral subsidization.

(2) construction or other support for any large dam unless it complies
with all recommendations of the World Commission on Dams.


We look forward to hearing from you!

-- 
Robert Weissman	<rob@essential.org>
Essential Information
P.O. Box 19405, Washington, DC 20036, USA
Tel: 1-202-387-8030
Fax: 1-202-234-5176
www.essential.org