2003/06/30
Netherlands: Launch of the Social Watch Report 2003
Sita Dewkalie
Novib-Oxfam Netherlands
On 23 April Novib, in collaboration with the National Commission for Sustainable Development (NCDO), presented the Social Watch Report for 2003 entitled “The Poor and the Market” to the Dutch parliament.
In 1995, during
the Social Summit in Copenhagen, 120 government leaders joined forces to tackle
poverty, exclusion and unemployment. Civic organizations that were present at
the conference decided to monitor their governments closely and to check whether
they kept their promises. This signalled the launch of Social Watch, a network
of 503 civic organizations from the North and South. Every year, Social Watch
publishes a report in which each organization discusses the state of affairs in
its own country. Novib is a member of Social Watch and was present at the birth
of the Social Watch initiative in
Copenhagen.
Many of its counterparts are members and it also contributes to the funding.
On 23 April Novib,
in collaboration with the National Commission for Sustainable Development (NCDO),
presented the Social Watch Report for 2003 entitled “The Poor and the Market” to
the Dutch parliament. The report uses statistics and “case studies” to show the
extent to which countries in the world have complied with the social-economic
objectives which were agreed within a UN framework. The report examines per
country whether progress is being made in the areas of health, sanitation,
education and emancipation or whether stagnation is affecting the range and
quality of services and the socio-economic position that deprived groups are
assuming in society. In 2003, the focus of the report is on public rights and
goods and services and the privatisation thereof, the role of the World Bank and
the International Monetary Fund (IMF) and other development banks and the
effects of the privatisation of basic social services for the poor and women.
No two markets are
the same
Novib is of the
opinion that markets for water, health and education are not the same as markets
for production goods. It believes that such markets should not be subject to the
same rules. Human rights, social justice and government responsibility are
matters which are vitally important and which play a role in these markets.
These public goods
have crucial effects, not only on the welfare of individuals, but also on the
welfare of entire societies. Access to clean water is, for example, of major
importance for the health situation of large groups of people.
Privatisation of
drinking water in
Ghana
Social opposition
to the plans for privatisation is growing. To illustrate this point, Novib
invited Gyeke Tanoh from its Ghanaian counterpart the National Coalition Against
Privatisation of Water, to explain the negative consequences of water
privatisation for poor people in his country. In Ghana, the plan to privatise
urban and national water systems has met with considerable resistance from the
population. The main focus of the discussion is whether water is a right or a
commodity. The Ghanaian government estimates that around 66 percent of the
residents of the cities and 37 percent of the rural population can, in theory,
get healthy drinking water form water pipes. However, it has transpired that 78
percent of the urban poor scarcely have any access to healthy drinking water
because they are not connected to the system. The majority of urban residents
have to purchase the water they need each day from traders at prices which are
seven times higher than those for well-to-do households. Gayeke Tanoh observed
that privatisation of the water sector in Ghana primarily implies a take-over of
the public sector by private parties or multinationals. Multinationals are being
offered free access to, and control over, the water sector. Furthermore, profit
guarantees are being given and the risks of currency variations and inflationary
developments covered via the IMF’s so-called “automatic rate adjustment
formula”.
Unaffordable for
poor people
The drinking water
systems are now to be taken over by two companies, each with a monopoly for
their part of the system. The government is reducing investments in the drinking
water system and the companies are now also going to have to contribute. The
government continues to be responsible for facilities that generate little
income and the companies are therefore guaranteed income from users of the
drinking water system through the application of commercial prices. This means
that water is no longer affordable for poor people. The establishment of an
umbrella organisation against the privatisation of water has led to increased
opposition and a campaign is currently being waged against the government’s
plan. An international mission has investigated what the consequences will be of
the introduction of privatisation. The mission has come to the conclusion that
the proposal is no the best option for clean and affordable drinking water and
has recommended that open dialogue and consultations be engaged in with the
whole spectrum of interested parties in order to draw up an alternative
proposal. In the Netherlands, the water sector is still under government
control, but the government is not applying this to its policy vis-ŕ-vis
developing countries.
Sita Dewkalie,
Novib
Email:
sita.dewkalie@novib.nl
Policy Advisor Basic Social Services
Novib-Oxfam
Netherlands
NETWORK No. 3 / June 2003
http://www.novib.nl/content/ContentFrame.aspx?PageMode=Article&ID=3812
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