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Opinion
The Currency of the 21st Century
Water Privatization in Nicaragua
By Tina Cheung
Almost half of Nicaragua's population is under the age
of fifteen, and they are growing restless.
It has been nearly thirty years since the revolution
against the dictatorial Somoza family in 1979. The victorious
Sandinistas promised the people of Nicaragua political and
economic power, agrarian reform, social justice, and independence
from foreign powers. Carlos Fonseca, one of the three
founders of the Sandinista Front for National Liberation
(FSLN), vowed, "In Nicaragua, no peasant will be without
land, nor land without people to work it." The dream of nurturing
the country's rich land into a sovereign Eden was an
imminent reality.
Today, three million Nicaraguans in a total population of
five million live in poverty, making Nicaragua one of the poorest
nations in the Western hemisphere. Plagued by civil war,
corruption, U.S. military intervention, and natural disasters
like Hurricane Mitch, Nicaragua's economy has collapsed. Aid
has been given but not without stipulations. For every dollar
now spent on health care, Nicaragua must spend five on
debt service payments. The weight of debt has shackled any
dreams of progress.
In 2004, Nicaragua's outstanding debt of $6.7 billion
qualified it for the Heavily Indebted Poor Countries (HIPC)
Initiative implemented eight years ago by the IMF and World
Bank. The initiative provided $4.5 billion of debt relief but
also forced Nicaragua to partake in Structural Adjustment
Programs (SAPs). These programs are designed to help poor
countries reactivate their economies. To make debt payments,
nations must prioritize exports. For Nicaragua, a country
where one in three children is malnourished, this means that
the people must grow cash crops, sell off natural resources,
and privatize public goods. Water, a fundamental public commodity,
has become the new currency for restitution of debt.
The people of Nicaragua need to defend their water rights
against international forces, rather than submit to a new form
of slavery. The promises of the revolution have long been due;
Nicaragua wants what it is owed.
In May 2000, Fortune magazine predicted that, "Water
promises to be to the 21st century what oil was to the 20th
century: the precious commodity that determines the wealth
of nations." The United States projects that by 2020 it will
be importing eighteen percent of its fresh water from Latin
America, much of it coming from Nicaragua. Transnational
corporations are insensitively rushing to invest in the burgeoning
market of water, when only one third of the population
has access to clean drinking water.
Continued
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