How did the effort to privatize the water services in Cochabamba come about?
Olivera: In Cochabamba, the third largest city in the country, we have had serious problems with water for 50 years. Not just for household consumption, but also for agricultural use. We produce a lot of vegetables in this region. In June 1999, the World Bank issued a report on Bolivia in which it discussed the water situation in Cochabamba. The Bank recommended that there be “no public subsidies” to hold down water price hikes. This was the perspective of people living in Washington, for whom a $30 increase in the price of water is nothing. But for many Bolivian families who earn as little as $100 per month, the resulting increases were catastrophic. The government followed the advice of the World Bank, which recommended that the city privatize its water system. MM: How did the government carry out the recommendations? Olivera: In October of 1999, the national parliament promulgated law number 2029, which is the law of basic services — drinking water and sanitation. This law eliminat
