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page 18case

  issue 107 link
january 2005   

 

paraguay: privatizing the guarani aquifer

The Cuenca del Plata watershed, which covers a vast area, from Brazil, Bolivia and Paraguay, through to Argentina and Uruguay, is Latin America’s second largest watershed. It also includes the Pantanal, the world’s largest tropical wetlands ecosystem. All in all, Cuenca del Plata represents 30% of the fresh water available on the planet.

The groundwater Guarani Aquifer system covers an area of 1.2 million square kilometres in South America: 70% located in Brazil, 19% in Argentina, 6% in Paraguay and 5% in Uruguay. It is capable of yielding enough water to satisfy the needs of 360 million people.

Considering present water needs - for human consumption, agriculture and industry - and bearing in mind projected demands, it is perhaps unsurprising that this immense fresh water reservoir is beginning to attract the attention of numerous organizations, including the Organization of American States, the World Bank, and various nationallybased international co-operation agencies.

Traditionally, distribution and management of water in the region has been a public service. However, the legal framework is undergoing structural changes to permit the introduction of private water services companies. Besides this threat of privatization, water resources in Paraguay are being degraded and misused. Mining activities and the advance of agribusiness, specifically in relation to soy plantations, have caused an increase in the expropriation of natural resources, the destruction of biodiversity and the contamination of water. Governments in the region are contributing to the destruction, by pushing to develop 2100 miles of the regional Paraguay-Paraná river systems into a massive industrial waterway. Referred to as Hidrovía, this canal is primarily intended to lower the cost of exporting soybeans.

Facing the destruction of watersheds, rivers and aquifers, many civil society groups in Paraguay are researching and campaigning on the underlying causes of these problems. This work includes monitoring the operations, policies, strategies and projects of international financial institutions (IFIs), which propose public-private partnerships as a solution. Such proposals are generally wholly inadequate, devised by staff in their Northern headquarters, without real knowledge of the needs of people living in the targeted area. In particular, such partnerships further concentrate public resources in private hands.

It is important to note that those activities which require the most water – and therefore threaten the quality of the aquifer - are also those being heavily promoted by IFIs. Massive deforestation to make way for monoculture crops is diminishing the infiltration capacity of the aquifer’s recharge areas - in other words, it is decreasing the soil’s capacity to adsorb water. At the same time, the highly toxic products used in large-scale export-oriented crop production - pesticides, herbicides and fertilizers - are also beginning to pollute the aquifer. Furthermore, IFIs such as the Inter American Development Bank (IADB) and the Andean Development Corporation (CAF) are promoting industrial development plans which include large scale infrastructure schemes such as road corridors, industrial waterways and mega-dams. Their aim is to create a new and globally-competitive industrial region. However, such development would further pollute the aquifer and lessen the efficacy of its recharge areas.

Indeed, industrial development on this scale could conflict directly with any potential efforts to introduce conservation-oriented objectives to protect key ecosystems, which guarantee the recharge of the aquifer and keep its water clean and reliable. It could significantly increase the risks of any privatization process, since the IFIs concerned would undoubtedly be discouraged from promoting conservation of the aquifer at the expense of industrial development.

Sobrevivencia/Friends of the Earth Paraguay is raising awareness of these issues with local communities and authorities. They are targeting local and national legislators as well as regional agreements promoted by the World Bank and the Inter American Development Bank. Sobrevivencia also works at the micro-level to strengthen the water management capacity of communities, sharing examples of good community management and the restoration of watersheds and aquifers. Other efforts focus on offering alternatives to agribusiness and pursuing policies that promote public and ecological health, food security and enhanced political participation.

more information
Sobrevivencia / Friends of the Earth Paraguay
International Rivers Network :

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