In 1997, the World Bank refused to renew $600 million USD of debt relief to Bolivia unless the country agreed to privatize water.World Bankdecision-makers reasoned that putting water in the private sector would help to broadly stimulate the Bolivian economy.
Bechtel increased water rates for SEMAPA customers to $20 USD monthly, a 35 to 50 percent increase. The new rates were exorbitant to many Cochabambans, who made an average of only $100 per month.
A diverse group of civilian protestors coordinated their response to these unjust policies in a historic movement that framed water privatization as a violation of basic human rights.
The resolution of Cochabamba’s “Water Wars” demonstrated the deeper roots of socioeconomic unrest, which would lead to radical changes in the structure and ideology of Bolivia’s central government.
Despite political strides after the “Water Wars,” much of Bolivia still suffers from limited access to water and from poor sanitation. Currently, access to water in rural areas is only 71 percent, while sanitation coverage is often as low as 10 percent.