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reliability of water used. Economic efficiency would be obtained by setting water charges equal to the opportunity cost of water. However, immediate adoption of such prices often proves to be politically difficult. Thus, given the low level of cost recovery at present and the extent of underpricing, fees that establish the water entity's financial autonomy would be a good starting point to ensure the entity's independence and the sustainability of operations. Both public and private entities should pay for the costs of the water and sanitation services they receive. reliability of water used. Economic efficiency would be became dangerously low in iron, zinc, vitamin A and other obtained by setting water charges equal to the opportunity micronutrients.'® Transnational chemical companies which cost of water. However, immediate adoption of such prices supplied the petrochemical-based fertilisers, pesticides and often proves to be politically difficult. Thus, given the low herbicides that fuelled the Green Revolution expanded their level of cost recovery at present and the extent of control and influence in the agricultural sector. underpricing, fees that establish the water entity's financial Today, 70 per cent of the world's water is used for crop irriga- autonomy would be a good starting point to ensure the tion. As the population grows, irrigated land is expected to entity's independence and the sustainability of operations. become increasingly significant in feeding people. But the Both public and private entities should pay for the costs of impending water crisis will push many croplands to the brink of the water and sanitation services they receive. disaster, as there will be insufficient water to irrigate our food crops. Compounding the problem is the fact that further expan- The World Bank believes that making water available at no sion of agricultural lands cannot be sustained due to the effects of cost, or low cost, does not provide the right incentive to con- agrichemicals (soil erosion, salinity, poisoning of water, etc.). sumers. Its research and experience indicate that: Over the last 10 years, agrichemical companies have been shift- ...when water services are reliable, the poor are willing to ing their interests from chemicals to the life sciences, where the pay for them, and that when service is not reliable, the poor future profits lie. The revolution in biotechnology has been pay more for less, typically from street vendors. As pointed dubbed the "Double Green Revolution" by its advocates, who out in the 'World Development Report 1992’, the poor need to claim that it will not only provide more food for more people (the be provided with a wider range of options so they can choose same argument that fuelled the original Green Revolution), but the level of water services for which they are willing to pay, that seeds can be genetically engineered to be less thirsty. thereby giving suppliers a financial This is a critical development which will stake in meeting the needs of the poor. see corporations turn the crisis of pollution Fee schedules can be structured so that and depletion of water resources (which they consumers receive a limited amount of elped create in the first place) into a busi- water at a low cost and pay a higher fee Apart from its funding ness opportunity, as control of the world's for additional water. Fees set in this seed stock and water resources becomes the manner can correspond to efficiency to support water new frontier for private investors. prices for incremental consumption, privatisation, the World The chemical giant Monsanto has already even as they provide low base rates that . ' ositioned itself as a major player in the life benefit the poor. However, the schedule Bank IS the world $ sciences via its control over seed, the first in ar a La greatest single source of | link in the food chain. Ina report for the recovery, otherwise, the financial via - organisation Corporate Watch, Dr Vandana bility of the water entity is endangered. funds for large dam Shiva describes Monsanto's new interest: Another form of subsidy to the poor, nstr' ion, havin water.’ She cites a Monsanto strategy paper which may be handled through co st uctio ha g which outlines the company's plan for provided more than one-time budgetary transactions, corporate control of water: US$50 billion (1992 is a subsidy for connecting house - First, we believe that discontinu - holds to the water supply and sani - . ities (either major policy changes dollars) for construction of more than 500 large tation network. or major trendline breaks in dams in 92 countries. resource quality or quantity) are likely, particularly in the area of water, and we will be well posi - tioned via these businesses to prof - it even more significantly when these discontinuities occur. Second, we are exploring the potential of non-conventional financing (NGOs, World Bank, The World Bank's matter-of-fact approach to the full-cost pricing of water is a testament to its grandiose illusions, bloated budget and quest for control of people and their resources. Apart from its funding to support water privatisation, the Bank is the world's greatest single source of funds for large dam construction, having provided more than US$50 billion USDA, etc.) that may lower our investment or provide local (1992 dollars) for construction of more than 500 large dams in 92 country business-building resources. countries. The importance of the World Bank in major dam schemes is illustrated by the fact that it has directly funded four of For Monsanto, "sustainable development" means the conver- the five most significant dam projects in developing countries out- sion of an ecological crisis into a market of scarce resources: side China, three of the five largest reservoirs in these countries, The business logic of sustainable development is that popula - and three of the five largest hydro-electric plants.'® tion growth and economic development will apply increasing Thana Apart from its funding to support water privatisation, the World Bank is the world's of more than 500 large dams in 92 countries. For Monsanto, "sustainable development" means the conver- sion of an ecological crisis into a market of scarce resources: The business logic of sustainable development is that popula - tion growth and economic development will apply increasing pressure on natural resource markets. These pressures and the world's desire to prevent the consequences of these pres - sures if unabated will create vast economic opportunity. When we look at the world through the lens of sustainability, we are ina position to see current and foresee impending resource market trends and imbalances that create market needs. We have further focussed this lens on the resource market of water and land. ENGINEERING CROPS TO BE LESS THIRSTY In the early 1970s, there was a global surge in irrigation development. Irrigation was the lead factor in the Green Revolution, which resulted in the high-yield rice, wheat and maize varieties which are dependent upon the liberal use of inorganic fertilisers. The new crops of the Green Revolution displaced local foods, and the diets of many people in the world 28 = NEXUS APRIL —- MAY 2001 www.nexusmagazine.com