Siren Song

by Bauer, Carl J.

• ISBN13: 9781891853791
• ISBN10: 1891853791
• Format: Hardcover
• Copyright: 2004-04-01
• Publisher: ROUTLEDGE

Summary

Increasing scarcity, conflict, and environmental damage are critical features of the global water crisis. As governments, international organizations, NGOs, and corporations have tried to respond, Chilean water law has seemed an attractive alternative to older legislative and regulatory approaches. Boldly introduced in 1981, the Chilean model is the world's leading example of a free market approach to water law, water rights, and water resource management. Despite more than a decade of international debate, however, a comprehensive, balanced account of the Chilean experience has been unavailable. Siren Song is an interdisciplinary analysis combining law, political economy, and geography. Carl Bauer places the Chilean model of water law in international context by reviewing the contemporary debate about water economics and policy reform. He follows with an account of the Chilean experience, drawing on primary and secondary sources in Spanish and English, including interviews with key people in Chile. He presents the debate about reforming the law after Chile's 1990 return to democratic government, as well as emerging views about how water markets have worked in practice. The resulting book provides insights about law, economics, and public policy within Chile, and lessons for the countries around the world that are wrestling with the challenges of water policy reform.

Author Biography

Carl J. Bauer is a fellow at Resources for the Future.

Table of Contents

Preface	vii
Acknowledgments	ix
Introduction: The Chilean Water Model Comes of Age	1	(5)
1 The International Context: The Water Crisis and Debates about Water Policy	6	(25)
Integrated Water Resources Management	8	(2)
Perspectives on Water as an "Economic Good"	10	(6)
Economic Interpretations of the Fourth Dublin Principle	16	(6)
Stretching the Neoclassical Paradigm: Institutional and Ecological Economics	22	(3)
International Significance of the Chilean Model	25	(3)
Water Markets and Water Policy in Other Countries	28	(3)
2 The Free-Market Model: Chile's 1981 Water Code	31	(20)
The 1980 Constitution: Foundation of the Water Code	35	(1)
"Legislative History" and Political Background	36	(1)
Chile's First Water Code (1951): Private Rights plus Strong Government	37	(1)
Chile's Second Water Code (1967): Swinging Left to Centralized Control	38	(2)
Water Rights after the 1973 Military Coup: Confusion and Neglect	40	(1)
Neoliberal Leanings (1976-1981): Private Property and Free Markets	41	(6)
The Final Version (1981): Compromise and Problems for Future Reform	47	(4)
3 Reforming the Reform? Policy Debate under Chilean Democracy	51	(23)
Reforming the Water Code: Mucho Ruido, Pocas Nueces	53	(2)
Round 1 (1990-1993): The Government Goes Too Far	55	(3)
Alternative Instruments: Water Rights Taxes versus Fees for Nonuse	58	(2)
Growing Emphasis on Economic Instruments and Analysis (1994-1995)	60	(1)
An Aside: Chilean Environmental Law	61	(1)
Round 2 (1996-2003): The Government Moderates Its Position	62	(3)
The Opposition Hardens	65	(1)
Constitutional Challenges of Fees for Nonuse	66	(2)
Déjà Vu All Over Again? The Revival of Water Rights Taxes	68	(3)
Pros and Cons of the Economic Instruments	71	(1)
The Bottom Line	72	(2)
4 The Results of Chilean Water Markets: Empirical Research since 1990	74	(44)
The Overall Trend: From Partisan Boosters to Greater Balance	76	(7)
Recent Chilean Overviews: Toward a Shared Diagnosis	83	(4)
The Limari River Basin: Poster Child for Chilean Water Markets	87	(2)
Issues Missing from the Research	89	(1)
Chile's National Water Policy in the Late 1990's	90	(2)
Missing Research Issue 1: Social Equity	92	(4)
Missing Research Issue 2: River Basin Management	96	(2)
Institutions for Resolving River Basin Conflicts	98	(1)
Examples of Conflicts and Malfunctioning Institutions	99	(12)
Evaluating the Institutional Framework	111	(4)
Emerging Issues in Chilean Water Policy	115	(3)
5 Conclusions and Lessons about the Chilean Experience	118	(19)
Chile: Looking Back from 2004	120	(1)
Empirical Results of the 1981 Water Code	121	(4)
Political Debate about Reforming the Water Code	125	(6)
International Water Policy: Lessons for Reforms	131	(6)
Notes	137	(15)
References	152	(13)
Index	165	(8)
About the Author	173