[mobglob-discuss] Letter to the World Bank about Bolivia water conflict

[Chris Shaw]

Agreed my me.
Chris


>From: Gordon Flett <gflett1 at shaw.ca>
>Reply-To: mobglob-discuss at resist.ca
>To: mobglob-discuss at resist.ca
>Subject: Re: [mobglob-discuss] Letter to the World Bank about Bolivia water 
>conflict
>Date: Wed, 21 Aug 2002 21:13:22 -0700
>
>Go ahead from me.---Gord
>
>Tom_Childs at Douglas.BC.CA wrote:
> >
> > Subscribers,
> >         Here's a pertainent letter to sign on to if you are connected to 
>a
> > civil society group or anti-capitalist organization, and can endose the
> > letter on behalf or your colleagues.  It's about profits over people.
> > There's a degree of urgency to this following post. I would put forward 
>my
> > name on behalf of MGJ if i get at least a half dozen replies from the 
>list
> > that simply say "go ahead"...that would probably be enough yeas to
> > constitute a consensus and i'd be proud to be the MGJ rep.
> > Salud,  tom
> >   ----- Forwarded message: -----On behalf of Oscar Olivera - Bolivia
> > Organization: Vereniging Milieudefensie
> > From: "Bertram Zagema" <Bertram.Zagema at milieudefensie.nl>
> > Date: Wed, 21 Aug 2002 11:41:30 +0200
> > Subject: Letter to World Bank about Bolivia water conflict
> >
> > Dear Friends
> >
> > Last November Bechtel initiated legal action against Bolivia in a
> > secret trade court controlled by the World Bank.
> >
> > A long time ago the Coalition for the Defense of Water and Life along
> > with other organizations are organizing a campaign against Bechtel's
> > demand to our country. We need your solidarity and your help.
> >
> > In attach is the letter we will be sending to the World Bank late
> > next week.  What we need from you at this point is nothing more than
> > support - your name to add to the letter.
> >
> > Please note, that the letter is ONLY FROM ORGANIZATIONS, not
> > individuals. So, if you represent an organization (an environmental
> > group, a union, a nonprofit organization, etc.) please consider
> > endorsing this letter by replying to this note (to the mails that you
> > will find below) with the following information (NO LATER THAN NEXT
> > MONDAY, AUGUST 26TH)
> >
> > Name
> > Title
> > Organization
> > Country
> >
> > Thanks for your support and Solidarity
> >
> > Oscar Olivera F
> >
> > Coordinadora de Defensa del Agua y de la Vida
> >
> > -------------------------------
> > Marcela Olivera F.
> > Coordinadora de Defensa del Agua y de la Vida
> > Federaci=F3n de Trabajadores Fabriles de Cochabamba
> > Calle Bol=EDvar 310, tercer piso
> > Cochabamba, Bolivia
> >
> > Tel/Fax: (591-4) 4503530
> > Cel: (591) 70722165
> > E-mail: marcelaolivera at mindspring.com
> > E-mail: marcelaolivera at ceibo.entelnet.bo
> >
> > James D. Wolfensohn, President, World Bank
> > Ko-Yung Tung, Secretary-General, ICSID
> > David D. Caron, tribunal president
> > Henri C. Alvarez, tribunal member
> > Jos=E9 Luis Alberro-Semerena, tribunal member
> > ICSID Dispute Resolution Panel
> > c/o International Centre for the Resolution of Investment Disputes
> > World Bank
> > 1818 H Street, NW
> > Washington, DC 20433
> >
> > RE: Demand for public participation
> >        Aguas del Tunari S.A. (Bechtel) v. Republic of Bolivia (Case
> > No. ARB/02/3)
> >
> > Dear Sirs:
> >
> > The signers of this letter represent more than [# to be added] civil
> > society organizations and public leaders across five continents.  We
> > are writing to you out of our shared commitment to the right of
> > people to participate in the public matters that affect their
> > communities and nations.  With this letter we respectfully request
> > that you guarantee public participation in the arbitration between
> > Aguas del Tunari/Bechtel Enterprises and the Republic of Bolivia, a
> > case that directly implicates one of the most fundamental human needs
> > - access to water.  This case is the most visible and important cases
> > that has come before a World Bank/ICSID tribunal - Aguas del
> > Tunari/Bechtel Enterprises vs. Bolivia.
> >
> > BACKGROUND
> >
> > The history of this case is well-known worldwide.  Under direct
> > pressure from the World Bank, the Bolivian government put up for
> > private lease the water system of its third largest city, Cochabamba.
> >  In 1999, following a process with just one bidder, a 40 year
> > concession was granted to Aguas del Tunari, a majority-owned
> > subsidiary of Bechtel Enterprises of California set up for that sole
> > purpose.  Within weeks of taking over control of the water system,
> > the company raised water rates by an average of more than 50% and in
> > some cases far higher.  Families living on a minimum wage of $60 per
> > month (and often less) were ordered by the company to pay as much as
> > 25% of their income just to maintain their water service.
> >
> > The people of Cochabamba, unable to pay the bills presented them by
> > the company and unable to get any satisfactory relief from the
> > Bolivian government, were forced into massive and widespread public
> > protests.  To protect the company's contract the Bolivian government
> > took extraordinary measures against its people, including a
> > declaration of a state of emergency, the suspension of constitutional
> > rights, and the violent repression of the protests, resulting in more
> > than 100 injuries and the death of one 17 year old boy, Victor Hugo
> > Daza.  In April 2000, with the government unable to stop the
> > protests, the company abandoned its management of the water system
> > and left the country.
> >
> > THE BASIS OF OUR DEMAND FOR PARTICIPATION
> >
> > To be clear, in our view the World Bank/ICSID should not be handling
> > this case to begin with.  The World Bank/ICSID system is one of what
> > the New York Times recently called "secret trade courts" ("A Fairer
> > Trade Bill" New York Times editorial, July 25, 2002), in which urgent
> > public matters are decided behind a shroud of secrecy, without full
> > information and without any of the opportunities for public vigilance
> > and participation that are the basis for public legitimacy.   Such
> > public involvement is essential to the legitimate resolution of
> > disputes, like this one, that directly affect issues of fundamental
> > public concern.
> >
> > Moreover, the World Bank/ICSID handling of this case is even more
> > unjustified for two specific reasons unique to this case:
> >
> > First, the World Bank is by no means a neutral party in this matter.
> > It is well-documented that it was the World Bank itself which
> > directly forced the government of Bolivia to privatize the water
> > system of Cochabamba, making that privatization a condition for both
> > debt relief and funds for water system expansion and thereby setting
> > the events of this case in motion.  Additionally, during the water
> > revolt in Bolivia in April 2000, World Bank president James
> > Wolfensohn personally made public comments about the case, justifying
> > water price increases.  Further, despite the Bank's role in the
> > history of this case, Mr. Wolfensohn violated one of the most
> > important principles of objectivity when he directly appointed the
> > President of the arbitration tribunal that will decide the case.
> > These facts have created strong and well-justified public doubt that
> > ICSID can resolve this dispute fairly.
> >
> > Second, Bechtel/Aguas del Tunari's claim of ICSID jurisdiction rests
> > entirely on a bogus claim of being a Dutch corporation (and therefore
> > benefiting from Holland's bilateral investment treaty with Bolivia
> > which invokes ICSID as arbitrator of any trade disputes between the
> > two countries). Bechtel/Aguas del Tunari moved its registration to
> > Holland only after it signed its water contract with Bolivia, in a
> > forum-shopping exercise already repudiated by the Dutch government.
> >
> > Given, however, that the World Bank/ICSID has acceded to
> > Bechtel/Aguas del Tunari's request to take this case, this makes it
> > all the more imperative that the process be opened to public
> > participation and scrutiny, as laid out in this letter.
> >
> > We would also note that Bechtel/Aguas del Tunari has already made
> > plain their willingness to advance fraudulent information about the
> > case.  In response to widespread public and press attention to the
> > company's rate hikes, a Bechtel Enterprises spokeswoman, Ms. Gail
> > Apps, widely distributed the following statement to members of the
> > public and the media inquiring abut the rate increases it imposed,
> > "For the poorest people in Cochabamba rates went up little, barely 10
> > percent."  Data drawn directly from the water company's computers
> > make clear that the rate increase in question averaged more than 50%.
> >
> > If Bechtel/Aguas del Tunari is willing to assert clearly fraudulent
> > information such as this on the public record, one can only imagine
> > what misinformation the company will be willing to provide to the
> > tribunal behind closed doors and away from public scrutiny.  For this
> > reason as well, civil society groups directly knowledgeable about the
> > facts at hand must be able to participate actively in the case, to
> > assure that the tribunal receives a complete and accurate rendering
> > of those facts.
> >
> > THE METHODS OF PARTICIPATION PROPOSED
> >
> > For all these reasons, we propose that the Tribunal adopt the
> > following procedures:
> >
> > 1) Grant the Petition of Affected Individuals and Organizations to
> > Participate in the Case
> >
> > We call on the Tribunal to grant the petition to participate made by
> > key Bolivian leaders, including Oscar Olivera of The Coalition for
> > Water and Life; Father Luis S=E1nchez, a member of Cochabamba's public
> > water company board of directors (SEMAPA); Omar Fern=E1ndez of the
> > Cochabamba Federation of Irrigators; and Congressman Jorge Alvarado,
> > President of the Cochabamba delegation of the Bolivian Congress.
> > These leaders, represented by able and experienced Bolivian and U.S.
> > counsel, represent tens of thousands of people with a direct stake in
> > the case.  Their participation is essential to legitimate resolution
> > of this dispute.
> >
> > 2) Publicly Disclose all Documents Filed with the Tribunal
> >
> > In order to provide for adequate public scrutiny of the claims made
> > by the two parties, especially given the record of misinformation, we
> > call on the Tribunal to place into the public record all documents
> > filed with the Tribunal.
> >
> > 3) That the Tribunal Members Travel to Bolivia to Receive Public
> > Testimony
> >
> > It is clearly within the purview of the tribunal to come directly to
> > Cochabamba, Bolivia and receive testimony from the people directly
> > affected by the case and who have important information to share with
> > the tribunal:
> >
> >  "the Tribunal may, if it deems it necessary at any stage of the
> > proceedings - visit the scene connected with the dispute, and conduct
> > such inquiries there as it may deem appropriate. [Convention On The
> > Settlement of Investment Disputes Between States and Nationals of
> > Other States: Powers And Functions Of The Tribunal, Section 3,
> > Article 43].
> >
> > We call on the panel to invoke that power in this case and to travel
> > to Cochabamba to receive appropriate public testimony relevant to the
> > case.
> >
> > 4) That the tribunal hearings be made completely open to the public.
> >
> > All tribunal hearings should be open to the public, including making
> > all transcripts of the testimony public, as well as all tribunal
> > decisions and awards.
> >
> > CONCLUSION
> >
> > No ICSID case has ever drawn the public attention that this case has
> > and will continue to, and for good reason.  The actions of Aguas del
> > Tunari/Bechtel in Bolivia left a city of more than 600,000 people in
> > turmoil for four months.  They left hundreds injured and one young
> > boy dead, and jeopardize thousands of peoples' access to the most
> > fundamental element of life.  This case is about far more than the
> > calm transfer of assets from one economic institution to another.  It
> > is a matter of deep importance to far more than the two parties who
> > now have formal access to the process.  We hope the Tribunal will
> > grant our requests and the petition to participate, and will honor
> > the legitimate right of civil society to also have an active and
> > constructive role in this case.
> >
> > Sincerely,
> >
> > [list of names under development]
> >
> > Bolivia
> >
> > Oscar Olivera, Fedration of Factory Workers and Coalition for the
> > Defense of Water and
> > Life (La Coordinadora)
> > Gabriel Herbas, Bolivian Forum on the Environment
> > Marcela Olivera, Coalition for the Defense of Water and Life (La
> > Coordinadora)
> > Omar Fern=E1ndez, Cochabamba Federation of Irrigators
> > Father Luis S=E1nchez, member boiard of directors, SEMAPA (public water
> > company) Jorge Alvarado, President of the Cochabamba delegation of
> > the Bolivian Congress
> > Jim Shultz, executive director, The Democracy Center
> > Tom Kruse, Center for Agriculture and Labor Development Studies
> > (CEDLA)
> >
> > United States
> >
> > Sarah Anderson, Institute for Policy Studies, Global Economy Project
> > Nancy C. Alexander, Citizens' Network on Essential Services
> > Marie Dennis, Director, Maryknoll Office for Global Concerns
> > Jerry Mander, President, International Forum on Globalization
> > Mark Ritchie, Institute for Agriculture and Trade Policy
> > Kevin Danaher, Co-Founder, Global Exchange
> > Cam Duncan, Inter-American Regional Secretary, Public Services
> > International
> > Anthony Arnove, Editor, South End Press
> > Lori Wallach, Director, Global Trade Watch, Public Citizen
> > Tom Lewis, International Socialist Organization
> >
> > The Netherlands
> >
> > Edith van Overveld, Latin America Centre, Netherlands
> > Berrie Jurg, Friends of the Earth, Netherlands
> >
> > Canada
> >
> > David Diamond, Headlines Theatre
> >
> > Ghana
> >
> > Rudolf Amenga-Etego, Integrated Social Development Centre, Ghana
> > Charles Abugre, Integrated Social Development Centre, Ghana
> > Patrick Apoya, Community Partnerships For Health and Development,
> > Ghana
> > Denis Chirawurah, Peoples's Actions For community Transformation,
> > Ghana
> >
> > cc: Alejandro Escobar, ICSID general counsel
> >      Claudia Frutos-Peterson, ICSID counsel
> >
> > Bertram Zagema
> > Milieudefensie (Friends of the Earth Netherlands)
> > P.O.Box 19199,  1000 GD Amsterdam, the Netherlands
> > tel: (31)-20-5507387,  fax: (31)-20-5507310
> > email: Bertram.Zagema at Milieudefensie.nl
> >
> > --
> > Tom Childs - Audio/Visual Resources
> > Douglas College Library
> > New Westminster, B.C. Canada
> > T:  604 527-5187 - library
> > T:  604 524-9316 - home
> > E:  childst at douglas.bc.ca
> > U:  BCGEU - Local 703
> > W:  http://www.douglas.bc.ca
> > --
> >
> > _______________________________________________
> > mobglob-discuss mailing list
> > mobglob-discuss at resist.ca
> > http://resist.ca/mailman/listinfo/mobglob-discuss
>_______________________________________________
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Christopher A. Shaw, Ph.D
Associate Professor
Research Pavilion
828 W. 10th Ave.
Vancouver, British Columbia
Canada, V5Z 1L8
tel: 604-875-4111 (ext. 68375)
Fax: 604-875-4376
e-mail: csshawlab at hotmail.com


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