The city of Cochabamba lies in the heart of Bolivia, nestled in a fertile valley surrounded by imposing mountains. In early 2000, this unassuming urban center became the epicenter of one of the most significant anti-privatization movements of the modern era. The Cochabamba Water Wars, as they came to be known, marked a pivotal moment in the ongoing global debate over water rights, corporate control of natural resources, and the sovereignty of developing nations in an increasingly interconnected world.
What began as a local protest against skyrocketing water bills quickly became an international symbol of resistance against neoliberal policies and corporate exploitation. Yet despite its significance, the whole story of the Cochabamba uprising and its lasting implications often remains relegated to footnotes in discussions of globalization and economic development. This forgotten legacy deserves closer examination, not just as a historical curiosity but as a case study with profound implications for contemporary resource management and social justice movements worldwide.
Historical Context: Neoliberalism Meets Bolivia
To understand the Cochabamba Water Wars, one must first grasp Bolivia's economic and political landscape in the late 1990s. Following decades of economic instability, Bolivia had become deeply indebted to international financial institutions. Under pressure from the World Bank and the International Monetary Fund, the Bolivian government embarked on an aggressive privatization campaign, following the "Washington Consensus" model that dominated development economics at the time.
Bolivia's president at the time, Hugo Banzer, continued the privatization policies of his predecessors, viewing them as necessary measures to attract foreign investment and stabilize the struggling economy. Proponents of these policies argued that private companies would bring efficiency, technological improvements, and capital investment that the cash-strapped Bolivian government couldn't provide.
1999, following these policies and World Bank recommendations, the Bolivian government granted a 40-year concession to Aguas del Tunari, a consortium led by the American engineering giant Bechtel, to manage Cochabamba's water supply. The contract was negotiated behind closed doors, with minimal public consultation or transparency, sowing the seeds for what would soon become a popular uprising.
The Spark: When Water Becomes Unaffordable
The trouble began almost immediately after Aguas del Tunari took control of Cochabamba's water services in January 2000. Water bills increased dramatically, with some residents reporting 200% to 300% increases in their monthly payments. For many Cochabambinos, who earned an average of $100 monthly, water bills suddenly consumed a quarter to a third of their monthly income.
The new contract also granted the company exclusive rights to all water resources in the region, including rainwater collection. For indigenous farmers who had traditionally managed their water systems through community-based organizations, this represented an economic burden and an existential threat to their way of life and cultural practices.
In a city where many neighborhoods already lacked reliable water service, with some areas receiving water for only a few hours each week, the rate increases without corresponding improvements in service felt particularly unjust. The slogan "El agua es vida" (Water is life) became the rallying cry for a community that viewed water as a fundamental human right rather than a commodity to be bought and sold for profit.
The Resistance: La Coordinadora and the People's Movement
The response to water privatization was swift and organized. A broad coalition of urban workers, rural farmers, environmental activists, and neighborhood associations formed La Coordinadora de Defensa del Agua y de la Vida (Coalition in Defense of Water and Life). Led by factory worker Oscar Olivera, La Coordinadora became the central organizing body for a diverse movement united by a common goal: reclaiming public control of their water.
Beginning in January 2000, La Coordinadora organized a series of escalating protests. Initial peaceful demonstrations led to more dramatic actions as the government dismissed the protesters' concerns. By April, the situation had reached a breaking point. Cochabamba's residents engaged in a citywide strike, effectively shutting down the city for days. Barricades were erected across major thoroughfares, and thousands occupied the central plaza.
The government's response was harsh. President Banzer declared martial law, deployed military forces, and imposed a curfew. In the ensuing confrontations between protesters and security forces, hundreds were injured, and a 17-year-old boy, Victor Hugo Daza, was killed by a sniper. His death became a symbol of the movement's sacrifice and intensified the resolve of the protesters.
Victory and Aftermath: A Template for Resistance
On April 10, 2000, after four months of unrelenting public pressure, the government capitulated. Officials announced the cancellation of the contract with Aguas del Tunari, and water services reverted to municipal control under a restructured public utility that included community participation in its management.
The victory in Cochabamba reverberated globally. It represented one of the first successful challenges to the privatization orthodoxy that had dominated development economics throughout the 1990s. Activists worldwide studied the Cochabamba model as a template for organizing against corporate control of essential resources.
However, the aftermath was not without complications. Bechtel filed a $50 million lawsuit against Bolivia at the International Centre for Settlement of Investment Disputes, claiming compensation for lost investments and future profits. After years of international pressure and negative publicity, Bechtel eventually dropped the lawsuit in 2006, settling for a symbolic payment of 2 bolivianos (less than 30 cents).
The Enduring Legacy: Water Democracy and Beyond
The most significant legacy of the Cochabamba Water Wars lies in how it transformed the global conversation about water rights. The movement popularized the concept of "water democracy" – the idea that communities should directly participate in decisions about their water resources. This principle has influenced water management policies from Ecuador to Indonesia, supporting community-based alternatives to both privatization and centralized state control.
In Bolivia, the movement contributed to the political awakening that eventually brought Evo Morales to power in 2005 as the country's first indigenous president. Under Morales, Bolivia would go on to champion water as a human right in international forums, eventually helping to secure recognition of this principle by the United Nations General Assembly in 2010.
Conclusion: Remembering to Look Forward
Two decades after Cochabamba's residents took to the streets, the questions they raised remain urgently relevant. As climate change intensifies water scarcity in many regions, how societies manage this essential resource will become more critical. The tension between treating water as an economic good versus a human right continues to shape water policy debates worldwide.