Bechtel VS Bolivia

Bolivia was the target for Bechtel, the largest engineering company in America, which looked for expanding the water supply business overseas. Soon, Bechtel was able to make a fortune and eventually dominate the water system market in Bolivia. Without any competitions, the company fluctuated its prices as much as it wanted and the Bolivian domestic market and its people were immensely influenced, suffering financially and mentally. In response, people violently protested and eventually the government expelled Bechtel out of the nation. However, in 2001, Betchel filed a lawsuit against Bolivia, which brought up a lot of media attention and ethics concerns.

People need water to survive and thus privatization and monopoly over water supply is certainly a controversial matter. As the World Bank recognized heavy corruption in Bolivian government, it refused to loan further support unless the country allowed foreign support in water system market. So here the privatization of water is seen as incentives to make this market more efficient; unfortunately, it gave Bechtel a chance to monopolize, and from an outsider’s point of view, it may be viewed as an attempt to control the lives of Bolivian people.

 

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