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(s): Carl J. Bauer
Series: RFF Press
Publisher: Routledge
Year: 2004
Language: English
Pages: 185
SIREN SONG Chilean Water Law as a Model for International Reform......Page 2
Copyright......Page 3
Contents......Page 6
Preface......Page 8
Acknowledgments......Page 10
Introduction: The Chilean Water Model Comes of Age......Page 12
CHAPTER 1 The International Context: The Water Crisis and Debates about Water Policy
......Page 17
Integrated Water Resources Management......Page 19
Perspectives on Water as an “Economic Good”......Page 21
Economic Interpretations of the Fourth Dublin Principle......Page 27
Stretching the Neoclassical Paradigm: Institutional and Ecological Economics......Page 33
International Significance of the Chilean Model......Page 36
Water Markets and Water Policy in Other Countries......Page 39
CHAPTER 2 The Free-Market Model: Chile’s 1981 Water Code
......Page 42
The 1980 Constitution: Foundation of the Water Code......Page 46
“Legislative History” and Political Background......Page 47
Chile’s First Water Code (1951): Private Rights plus Strong Government......Page 48
Chile’s Second Water Code (1967): Swinging Left to Centralized Control......Page 49
Water Rights after the 1973 Military Coup: Confusion and Neglect......Page 51
Neoliberal Leanings (1976–1981): Private Property and Free Markets......Page 52
The Final Version (1981): Compromise and Problems for Future Reform......Page 58
CHAPTER 3 Reforming the Reform? Policy Debate under Chilean Democracy
......Page 62
Reforming the Water Code: Mucho Ruido, Pocas Nueces......Page 64
Round 1 (1990–1993): The Government Goes Too Far......Page 66
Alternative Instruments: Water Rights Taxes versus Fees for Nonuse......Page 69
Growing Emphasis on Economic Instruments and Analysis (1994–1995)......Page 71
An Aside: Chilean Environmental Law......Page 72
Round 2 (1996–2003): The Government Moderates Its Position......Page 73
The Opposition Hardens......Page 76
Constitutional Challenges of Fees for Nonuse......Page 77
Déjà Vu All Over Again? The Revival of Water Rights Taxes......Page 79
Pros and Cons of the Economic Instruments......Page 82
The Bottom Line......Page 83
CHAPTER 4 The Results of Chilean Water Markets: Empirical Research since 1990
......Page 85
The Overall Trend: From Partisan Boosters to Greater Balance......Page 87
Recent Chilean Overviews: Toward a Shared Diagnosis......Page 94
The Limarí River Basin: Poster Child for Chilean Water Markets......Page 98
Issues Missing from the Research......Page 100
Chile’s National Water Policy in the Late 1990s......Page 101
Missing Research Issue 1: Social Equity......Page 103
Missing Research Issue 2: River Basin Management......Page 107
Institutions for Resolving River Basin Conflicts......Page 109
Examples of Conflicts and Malfunctioning Institutions......Page 110
Evaluating the Institutional Framework......Page 122
Emerging Issues in Chilean Water Policy......Page 126
CHAPTER 5 Conclusions and Lessons about the Chilean Experience
......Page 129
Chile: Looking Back from 2004......Page 131
Empirical Results of the 1981 Water Code......Page 132
Political Debate about Reforming the Water Code......Page 136
International Water Policy: Lessons for Reforms......Page 142
Notes......Page 148
References......Page 163
Index......Page 176
About the Author......Page 184
