Water has joined gold, oil and other commodities that are traded on Wall Street, as worries about the uncertainty of its availability in the future rises.
What does water as a commodity mean?
The commodification of water refers to the process of transforming water, especially freshwater, from a public good into a tradable commodity also known as an economic good. This transformation introduces water to previously unencumbered market forces in the hope of being managed more efficiently as a resource.
Is water a human right or a commodity?
In 2010, the UN General Assembly adopted a resolution affirming the human right to clean drinking water and sanitation. The motion passed with 122 nations voting in favor and no votes against, but 44 nations abstained.
Is water more valuable than gold?
So YES, water is more valuable than gold – both under scarcity situations (i.e., mining companies are paying exorbitant prices for water to develop mines in water stressed areas), and also increasingly as an input contributing to the success and growth of the whole US economy.
Why is water traded?
The market’s main purpose, after all, is to provide protection for California water users – such as farmers and cities – against fluctuations in prices. While there are real risks, we think they’re misunderstood and overblown.
Is food a commodity?
Because food products are commodities, and the whole point of the food/agriculture system is to sell more and make more profits, there is massive advertising surrounding food, especially the most profitable sector—processed foods. Food crops have many different uses other than direct human consumption.
What is the downside of the commodification of water?
In conjunction with private companies at the helm of water infrastructure, only those who can afford it will have access. The commodification of water directly threatens the fundamental notion that water is a human right, to be available to all people regardless of their income or economic ability.
Is water a constitutional right?
The right of access to sufficient water is accorded to everyone in s 27(1)(b) of the Constitution, which states that everyone has the right to have access to sufficient water.
What makes water a commodity in the world?
Farmers couldn’t raise chickens, cows, pigs, or any livestock without massive quantities of it. Miners couldn’t extract and process metals without it, and energy companies couldn’t generate fuel without it.
Is it good to treat water as a commodity?
However, treating water as a commodity and leaving this basic human right in the hands of investors and financial institutions would bring its own perils.
What does the commodification of water mean in economics?
Is it a good idea to invest in water?
We know water is the source of life. But it can also be a source for portfolio diversification. Sounds strange, we know but remember: Like gold and oil, water is a commodity – and it happens to be rather scarce nowadays. So, as with any other scarcity, the water shortage creates investment opportunities.
