No abstract

This paper analyzes the roots of resistance to the privatization of public services in the context of the changes to class formation in Bolivia. Based upon two case studies of urban water privatization, it seeks to explain why the social coalitions that have emerged to protest the privatization of public water services in Bolivia have been led by territorially-based organizations composed of rural-urban and multiclass alliances rather than public-sector unions. It argues that protest against the privatization of water utilities in Bolivia must be understood within the context of neoliberal economic restructuring and the emergence of what has been termed the “new working class,” which is now primarily urban and engaged in informal forms of work.

This paper assesses the ideological arguments that sustain the belief that the private sector is more efficient than the public, which persist despite ambiguous empirical evidence. It argues that the privatization agenda rests on normative assumptions about "economic efficiency" that fail to adequately address the social goals of water and sanitation provision. The debate on "efficiency" should therefore be re-centered to consider "social efficiency" and the negative effect that privatization has on citizenship rights. JEL codes: A13, N70, Q25

David Harvey suggests that, compared with struggles waged by traditional political parties and labor unions, struggles to “reclaim the commons” typically result in a less focused political dynamic of social action, which is both a strength and a weakness. While these social movements draw strength from their embeddedness in daily life, not all manage to make the link between the struggle against accumulation by dispossession and the struggle for expanded reproduction that is necessary to meet the material needs of impoverished and repressed populations. Social movements in Bolivia have framed their demands differently in the struggles against the privatization of natural gas and water depending on the different roles these resources play in the region’s political economy. Struggles against the privatization of natural gas pose a greater challenge to neoliberalism because of their macro frame and politics.