Water Privatization and Inequality: Gini Coefficient for Water Resources in Chile

Abstract

This document makes a comprehensive analysis of the inequality of the water market in Chile, measured by the Gini coefficient method. The situation of water rights in Chile is of particular interest because it is a completely privatized system, where rights are traded in the market and therefore water is presented as a commodity. This privatization of water in Chile occurred as part of the process of neoliberalization since the 1981 Water Code. The results of this study indicate that both the concentration and the inequality in the distribution of water rights is very high. It proposes a profound revision of applying a mercantile logic to a scarce basic resource for life such as water and exploring the importance of its role as a national good for public use.

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