Siren Song: Chilean Water Law As a Model for International Reform (Rff Press)

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. 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 "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."--Jacket