Commodification of water

The commodification of water refers to the process of transforming water 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. The Commodification of water has increased significantly during the 20th century in parallel with fears over water scarcity and environmental degradation. Central to its emergence was the view that public provision of water and government regulation of environmentally damaging behaviour was ineffective. Commodification has its theoretical roots in neoclassical discourse whereby a good or service is assigned an economic value which prevents misuse. The Commodification of water, although not a new phenomenon, is considered part of a more recent market-based approach to water governance which provokes both approval and disapproval from a range of stakeholders. Through the establishment of private property rights and market mechanisms it is argued that water will be allocated more efficiently. Bakker describes this market-based approach proposed by neoliberals as “market environmentalism”: a method of resource regulation that promises economic and environmental objectives can be met in tandem. To this extent the commodification of water can be viewed as an extension of capitalist and market tendencies into new spaces and social relations. Marx termed this phenomenon, “primitive accumulation”. For this reason there remains serious doubt as to whether commodification of water can help improve access to freshwater supplies and conserve water as a resource.