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Angela A. Buonocore

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Private Sector's Unique Role in Addressing the Water and Sanitation Crisis

Posted: 09/09/10 12:38 PM ET

Water is the lifeblood of the planet -- yet contaminated and polluted water kills more people than all forms of violence -- including wars, according to the UN Environment Programme. Even where there is clean water currently available, it is becoming increasingly clear that our global water supply is growing more burdened due to pollution, migration to cities and crumbling (or non-existent) infrastructure. Over the last century, water use has grown at more than twice the rate of population increase and the FAO estimates that by 2025 two-thirds of the world's population could be under water stress conditions. These numbers make it evident that the global water and sanitation crisis cannot be tackled by local governments alone. All sectors have an invaluable role to play.

This week, I am attending World Water Week, an annual meeting held in Stockholm convening more than 2,000 cross-sector experts, practitioners, decision makers and leaders from around the globe to discuss urgent water-related issues. Over the past few days, the need for collaboration among all sectors to address water issues has been a recurring theme, yet one that I believe cannot be overstated.

As I mentioned in my previous post, cross-sector collaboration has increasingly been embraced and yet some critics still continue to question the private sector's involvement in addressing critical social and environmental issues. Given my experience at several Fortune 500 companies, I can confidently say that the private sector has unique tools and resources that can significantly complement government and non-profit efforts. Most frequently cited are companies' proprietary products and technologies, employees' time and expertise, and monetary resources. However, one unique contribution is commonly overlooked -- business savvy.

As the new wave in entrepreneurial philanthropy or social entrepreneurship, which strives to add profitability and accountability to traditional philanthropic projects, continues to gain momentum, the private sector is uniquely positioned to help.

With more than 50 percent of all water projects failing and less than five percent of projects being visited after installation (according to Water.org), we must empower local communities to operate and manage their water systems effectively in order to make solutions sustainable. When you add entrepreneurship and profitability to this equation -- you are not only promoting sustainable development but economic development.

ITT Watermark's non-profit partner Water For People is doing just that through its Sanitation as a Business initiative, which demonstrates that a combination of profit incentives for small local companies and income generation programs for poor households and schools can result in sustainable, safe sanitation services. The private sector can help further expand programs such as this by leveraging their entrepreneurial experience to help non-profits think differently.

But in order for the private sector to make a sustained impact over time, companies must develop authentic commitments to issues that are closely tied to their everyday operations and that have an impact on key markets and stakeholders.

For this reason, ITT's corporate citizenship program, ITT Watermark, leverages our core business expertise to bring safe water, sanitation and hygiene education to children, families and communities in the developing world and to provide access to safe water in times of emergency. Furthermore, we focus our philanthropic presence in markets that are important for our business and promise to be in years to come. In fact, at World Water Week, we announced that we are pledging $10.5 million over three years (2011-2013) to provide one million people around the world with access to safe water and sanitation, building upon the 500,000 children and families that the program will reach by the end of 2010.

Our program's success since its launch has proven that when the private sector applies its unique resources to collaborate with non-profits and government, a sustained impact can be made. For example, within hours of being notified of the devastating floods in Pakistan, ITT authorized partner Mercy Corps to tap monetary resources from ITT's emergency response fund to support efforts to provide clean water to victims. Furthermore, ITT was able to apply its expertise by donating five portable water treatment systems to provide clean water to as many as 200,000 people.

Moving forward, it will be important for ITT and other companies to continue to collaborate with governments and non-profits and leverage our unique resources to make an impact. Opportunities for the private sector to apply business expertise and understanding of entrepreneurial initiatives may be a unique distinguishing factor to help sustain water and sanitation projects over time.

 
 
 
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01:10 PM on 09/10/2010
Is this program anything like "free" computer or software donations?
There may be a great opportunity for the embedding of a sales force with the appropriate government agencies, providing replacement parts, and system expansions once everything is in place.
And all of that for a mere $1 million per year (according to the sourcewatchs' description of "ITT Watermark")
Count me skeptical of ITTs motives.
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10:08 PM on 09/09/2010
I have read of several domestic, U.S., instances where communities have allowed private investors to manage public water supplies and then regretted that decision. In some cases, local communities were able to regain public control from private exploitation. In other cases, they were fighting to do so.

Public relation stunts such as Buonocore presents are familiar. The one benefit is that it makes clear what U.S. investment has been doing to the Third World forever. Reducing the majority of Americans to Third World status allows monster corporations such as ITT to suck the blood right here. When you've met one vampire, you've met them all.
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IgnoranceIsStrength
60% of the time, it works every time.
07:47 PM on 09/09/2010
Search on the web for public water privatization on the web for the plan.
1. Public water in the U.S. is underpriced and can be increased.
2. Privatization can save money on payrolls by lowering wages and benefits transfering money from workers to shareholders.
3. Water is more necessary than food and local governments can be charged for low income people who can not pay for the increased prices.
Socialized losses, privatized profits !
I found this business plan on the Internet for investers .
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SoylentGreenIsPeople
Hmmm........Tastes Like Chicken !
08:04 PM on 09/09/2010
Thanks ! They want to transfer local money (wages, water fees) to foreign shareholders. That reduces money in the local economy and reduces tax revenue to the local government. A race to the bottom.
09:27 PM on 09/09/2010
But those foreign shareholders would pay us for those future profits....money would come in as well, everything has a value, if other people are willing to pay more than something is worth, shouldn't we sell it to them?
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05:07 PM on 09/09/2010
Information on ITT Corporation:

http://www.sourcewatch.org/index.php?title=ITT_Corporation
08:45 PM on 09/09/2010
great link, fanned.
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jeffrey678
You don't happen to make it. You make it happen.
04:36 PM on 09/09/2010
Privatize the profits and Socialize losses ! Then the taxpayer pays for the Executive golden parachutes when it fails.
04:01 PM on 09/09/2010
Despite the other glowing comments, I am highly skeptical. Are we talking about more privatization? If you are, then that would be a disaster for this country. One only has to look to CA. and their water troubles to let people know where privatization of natural resources leads. Argentina eventually was charged for rainwater. The technologies you speak of sound nice, but the price society has to pay as whole is seldom worth it. The only relationship I see for Govt. and private enterprise is contractor and employee. I bet you are proposing more involvement for ITT than that.

"ITT Watermark's non-profit partner Water For People is doing just that through its Sanitation as a Business initiative, which demonstrates that a combination of profit incentives for small local companies and income generation programs for poor households and schools can result in sustainable, safe sanitation services."

These initiatives would not be necessary, if ITT and other water suppliers were not overcharging their customers. Your last post praising the private sector's role in education is telling. Would that by denying large portions of this population decent acccess to education, stopping school lunches, eliminating physical education, or taking away free state colleges? The private sector has done nothing, but fail this country, for the last thirty years and this country is starting to finally figure that out. Govt. is not the problem. Corrupted Govt. in service of Wall st. and multinational corporations is the problem. No more privatization of natural resources.
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vippy
Carpe Diem!
01:28 PM on 09/09/2010
It would be great if the standards of our water would be higher, removing fluoride and ammonia from it.
I have been looking for a good cup of coffee since I left Germany.  Here the local water plant releases at times RED water and claims there is nothing wrong with it, try to wash white clothes or even use this water.
I also have well water which is not filtered, comes 450 ft out of the ground and it is much better water than the one I have to pay for monthly.  Did you know that now we get charged for well water usage added to our property taxes.  Next thing we get taxed for the air we breathe!
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Majestry
12:37 PM on 09/09/2010
Excellent article and a very important topic. I am an entrepreneur who is actually attempting to tackle one very big water issue that is faced by hundreds of millions of people around the world every day. Bottled water is terrible for the environment and costly for consumers. The water distribution system that I have designed and am working on getting financing to build is a win/win/win in that it provides revenue to local governments for a resource they have that is underutilized, it is good for the environment in removing plastic bottles from circulation and the energy required to produce and transport bottled water, and it is great for the end consumer because they save money on bottled water and it is within the budgets of poorer communities here in the united states reducing calorie intake -- 20% of our calories come from beverages -- which improves health and saves money.

Suffice to say, I love water, I think it is extremely important that more entrepreneurs get involved in getting water to people who need it, and I loved your article!
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vippy
Carpe Diem!
01:29 PM on 09/09/2010
Good luck with it!
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Majestry
02:31 PM on 09/09/2010
Who needs luck when lots of hard work will do the job but thanks! Luck is helpful regardless!
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phree
free your mind
09:33 AM on 09/10/2010
Do you have a web site that explains your project?