An Essay On An Economics Article
There is a major debate brewing in the Florida water districts. The
discussion concerns a company called Azurix and their novel offer. Azurix is a
spin-off the huge Houston based gas and oil company Enron. The offer: in
exchange for financing a portion of the four billion-dollar everglades clean up,
Azurix acquires the ability to sell the water that they store as part of the
project. This seemingly innocuous plan can have huge affects on Florida’s
economy. The privatization of the water management in Florida could work in a
positive manner and eliminate the projected shortages by creative management, or
it can act negatively and make it harder and more expensive to obtain water.
There is some precedence for the appearance of private industry in water
management. In Tampa Bay, three different water districts have come together to
build a large desalination plant to service the entire area. The plant will be
built and run by S&W Water LLC, a private company. Although this brand of
involvement is not unheard of, the level of involvement that Azurix proposes
would give it virtually complete control of the water supply of Florida. This
monopoly has some people excited and some people worried. Those who are
optimistic about the proposed change, which includes many water district
managers, citizens, and local officials, hope for the best possible results.
They argue that the private sector can conserve more water, improve service, and
decrease water shortages. Advocates advance that farmers are permitted far more
water than is necessary for crop maintenance. There for excess water is wasted.
However, if agronomists are able to make a profit on conserving water, then the
use of this valuable supply is much more efficient. This newborn capability will
make agriculture more profitable and provide a boost to one of Florida’s largest
industries.
The optimists also tout improved service. Private industry has more
money to put into research and development; hence, the ability to supply clean
fresh potable water to the tap can be improved. It is argued that their plan can
decrease water shortages by diversifying the way Florida gets its water.
Although Florida really does not have a shortage of water, it has water at the
wrong time. The majority of Florida’s fifty-five inches a year of rain falls
during the summer; the time when the population is at its lowest point. The
diversification of how water is procured will allow for a more even distribution
of this resource. Some areas, such as the St. Johns River Water Management
District will tap surface sources, and others will develop aquifer and storage
recovery units that store water from the wet times to doll out during the dry
times. Clearly, the notion of privatizing water has tremendous potential to help
Florida. Not withstanding this optimism surrounding the proposition, it is not
be without its detractors. Factions of the proponents claim that privatization
is good in some areas of public services, water this group contends can not be
private. The water that every one and every thing depends on can not be for sale
to the highest bidder. The naysayers contend that when a company like Azurix has
a monopoly on water, conservation will not be a priority. Water for sale on the
open market with out limits would lead to the loss of this resource. Opponents
contend that the sale of Florida water across state borders could be detrimental
to the precarious balance that we struggle to maintain today. The lack of
conservation could prove to be deadly to the environment. With the downfall of
the environment, the tourism industry would fail. This failure would spell
disaster for the Florida economy. In conjunction with the lack of conservation
of water, the prices will rise. The company that controls the water supply will
be able to name its price. This can damage the pool and lawn industries as well
as lawn landscaping and nursery businesses in areas dependent on city or treated
water. Agriculture, normally the largest employer of unskilled labor, can suffer
increased cost, which can result in a loss of jobs and the competitive edge to
foreign competition. This can be a significant drain on the economy. Privatizing
the water works of Florida is truly risky business. The lawmakers of the state
must make the decision of trusting a vital natural resource to private industry.
Tremendous gains can be made, or tremendous losses can be endured. Florida is
now at an important cross roads, and must make the difficult decision that the
lively hood of the state may depend on.
Bibliography
Barnett, Cynthia. “Making Waves” Florida Trend. Sep. 2000 : 84-87
Words: 760
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