Now Monsanto is After Our Water

Vandana Shiva / The Ecologist, v.29, n.5, Aug/Sep99

For years now, Monsanto has been buying up seed, plant and biotech companies in order to establish control over the world's food. According to Mr Robert Farley of Monsanto, "what you are seeing is not just a consolidation of seed companies, it's really a consolidation of the entire food chain. Since water is as central to food production as seed is, and without water life is not possible, Monsanto is now trying to establish its control over water. During 1999, Monsanto plans to launch a new water business, starting with India and Mexico, since both these countries are facing water shortages." In other words, the crisis of pollution and depletion of water resources is viewed by Monsanto as a business opportunity: "The business logic of sustainable development is that population growth and economic development will apply increasing pressure on the natural resource markets... These are the markets that are most relevant to us as a life sciences company committed to delivering food, health and hope to the world, and there are markets in which there are predictable sustainability challenges and therefore opportunities to create business value."

The crisis of pollution and depletion of water resources
is viewed by Monsanto as a business opportunity.

By 2010 about 2.5 billion people in the world are projected to lack access to safe drinking water. At least 30 per cent of the population in China, India, Mexico and the US is expected to face severe water stress. By 2025, the supply of water in India will be 700 cubic km per year, while the demand is expected to rise to 1,050 units. Control over this scarce and vital resource will, of course, be a source of guaranteed profits. As John Bastin of the European Bank of Reconstruction and Development has said, "Water is the last infrastructure frontier for private investors."

Monsanto estimates that providing safe water is a several billion dollar market. It plans to earn revenues of $420 million and a net income of $63 million by 2008 from its water business in India and Mexico. This market is growing a 25 to 30 per cent in rural communities and is estimated to rise to $300 million by 2000 in India and Mexico. This is the amount currently spent by NGOs for water development projects and local government water-supply schemes, and Monsanto hopes to tap these public finances for providing water to rural communities and convert water supply into a market. The Indian Government spent over $1.2 billion between 1992 and 1997 for various water projects, while the World Bank spent $900 million. Monsanto would like to divert this public money from public supply of water to establishing the company's water monopoly.

Another new business that Monsanto is starting in 1999 in Asia is aquaculture. It will build on the foundation of Monsanto's agricultural biotechnology and I capabilities for fish feed and fish breeding. By 2008, Monsanto expects to earn revenues of $1.6 billion and a net income of $226 million from its aquaculture business. While the corporation's entry into aquaculture is through its 'sustainable development' activity, industrial aquaculture has been established to be highly non-sustainable. The Supreme Court has banned industrial shrimp farming because of its catastrophic consequences.

Once again, Monsanto is aiming to
privatise the very basis of Indian agriculture.

However, the government, under pressure from the aquaculture industry, is attempting to change the laws to undo the court order. At the same time, attempts are being made by the World Bank to privatise water resources and establish trade in water rights. These trends will suit Monsanto well in establishing its water and aquaculture businesses. The Bank has already offered to help. As the Monsanto strategy paper states: "We are particularly enthusiastic about the potential of partnering with the International Finance Corporation (IFC) of the World Bank to joint venture projects in developing markets. The IFC is eager to work with Monsanto to commercialise sustainability opportunities and would bring both investment capital and on the ground capabilities to our efforts."

Monsanto's water and aquaculture businesses, like its seed business, aim at controlling the vital resources necessary for survival, converting them into a market and using public finances to underwrite the investments. A more efficient conversion of public goods into private profit would be difficult to find. Water is, however, too basic for life and survival and the right to it is the right to life. Privatisation and commodification of water are a threat to the right to life.