Challenging Corporate Investor Rule
In May 2007, the government of Bolivia took a bold step and withdrew from the World Bank's undemocratic court for investment disputes (see Huffington Post article). The International Centre for the Settlement of Investment Disputes, or ICSID, is an undemocratic institution that allows the world's largest corporations to sue poor countries for millions of dollars.
In the 1990s the World Bank orchestrated a contract for Bechtel, the U.S. engineering corporation, to operate the water system in city of Cochabamba, Bolivia. Within weeks of taking over the water system, Bechtel raised rates as high as 200%, forcing poor families to choose between water and food. Citizens organized mass protests, leading the government to end the contract. Bechtel sued the government of Bolivia for $25 million dollars, despite having invested only $1 million in the water system. The court ruled in Bolivia's favor, but the government believes that the cards are stacked against poor countries.
Organizations around the world, like Food & Water Watch, Global
Exchange, and the World Development Movement, are sending a joint letter of support for Bolivia's decision to ICSID's Secretary-General, Ana Palacios, and the new president of the World Bank.
You can join them by sending your own email right now. Click here
For in-depth information on ICSID, download Food & Water Watch's new report Challenging Corporate Investor Rule.
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