Business and Society: Water Privatization and Tourism

This report examines the complex relationship between business and society, focusing on two key areas: water privatization and the tourism industry. The first section delves into the debate surrounding water privatization, presenting arguments for and against treating water as an economic good. The analysis considers the economic benefits of privatization, such as encouraging efficiency and attracting investment, while also addressing concerns about equitable access and the potential for exploitation. The second section explores the role of tourism in sustainability, evaluating its impact on regional development, employment, and the environment. The report analyzes both the positive impacts of tourism, such as its contribution to economic growth and the preservation of natural beauty, and its negative consequences, including environmental degradation and social disruption. The report includes references to relevant academic literature to support the arguments presented.

Running head: Business and Society
Business and Society

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Table of Contents
Business and Society..............................................................................................................................1
Answer 1............................................................................................................................................1
Answer 2............................................................................................................................................2

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Business and Society
Answer 1.
a.) Water privatization (Yes)
Yes, because water is considered as a resource related to supply and demand and it should
be considered as economic good. Water can be stored through the source of rain, but it has to
be gathered, managed and processed by taking into consideration expensive system of
channels and processing plants. It is important that dirty water and human waste should be
removed and treated in sanitation systems. It is analyzed that water should be treated as an
economic good then only it is considered as a waste. On the domestic level, if unmetered

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access is made by the consumers then it means that they are not paying according to the
quantity they consume. On the national level, wasteful methods and inappropriate crops are
encouraged by taking into consideration the subsidy given to farmers and industries
(Tortajada, González-Gómez, Biswas & García-Rubio, 2016). For instance: In California
water hungry cotton is grown that give harmful effect on the environment. Setting price
according to its actual cost would help to encourage efficiency and practices that are
environmental friendly. For instance: drip irrigation used in agriculture (Bakker, 2014).
Issues related to water supply should be taken into consideration with huge
investment especially in the emerging countries where individuals are not able to access clean
water. It is seen that also in developed countries water is wasted through the leakage in pipes
and aging infrastructure. It is analyzed that public sector is not able to offer cash for this
investment so private sector involvement is essential. So, private companies should be free to
earn profits through actual water charges that take into consideration costs of supply. If there
is effective regulation then factors like quality and standards related to the environment
should be managed properly (Harris, Goldin & Sneddon, 2015).
It is evaluated that water should be treated as economic good as it is beneficial for the
poor. In the developed countries, the state subsidiary is provided to rich. Water is offered to
the middle-class sector and to the wealthy farmers but there is no supply of water in the
poorer areas. So, it is important that water should be available in each and every area of
developed and undeveloped countries (Ruiz-Villaverde, Chica-Olmo & González-Gómez,
2018).
Water Privatization (No)
No, because with the increase in the population growth the demand for water
increases. The rich class people waste water by using it in garden sparkles, lush golf courses,
and swimming pools. It is important that management of demand should be considered so
that waste can be prevented and also it makes sure that every individual can access including
poor people. This is the responsibility and job of the government executives and not of
private companies. Huge investment is required to meet global water target but it is seen that
individual sector will offer these in exchange for huge commercial returns. If the investment
is done by government then it is better to privatize as they can easily target the poor people
and will not focus more on the opportunities related to profits. Water supply is considered as
a natural monopoly so there is no pressure of competition on private companies to drive up

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quality and reduce the cost. It is also evaluated that in developed countries the process of
water privatization is not so good.
For instance: In the recent electricity supply crisis of California, it is seen that how
badly the rules of private utilities can fail. In Australia, the water supply is retained properly
just because it is in the hands of the public. To treat water as an economic good can give
negative impact on the poor. The rich person can take advantage of the subsidiaries
(Middlemiss, 2018).
Answer 2.
Tourism plays a great role in sustainability. In many countries, tourism is analyzed as
an important instrument for regional development as it helps to stimulate the new economic
activities. It is seen that tourism has a good impact on the balance of payments, on
employment and also on the overall income and production but it can give negative results on
the environment. If tourism growth is unplanned and is not controlled then it can result in
decline of the environment and also in this the growth of tourism industry is compromised. It
is important that environment should be protected as it is the major source of development
(Mowforth & Munt, 2015). It is seen that tourism impact on sustainability is seen on the
landscape degradation and erosion. Air pollution is caused due to heavy transportation and
the use of electricity. It is analyzed that there is increase in waste and the contamination of
water because of the sewage that is collected from hotels and boats (Hall, Gossling & Scott,
2015). Deforestation also takes place due to an increased need for the supplies. It is seen that
positive impact that is seen is related to the safety of the natural beauty.
The government and organizations have put efforts so that natural beauty can be
maintained as it attracts tourist towards the country. Tourism also encourages the positive
impact on the local environment and economy that helps to maintain the environment in an
effective manner. For instance: it is seen that tourism has impacted on the economy of
Nicaragua's in three places like GDP, employment, and investment. Nicaraguan Tourism
accounted for 7.9 of employment in 2013 and it can be enhanced to 8.8 percent by 2024. It is
seen that negative aspect of tourism is also related to change in season and also it created
part-time jobs and full-time jobs (Hunt, 2016). Sustainability tourism takes into consideration
proper utilization of the resources that include social impacts and maximizes the advantage of
conserving the local communities. It is seen that tourist mainly emphasizes on natural
environment and also on historical cultural heritage.

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References
Bakker, K. (2014). The business of water: Market environmentalism in the water
sector. Annual Review of Environment and Resources, 39, 469-494.
Hall, C. M., Gossling, S., & Scott, D. (Eds.). (2015). The Routledge handbook of tourism and
sustainability. Routledge.
Harris, L. M., Goldin, J. A., & Sneddon, C. (Eds.). (2015). Contemporary water governance
in the global south: Scarcity, marketization and participation. Routledge.
Hunt, C. (2016). 10 A political ecology of tourism in the shadow of an inter-oceanic canal in
Nicaragua. Political Ecology and Tourism, 163.

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Middlemiss, R. (2018). HR 23: An Assault on Water Resource Conservation and California's
State Sovereignty. Hastings Envt'l LJ, 24, 197.
Mowforth, M., & Munt, I. (2015). Tourism and sustainability: Development, globalisation
and new tourism in the third world. Routledge.
Ruiz-Villaverde, A., Chica-Olmo, J., & González-Gómez, F. (2018). Do small municipalities
imitate larger ones? Diffusion of water privatization policies. Urban Water
Journal, 15(2), 138-149.
Tortajada, C., González-Gómez, F., Biswas, A. K., & García-Rubio, M. A. (Eds.).
(2016). The Private Sector and Water Pricing in Efficient Urban Water Management.
Routledge.