InDepth: World Wide Water Mafia #11: Magnitude of Water Theft and Smuggling

IC InDepth Team

Mumbai, 30 August 2019

Water theft encompasses astonishing proportions. In several corners of the world, a staggering 30 to 70 percent of the water supply can dissipate due to theft and leakage.

These instances are particularly pronounced in some of the planet’s most water-stressed nations.

Water theft manifests through a spectrum of behaviors, ranging from evading bill payments to intricate corruption networks involving influential figures. Water smuggling similarly transpires, utilizing illicit pipes and water tankers.

Presently, these endeavors rarely transgress international borders. Both water theft and smuggling, however, permeate global contexts, with intricate, advanced networks of unlawful water distribution notably prominent in South Asia, the Middle East, and budding in Latin America. Remarkably, water theft is not confined to developing nations alone.

Diverse Smuggling Networks

Smuggling networks exhibit broad-ranging organizational architectures, varying in hierarchical structure, vertical integration, and accountability levels.

Equally diverse is the quality of water delivery services extended to marginalized groups, as well as responsiveness to legal industries and agricultural sectors.

Though often labeled as “water mafias,” providers of unlawfully sourced water frequently engage in intricate operations, providing both legal and illegal water supplies.

Complexity in Legal and Illegal Supply

In certain instances, these entities hold licenses for water distribution, even if much of the water is procured unlawfully.

Their reach extends beyond informal slum settlements, catering to lawful economic entities and middle to upper-class strata, a scenario evident in countries like India and Brazil.

Notably, these self-proclaimed “water mafias” occasionally collaborate with official water board authorities, operating under the veil of political parties to whom they offer critical services, including monetary contributions and votes.

Key figures behind illicit water supply garner considerable political influence by ensuring the survival of marginalized populations, even if the water provisioning to these groups remains subpar.

Their actions can perpetuate the tenure of their political patrons, obstruct sound water policies, and impede the expansion of public water supply systems to underserved regions.

Diverse Accountability and Equity in Illegal Water Markets

Illegal water markets exhibit a diverse range of attributes, including levels of accountability, equity, and efficiency.

Similarly, legal private or public water markets also showcase wide variations in these essential features.

Nevertheless, those who wield control over the water supply, especially through illegal means, establish intricate webs of dependency, clientele, and patronage networks.

This manipulation of resources results in the accumulation of substantial political power and capital.

Origins and Persistence of Illegal Water Markets

The proliferation and enduring presence of illicit water markets have multifaceted origins.

Across all nations, even those with well-developed water policies and expansive public water supply systems, law enforcement’s ability to combat and preempt water theft is constrained.

Often, addressing water theft and smuggling ranks low on the hierarchy of priorities, leading to insufficient prosecution and a lack of effective deterrents.

The convoluted legal and ethical debates surrounding water laws, the assertion of water as a human right, and the viability of enforcement efforts can be so contentious that they discourage both governmental and water regulatory bodies from engaging in punitive actions.

Opaque Regulations and Complex Systems

The persistence and robustness of illegal water markets are the result of factors beyond mere enforcement limitations. These markets flourish due to policy intricacies, obscured regulations, and the intricate nature of environmental water systems.

Worldwide, water rights are often ambiguously defined, and comprehensive data on aquifer sizes, replenishment rates, and depletion trends remain elusive.

Many countries grapple with inadequate technological, technical, administrative, and managerial competencies within their water board authorities. Unregulated urban growth and disruptions to customary water use regulations further erode the effectiveness and accountability of water governance.

However, even when water authorities are transparent, responsible, knowledgeable, and free of corruption, they often confront political impracticalities when attempting to increase water prices sufficiently to encourage sustainable consumption.

Political Power and Design of Illegal Markets

Crucially, illegal water markets occasionally arise not solely due to regulatory inadequacy, but as a deliberate result of strategic design.

These markets are shaped not just by regulatory capture and corrupt practices, but also by disparities in political power.

The affluent can sidestep improvements to public water policies, while the middle class, particularly those recently elevated to this status, as seen in countries like India and Brazil, may resist shouldering higher taxes to facilitate legal water provision to slums and marginalized rural regions.

For both the state and the slumlords aligned with their political benefactors, control over the water supply serves as a potent instrument for exerting authority over the populace.

Tailored Policies for Varied Contexts

Effective policy formulation must be deeply attuned to local nuances, encompassing the institutional landscape, specific policy challenges, and prevailing issues.

The intricate nature of water theft demands bespoke policy solutions that are calibrated to the unique characteristics of each locale.

The approach to addressing water theft in developed countries will inevitably differ from strategies employed in countering this challenge in places like Pakistan.

A comprehensive roadmap to tackle the issue necessitates tailoring strategies to the specific attributes of the setting at hand.

Next: InDepth: World Wide Water Mafia #12: Diverse Solutions for Diverse Realities

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