In 1981 Chile's military government dictated a new Water Code that radically changed the country's previous water rights system by strengthening private property rights, favoring market incentives, and reducing state regulation. Against the Current: Privatization, Water Markets, and the State in Chile is the first empirical and interdisciplinary study of water markets in Chile, which is the leading international example of free market water policies. Against the Current: Privatization, Water Markets, and the State in Chile challenges the glowing reports given by neoliberals in Chile and the World Bank, showing that the results of this economic experiment have actually been rather mixed. Within the agricultural sector the Water Code has worked fairly well, although the market incentives to conserve water have been ineffective and water rights trading has been less active than expected. The Code's impact has been more negative at the level of river basins, where the institutional framework has revealed critical flaws in coordinating multiple water users and resolving conflicts. Against the Current: Privatization, Water Markets, and the State in Chile combines law, political economy, and geography to analyze the disadvantages, problems, and wider contexts of water markets. This book will appeal to everyone interested in property rights, market-friendly environmental policies, the political economy of sustainable development, and the intersection of economics with law and institutions.

Increasing scarcity, conflict, and environmental damage are critical features of the global water crisis. As governments, international organizations, NGOs, and corporations have tried to respond, Chilean water law has seemed an attractive alternative to older legislative and regulatory approaches. Boldly introduced in 1981, the Chilean model is the world's leading example of a free market approach to water law, water rights, and water resource management. Despite more than a decade of international debate, however, a comprehensive, balanced account of the Chilean experience has been unavailable.

Siren Song is an interdisciplinary analysis combining law, political economy, and geography. Carl Bauer places the Chilean model of water law in international context by reviewing the contemporary debate about water economics and policy reform. He follows with an account of the Chilean experience, drawing on primary and secondary sources in Spanish and English, including interviews with key people in Chile. He presents the debate about reforming the law after Chile's 1990 return to democratic government, as well as emerging views about how water markets have worked in practice. The resulting book provides insights about law, economics, and public policy within Chile, and lessons for the countries around the world that are wrestling with the challenges of water policy reform.

In 1981 Chile's military government dictated a new Water Code that radically changed the country's previous water rights system by strengthening private property rights, favoring market incentives, and reducing state regulation. Against the Current: Privatization, Water Markets, and the State in Chile is the first empirical and interdisciplinary study of water markets in Chile, which is the leading international example of free market water policies. Against the Current: Privatization, Water Markets, and the State in Chile challenges the glowing reports given by neoliberals in Chile and the World Bank, showing that the results of this economic experiment have actually been rather mixed. Within the agricultural sector the Water Code has worked fairly well, although the market incentives to conserve water have been ineffective and water rights trading has been less active than expected. The Code's impact has been more negative at the level of river basins, where the institutional framework has revealed critical flaws in coordinating multiple water users and resolving conflicts. Against the Current: Privatization, Water Markets, and the State in Chile combines law, political economy, and geography to analyze the disadvantages, problems, and wider contexts of water markets. This book will appeal to everyone interested in property rights, market-friendly environmental policies, the political economy of sustainable development, and the intersection of economics with law and institutions.