The Coalition for the Defense of Water and Life — Oscar Olivera — Jim Shultz, The Democracy Center — The Government of Bolivia — Aguas del Tunari — The Bechtel Corporation — The World Bank — The International Monetary Fund (IMF) — International Centre for Settlement of Investment Disputes (ICSID)

	The World Bank Founded in 1944, at the close of the Second World War, the World Bank currently serves 180 member countries and, along with the IMF [International Monetary Fund], makes up the largest public lending institution in the world.24 In 2001, the World Bank alone provided $17.3 billion in loan assistance to member countries.25 Each member nation is represented by a governor in the bank, but ultimate decision-making power rests not with the board of governors but with the bank's board of directors, which meets twice a week and is based in Washington, D.C. The bank's biggest contributors (the United States, Japan, France, the United Kingdom and Germany) wield the greatest influence, as they each get to appoint a representative to the 24-member executive board. The other 19 members of the board are nominated by the remaining 170-plus member nations. The World Bank has come under fire for lending decisions that are predicated upon a country's acceptance of the bank's "structural adjustment policies," a set of economic operating principles that often compels cash-strapped nations to open their economic doors to foreign investment. Nations like Bolivia are often unable to secure loans from the IMF and the World Bank unless they agree to sell off public utilities, such as water and sanitation services, that once may have been under local control. As an example, in July 1997, World Bank officials indicated to Bolivian President Gonzalo Sanchez de Losada that privatization of Cochabamba's municipal water system, SEMAPA, was a prerequisite for receiving debt relief assistance from the World Bank and IMF.26 In February 1996, Cochabamba's mayor had received a similar message when World Bank officials refused to consider lending further aid for local water development without privatization of his city's water system.27 On August 25, 1998, the Bolivian government, in collaboration with World Bank and IMF staff, published the Enhanced Structural Adjustment Facility (ESAF) Policy Framework Paper, 1998-2001. The document presented a blueprint for implementing free-market economic reform in Bolivia, through fiscal decentralization and privatization, to help reduce inflation and spur economic growth. The report makes specific mention of the government's intention to sell Cochabamba's municipal water company, SEMAPA, by December 1998.28 In December 2001, when Bechtel appealed for adjudication of the matter, the World Bank became entangled in the events of Cochabamba once again. On February 25, 2002, the case of Aguas del Tunari (the consortium led by International Water Ltd., a subsidiary of the Bechtel Corporation) was officially registered with the World Bank's International Centre for Settlement of Investment Disputes (ICSID). Bechtel and Aguas del Tunari claim that the Bolivian government violated a bilateral trade agreement between Bolivia and the Netherlands when it cancelled Aguas del Tunari's contract to distribute water and provide sanitation services to Cochabamba.29 The consortium is seeking $25 million in damages.30 The two parties are now in the process of selecting a tribunal of arbitrators (some of whom may be chosen from ICSID's "Panel of Arbitrators") for settling the dispute.

	International Monetary Fund (IMF) The International Monetary Fund (IMF) is a specialized division of the United Nations, created in 1946 and now consisting of 183 member countries.31 Whereas the World Bank was created to provide long-term loans for modernization and development projects, the IMF was founded to provide short-term, nonproject-specific loans to nations with "balance of payments" difficulties.32 The IMF has since assumed other monetary functions, such as creating initiatives for currency exchange stabilization. All loans must be approved by the IMF's 24-member executive board, and loan payments are disbursed in installments only after the petitioning nation agrees to the IMF's terms. In 1996, the IMF and the World Bank launched the Heavily Indebted Poor Countries (HIPC) initiative, a plan that provides special aid packages to help bring foreign debt burdens to sustainable levels for each of the recipients, currently 42 nations.33 Bolivia is one such nation and has been designated to receive $2 billion in debt relief.34 According to the World Bank, the HIPC initiative has helped slash Bolivia's total foreign debt in half.35

	International Centre for Settlement of Investment Disputes (ICSID) The International Centre for Settlement of Investment Disputes (ICSID) was founded by the World Bank in October 1966. While ICSID claims that it is an "autonomous international organization," it still maintains close ties with the bank. ICSID consists of a secretariat and an administrative council, the latter of which is chaired by the president of the World Bank and composed of representatives from each state that ratified the ICSID charter convention. Members of ICSID are also members of the World Bank. ICSID is based in Washington, D.C., and is regarded as one of the most respected arbitration institutions in the world, often hearing disputes between governments and multinational corporations in which hundreds of millions of dollars are in dispute. The center maintains that it does not adjudicate the cases but instead acts as a facilitator to help administrate the court proceedings and to communicate the tribunal's final decision — the "award dispatch" — to the parties. 24The World Bank Group, "At a Glance: About Us" 25ibid. 26June 6,2000 open letter to Christopher Neal (World Bank External Affairs Officer - Latin America & the Caribbean) by Tom Kruse and Jim Shultz 27"World Bank Forced Water Privatization on Bolivia" (MINNEAPOLIS STAR TRIBUNE, 7/15/00) 28International Monetary Fund, Bolivia ESAF policy framework paper, 1998-2001, IMF 29"Bechtel Battles Against Dirt-Poor Bolivia: Nation Severed Water Deal After Hefty Rate Increases Led to Protests", by Jimmy Langman (SAN FRANCISCO CHRONICLE, 2/2/2002) 30ibid. 31International Monetary Fund Web site, "About Us" 32ibid. 33The World Bank Web site, "About HIPC: HIPC Nations" 34"World Bank and IMF Support US $1.2 Billion in Additional Debt Service Relief for Bolivia under Enhanced HIPC Initiative" (World Bank Press Release, June 8, 2001, No. 2001/369/S) Who's Who written by Sheraz Sadiq, Associate producer with FRONTLINE/World

Leasing the Rain is a co-production of NOW with Bill Moyers and FRONTLINE WORLD.