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The privatization and capitalization of water could easily create resource wars in developing countries.
As the earth's population continues to grow and the supply of potable water remains constant, increasing conflicts over water ownership will occur. A simple mathematical calculation shows that when you take a fixed supply of water and divide it among an increasing number of people, industries, or other sources of consumption, there is less water to go around. As more and more countries move towards "first world" status, their consumption of water increases dramatically. As a result, the amount of potable water per person or consumption source decreases precipitously and soon will become an issue of survival.
People groups have a long history of going to war over resources. Tribes have raided rival tribes for their winter stores of dried meat, cattle, or horses. Spain slaughtered the South and Middle American Natives for gold. Hitler invaded Russia for Lebensraum and the rich oil fields in the Caucuses. Generally law abiding citizens get into fights in stores over the last of a particular toy before Christmas. If we consider that the United States ostensibly went to war in Iraq over oil, which is important but not vital to human life, the looming possibility of war over water ownership grows far more ominous. We humans have proven over thousands of years that we are not afraid to resort to violence to achieve our ends, and all the more so if we are pushed by survival.
Dwindling potable water resources per capita is a pending humanitarian crisis. As water is second only to oxygen as a need for human survival, it will soon be worth more than gold. Given the human race's tendency to fight over any provocation, and to get especially viscous when survival is on the line, our impending water shortage will soon spark a war.
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