Privatization and De (re) regulation of Resource Management

Privatization is the driving force behind the economic policies implemented through free trade agreements and in post-Katrina New Orleans. While privatization is nothing new to the U.S., recent efforts to privatize every aspect of life, including education, social security and the further privatization of health care have come under much public scrutiny. Many communities have been resisting these privatization efforts, including pre-Katrina New Orleans. The disaster in New Orleans and the displacement of the local population opened up the city to experimentation in privatization beyond what is typical in the rest of America. The majority of housing units destroyed or damaged in the storm were affordable to low-income housing. Despite a very evident housing crisis (the homeless population is unprecedented), these housing units as well as units that were not significantly impacted are being demolished to make room for privately developed mixed-income housing, eliminating nearly ¼ of public housing. The one existing public hospital in New Orleans is now privately owned, and of the seven hospitals operating during the time of Katrina, only one has been able to return to pre-Katrina operating levels. One third of New Orleans schools have now been privatized into charter schools, with the result of over 200 children having no place in school last semester.

Under the SPP, this trend is certain to continue. The SPP seeks to privatize the energy sector in Mexico through Mexico's state operated oil company, PEMEX. A move towards privatization of health care in Canada is on the table. And all this amidst a growing debate to increase government regulation and management of the health sector, as privatized health care has failed to deliver promises of affordability and efficiency for most Americans. Privatization has been detrimental to many Mexicans in the post-NAFTA implementation era. Efforts to privatize energy has been disastrous in a number of states (i.e. the privatization of electricity in California and Maryland have caused energy costs to sky rocket to the detriment of local residents), amidst rising levels of corporate profits in the energy sector. These efforts are not just to de-regulate the energy sector, but also to re-regulate it in the interests of corporate profit maximization rather than in the interest of citizens.