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> So the government gave Coke the permits, Coke used under 80% of the agreed amount, and now it's a crisis? It has the markings of some severe utilities plannin
by hwillis 9y ago
> So the government gave Coke the permits, Coke used under 80% of the agreed amount, and now it's a crisis? It has the markings of some severe utilities planning blunder.
The government being at fault doesn't change the problem. It's a small city in rural Mexico- you can't expect much. Calling it a "severe utilities planning blunder" implies absolute agency by the local government, which just isn't always true. The government sold a local resource with the expectation that it would be safe and that may have been foolish but we can't tell from the outside in this case. Take examples of Polynesian islands being strip-converted into farmland as the inhabitants sell to corporations. The natives were one step above tribal, and had no idea that would collapse the local ecosystem, and they're now forced to import all their food. It destroyed their health and economy- that wasn't a "severe utilities planning blunder", they were directly taken advantage of.
It's pretty clear that Coca-Cola is deeply entwined with Mexican governance at all levels, so it probably doesn't even make sense to blame the government. Coke may very well be making all the choices, when former presidents of coke become presidents of the country.
> There are a lot of questions. Would things would actually get better if Coke were to shut down operations? How many people would stop drawing salaries? How much tax revenue loss does the government face with halted operations?
Those are mostly strawmen- the choice isn't binary. A Pigovian tax maximizes value to everyone. A good question is whether that would be sufficient, but I get the impression from the article that most people think it would. Since that region is the biggest water source in Mexico you'd think they have at least a little extra water.