The correct option is (c).
Explanation
The Cochabamba Water War that took place in Bolivia in 2000. This event is a significant case study regarding popular struggles against the privatization of essential public utilities, specifically water supply, which was handed over to a multi-national corporation (MNC).- Statement 1 is Correct: Upon acquiring the rights to the water supply in the city of Cochabamba, the MNC immediately increased the price of water by approximately four times. This drastic hike resulted in monthly water bills amounting to nearly 20% of an average worker's income, causing severe economic distress.
- Statement 2 is Incorrect: The move was not welcomed peacefully; rather, it triggered massive public unrest. A coalition of labor, human rights, and community leaders organized a general strike in January 2000. The protests escalated into violent confrontations, leading the government to impose martial law and use brutal repression against demonstrators.
- Statement 3 is Correct: Due to the sustained intensity of the protests and the collapse of public order, the officials of the MNC were forced to flee the city. The government eventually conceded to the public's demands, cancelled the contract with the MNC, and restored the control of the water supply to the municipality at the previous rates.
Key Takeaway: The Bolivian Water War illustrates the power of popular movements in a democracy to reverse government decisions regarding the privatization of essential services when they conflict with public welfare.