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Siren Song by Carl J. Carl J. Bauer

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CHAPTER 2

THE FREE-MARKET MODEL:CHILE'S 1981 WATER CODE

Chile's 1981 Water Code is a classic example of what in Latin America is often called the law of the pendulum: the historical tendency to swing from one extreme to the other in political and economic affairs, without finding a point of balance somewhere in the middle. Before 1967, Chilean water law was characterized by a relatively balanced combination of public regulation and private property rights. In 1967 the Agrarian Reform Law swung the pendulum toward greatly expanded governmental authority over water use and water management, at the expense of private rights; 14 years later the Chilean military government swung the pendulum to the opposite extreme, where it remains to this day. ...

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