Dear friend of the FMF
In this week’s feature article, Richard J Grant explains the impact of government control and regulations on the drought currently gripping Cape Town. Under normal market circumstances people know that resources are finite and they adapt their habits if a bad situation arises. No one in Cape Town ‘owns’ the water and therefore no one can take proper responsibility for its usage and maintenance. The lack of clearly defined property rights has exacerbated the effects of the drought in Cape Town.
Water for all and water for none – RICHARD J GRANT
Cape Town is not the first city to face a drought, but it is predicted to be the first major city to run out of water. Municipal water restrictions are in effect and “Zero Day” is expected to arrive in June 2018, at which point the municipality will be unable to supply any water to its residents.
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Publish date: 28 February 2018
The views expressed in the article are the author’s and are not necessarily shared by the members of the Foundation.