shared use of transboundary water resources in la Plata River Basin: Utopia or reality?

Abstract

The shared use of transboundary water resources has the potential to be a utopia for the use of cross-border natural resources. However, this type of approach between countries is not common. In the La Plata River Basin, recent tensions between Brazil and Paraguay associated with the use of water resources for electricity generation highlight the challenges of international cooperation. This text discusses the proposed revision of the Itaipu agreement put forward by Paraguay in 2008. This revision resulted in an increase in the price of surplus electricity received by Paraguay from Itaipu Binacional. The tensions between the these countries were caused by the use of water, which in this case is abundant; unlike other situations in which conflict can often arise due to water scarcity. This case is also notable because it involves the use of water for electricity generation rather than human consumption.