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					                         India:Andhra Pradesh
   Country               Investments in managing and developing              infrastructure. That said, challenges remain
  applications           water resources have done much to pro-              that relate to the development of new
                         mote development, food security, and                resources, as in Andhra Pradesh.The waters
                         poverty reduction in India.They have led to         of one of the state’s two major rivers (the
                         an enormous increase in the production of           Krishna) are fully developed, but the other
     An integrated       food and food grains, benefiting the many           major river (the Godavari) has lots of water.
river basin              poor people who are net food purchasers.            The problem is an elevation separation of
approach to water        They have helped reduce poverty, with               about 300 meters from the place where the
management is a          poverty rates in irrigated districts only about     water is available to the place where there is
central principle in     a third those in nonirrigated districts. And        land and a major demand for water (with
the Indian               they have had large multiplier effects in the       entitlement issues going back to preinde-
National Water           economy.                                            pendence and with water scarcity contribut-
Policy and in the                                                            ing to security issues).
water policy of          In the state of Andhra Pradesh the challenge
most Indian states.      is to assist the state in its efforts to improve    A simple economic analysis tells the state
It is a task that will   the management and development of its               (and the World Bank) that developing these
take decades of          water resources. An emerging global soft-           water resources for irrigation and
persistence to           ware center, Andhra Pradesh has made                hydropower is not the best use of limited
complete, as well        good advances in collecting data, but lags          financial resources. But the political and secu-
as a sequenced,          behind in interpreting and using those data         rity imperatives are great. So while the state
prioritized program      for decisionmaking. The challenge includes          has decided not to build major dams
of actions tailored      developing a legal, regulatory, and institu-        (because of forest submersion and resettle-
to the political         tional basis for making reallocation of water       ment issues), it will probably proceed with
realities as they        more flexible and voluntary and thus calls          some form of lift irrigation from the
evolve.The World         for careful attention to the sensitive issue of     Godavari River. The World Bank can and
Bank is a central        users’ water rights. It also means developing       probably should work with the state in
partner in               an approach to incorporating ecological             exploring options (new technologies, staged
advancing this           requirements (for example, water releases           development, pilot schemes) that will meet
ambitious and vital      into estuaries to sustain mangrove swamps           the real political and security needs while
agenda, providing        and fisheries).                                     maximizing sustainability and limiting damage
both advice and                                                              to the state treasury.
investments.             These are key elements of an integrated
                         river basin approach to water management,           The World Bank is actively engaged in pro-
                         a central principle in the Indian National          viding knowledge and advisory services in
                         Water Policy and in the water policy of most        Andhra Pradesh—for the water compo-
                         Indian states.This approach fits well with the      nents of the state’s 2020 Vision, on bench-
                         SMART (Simple Moral Accountable Respon-             marking and options for irrigation reform, on
                         sive Transparent) philosophy of the govern-         utility reform, groundwater management,
                         ment of Andhra Pradesh. But it is a task that       water rights administration, and ecological
                         will take decades of persistence to complete,       flows.While further investment support has
                         as well as a sequenced, prioritized program         yet to be discussed, a “next generation” pack-
                         of actions tailored to the political realities as   age might include:
                         they evolve. The World Bank is, and is likely
                         to remain, a central partner in advancing this      • A sectoral adjustment–type approach in
                         ambitious and vital agenda, providing both          which the World Bank finances part of the
                         advice and investments.                             government’s program of reforms and
                         Many of the infrastructure challenges in India      • A strong emphasis on a carefully
                         relate to the need to use existing infrastruc-      sequenced and prioritized program of insti-
                         ture more effectively and to ensure the envi-       tutional reforms, efficiency enhancements,
16                       ronmental and financial sustainability of that      and resource management measures both
within the principal sectors (irrigation, water   • Development of water resources must
utilities) and for overall water resources        be accompanied by management reforms.
management.                                       • Reforms are difficult and can be under-
• A package of high-priority, well-justified      taken only when there is demonstrated local
(but not narrowly justified) investments that     political leadership.
would include modernization of major irri-        • When there is such leadership, the World
gation systems and some new investments,          Bank can play a vital role by bringing new
including possibly a phased, piloted lift         ideas to the table and investing in ways that
scheme for the Godavari.                          make the reforms durable.
                                                  • Reforms are neither simple nor achieved
The World Bank’s experience in India pow-         in a day. The art of reform is defining a
erfully illustrates the central messages of the   sequenced and prioritized set of reform
Water Resources Sector Strategy:                  actions, picking the low-hanging fruit first, not
                                                  making the best the enemy of the good, and
• Water resources infrastructure can pro-         ensuring an appropriate incentive system for
vide the basis for sustainable economic           political leaders who take the risks inherent
growth and poverty reduction and can even         in reform.
play an important part in improving relations
among riparian countries.

  Andhra Pradesh, India

   Country             The World Bank disengaged from Nigeria            irrigation projects run by the “river basin
  applications         during its years of military rule in the 1990s.   development authorities,” where less than
                       But with the return of democracy the World        10 percent of the command area of 400,000
                       Bank has reengaged. This reengagement             hectares actually gets regular supplies of irri-
                       opens a special and daunting set of chal-         gation water.
    The World Bank     lenges for the World Bank, one in which the
has developed a        two-way link between water and politics (a        The third track involves laying the ground-
multitrack strategy    link present everywhere) is particularly          work for solutions to the longer-term water
of engagement          prominent. In the water sector the most           management challenges in Nigeria. This
that can be            immediate and visible problem is that of          includes working with the federal govern-
considered in many     urban water and drainage services, especially     ment on rationalizing institutions, reforming
ways a best            in Lagos.                                         legislation, and developing capacities for
practice                                                                 strategic planning in water resources man-
application of the     Water institutions—the agencies for managing      agement. It also includes supporting the
main strands of the    irrigation, domestic and international rivers,    development of modern stakeholder-based
new Strategy.The       and urban and rural water supply and sanita-      institutions for river basin management.
first track involves   tion—have performed extremely poorly in
helping Nigeria to     recent years.And as the population grows and      As in other countries, this work will require
move rapidly to        urbanizes, the challenges in the coming           starting where there is a strong demand for
address the most       decades will be immense.                          reform. One place might be the conjunction
politically visible                                                      of irrigation, urban water supply, and ecolog-
issues in innovative   In response to these challenges, the World        ical flows for floodplain agriculture in the
ways.The second        Bank has developed a multitrack strategy of       Hadeija Jamaare Basin. Another important
track involves         engagement that can be considered in many         area is micro-watershed management,
addressing a series    ways a best practice application of the main      where the World Bank has recently initiated
of less politically    strands of the new Water Resources Sector         an innovative first project with a strong focus
explosive water        Strategy.The first track involves helping Nige-   on poverty.Yet another is the set of interna-
service challenges.    ria to move rapidly to address the most           tional water issues relating to the manage-
The third track        politically visible issues in innovative ways.    ment of the Niger and Benue rivers and the
involves laying the    The performance of public utilities has come      Lake Chad Basin, where the World Bank is
groundwork for         to symbolize the poorest aspects of gover-        already playing an important facilitating role
solutions to the       nance in Nigeria. Lagos is the test case; neg-    (with the assistance of funding from the
longer-term water      lected and close to collapse, the publicly run    Global Environment Facility). All these
management             Lagos State Water Supply Corporation              endeavors have appropriately focused on
challenges.            holds the dubious distinction of having the       raising awareness and building capacity.
                       highest recorded level of unaccounted-for
                       water in the world. Only 4 percent of its         The political realities in Nigeria pose big chal-
                       water production capacity goes toward the         lenges in designing and implementing World
                       creation of revenue.                              Bank activities, especially those involving
                                                                         investment in infrastructure. Such invest-
                       The second track of the World Bank’s strat-       ments raise complex environmental, social,
                       egy for water management in Nigeria               and governance issues and thus create high
                       involves addressing a series of important,        reputational risks. If the World Bank engages
                       though less politically explosive, water serv-    in such activities and “cuts corners,” there will
                       ice challenges.These include developing sus-      inevitably be mistakes and blots on its repu-
                       tainable solutions for the formidable             tation—all the more likely in a country with
                       problems in urban sanitation and rural water      many institutional limitations and a history of
                       and sanitation and following up on the World      corruption. But if the World Bank chooses to
                       Bank’s successful family-based, fadama            require full comfort before engaging,
                       groundwater irrigation project. The Bank          progress would be slow, and the opportunity
18                     might also address the large public sector        cost in delayed development benefits for

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