Economic and Financial Instruments for IWRM

							       Economic and Financial
         Instruments for IWRM




    Introduction to IWRM
Part 1: Discovering IWRM
Goal and objectives of the session


 To introduce the importance of water
 To give an indication of the water crisis
 To present the challenge in resolving the
  crisis
 To define IWRM
 To introduce the importance of a water
  management framework
Outline presentation
 Overview of the importance of water
 Water crisis: Facts
 Challenges in addressing crisis
 What is IWRM
 Water management framework and core
  elements
 Benefits of the framework
Introduction

The Importance of Water
 Water is essential to human survival (20-40 litres
  per person daily)
 Effective primary health care
 Fight poverty, hunger, child mortality, gender
  inequality and environmental damage.
 Millennium Development Goals
Facts on Water Crisis

    More than 2 billion people suffer from water
     shortages in over 40 countries;
    1.1 billion people do not have access to safe
     drinking water;
    4 out of 10 people in the world do not have
     access to improved sanitation (very basic
     facilities);
    2 million tonnes per day of human waste is
     discharged into water courses;
    Every year 1.6 million children below 5 years old
     die because of unsafe water and lack of basic
     sanitation.
Reasons for Water Crisis

 Water resources under pressure from population
  growth, economic activity, growing competition
  from many water users;
 Withdrawals increased more than twice the rate of
  population growth;
 Development and pollution are exacerbating water
  scarcity;
 Uncoordinated development and management of
  water resources;
 Climate change will impact on water resources.
   Challenges
Improving access to water (all users) and
  sanitation
What is needed?
 Government making this a priority;
 Appropriate long-term financing;
 Resolving competition among users and
  environmental challenges;
 Advocacy on-behalf of poor;
 Improved capacity of governments to
  deliver services to all users;
 Government accountability in meeting
  the needs of all users.
What is IWRM?




 A systematic process for sustainable
  development, allocation and monitoring of
  water resource use in the context of social,
  economic and environmental goals and
  objectives.
IWRM is a paradigm shift.


Departs from traditional approaches in three ways:

 Cross-cutting and departs from traditional sectoral
  approach.

 Spatial focus is the river basin;

 Departure from narrow professional and political boundaries
  and perspectives and broadened to incorporate participatory
  decision-making of all stakeholders (Inclusion versus
  exclusion).
Interdependency



 The basis of IWRM is that there are a variety of
  uses of water resources which are interdependent.



                          The need
                         to consider
                             the
                          different
                           uses of
                            water
                          together
Examples of Competing but Interdependent Uses
The Water Balancing Act
           Supply
 • Quantity (Natural Scarcity,
        Groundwater Depletion)
 • Quality Degradation                      Demand
 • Cost of Options                  • Increasing in all sectors
                                    • Inefficient use




                             IWRM
IWRM Dimensions


  Infrastructure for        Integrated Water Resources Management
   management of
      floods and
       droughts,
    multipurpose
    storage, water
  quality and source
      protection

         Policy/                                                              Other uses
     Institutional     Water supply       Irrigation &   Energy   Environ-     including
      framework        & sanitation         drainage               mental    industry and
                                                                  services    navigation
    Management
    instruments

  Political economy
       of water
    management



                                      Water Uses
    The IWRM Process
                                                                              Prosperity
                                                                                Governance
Policy/Inst.                  IWRM Water and water related policies review and revision
Framework

                         Social                                                Economic                                            Env.
 Objectives
               Development                                                    Development                                    Protection
                                                                                                                                                                     Feedback
Management              IWRM Resource development, management, monitoring, and evaluation
Institutions                                                Floods/Droughts




                                                                                                                                                    Ecosystem Mgt.
                                                                                                                  Pollution Prev
                                             Water Supply
                             Water Quality




                                                                                                                                     Coastal Mgt.
                                                                                         Agriculture
  Activity




                                                                                                       Industry
  Sectors
                                                                                Energy
               Health




(water uses)


               IWRM                 Resource availability/use analysis and allocation
Water Management Framework


At the core of the water management
  framework is:
 Treatment of water as an economic and
  social good;
 Decentralised management and delivery
  structures;
 Greater reliance on economic instruments;
 Broader participation of stakeholders.
What will a Water Management Framework do?


1) Provide framework for analysing policies and
   options that will guide decisions in relation to:
 Water scarcity;
 Service efficiency;
 Water allocation; and
 Environmental protection.

2) Facilitate consideration of relationships between
   the ecosystem and socio-economic activities in
   river basins.
Think about it


 Could you give examples from your own country
  where interdependency of water uses exists?
End


 The next presentation deals with the
  principles of water management