Sharing Benefits of Transboundary Waters through Cooperation
David Grey
The World Bank
International Conference on Freshwater Bonn, 2001
River basin management& boundaries
• Basins within nations with strong central government
• Basins within federal nations with strong state governments (transboundary waters)
• Basins shared by nations (international transboundary waters)
Legal complexityPolitical complexity
International transboundary waters
• Extent: 260 “river” basins shared by 2+ nations
• Culture: river/society, pride, sovereignty
• Jurisdiction: no entity unless negotiated
• Politics: ‘anarchy’ of international relations
• Principles: UN Convention foundation
• Tensions: longstanding, always, growing with demand, ‘water wars’….
‘New Geography of Conflict’
“Possible flashpoint for resource conflict”
“Water systems & aquifers• Jordan• Nile• Tigris – Euphrates• Amu Darya• Indus• Mountain Aquifer (W.
Bank/Israel)”
Overview
• What are the benefits of cooperation?
• How can these benefits be shared?
• Some lessons and conclusions
Benefits of International Waters Cooperation
The Challenges The Opportunities
Level 1:
Benefits to the river
Limited water resour. management: degraded watersheds, wetlands, biodiversity, & water quality.
Improved water quality, riverflow characteristics, soil conservation, biodiversity; a pre-requisite
Benefits of International Waters Cooperation
Sub-optimal water resources development
Improved hydropower & agricultural production, flood-drought management, environmental conservation & water quality
The Challenges The Opportunities
Level 2:
Benefits from the river
Level 1:
Benefits to the river
Limited water resour. management: degraded watersheds, wetlands, biodiversity, & water quality.
Improved water quality, riverflow characteristics, soil conservation, biodiversity; a pre-requisite
Benefits of International Waters Cooperation
Sub-optimal water resources development
Improved hydropower & agricultural production, flood-drought management, environmental conservation & water quality
The Challenges The Opportunities
Level 2:
Benefits from the river
Level 1:
Benefits to the river
Limited water resour. management: degraded watersheds, wetlands, biodiversity, & water quality.
Improved water quality, riverflow characteristics, soil conservation, biodiversity; a pre-requisite
Level 3:
Costs because of the river
Tense (+/-) regional relations & political economy impacts
Policy shift to cooperation & development, from dispute; from food & energy self-sufficiency to security; reduced conflict risk & military expenditure (+/-)
Benefits of International Waters Cooperation
Sub-optimal water resources development
Improved hydropower & agricultural production, flood-drought management, environmental conservation & water quality
The Challenges The Opportunities
Level 2:
Benefits from the river
Level 1:
Benefits to the river
Limited water resour. management: degraded watersheds, wetlands, biodiversity, & water quality.
Improved water quality, riverflow characteristics, soil conservation, biodiversity; a pre-requisite
Level 3:
Costs because of the river
Tense (+/-) regional relations & political economy impacts
Policy shift to cooperation & development, from dispute; from food & energy self-sufficiency to security; reduced conflict risk & military expenditure (+/-)
Level 4:
Benefits beyond the river
Regional fragmentation
Integration of regional infrastructure, markets & trade
Sharing the benefits
The Challenge• Optimal river development may give unacceptable
distribution of benefits• A mechanism for redistribution & compensation• ‘Fairness’ – subjective & situation specific• Potential benefits to be shared
– Water quantity/quality; water supply; hydropower; agricultural production; fisheries; transport; eco-tourism; trade….
• Political decisions
Sharing the benefits
Principles• Some international consensus on principles
– 1997 UN Convention on the Law of the Non-navigable Uses of International Watercourses (SADC Protocol, etc)
• “Equitable and reasonable utilization” • “No significant harm”• No consensus on prioritization
– UN Convention ‘vital human needs’
• No consensus on specific criteria
Sharing the benefitsPotential Criteria
• Physical factors: geography, hydrology, contribution to flow • Socioeconomic factors: total population, dependent
population, economic & social needs • Water Uses: existing & potential, efficiency of use• Alternative sources: availability & costs• Externalities: upstream & downstream• Conservation: impacts & efforts to preserve• Formulae: Equal (or proportionate) shares of flows or benefits
Sharing the benefits
Past practices • Compensation for lost benefits• Equal apportionment of flow to each riparian • Prioritization of uses • Payments for water • Absolute sovereignty of tributaries • Equal allocation of benefits, and • Relinquishing of prior uses
(after: Wolf)
Sharing the benefitsSome possible mechanisms
• Water sharing– (Re)assigning rights
• Payments for water – Payment for use rights, bilateral sale or water markets
• Payments for benefits – Compensation for lost benefits, payments to allow new uses
• Purchase agreements – power, agriculture, etc.– Agreed price can effect a transfer of benefits
• Financing & ownership arrangements– Agreed terms can effect a transfer of benefits
• Bundling broader benefits– Trade, transport….
Lessons in Benefit Sharing
• Importance of political PROCESS• Perception of fairness essential to sustain cooperation
on transboundary waters• Sharing benefits &/or water• Benefit bundles: the broader the better• Innovative benefit sharing mechanisms• Unique solutions
Process: the key lesson• Imperative of trust
– Build capacity to “level playing field”– Wide civil society engagement: basin “community of interest”– Share experiences “in the bus”
• Riparian ownership: ownership builds commitment– Self-financed institutional arrangements essential
• Riparian commitment – “Shared Vision”: recognizing “win-win”– Share benefits, not only water
• Inclusiveness & subsidiarity– Build basin-wide framework– Achieve early results through sub-basin action
Conclusions• No blueprints: from simple to very complex
• Process as important as product to achieve cooperation
• Twice as long & costly as planned - & then some
• From river cooperation to economic integration
• An instrument to support PROCESS? – sustainability & security (‘public goods’)
Share experiences ...