understanding water governance
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Governance of Informal Water Economies A Framework for Study of Water Governance in the Indo-Gangetic Basin Tushaar Shah and R.P.S.Malik IWMI. Understanding water governance. - PowerPoint PPT PresentationTRANSCRIPT
Governance of Informal Water Economies
A Framework for Study of Water Governance in the Indo-Gangetic Basin
Tushaar Shah and R.P.S.MalikIWMI
Understanding water governance
• Water governance is viewed as the sum total of processes, mechanisms, systems and structures that a State evolves and puts into place in order
to shape and direct its water economy to conform to its near and long term goals.
Institutional Environment and Institutional Arrangement
•The concern on institutional analysis has generally focussed on water law, water policy and water administration- often referred to as the three pillars of institutional analysis
•If institutional change is about how societies adapt to new demands, its study needs to go beyond what government bureaucracies, international agencies and legal/regulatory systems do; people, businesses, civil society institutions, religions and social movements – all these must be covered in the ambit of institutional analysis.
•We therefore distinguish between Institutional Environment (IE) and Institutional Arrangements (IA)
Formal and Informal Institutions• There is another way in which this classification of
institutions in to IE and IA has been looked at : ‘formal’ and ‘informal’ institutions
• The main difference between the two types of institutions lies in the basis of attainment of powers and the nature of authority wielded.
• The formal institutions derive power by the virtue of the state and formal rule of law, the informal ones acquire power through customary influences and beliefs
Self-supply predominates service providers dominate
Water institutions are local, water institutions are few, formal,fragmented, informal legal bodies
Vast numbers of tiny, primary very few, but large primary diverters Water diverters from nature of water from rivers, lakes
Intermediation in water services Very high degree ofLow or absent intermediation in water provision
Water is scarce but free.. Water is aplenty but it costs money..
Water is everybody’s Water is the business of an Business organized industry.
Informal Formal
This transformation is driven by the ‘iron laws’
of economic development of nations.
How informal can a poor country water economy be is suggested by a large sample survey of households in India..
• As a country, urbanizes, its water economy formalizes..• As rural areas become richer, they depend more on organized water
service providers for domestic water..
Figure % of Urban households dependent on alternative sources for drinking water requirements (NSSO 1999: report 449)
0
10
20
30
40
50
60
70
80
Tap Handpumps,tubewell, well
Riverm canal,Srping, tank
% o
f a s
ampl
e of
313
23 h
h
1988 (44th rd.) (5)
1993 (49th rd.) (6)
1998 (54th rd.) (7)
Figure % of Rural Households Dependent on Alternate Sources for Drinking water requirements (NSSO 1999: report 449)
0
10
20
30
40
50
60
70
80
90
Tap Handpumps,tubewell, well
River,canal,spring, tank
% o
f a
sam
ple
of 7
8990
hh
1988 (44th rd.) (2)
1993 (49th rd.) (3)
1998 (54th rd.) (4)
A similar survey of irrigation in India showed that over 80% of India’s villages have irrigation..but less than 10 percent depend on public
irrigation systems; the rest operate in an informal irrigation economy, outside the reach of the public system..
Figure % of villages dependent on alternative irrigation sources: Survey of 4646 villages (NSSO 2003-report 487)
0.020.040.060.080.0
100.0120.0
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il N
ad
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att
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arh
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024681012
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% of survey villages with no irrigation source % of survey villages with canals as main source
Villages with groundwater as the main source % Villages dependent on other sources
% of India's Gross Cropped area
Economic Growth and Water Governance
Poor Rich
Nature of the water economy
Highly informal; state’s direct outreach limited
Highly formal; state’s direct reach deep and broad
Objectives of water governance
Livelihoods; economic growth
Sustainable NRM;Environment; Green Growth
Nature of water governance
Indirect; reactive; people-centred
Direct; proactive; resource centered
The nature of water institutions existing in a given region/ nation at any given point in time depend critically upon the level of formalization of its water economy;
by formalization, we mean the proportion of the economy that comes under the ambit of direct regulatory influence of the IE
Stages of formalization
Stage I:Completely informal
Stage II:Highly informal
Stage III:Formalizing
Stage IV:Highly formal water industry
% of users in the formal sector
<5% 5-35% 35-75% 75-95%
Examples Sub-Saharan Africa South Asia Mexico, Thailand, Eastern China
Europe, North America, Japan
Dominant mode of water service provision
Self-supply & mutual help institutions
Self-supply dominates; partial public provision
Private-public provisioning; service improvement
Modern water industry; self-supply disappears
Concerns of the Governments
Infrastructure creation in Welfare Mode
Infrastructure and Water services,
Infrastructure and service; Cost recovery;
Integrated mgt. of water infrastructure, service and resource;
Farm population as % of total
% of water use self-supplied
Human, technical & financial
investment/m3 of water diverted
Economic cost of water service
provision
% of water use in agriculture
Forward linkages to output markets
Improved Livelihood
Access
Economics Institutions
Backward linkages to input markets
Physical and social setting
Externalities (e.g., socio-economic, environmental and health)
Forward linkages to output markets
Improved Livelihood
Access
Economics Institutions
Backward linkages to input markets
Physical and social setting
Externalities (e.g., socio-economic, environmental and health)
DirectInstruments of Water
Governance
Indirect instruments:e.g., power subsidies
Indirect instruments:
e.g., Gujarat’s recharge program
Indirect instruments:
Fixing Procurement
policy
Indirect instruments e.g.,
subsidizing arsenic filters
Water Institutions in IGB• Indo-Gangetic Basin (IGB) water sector exhibits a large variety of
informal institutions which co-exist with formal institutions.
• Much information is however not known about the extent, nature and intensity of involvement of formal and informal institutions within different regions in IGB as also within a given region over different tiers of resource management.
• There is also a lack of clear understanding on the complex inter-relationships between the formal and informal institutions, their relative strengths, weaknesses and efficacy under varying resource availability and other underlying conditions, their impacts in promoting sustainable use of resources and contribution to pro poor growth and economic development
• The lack of an analytical framework to investigate and answer some of these questions has hindered comprehensive analysis of issues related to water governance in the region.
• The paper has attempted to develop a framework for analysis of water governance in the IGB.
Agricultural water use segment
RuralHousehold segment
Urban water supply segment
Industrial water segment
0.0 % of total water diversions used by
1 Level of formalization of water economy
1.1 % of water use self-supplied by users themselves
1.2 % of water use supplied by informal service providers
1.3 % of water use supplied by formal service providers-private or public
1.4 % of water users who self-supply their water needs
1.5 % of water users supplied by informal service providers
1.6 % of water users supplied by formal service providers-private or public
2.0 Effectiveness of direct intervention by water administration
2.1 Breadth of the presence of water administration
2.2 Depth of the presence of water administration
3.0 Promotional effectiveness of public systems
3.1 Quality of formal water service provider institutions promoted outside the public system (PPP; Co-op’s)
3.2 % of users reached by these
3.3 % of water use influenced by these
An inventory of indicators of levels of formalization of water institutions
Agricultural water use segment
Rural Household segment
Urban water supply segment
Industrial water segment
4.0 Regulatory effectiveness of public systems
4.1 Quality and sufficiency of legal and regulatory provisions
4.2 Quality and rigor of enforcement
5.0 Effectiveness of the use of direct economic instruments (prices, taxes, subsidies) for water governance
5.1 Water resource fee is established by law
5.2 Water resource fee is vigorously collected
5.3 Water service fee is established by law
5.4 Water service fee is vigorously collected
5.5 Rationing is used as a demand-management tool
5.6 Effectiveness of rationing as demand-management tool
6.0 Effectiveness of indirect policy instruments for managing the water economy
6.1 Indirect tools to manage water demand
6.2 Indirect tools to augment water availability
6.3 Indirect tools to manage externalities
Governance toolbox Un-governed Under-governed
Moderately governed
Intensively governed
Polities Bihar, India Maharashtra, India
Hebei, China The Netherlands
1 To what extent is the water economy (in terms of volumes of water and number of water users) formalized?
10-20% of users and volumes
40-45% Of volumes; 70-75% of users
60-65% of volumes; 80% of users
95%
2 What is the ‘ambit’ of the water administration? How much of the water economy—volumes and users—does it encompass?
Very small; <10%
1/3rd 4/5th Full
*****
3 How effective have been the public systems in promoting institutional arrangements in the formal economy? Or formalize informal IAs?
* ** *** *****
4 How effective and far-reaching is the regulatory power of the public system in the water economy?
0 ** **** *****
5 How extensive is the use of economic instruments—prices, taxes, subsidies—to manage the water economy in keeping with policy goals?
0 *** *** *****
6 What kind of indirect tools are used outside the water economy to produce desired impact within it?
0 * * No need
Thank you