Santiago Chile June 2012

UNECLAC Natural Resources and Infrastructure DivisionUN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)

Water and a Green Economy in Latin America and the Caribbean(LAC)

WaterintheGreenEconomyinPracticeTowardsRio+20

ThisdocumenthasbeenpreparedbyCaridadCanalesandAndreiJouravlevEconomicAf-fairsOfficersoftheNaturalResourcesandEnergyUnitDivisionofNaturalResourcesandInfrastructureEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)TheauthorswouldliketothankfortheircontributionsandcooperationAdrianCashmanCERMES-UniversityoftheWestIndiesElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemalaThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgramme(UNEP)TimJonesDJEnvironmen-talCarlosLloretFundfortheProtectionofWater(FONAG)andRubenAvendantildeoEm-presasPuacuteblicasdeMedellinTheviewsexpressedinthisdocumentwhichhasbeenreproducedwithoutformaleditingarethoseoftheauthorsanddonotnecessarilyre-flecttheviewsoftheOrganization

WaterandaGreenEconomy

UnitedNationsPublicationcopyUnitedNationsJune2012Allrightsreserved

MemberStatesandtheirgovernmentalinstitutionsmayreproducethisworkwithoutpriorauthorizationbutarerequestedtomentionthesourceandinformtheUnitedNationsofsuchreproduction

1

WaterandaGreenEconomyinLACWaterandaGreenEconomy

Con

tent

Abstract 3

ForewordWaterandtheGreenEconomyexpectationsforRio+20 4

Introduction 6

I Mainstreamingwaterintoagreeneconomy 8

A Agriculture 10

B Industry 11

C Cities 12

D Watersheds 13

II WaterandagreeneconomyinLatinAmericaandtheCaribbean 14

A Challenges 18

B Approaches 20

C Lessonslearnt 21

Bibliography 25

III CasestudiesfromtheregionSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala 27

Pro-poorfinancingandtariffsinMedellinColombia 28

TheFundfortheProtectionofWater(FONAG)Ecuador 36

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados 40

IV Theexpertrsquosperspective 42

Annexes 49

Annex1Toolsforchange 49

Annex2IssuespresentedfordiscussionattheZaragozaConference 51

2

Abstract

TheInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquotookplaceinZaragozaSpain3-5October2011Theeventbroughttogetherpar-ticipantsfromvariousregionsoftheworldwiththeaimtosharethepracticalexperi-

encesthathaveworkedandthosethatneedtobeadjustedinordertodealwiththeworldrsquosnewandemergingproblemsVarioustoolsandapproacheswerepresentedwhileexpertsandpractitionerswereabletodiscussandexchangeperspectivesonhowtoimprovewatergovernanceandmoreimportantlytoadvancethewatersectortowardsthegreeneconomy

TheresultsofthisconferenceintheformofabestpracticesguideareacontributiontothepreparatoryprocessfortheUnitedNationsConferenceonSustainableDevelopment(UNCSD)whichistakingplaceinBrazilinJune2012(Rio+20)TheEconomicCommis-sionforLatinAmericaandtheCaribbean(ECLAC)NaturalResourcesandInfrastructureDivisioncollaboratedintheorganizationoftheconferencebycoordinatingtheregionalsessionforLatinAmericaandtheCaribbeanwiththeparticipationofexpertsfromBar-badosBrazilColombiaCostaRicaEcuadorGuatemalaMexicoNicaraguaPeruandothercountriesThisdocumentisareportofthisconferencewithspecificemphasisontheLatinAmericanandCaribbeanregion

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WaterandtheGreenEconomyexpectationsforRio+20

MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave

becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess

RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)

ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow

ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo

4

WaterintheGreenEconomyinPracticeTowardsRio+20

arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation

ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources

AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy

AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges

Josefina Maestu Coordinator

UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa

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Intr

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Introduction

ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards

agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld

Thespecificobjectivesoftheeventweretwofold

Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy

Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld

TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)

Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-

6

WaterintheGreenEconomyinPracticeTowardsRio+20

siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere

Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected

Watertechnologyandinnovationmustbefocalpointsofdevelopment

Economicinstrumentsareakeyaspectofthegreeneconomyplatform

Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy

Politicalcommitmentandenablingpoliciesarefundamental

ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy

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I Mainstreamingwaterintoagreeneconomy1

ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin

whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety

TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment

TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision

1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20

8

WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

14

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

16

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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WaterintheGreenEconomyinPracticeTowardsRio+20

ThisdocumenthasbeenpreparedbyCaridadCanalesandAndreiJouravlevEconomicAf-fairsOfficersoftheNaturalResourcesandEnergyUnitDivisionofNaturalResourcesandInfrastructureEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)TheauthorswouldliketothankfortheircontributionsandcooperationAdrianCashmanCERMES-UniversityoftheWestIndiesElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemalaThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgramme(UNEP)TimJonesDJEnvironmen-talCarlosLloretFundfortheProtectionofWater(FONAG)andRubenAvendantildeoEm-presasPuacuteblicasdeMedellinTheviewsexpressedinthisdocumentwhichhasbeenreproducedwithoutformaleditingarethoseoftheauthorsanddonotnecessarilyre-flecttheviewsoftheOrganization

WaterandaGreenEconomy

UnitedNationsPublicationcopyUnitedNationsJune2012Allrightsreserved

MemberStatesandtheirgovernmentalinstitutionsmayreproducethisworkwithoutpriorauthorizationbutarerequestedtomentionthesourceandinformtheUnitedNationsofsuchreproduction

1

WaterandaGreenEconomyinLACWaterandaGreenEconomy

Con

tent

Abstract 3

ForewordWaterandtheGreenEconomyexpectationsforRio+20 4

Introduction 6

I Mainstreamingwaterintoagreeneconomy 8

A Agriculture 10

B Industry 11

C Cities 12

D Watersheds 13

II WaterandagreeneconomyinLatinAmericaandtheCaribbean 14

A Challenges 18

B Approaches 20

C Lessonslearnt 21

Bibliography 25

III CasestudiesfromtheregionSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala 27

Pro-poorfinancingandtariffsinMedellinColombia 28

TheFundfortheProtectionofWater(FONAG)Ecuador 36

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados 40

IV Theexpertrsquosperspective 42

Annexes 49

Annex1Toolsforchange 49

Annex2IssuespresentedfordiscussionattheZaragozaConference 51

2

Abstract

TheInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquotookplaceinZaragozaSpain3-5October2011Theeventbroughttogetherpar-ticipantsfromvariousregionsoftheworldwiththeaimtosharethepracticalexperi-

encesthathaveworkedandthosethatneedtobeadjustedinordertodealwiththeworldrsquosnewandemergingproblemsVarioustoolsandapproacheswerepresentedwhileexpertsandpractitionerswereabletodiscussandexchangeperspectivesonhowtoimprovewatergovernanceandmoreimportantlytoadvancethewatersectortowardsthegreeneconomy

TheresultsofthisconferenceintheformofabestpracticesguideareacontributiontothepreparatoryprocessfortheUnitedNationsConferenceonSustainableDevelopment(UNCSD)whichistakingplaceinBrazilinJune2012(Rio+20)TheEconomicCommis-sionforLatinAmericaandtheCaribbean(ECLAC)NaturalResourcesandInfrastructureDivisioncollaboratedintheorganizationoftheconferencebycoordinatingtheregionalsessionforLatinAmericaandtheCaribbeanwiththeparticipationofexpertsfromBar-badosBrazilColombiaCostaRicaEcuadorGuatemalaMexicoNicaraguaPeruandothercountriesThisdocumentisareportofthisconferencewithspecificemphasisontheLatinAmericanandCaribbeanregion

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WaterandtheGreenEconomyexpectationsforRio+20

MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave

becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess

RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)

ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow

ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo

4

WaterintheGreenEconomyinPracticeTowardsRio+20

arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation

ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources

AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy

AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges

Josefina Maestu Coordinator

UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa

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WaterandaGreenEconomy

Intr

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Introduction

ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards

agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld

Thespecificobjectivesoftheeventweretwofold

Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy

Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld

TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)

Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-

6

WaterintheGreenEconomyinPracticeTowardsRio+20

siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere

Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected

Watertechnologyandinnovationmustbefocalpointsofdevelopment

Economicinstrumentsareakeyaspectofthegreeneconomyplatform

Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy

Politicalcommitmentandenablingpoliciesarefundamental

ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy

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I Mainstreamingwaterintoagreeneconomy1

ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin

whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety

TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment

TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision

1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20

8

WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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WaterandaGreenEconomyinLAC

C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

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WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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23

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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WaterandaGreenEconomyinLACWaterandaGreenEconomy

Con

tent

Abstract 3

ForewordWaterandtheGreenEconomyexpectationsforRio+20 4

Introduction 6

I Mainstreamingwaterintoagreeneconomy 8

A Agriculture 10

B Industry 11

C Cities 12

D Watersheds 13

II WaterandagreeneconomyinLatinAmericaandtheCaribbean 14

A Challenges 18

B Approaches 20

C Lessonslearnt 21

Bibliography 25

III CasestudiesfromtheregionSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala 27

Pro-poorfinancingandtariffsinMedellinColombia 28

TheFundfortheProtectionofWater(FONAG)Ecuador 36

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados 40

IV Theexpertrsquosperspective 42

Annexes 49

Annex1Toolsforchange 49

Annex2IssuespresentedfordiscussionattheZaragozaConference 51

2

Abstract

TheInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquotookplaceinZaragozaSpain3-5October2011Theeventbroughttogetherpar-ticipantsfromvariousregionsoftheworldwiththeaimtosharethepracticalexperi-

encesthathaveworkedandthosethatneedtobeadjustedinordertodealwiththeworldrsquosnewandemergingproblemsVarioustoolsandapproacheswerepresentedwhileexpertsandpractitionerswereabletodiscussandexchangeperspectivesonhowtoimprovewatergovernanceandmoreimportantlytoadvancethewatersectortowardsthegreeneconomy

TheresultsofthisconferenceintheformofabestpracticesguideareacontributiontothepreparatoryprocessfortheUnitedNationsConferenceonSustainableDevelopment(UNCSD)whichistakingplaceinBrazilinJune2012(Rio+20)TheEconomicCommis-sionforLatinAmericaandtheCaribbean(ECLAC)NaturalResourcesandInfrastructureDivisioncollaboratedintheorganizationoftheconferencebycoordinatingtheregionalsessionforLatinAmericaandtheCaribbeanwiththeparticipationofexpertsfromBar-badosBrazilColombiaCostaRicaEcuadorGuatemalaMexicoNicaraguaPeruandothercountriesThisdocumentisareportofthisconferencewithspecificemphasisontheLatinAmericanandCaribbeanregion

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WaterandtheGreenEconomyexpectationsforRio+20

MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave

becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess

RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)

ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow

ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo

4

WaterintheGreenEconomyinPracticeTowardsRio+20

arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation

ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources

AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy

AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges

Josefina Maestu Coordinator

UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa

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WaterandaGreenEconomy

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Introduction

ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards

agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld

Thespecificobjectivesoftheeventweretwofold

Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy

Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld

TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)

Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-

6

WaterintheGreenEconomyinPracticeTowardsRio+20

siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere

Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected

Watertechnologyandinnovationmustbefocalpointsofdevelopment

Economicinstrumentsareakeyaspectofthegreeneconomyplatform

Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy

Politicalcommitmentandenablingpoliciesarefundamental

ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy

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I Mainstreamingwaterintoagreeneconomy1

ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin

whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety

TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment

TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision

1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20

8

WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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WaterandaGreenEconomyinLAC

C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

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WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

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WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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Abstract

TheInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquotookplaceinZaragozaSpain3-5October2011Theeventbroughttogetherpar-ticipantsfromvariousregionsoftheworldwiththeaimtosharethepracticalexperi-

encesthathaveworkedandthosethatneedtobeadjustedinordertodealwiththeworldrsquosnewandemergingproblemsVarioustoolsandapproacheswerepresentedwhileexpertsandpractitionerswereabletodiscussandexchangeperspectivesonhowtoimprovewatergovernanceandmoreimportantlytoadvancethewatersectortowardsthegreeneconomy

TheresultsofthisconferenceintheformofabestpracticesguideareacontributiontothepreparatoryprocessfortheUnitedNationsConferenceonSustainableDevelopment(UNCSD)whichistakingplaceinBrazilinJune2012(Rio+20)TheEconomicCommis-sionforLatinAmericaandtheCaribbean(ECLAC)NaturalResourcesandInfrastructureDivisioncollaboratedintheorganizationoftheconferencebycoordinatingtheregionalsessionforLatinAmericaandtheCaribbeanwiththeparticipationofexpertsfromBar-badosBrazilColombiaCostaRicaEcuadorGuatemalaMexicoNicaraguaPeruandothercountriesThisdocumentisareportofthisconferencewithspecificemphasisontheLatinAmericanandCaribbeanregion

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WaterandtheGreenEconomyexpectationsforRio+20

MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave

becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess

RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)

ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow

ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo

4

WaterintheGreenEconomyinPracticeTowardsRio+20

arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation

ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources

AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy

AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges

Josefina Maestu Coordinator

UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa

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WaterandaGreenEconomy

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Introduction

ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards

agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld

Thespecificobjectivesoftheeventweretwofold

Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy

Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld

TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)

Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-

6

WaterintheGreenEconomyinPracticeTowardsRio+20

siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere

Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected

Watertechnologyandinnovationmustbefocalpointsofdevelopment

Economicinstrumentsareakeyaspectofthegreeneconomyplatform

Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy

Politicalcommitmentandenablingpoliciesarefundamental

ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy

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I Mainstreamingwaterintoagreeneconomy1

ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin

whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety

TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment

TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision

1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20

8

WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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WaterandaGreenEconomyinLAC

C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

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WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

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WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

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WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

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WaterandtheGreenEconomyexpectationsforRio+20

MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave

becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess

RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)

ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow

ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo

4

WaterintheGreenEconomyinPracticeTowardsRio+20

arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation

ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources

AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy

AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges

Josefina Maestu Coordinator

UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa

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WaterandaGreenEconomy

Intr

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Introduction

ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards

agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld

Thespecificobjectivesoftheeventweretwofold

Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy

Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld

TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)

Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-

6

WaterintheGreenEconomyinPracticeTowardsRio+20

siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere

Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected

Watertechnologyandinnovationmustbefocalpointsofdevelopment

Economicinstrumentsareakeyaspectofthegreeneconomyplatform

Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy

Politicalcommitmentandenablingpoliciesarefundamental

ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy

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I Mainstreamingwaterintoagreeneconomy1

ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin

whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety

TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment

TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision

1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20

8

WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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WaterandaGreenEconomyinLAC

C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

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WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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WaterintheGreenEconomyinPracticeTowardsRio+20

arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation

ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources

AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy

AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges

Josefina Maestu Coordinator

UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa

terandaGreenEconomy

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WaterandaGreenEconomy

Intr

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Introduction

ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards

agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld

Thespecificobjectivesoftheeventweretwofold

Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy

Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld

TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)

Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-

6

WaterintheGreenEconomyinPracticeTowardsRio+20

siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere

Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected

Watertechnologyandinnovationmustbefocalpointsofdevelopment

Economicinstrumentsareakeyaspectofthegreeneconomyplatform

Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy

Politicalcommitmentandenablingpoliciesarefundamental

ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy

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I Mainstreamingwaterintoagreeneconomy1

ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin

whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety

TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment

TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision

1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20

8

WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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WaterandaGreenEconomyinLAC

C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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23

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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WaterandaGreenEconomy

Intr

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Introduction

ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards

agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld

Thespecificobjectivesoftheeventweretwofold

Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy

Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld

TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)

Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-

6

WaterintheGreenEconomyinPracticeTowardsRio+20

siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere

Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected

Watertechnologyandinnovationmustbefocalpointsofdevelopment

Economicinstrumentsareakeyaspectofthegreeneconomyplatform

Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy

Politicalcommitmentandenablingpoliciesarefundamental

ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy

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I Mainstreamingwaterintoagreeneconomy1

ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin

whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety

TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment

TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision

1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20

8

WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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9

WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

14

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

16

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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23

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

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EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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WaterintheGreenEconomyinPracticeTowardsRio+20

siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere

Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected

Watertechnologyandinnovationmustbefocalpointsofdevelopment

Economicinstrumentsareakeyaspectofthegreeneconomyplatform

Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy

Politicalcommitmentandenablingpoliciesarefundamental

ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy

WaterandaGreenEconomy

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I Mainstreamingwaterintoagreeneconomy1

ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin

whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety

TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment

TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision

1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20

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WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

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WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

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WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

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WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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I Mainstreamingwaterintoagreeneconomy1

ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin

whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety

TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment

TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision

1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20

8

WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

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WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

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WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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liogr

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25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance

Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)

Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange

Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices

Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy

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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

14

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

16

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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WaterandaGreenEconomyinLACWaterandaGreenEconomy

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

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EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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WaterandaGreenEconomyinLAC

timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds

A Agriculture

Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods

Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy

Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)

AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc

Ensurethatwell-functioningmarketsprovidetherightsignals

Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency

Provisionofincentivesforthesupplyofenvironmentalgoodsandservices

Improvementofirrigationefficiencyinagriculture

Promotionofwastewatertreatment

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B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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23

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

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WaterintheGreenEconomyinPracticeTowardsRio+20

B Industry

Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste

ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable

Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns

Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters

Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency

Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater

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C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

14

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

16

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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23

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

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EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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WaterandaGreenEconomyinLAC

C Cities

Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000

SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60

Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment

Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks

Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement

Integrationoflandandwatermanagement

Wastewaterreuse

Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse

Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable

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D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

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WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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WaterintheGreenEconomyinPracticeTowardsRio+20

D Watersheds

Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream

ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency

OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices

Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems

Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations

Managementofriverbasinsasintegratedsystems

Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas

Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast

Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures

Waterreuseparticularlyinperi-urbanagriculture

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

16

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

WaterandaGreenEconomy

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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23

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)

II WaterandagreeneconomyinLatinAmericaandtheCaribbean2

TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan

onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)

WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium

DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)

14

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

16

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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liogr

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25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU

InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)

Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket

WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD

Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth

Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD

Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10

Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay

15

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

16

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

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WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty

TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty

Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme

SourceGarrido-LeccaHernaacuten(2010)y(2011)

ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises

DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)

16

WaterintheGreenEconomyinPracticeTowardsRio+20

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS

TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity

Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency

SourceFerroandLentini(2009)

Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems

Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange

17

WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

WaterandaGreenEconomy

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

WaterandaGreenEconomy

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

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23

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

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liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

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WaterandaGreenEconomyinLAC

between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities

ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas

Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins

Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers

Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures

A Challenges

TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears

WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy

Wat

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18

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

WaterandaGreenEconomy

Wat

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ene

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inL

AC

3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

WaterandaGreenEconomy

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5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

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22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

WaterandaGreenEconomy

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WaterandaGreenEconomyinLACWaterandaGreenEconomy

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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

liogr

aphy

26

WaterintheGreenEconomyinPracticeTowardsRio+20

InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality

Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion

Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor

WaterandaGreenEconomy

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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)

19

WaterandaGreenEconomyinLACWaterandaGreenEconomy

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B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

WaterandaGreenEconomy

Wat

era

nda

gre

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cono

my

inL

AC

5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

WaterandaGreenEconomy

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nda

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ene

cono

my

inL

AC

23

WaterandaGreenEconomyinLACWaterandaGreenEconomy

Wat

era

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AC

TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

liogr

aphy

26

WaterandaGreenEconomyinLACWaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

B Approaches

SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils

EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem

Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment

ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame

4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas

20

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

WaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

WaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

23

WaterandaGreenEconomyinLACWaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

liogr

aphy

26

WaterintheGreenEconomyinPracticeTowardsRio+20

timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas

Wateruseefficiencylossreductionandmetering

Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices

Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment

Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)

Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement

Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)

C Lessonslearnt5

Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability

Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid

Waterlegislation

WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState

Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution

WaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

5 FromSolanesandJouravlev(2006)

21

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

WaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

23

WaterandaGreenEconomyinLACWaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

liogr

aphy

26

WaterandaGreenEconomyinLAC

Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations

Fortheregulationofdrinkingwatersupplyandsanitationservices

ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable

Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply

Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers

Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions

Regardingcentralizationanddecentralization

Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope

Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions

Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm

Regardingwatermanagementinstitutions

Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility

Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor

Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment

Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa

terandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

22

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

WaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

23

WaterandaGreenEconomyinLACWaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

liogr

aphy

26

WaterintheGreenEconomyinPracticeTowardsRio+20

haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval

RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding

Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices

Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices

Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics

Theregulatormusthavethenecessarypowersandresources

Theregulatormusthaveappropriatelegalcapacities

Regardingfuturechallengessuchasclimatechange

Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses

Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions

Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives

Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages

Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems

InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance

WaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

23

WaterandaGreenEconomyinLACWaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

liogr

aphy

26

WaterandaGreenEconomyinLACWaterandaGreenEconomy

Wat

era

nda

gre

ene

cono

my

inL

AC

TABLE2LessonsLearntfromtheregionalCasespresentedattheconference

Case LessonsLearnt

Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced

maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption

Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific

Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector

WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges

Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption

WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential

Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice

TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities

Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand

thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs

24

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

liogr

aphy

26

BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe

EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011

CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)

ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile

mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile

mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile

mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile

EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile

FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy

Bib

liogr

aphy

25

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

liogr

aphy

26

WaterandaGreenEconomyinLAC

andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf

Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)

mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)

HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile

Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile

JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)

SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile

SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington

SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile

UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork

WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)

WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa

terandaGreenEconomy

Bib

liogr

aphy

26

WaterandaGreenEconomy

Cas

est

udie

sfr

omth

ere

gion

IIICasestudiesfromtheregion

SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6

InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-

nificantchangesresultingfromimplementationofGEAare

Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy

Establishingacoordinatingagencyatthehighestpoliticallevel

Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies

Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions

Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature

InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand

6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala

27

WaterandaGreenEconomyinLAC

ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement

GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives

WaterandaGreenEconomy

Cas

est

udie

sfr

omth

ere

gion

28

WaterintheGreenEconomyinPracticeTowardsRio+20

ProshypoorfinancingandtariffsinMedellinColombia7

Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand

changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation

PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices

InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)

GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices

AboutEPM

EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation

WaterandaGreenEconomy

Cas

est

udie

sfr

omth

ere

gion

7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten

8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta

29

WaterandaGreenEconomyinLAC

of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget

EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor

EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany

Theapproachcostrecoveryandfinancingmechanisms

UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds

Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential

InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers

NetworkConnectionFinancingProgram(NCFP)

TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term

WaterandaGreenEconomy

Cas

est

udie

sfr

omth

ere

gion

9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)

30

WaterandaGreenEconomyinLAC

ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement

GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives

WaterandaGreenEconomy

Cas

est

udie

sfr

omth

ere

gion

28

WaterintheGreenEconomyinPracticeTowardsRio+20

ProshypoorfinancingandtariffsinMedellinColombia7

Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand

changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation

PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices

InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)

GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices

AboutEPM

EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation

WaterandaGreenEconomy

Cas

est

udie

sfr

omth

ere

gion

7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten

8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta

29

WaterandaGreenEconomyinLAC

of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget

EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor

EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany

Theapproachcostrecoveryandfinancingmechanisms

UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds

Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential

InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers

NetworkConnectionFinancingProgram(NCFP)

TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term

WaterandaGreenEconomy

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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)

30

WaterintheGreenEconomyinPracticeTowardsRio+20

ProshypoorfinancingandtariffsinMedellinColombia7

Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand

changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation

PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices

InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)

GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices

AboutEPM

EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation

WaterandaGreenEconomy

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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten

8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta

29

WaterandaGreenEconomyinLAC

of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget

EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor

EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany

Theapproachcostrecoveryandfinancingmechanisms

UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds

Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential

InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers

NetworkConnectionFinancingProgram(NCFP)

TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term

WaterandaGreenEconomy

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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)

30

WaterandaGreenEconomyinLAC

of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget

EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor

EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany

Theapproachcostrecoveryandfinancingmechanisms

UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds

Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential

InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers

NetworkConnectionFinancingProgram(NCFP)

TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term

WaterandaGreenEconomy

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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)

30

WaterintheGreenEconomyinPracticeTowardsRio+20

creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity

FinancingandReshyfinancingConsumption(RFWC)

ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest

PrepaidProgram(PP)

PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted

SocialFinancingProgram(SPF)

TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices

CommunityOrganisationContracts

Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local

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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions

31

WaterandaGreenEconomyinLAC

infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts

Waterservicesprovisioninperishyurbanareas

ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters

MinimumDrinkingWaterConsumptionAmountforLife

Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater

Nationaldemandshysideandsupplyshysidesubsidies

Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy

Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers

Economicenvironmentalandsocialbenefits

InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow

NetworkConnectionFinancingProgram(NCFP)

EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector

EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy

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32

WaterintheGreenEconomyinPracticeTowardsRio+20

SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation

FinancingandReshyfinancingConsumption(RFWC)

EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period

SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries

PrepaidProgram(PP)

AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults

EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection

EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily

SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices

SocialFinancingProgram(SPF)

EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies

EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse

SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

CommunityOrganisationContracts

Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies

EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance

SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes

Waterservicesprovisioninperishyurbanareas

EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas

SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse

MinimumDrinkingWaterConsumptionAmountforLife

EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds

Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits

SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply

Nationaldemandshysideandsupplyshysidesubsidies

EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy

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34

WaterintheGreenEconomyinPracticeTowardsRio+20

plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision

SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion

Scalingupandrelevancefordevelopingcountries

Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred

Opportunitiesforthefuture

EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded

restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)

focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and

collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation

Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness

Lessonslearntfromimplementation

KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy

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35

WaterandaGreenEconomyinLAC

behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts

AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation

DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures

Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities

CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps

JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified

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36

WaterintheGreenEconomyinPracticeTowardsRio+20

TheFundfortheProtectionofWater(FONAG)Ecuador11

TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-

videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)

FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability

FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants

InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive

ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution

AboutFONAG

Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers

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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG

37

WaterandaGreenEconomyinLAC

andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts

Theapproachpaymentforenvironmentalservices(PES)

TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds

Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea

FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission

FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas

Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources

CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin

theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)

theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)

theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)

theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy

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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions

ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA

AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites

Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions

FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement

Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities

Watermanagement

Sitesurveillanceandmonitoring

Restorationofvegetationcover

Environmentaleducation

Traininginintegratedwaterresourcesmanagement

Communication

Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects

Financialapproach

ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy

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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

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Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomyinLAC

infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts

Waterservicesprovisioninperishyurbanareas

ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters

MinimumDrinkingWaterConsumptionAmountforLife

Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater

Nationaldemandshysideandsupplyshysidesubsidies

Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy

Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers

Economicenvironmentalandsocialbenefits

InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow

NetworkConnectionFinancingProgram(NCFP)

EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector

EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation

FinancingandReshyfinancingConsumption(RFWC)

EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period

SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries

PrepaidProgram(PP)

AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults

EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection

EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily

SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices

SocialFinancingProgram(SPF)

EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies

EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse

SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy

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CommunityOrganisationContracts

Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies

EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance

SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes

Waterservicesprovisioninperishyurbanareas

EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas

SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse

MinimumDrinkingWaterConsumptionAmountforLife

EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds

Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits

SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply

Nationaldemandshysideandsupplyshysidesubsidies

EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision

SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion

Scalingupandrelevancefordevelopingcountries

Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred

Opportunitiesforthefuture

EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded

restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)

focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and

collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation

Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness

Lessonslearntfromimplementation

KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts

AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation

DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures

Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities

CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps

JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified

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WaterintheGreenEconomyinPracticeTowardsRio+20

TheFundfortheProtectionofWater(FONAG)Ecuador11

TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-

videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)

FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability

FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants

InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive

ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution

AboutFONAG

Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers

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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG

37

WaterandaGreenEconomyinLAC

andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts

Theapproachpaymentforenvironmentalservices(PES)

TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds

Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea

FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission

FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas

Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources

CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin

theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)

theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)

theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)

theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions

ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA

AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites

Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions

FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement

Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities

Watermanagement

Sitesurveillanceandmonitoring

Restorationofvegetationcover

Environmentaleducation

Traininginintegratedwaterresourcesmanagement

Communication

Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects

Financialapproach

ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterintheGreenEconomyinPracticeTowardsRio+20

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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12 AdrianCashmanCERMES-UniversityoftheWestIndies

41

WaterandaGreenEconomyinLAC

ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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WaterintheGreenEconomyinPracticeTowardsRio+20

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterintheGreenEconomyinPracticeTowardsRio+20

SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation

FinancingandReshyfinancingConsumption(RFWC)

EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period

SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries

PrepaidProgram(PP)

AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults

EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection

EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily

SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices

SocialFinancingProgram(SPF)

EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies

EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse

SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy

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CommunityOrganisationContracts

Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies

EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance

SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes

Waterservicesprovisioninperishyurbanareas

EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas

SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse

MinimumDrinkingWaterConsumptionAmountforLife

EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds

Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits

SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply

Nationaldemandshysideandsupplyshysidesubsidies

EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision

SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion

Scalingupandrelevancefordevelopingcountries

Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred

Opportunitiesforthefuture

EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded

restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)

focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and

collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation

Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness

Lessonslearntfromimplementation

KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts

AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation

DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures

Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities

CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps

JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified

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WaterintheGreenEconomyinPracticeTowardsRio+20

TheFundfortheProtectionofWater(FONAG)Ecuador11

TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-

videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)

FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability

FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants

InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive

ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution

AboutFONAG

Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers

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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG

37

WaterandaGreenEconomyinLAC

andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts

Theapproachpaymentforenvironmentalservices(PES)

TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds

Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea

FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission

FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas

Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources

CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin

theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)

theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)

theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)

theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy

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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions

ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA

AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites

Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions

FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement

Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities

Watermanagement

Sitesurveillanceandmonitoring

Restorationofvegetationcover

Environmentaleducation

Traininginintegratedwaterresourcesmanagement

Communication

Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects

Financialapproach

ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy

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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

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Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomyinLAC

CommunityOrganisationContracts

Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies

EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance

SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes

Waterservicesprovisioninperishyurbanareas

EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas

SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse

MinimumDrinkingWaterConsumptionAmountforLife

EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds

Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits

SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply

Nationaldemandshysideandsupplyshysidesubsidies

EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision

SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion

Scalingupandrelevancefordevelopingcountries

Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred

Opportunitiesforthefuture

EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded

restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)

focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and

collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation

Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness

Lessonslearntfromimplementation

KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts

AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation

DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures

Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities

CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps

JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified

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TheFundfortheProtectionofWater(FONAG)Ecuador11

TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-

videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)

FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability

FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants

InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive

ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution

AboutFONAG

Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers

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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG

37

WaterandaGreenEconomyinLAC

andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts

Theapproachpaymentforenvironmentalservices(PES)

TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds

Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea

FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission

FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas

Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources

CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin

theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)

theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)

theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)

theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions

ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA

AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites

Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions

FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement

Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities

Watermanagement

Sitesurveillanceandmonitoring

Restorationofvegetationcover

Environmentaleducation

Traininginintegratedwaterresourcesmanagement

Communication

Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects

Financialapproach

ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterintheGreenEconomyinPracticeTowardsRio+20

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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12 AdrianCashmanCERMES-UniversityoftheWestIndies

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WaterandaGreenEconomyinLAC

ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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WaterintheGreenEconomyinPracticeTowardsRio+20

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterintheGreenEconomyinPracticeTowardsRio+20

plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision

SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion

Scalingupandrelevancefordevelopingcountries

Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred

Opportunitiesforthefuture

EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded

restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)

focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and

collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation

Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness

Lessonslearntfromimplementation

KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts

AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation

DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures

Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities

CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps

JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified

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WaterintheGreenEconomyinPracticeTowardsRio+20

TheFundfortheProtectionofWater(FONAG)Ecuador11

TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-

videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)

FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability

FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants

InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive

ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution

AboutFONAG

Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers

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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG

37

WaterandaGreenEconomyinLAC

andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts

Theapproachpaymentforenvironmentalservices(PES)

TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds

Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea

FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission

FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas

Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources

CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin

theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)

theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)

theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)

theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy

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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions

ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA

AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites

Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions

FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement

Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities

Watermanagement

Sitesurveillanceandmonitoring

Restorationofvegetationcover

Environmentaleducation

Traininginintegratedwaterresourcesmanagement

Communication

Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects

Financialapproach

ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy

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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterintheGreenEconomyinPracticeTowardsRio+20

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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12 AdrianCashmanCERMES-UniversityoftheWestIndies

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WaterandaGreenEconomyinLAC

ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomyinLAC

behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts

AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation

DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures

Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities

CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps

JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified

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WaterintheGreenEconomyinPracticeTowardsRio+20

TheFundfortheProtectionofWater(FONAG)Ecuador11

TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-

videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)

FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability

FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants

InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive

ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution

AboutFONAG

Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers

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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG

37

WaterandaGreenEconomyinLAC

andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts

Theapproachpaymentforenvironmentalservices(PES)

TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds

Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea

FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission

FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas

Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources

CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin

theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)

theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)

theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)

theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions

ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA

AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites

Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions

FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement

Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities

Watermanagement

Sitesurveillanceandmonitoring

Restorationofvegetationcover

Environmentaleducation

Traininginintegratedwaterresourcesmanagement

Communication

Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects

Financialapproach

ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy

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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterintheGreenEconomyinPracticeTowardsRio+20

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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41

WaterandaGreenEconomyinLAC

ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterintheGreenEconomyinPracticeTowardsRio+20

TheFundfortheProtectionofWater(FONAG)Ecuador11

TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-

videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)

FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability

FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants

InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive

ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution

AboutFONAG

Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers

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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts

Theapproachpaymentforenvironmentalservices(PES)

TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds

Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea

FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission

FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas

Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources

CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin

theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)

theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)

theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)

theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy

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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions

ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA

AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites

Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions

FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement

Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities

Watermanagement

Sitesurveillanceandmonitoring

Restorationofvegetationcover

Environmentaleducation

Traininginintegratedwaterresourcesmanagement

Communication

Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects

Financialapproach

ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy

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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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Ann

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

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Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomyinLAC

andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts

Theapproachpaymentforenvironmentalservices(PES)

TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds

Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea

FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission

FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas

Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources

CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin

theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)

theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)

theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)

theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions

ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA

AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites

Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions

FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement

Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities

Watermanagement

Sitesurveillanceandmonitoring

Restorationofvegetationcover

Environmentaleducation

Traininginintegratedwaterresourcesmanagement

Communication

Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects

Financialapproach

ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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41

WaterandaGreenEconomyinLAC

ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterintheGreenEconomyinPracticeTowardsRio+20

The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions

ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA

AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites

Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions

FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement

Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities

Watermanagement

Sitesurveillanceandmonitoring

Restorationofvegetationcover

Environmentaleducation

Traininginintegratedwaterresourcesmanagement

Communication

Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects

Financialapproach

ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy

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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterintheGreenEconomyinPracticeTowardsRio+20

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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41

WaterandaGreenEconomyinLAC

ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomyinLAC

programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton

Aphilosophyofmodestbutsteadygrowth

Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital

Attractionofincreasinglysignificantcounterpartfunding

By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount

Economicsocialandenvironmentalbenefits

Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation

Scalingupandlessonslearntfromimplementation

Lessonslearnt

Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear

Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions

Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably

Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess

Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation

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WaterintheGreenEconomyinPracticeTowardsRio+20

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

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12 AdrianCashmanCERMES-UniversityoftheWestIndies

41

WaterandaGreenEconomyinLAC

ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterintheGreenEconomyinPracticeTowardsRio+20

WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12

Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds

Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved

ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere

Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies

Limitedeconomicresourcesforimplementation

Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement

Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited

ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties

Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand

WaterandaGreenEconomy

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12 AdrianCashmanCERMES-UniversityoftheWestIndies

41

WaterandaGreenEconomyinLAC

ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

WaterandaGreenEconomy

Cas

est

udie

sfr

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gion

42

WaterandaGreenEconomy

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tive

IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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WaterintheGreenEconomyinPracticeTowardsRio+20

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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Ann

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AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

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51

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WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomyinLAC

ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired

Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability

WaterandaGreenEconomy

Cas

est

udie

sfr

omth

ere

gion

42

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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WaterintheGreenEconomyinPracticeTowardsRio+20

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

WaterandaGreenEconomy

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tive

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WaterandaGreenEconomyinLAC

InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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Ann

exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

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51

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WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomy

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IVTheexpertrsquosperspective

During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe

Caribbean

Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy

InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-

43

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

WaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

WaterandaGreenEconomy

The

expe

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tive

45

WaterandaGreenEconomyinLAC

InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

WaterandaGreenEconomy

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WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

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WaterandaGreenEconomyinLAC

InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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Ann

exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

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Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomyinLAC

outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment

3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy

AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers

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WaterintheGreenEconomyinPracticeTowardsRio+20

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

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WaterandaGreenEconomyinLAC

InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

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WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

WaterandaGreenEconomy

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WaterandaGreenEconomyinLAC

InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

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tive

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WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

WaterandaGreenEconomy

The

expe

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tive

49

WaterandaGreenEconomy

Ann

exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

Ann

exes

51

WaterandaGreenEconomy

Ann

exes

WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterintheGreenEconomyinPracticeTowardsRio+20

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate

WaterandaGreenEconomy

The

expe

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spec

tive

45

WaterandaGreenEconomyinLAC

InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

46

WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

47

WaterandaGreenEconomyinLAC

InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

48

WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

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WaterandaGreenEconomy

Ann

exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

Ann

exes

51

WaterandaGreenEconomy

Ann

exes

WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomyinLAC

InterviewwithVictorPochatindependentconsultant

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment

bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses

bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

46

WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

47

WaterandaGreenEconomyinLAC

InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

WaterandaGreenEconomy

The

expe

rtrsquos

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spec

tive

48

WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

49

WaterandaGreenEconomy

Ann

exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

Ann

exes

51

WaterandaGreenEconomy

Ann

exes

WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

47

WaterandaGreenEconomyinLAC

InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

48

WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

49

WaterandaGreenEconomy

Ann

exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

Ann

exes

51

WaterandaGreenEconomy

Ann

exes

WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomyinLAC

InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica

1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext

Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement

2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean

TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems

3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy

ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)

InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign

4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy

Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions

AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

48

WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

49

WaterandaGreenEconomy

Ann

exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

Ann

exes

51

WaterandaGreenEconomy

Ann

exes

WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterintheGreenEconomyinPracticeTowardsRio+20

5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion

InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen

6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities

WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade

7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)

a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources

b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth

c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels

dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers

WaterandaGreenEconomy

The

expe

rtrsquos

per

spec

tive

49

WaterandaGreenEconomy

Ann

exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

Ann

exes

51

WaterandaGreenEconomy

Ann

exes

WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomy

Ann

exes

AnnexesAnnex1Toolsforchange

ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference

Economicincentives

Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices

Greenjobs

Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts

50

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

Ann

exes

51

WaterandaGreenEconomy

Ann

exes

WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterintheGreenEconomyinPracticeTowardsRio+20

Watercostrecoveryandfinancing

ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner

Investmentsinprotectionandimprovementofbiodiversity

Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices

Promotionofwatertechnologies

GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)

WaterandaGreenEconomy

Ann

exes

51

WaterandaGreenEconomy

Ann

exes

WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

WaterandaGreenEconomy

Ann

exes

WaterandaGreenEconomyinLAC

Annex2IssuespresentedfordiscussionattheZaragozaConference

Issues

Agriculture

Relevantissuesforthegreeneconomy

Waterandfoodsecurity

Improveefficiencyandnutritionperdrop

Improveefficienciesthroughthefoodvaluechain

Challengesforsmallfarmsinleastdevelopedcountries

Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices

Changesinwaterconsumptionpatternsincities(directandindirect)

Improveeffectivenessandqualityofurbanwatersupplyservices

Reduceexternalitiesofcitiestothewaterenvironment

Industry Changeproductionpatterns

Improveefficiencyandreducepollution

Promoteinnovation

Challengesforsmallandmediumcompaniesinleastdevelopedcountries

Watershedsandaquifers Scarcitymanagement

Climatechangeandextremeevents

Transboundarywaterresources

Protectionofbiodiversity

52

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries

UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade

ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Towards the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action Located in Zaragoza Spain and led by the United Na-tions Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose is to contribute towards the economic and social development of Latin America and the Caribbean coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world ECLAC also provides advisory services to Governments and formulates and promotes development cooperation activi-ties and projects of regional and sub-regional scope commensurate with the needs and priorities of the region

Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)The views expressed in this publication are those of the participants in the International UN-Water Conference lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC)The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations the UNO-IDfA lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries