This Presentation isinspired by an articlewritten byProf. Judith Rees (Director of the Grantham ResearchInstitute on Climate Change & theEnvironment)of London School ofEconomics and PoliticalScience
Water Tasteless, odorless, colorlessWater, oh water Yet valuable and versatileYou go down my throat Water, the one use for drinkingTip in a glass To quench thirst and dehydrationYoull sink like a boat. Water, the one used for bathing, Without you, our bodies would be stinkingWater, oh water Water, the one used for irrigationYou also clean me Without you, all the plants would be deadTurn on the warm water Water, the one used for cooking,And fill me with glee Without you, food would be eaten raw Water, the one used for washingWater, oh water Without you, our possessions would be dirtyGrow me a crop Water, the universal solventFruits and veggies All the solutes depend on youMy mouth will drop. I wonder how life would have been like Without water!Water, oh water Water is life, no water no life!Let me swim Water, youre the most vital liquid of liquidsDont let me drownI already have water within.
Water, water,every where,nor any drop to drink!!!
Millions of people still lackaccess to even most basicservices of water & sanitationONE3 billion are still forced to drink waterfrom unsafe sources
TWOPace of urbanization has outstrippedconnections to water infrastructure.
THREEOver 2.5 billion lack access to even themost basic forms of sanitation,Which has major implications for1. Public health,2. Environment3. Safety of ground water4. Safety of downstream water
FOUR1.4 million children under Five dieannually due to unsafe water &inadequate sanitation
FIVEGlobal Economics Losses of US$ 260billion per annum due to lack of basicwater services
What Needs our urgentattention?ONEOur Failure to value water
Pricing 15 Rs Per liter for Clean Drinking water where as…TWOAdopting appropriate pricing policy
PricingTWOUn-priced or under priced waterresources and services make itvirtually inevitable that demand willoutstrip supply
PricingTWOLittle investment will take place toimprove water use efficiency or todevelop non-conventional watersources
Policy/ Allocation ofResourcesTwoAvailable supplies will not be allocatedto the most economically and sociallybeneficial purposes.
True Value?THREEStill common for us to consider waterresources and ecosystems services as“FREE GOODS” and for water suppliesto be “SOLD” for all purposes(Agriculture, Industrial, Domestic) atprices which fail to recover theoperating costs.How can one make any contribution toinfrastructure replacement orextension?Governments/ Ministers & Politiciansmake false recognition about “theneed for sustainable and efficient costrecovery and innovative financingmechanisms”.Recognition is one thing,implementation quite another
TWOWater pricing reforms are alwayscontroversial but without them themanagement system will not besustainable either in environmentalor in economic terms
Investments & Maintenance FourWe need an investment of aboutUS $ 18 billion to Give Safe Water &Sanitation to AllSome US $ 54 billion per annum is requiredto maintain the existing infrastructure& very large, but largely un-quantified,sums to tackle pollution and ecosystemdegradation, reduce vulnerability to waterrelated hazards and address the potentialeffects of climate change
FinanceFiveTo solve the problem India will get atthe most only 5% form the world inthe coming years as finance & AIDWe will have to as citizens of Indiacontribute 95 % of the requiredinvestmentsAre we ready?Is our System ready?Is our Government ready?
Attracting InvestmentsSIXPrivate sector investments will onlycome if reasonable rates of return canbe made…Reality is that the bulk of the neededfunding can only come from Usercharges or Public budgets.It is a common opinion everywhere inthe world that WATER is a public good& hence its elements should bepublically provided and financed.???Don’t we not derive private benefitsfrom use of water?
What do we learn then?SEVEN Where ever possible revenue should be raised from user or beneficiary For Example payments… However, there are much higher opportunity costs involved in continuing to use public funds to provide private goods to those who Low use Low Price can afford to pay for them.. Meaning, why should water be High Use High Price provided as a public good to those who can afford to pay higher price? suggests that we Can Be a Policy Thumb Rule need a differential pricing strategy & policy.
Other ChallengesEightPricing reforms are but just onechallengeEqually important is the need todevelop governance and institutionalarrangements, which recognize notonly the interdependencies that existbetween the different users and usesof the same multipurpose waterresources but also…Those between the water sectors andother sectors of the economy