Icarda incentives for sustainable and efficient water allocation management3


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Icarda incentives for sustainable and efficient water allocation management3

  1. 1. BROADENING OUR APPROACH TOINCENTIVES FOR SUSTAINABLEAND EFFICIENT WATERMANAGEMENTSteven N. SchonbergerSector Manager for Water and AgricultureMiddle East and North Africa RegionThe World BankICARDA Conference Session 124 June 2013Cairo
  2. 2. “Incentives” defined• Something, such as the fear of punishment or theexpectation of reward, that induces action or motivateseffort
  3. 3. Incentives have been with us as long as civilizationitself–mainly to avoid conflicts amongst water users• Khnum, God of Water in Ancient Egyptover 5000 years ago• Yu the Great’s rules to control floodingof neighbor’s fields in China over 4000years ago• Code of Hummarabi regulated waterdistribution in Mesopotamia almost4000 years ago• Laws of Manu 2200 years agogoverned shared water resources inHindu Society• Justinian Code regulated riparianrights in the Roman Empire 1500years ago
  4. 4. Now, incentives come from manydirections and are inter-linked with issuesin other sectors
  5. 5. For example, macroeconomic concerns…
  6. 6. which require more effective cost recovery,
  7. 7. …growing focus on the water-energy nexus,
  8. 8. …and food security policies which respectfiscal as well as water saving objectives,Source: Larson, World Bank 2013
  9. 9. …while meeting immediate socialexpectations.• Youth unemployment:
  10. 10. But scarcity remains the ultimate incentive!• Scarcity is the fundamental economic problem of havingseemingly unlimited human wants and needs in a world oflimited resources
  11. 11. We are very familiar with physical scarcity…
  12. 12. …which already constrains water use inthis Region,…
  13. 13. …likely worsening with climate change.
  14. 14. However, to improve water management, weneed a more comprehensive approach to scarcity.
  15. 15. Scarcity of organizational capacity is generally a lesssevere constraint in the Region…
  16. 16. …as services reach most of the population.
  17. 17. However, scarcity of accountability…
  18. 18. is emerging as a principal constraint to betterwater sector performance.
  19. 19. This suggests an urgent need to invest in thesupply of accountability in water management…• Public expenditure for water in MENA ranges from one tofive percent of GDP.• Investments focus on development of water sources andconstruction or rehabilitation of treatment and conveyancesystems.• Limited effort to strengthen water resources assessmentand monitoring, basin management, utility reforms,organization of users.=> Limited impact on the sustainable orefficient use of water resources
  20. 20. … with more attention to policies which shareaccountabilities amongst stakeholders…
  21. 21. …and integrate innovative technologies in supportof those responsibilities.
  22. 22. So we should challenge ourselves in today’sdiscussions to respond, inter alia, to:• How are the complex macroeconomic and inter-sectoralaspects of water incentives being identified andaddressed in countries?• What is planned and what are the experiences to-date inincreasing the supply of accountability through moredecentralized water resources management and servicedelivery, as well as introducing new technologies tosupport planning, monitoring, and more sustainable andefficient resources use?
  23. 23. But of course, the ultimate incentive is therealization that we can no longer look at theEarth as an endless expanse of resources…
  24. 24. “This planet is not terra firma. It is a delicate flower and it must be caredfor. Its small. Its isolated, and there is no resupply. This is our home, andwe are mistreating it.”but rather…