Presentation delivered by Dr. Uma Lele (Development Economist, USA/India) at Borlaug Summit on Wheat for Food Security. March 25 - 28, 2014, Ciudad Obregon, Mexico.
http://www.borlaug100.org
1. Based on a paper by Uma Lele, Herve Plusquellec and Richard Reidinger
The Borlaug Summit on Wheat for Food Security, Cd. Obregon, Mexico
25-28 March 2014
Water for Agriculture in 2050: Are We Ready?
Uma Lele
2. “Fierce national competition over water resources has
prompted fears that water issues contain the seeds
of violent conflict. If the entire world’s peoples
work together, a secure and sustainable water
future can be ours.” (Kofi Annan, World Water Day
2002).
“We need to move beyond the ‘complacency of
denial mode.” (Mihir Shah, member of India’s
Planning Commission, February 24, 2011; Keynote
Speech, Global Water Partnership (GWP) and International
Water Management Institute (IWMI) Workshop, Colombo,
Sri Lanka).
“Growing water related conflicts will be Asia’s
defining crisis of the 21stcentury.” (Chellaney
2011).
3. 0
20000
40000
60000
80000
100000
120000
Total Renewable Water Resources per capita (actual) by Country
(m3/inhab/yr)
1958-1962 2008-2012
Source: Lele and Associates, based on the AQUASTAT database, FAO.
Low and Declining Per Capita Water
Availability is Leading to Intense
Competition
Latest Example: California
Ag: 1% of GDP 66% of Water Use
4. Globally 42% of Production from 16 percent of Area
For developing countries–
◦ 21 percent of arable land, and 49 percent of all crop
production from Irrigation
◦ 60 percent of cereal production from Irrigation
◦ R and D on Rain fed Agriculture only now beginning to
receive attention in policy and investments--- barring
LAC
Source: Alexandratos, N., and J. Bruinsma. (2012). World Agriculture Towards 2030/2050: The 2012 Revision. ESA
Working Paper No. 12-03. Agricultural Development Economics Division, Food and Agriculture Organization of the
United Nations
5. Large and Medium Scale Surface Irrigation—
Largely Public Sector-- about 100m hectares.
Public + Farmer Managed—Irrigation Management
Transfers, also known as PIM
Farmer Managed—Tube wells, Sprinklers, Drip
Traditional Farmer Managed
Peri-Urban
Public Private Partnerships –Contract Farming
6. 0
10
20
30
40
50
60
70
Groundwater Irrigated Area as Percentage of Area Equipped for
Irrigation by Region (%)
(2009)
Source: Lele and Associates, based on AQUASTAT database . http://www.fao.org/nr/aquastat and FAO. 2012. FAOSTAT database . http://faostat.fao.org/
7. Northern Africa
1.8%
Sub-Saharan Africa
0.3%
Northern America
15%
Central America and
Caribbean
0.5%
Southern America
1.7%
Middle East
10%
Central Asia
1%
South Asia
45%
East Asia
17%
Western and Central
Europe
6%
Eastern Europe
0.8%
Oceania
1%
Area Irrigated by Groundwater (2009)
Total= 117.2 (million ha)
Source: Lele and Associates, based on AQUASTAT database . http://www.fao.org/nr/aquastat and FAO. 2012. FAOSTAT database . http://faostat.fao.org/
8. Drilling of Tube wells
Sprinklers
Drip
Little or No Reliable Data on these changes
Little and Fragmented Regulation and absence of
comprehensive water policies.
On the Contrary Subsidies for Promotion of Water
Use combined with subsidies for power
9. Holistic?
Australia
Israel
China
Morocco
State of Gujarat in India
Very Limited Research on improving Water Management or Water
conservation—IWMI’s Water for Food study?
Few Independent studies of Impacts
Almost no Studies that measure outcomes
◦ zero tillage, Direct Seeding, AW & D, PIM, Watershed development
11. Distribution of Electric and Diesel Pump-sets in South Asia
Source: Tushaar Shah (2009) Climate change and groundwater: India’s opportunities for mitigation and adaptation.
+3 million of Drip
Irrigation
14. 50
100
150
200
250
300
BaseYear1961=100
Agricultural Total Factor Productivity (TFP) Growing in Some Regions
more than others (1961-2010)
Sub-Saharan Africa and South Asia Lag in
TFP Growth
Source: : Lele and Associates, based on Fuglie’s Excel Sheet , available at http://www.ers.usda.gov/data-products/international-agricultural-
productivity.aspx#.Uyt24qiSxvY
Sub-Saharan Africa (Except South Africa)
Latin America and Caribbean
North America
North East Asia
South-East Asia South Asia
Middle East and North Africa
Oceania
15. 50
100
150
200
250
300BaseYear1961=100
Agricultural Total Factor Productivity (TFP) Index Growth by Key
Countries
(1961-2010)
Source: : Lele and Associates, based on Fuglie’s Excel Sheet , available at http://www.ers.usda.gov/data-products/international-agricultural-
productivity.aspx#.Uyt24qiSxvY
India
China
Brazil
Mexico
Indonesia
Pakistan
United States
16. Real Agricultural Prices Have Fallen Since 1900, Even as World Population
Growth Accelerated
Source: USDA, Economic Research Service using Fuglie et al 2012. Depicted in the chart is the Grilli-Yang agricultural price index adjusted for inflation by the U.S. Gross Domestic Product
implicit price index. The Grilli-Yang price index is a composite of 18 crop and livestock prices, each weighted by its share of global agricultural trade (Pfaffenzeller et al 2007). World
population estimates are from the United Nations.
17. Total Agricultural Products Exports by Region
(Export Value in Million$) (Real=Nominal/MUV) (MUV Index 2000=100)
(1970-2010)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Source: Lele and Associates, based on FAOSTAT data and World Bank MUV Index
Africa
North America
Latin America and Caribbean
East Asia
South Asia
South-East Asia
Rest of Asia
Europe
Oceania
20. 2050 Challenge
9 Billion+ in 2050: Cereal Production (Net of Biofuels) Increase by 60 percent over 2005 level
to meet demand growth of 1.1 percent annually down from 2.2 percent in the past 4 decades
Cereals production must increase by 940 million tonnes to reach 3 billion tonnes;
Meat production must increase by 196 million tonnes to reach 455 million tonnes; and
Oil crops must increase by 133 million tonnes to reach 282 million tonnes.
On Demand Side On Supply Side
Population Growth
--All in LDCs
Slowing Yield Growth
Income Growth
--Mostly in LDCs
Climate Change
Urbanization
--Up from 50 percent to 70 percent
Limits to Land, Water, Soils, Biodiversity,
Forests, Fisheries
Shift in Food Consumption Patterns
--Rice, Wheat, Maize, Soybeans for Feed
Last Frontiers?
---LAC, SSA, Eastern Europe
Biofuels
--Maize, Oilseeds
Increased Market Related Risks and
Uncertainty
Processed Foods
DE capitalization of Agriculture
--Investment in R and D
Lele, Agarwal and Goswami, AAEA 2011
22. None include water, nutrients, policy-induced
restrictions on agricultural land expansion
Range in Price Behavior from small decline to
increase
Impacts of Biofuels will depend on policies
Biggest Decline in Production to come from
Climate change
Martin von Lampe et al, Agricultural Economics 45 (2014) 3–20
23. Arable Irrigated Land Will Increase Very little by 2050:
Equipped and in Use (million ha) (1960-2050)
Source: Alexandratos and Bruinsma 2012.
24. Latin America and SSA Major Source of Growth
Actual and Projected Growths of Area Equipped for Irrigation by Region
(1961-2050)
50
100
150
200
250
300
350
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
Source: Lele and Associates, based on Schmidhuber’s Excel Sheet 2013
Sub-Saharan Africa
Latin America and Caribbean
South Asia
East and South-East Asia
Near East and North Africa
26. 2 Billion People Living in river and lake basins in two
or more countries,
148 countries with territory within one or more trans
boundary river basins, 30 countries lay entirely
within them.
Over 90 percent of the population lives in countries
with shared basins . Asia, Europe, and Africa have
well over 60 basins each (
nearly 2 billion people worldwide depend on
groundwater
Approximately 300 trans boundary aquifer systems
(The Facts and Figures - UN Water 2013,
http://www.unwater.org/water-cooperation-
2013/water-cooperation/facts-and-figures/en/)
29. Over Billion people
Limited information on their water resources
Huge Potential
Findings of two recent World Bank studies:
◦ Lack of data and analysis results in over-
expectations-Nepal/India
◦ Lack of progress on agreements-- Egypt/Ethiopia
because of preconceived notions in Egypt?
30. Public Irrigation Systems underperforming
Poor O and M
Delays in implementation
Absence of incentives to improve performance
Lessons of Experience
Modernize irrigation systems do not just rehabilitate
Adopted Improved Management Practices
Increase Water Charges After Improving Delivery of
Water Services, (Quantity, quality, reliability,
predictability, adequacy)
31. China Investments in R &I $ 32.5
Billion annually over 10 years India $13 b annually
State ownership of
Natural Resources
Unitary Government
Engineers in Charge
Legal reforms
Mostly expansion of
surface irrigation
Canal Lining
Water Users’
Associations
Rapid Implementation
28 States Responsible
for Water Management
and Agriculture
A Mix of public, private
ownership of water
Decentralized System of
planning and
implementation
Delays in
implementation
Poor performance of
Surface Irrigation
32. Public Expenditure in Irrigation and Net Irrigated Area in India
0
6
12
18
24
30
36
42
0
50
100
150
200
250
300
350
1961 1966 1971 1976 1981 1986 1991 1996 2001 2006
Netirrigatedarea(millionha)
ExpenditureinIrrigation
(BillionUSD2005constantproces)
Expenditure-major and medium irrigation Expenditure-minor irrigation
Expenditure-Command area development Trend-net irrigated area-canals
Trend-net irrigated area-tanks Trend-Net irrigated area-groundwater
Source: Unpublished paper by Mehta and Shah.
33. (C+E+N) Agric.
Extension & research
7%
(F+I+J) Animal
Production
2%
(G+L+M)Crops
8% (O)Forestry
5%
(H)Irrigation & Drainage
32%
(P+Q)General Ag.
11%
(R)Public Admin-
Agriculture
1%
(K+S+T)Agric.
Marketing and Trade +
Agro-industry
7%
Agriculture adj.
15%
Agricultural cred
12%
Irrigation Highest Share of IBRD-IDA Commitments Among
Agricultural Sub-sectors
(MUV Index 2000=100) (1960-2011) (%)
Total=116.6 US$ Billions
Source: Lele and Associates, based on World Bank Projects and Operations Data.
http://www.worldbank.org/projects/.
34. 82 World Bank Funded
Irrigation and
Drainage Projects in
India
(1953-2013)
Source: Lele and Associates, based on data source
http://www.worldbank.org/en/country/india/projects/all?s
ector_exact=Irrigation+and
drainage&qterm=&lang_exact=English
35. Source: Lele and Associates, based on World Bank data, Available at http://ieg.worldbankgroup.org/content/ieg/en/home/ratings.html
Note: Marginally satisfactory and above includes Highly satisfactory, Moderately satisfactory, Satisfactory and Marginally satisfactory
0
10
20
30
40
50
60
70
80
90
100
India China Brazil Mexico Indonesia Pakistan Bangladesh
SHARE OF MARGINALLY SATISFACTORY AND ABOVE (%) (Overall Ratings on Agriculture and Rural Development)
SHARE OF MARGINALLY SATISFACTORY AND ABOVE (%) (Ratings on Irrigation & Drainage Only)
Share of the 176 Irrigation and Drainage and 517 Agriculture and Rural
Development Projects among the World Bank’s Seven Largest
Borrowers, Rated Marginally Satisfactory and Better
36. Total Area Harvested for Cereals (million
ha) (1961-2012) (Brazil, China, India and
Indonesia)
0
20
40
60
80
100
120
1961
1964
1967
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
2012
Brazil China India Indonesia
Total Cereals Yield (hg/ha) (1961-2012)
(Brazil, China, India and Indonesia)
0
10000
20000
30000
40000
50000
60000
70000
1961
1964
1967
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
2012
Brazil China India Indonesia
Source: Lele and Associates, based on FAOSTAT data
39. A movement that has spread throughout the world
Evaluation of IMWI’s Program
Mixed record of success: China, Mexico, vs. India
Piecemeal information on Impacts of Transfer
Agreements on quantity or quality of water service
delivery
E.g. Improved Operation and Maintenance ?
Improved productivity
41. Dearth of Independent Impact
Evaluations
Zero tillage—reasonable impact at
scale, but less about water saving than
soil management
Direct Seeding—Unclear benefits
W and D in Water Management
System of Rice Intensification?
42. Globally and Country by Country
Improve and Disseminate Data on Irrigation
and Water Use at all levels
Substantially Increase R and D on water and
water use efficiency and water productivity
Improve incentives for water conservation
Focus on Measuring Improved Outcomes
Recognize Jevon’s Effects of Change in
irrigation technologies at the macro level