The document discusses two paradigms of cooperation in transboundary river basins: water-sharing and benefit-sharing. It analyzes how these paradigms have been applied in the Nile River Basin by the Nile Basin Initiative, noting technical and conceptual challenges. Specifically, benefit-sharing has not led to concrete outputs or clear principles for sharing benefits and costs. The document argues that benefit-sharing should be implemented complementarily with water-sharing and through specific joint development projects to help move cooperation forward in the Nile Basin.

2. Two Paradigms of Cooperation Water-Sharing Benefit-sharing Complementary or Mutually Exclusive?

3. Squaring the Circle? Shift or Confluence? Water-Sharing Benefit-sharing Sharing costs Sharing responsibilities

4. Benefit-Sharing – The Concept Benefits to the river Benefits from the river Benefits because of the river Benefits beyond the river BENEFITS OF COOPERATION Environmental Social Economic Political Source: Sadoff and Grey 2002, 2005 “ A focus on sharing the benefits derived from the use of water, rather than the allocation of water itself, provides far greater scope for identifying mutually beneficial cooperative actions”

5. Benefit-Sharing or Water-Sharing? Benefit-sharing is the best approach Benefit-sharing is an intermediary solution Benefit-sharing is not a panacea for all basins Benefit-sharing is a smokescreen for status quo

6. Benefit-Sharing Approach – criticisms... Based on rational choice models Conceptual ambiguities Complex approach Neutralises existing asymmetries? Klaphake 2006 Difficult to implement in securitised basins Approach can be hijacked Should not replace water-sharing approach Need to“level the playing field” Phillips et al 2006 POLITICAL DYNAMICS QUANTIFICATION & DISTRIBUTION OF BENEFITS ? ?

7. Nile River Basin – Proving ground for the concept Political Economy Poverty Regional and internal conflicts Political instability No successful regional ec. integration Low levels of intra-basin trade Hydropolitics Asymmetric power relations Hydro-hegemonic regime Asymmetric water allocations Problematic water-sharing treaties Legal deadlock Securitised basin NBI Cooperation  Water-sharing + Benefit-sharing

8. NBI and BENEFIT-SHARING Environmental Benefits Direct Economic Benefits Regional Political Benefits Indirect Economic Benefits Source: SDBS/World Bank 2004 Nile Basin Initiative (1999) “ achieve sustainable socioeconomic development through the equitable utilization of, and benefit from , the common Nile Basin water resources” Socio-economic Development and Benefit Sharing Project (2005) “ to enhance the process of integration and cooperation to further socioeconomic development in the Nile Basin” “ explore alternative Nile development scenarios and benefit-sharing schemes”

12. Between a rock and a hard place? Not necessarily! Water-Sharing Benefit-sharing “ Highly problematic to focus on the two approaches at the same time” (Jägerskog 2006) Legal standstill Few developments/ Concept hijacked