Water Aspects of Regional Development
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The document discusses regional cooperation on water resource management. It argues that regional development and water availability are strongly interlinked, and that managing water resources increasingly requires cooperation at a regional scale. It highlights integrated water resource management, sustainable development, and water security as principles that emphasize regional cooperation. Effective regional cooperation requires integrating water management across sectors and political boundaries, having countries plan together based on shared understanding of hydrology, and sharing both costs and benefits of water development projects. Challenges to regional cooperation include conflicting development priorities between upstream and downstream states, fragmented water management approaches, and complex geopolitical realities.
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Water Aspects of Regional Development
- 1. Photo:DavidMolden/IWMI A water-secure world www.iwmi.org Water Aspects of Regional Development Matthew McCartney IHA Congress 2015 Beijing
- 2. www.iwmi.org A water-secure world Water and development • Regional development and availability of water are strongly interrelated • Advances in water related engineering, technology and management have been central to progress in human development. • Today water remains central to many aspects of socio-economic development – key to energy and food production (nexus) and other areas of human endeavor. • With the advanced engineering, the scale of human interventions has increasingly shifted from local to regional scale Photo courtesy Wikipedia
- 3. www.iwmi.org A water-secure world Value systems The way water is managed inevitably relates to the value systems of society. Today widely promoted principles are: • Integrated Water Resource Management (IWRM) • Sustainable development • Water security All highlight the need for regional cooperation in relation to the management and use of water. Increasingly important in a world of greater demand, increasing scarcity and increasing uncertainty. Photo: Matthew McCartney / IWMI
- 4. www.iwmi.org A water-secure world Cooperation Assumption: sustainable water resources development and management can only be achieved through better coordination of increasingly complex and multiple use of water In transboundary basins requires: - integration - across sectors and scales (local to supranational) - countries planning and working together (coherent policies) built on common understanding of river function and hydrology - sharing the costs as well as the benefits of water resource development
- 5. www.iwmi.org A water-secure world Challenges • Different and changing priorities stemming from demographic and other differences – conflicting development plans (upstream:downstream Nile) • Sectoral fragmentation of water management at national and sub- national level (Scalar disconnect: Mekong) • Complex geopolitical reality: i) power asymmetry; ii) the nation state is not the only actor in international relations • Insufficient data and understanding. Photo: Matthew McCartney / IWMI
- 6. www.iwmi.org A water-secure world Private Sector Investment in Hydropower (PPP) Requires: strong regional cooperation – facilitates electric-power exchange and provides confidence to investors Benefits: - potential to lever financing that is difficult for governments to access (e.g. FDI) - transfer and sharing of financial risk to private sector investors? - Potential efficiencies and innovation gains Photo: Matthew McCartney / IWMI
- 7. www.iwmi.org A water-secure world Challenges • Opportunities for investors to profit through construction or service supply may incentivize investments with weak returns. • Governments with weak capacity may absorb risks and provide private sector guarantees such as supplying security, water flows, fuel, or electricity. • Complexity can result in a range of environmental, socio- economic, financial, and political risks being undervalued, overlooked, or misidentified. • Business norms tend to impede project transparency and participatory processes
- 8. www.iwmi.org A water-secure world Thank you Photo: Matthew McCartney / IWMI
Notes de l'éditeur
- Many argue that water management provided the basis for early “civilization”. Need to transport and store water provided the impetus for societal organization in the Middle East. Irrigation was central to (provided the base for) ancient advanced civilizations – Egypt, Mesopotamia, India, South-east Asia, China as well as Incas in tropical America – irrigation cultures! With advanced engineering the scale of interventions in the hydrological cycle has increasingly shifted from local to regional scales.
- IWRM - a process which promotes the coordinated development and management of water, land and related resources, in order to maximize the resultant economic and social welfare in an equitable manner without compromising the sustainability of vital ecosystems (GWP definition Sustainable development – development decisions taken now should not compromise the ability of future generations to meet their own needs Water security (many interpretations) – Asian Development Bank – successfully manage water resources and services to: i) satisfy household, water and sanitation needs in all communities; ii) support productive economies in agriculture, industry and energy; iii) develop vibrant liveable cities and towns; safeguard/restore healthy rivers and ecosystems and v) build resilient communities that can adapt to change - Value systems change over time. Projects need to be designed with flexibility in the structure to allow adaptation – for example the provision for downstream flows (10 years ago this was not even considered in Vietnam). Example of where societal values have changed within 1-2 generations (well within the life of a project ) e.g. the Colombia River in US where environmental needs are now being retrofitted at great cost (mainly due to national regulations) but also the changing face of the negotiations between US and Canada (and First Nations) on the Treaty that is coming up for renewal.
- The overlaying of human interventions at different spatial scales results in complex changes of the hydrological conditions. In many cases improvements at one site are connected with degradation of hydrological/ecological conditions at other sites. Also the performance of water management measures becomes more uncertain if the rate of social and economic changes is accelerated. Often improvements at one site are connected with limited options to solve water problems at other sites.
- Different and changing priorities – national government focus on development plans regardless of transboundary effects Sectoral fragmentation (hydropower, irrigation, fisheries) – disconnect between regional-level and national-level decision-making. Unable to translate outcomes of regional programs into policy formulation at national level (e.g. Mekong) Different countries have very different needs and requirements. Also often conflicting perceptions of national-regional development linkages. Complex geopolitical reality: power asymmetry between riparian states (Nile); it is often assumed but the nation state is not the only actor in international relations – Mekong donors have played an important role in designing the decision-making landscape within the MRC. Insufficient data and understanding – complex links between water, ecosystem services and people
- Increasing intervention of private sector brings both benefits and new challenges. Different forms of public private partnership (i.e. a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies) By way of efficiencies and innovation - the private sector tends to be more efficient than bureaucracies with regards to moving contracts forward and in terms of construction and project implementation. There is less red tape and they tend to work on proven business models as opposed to standard bureacratic government procedures. For innovation it is the same thing, the private sector investment brings a competitive process to both the financing and construction which allows for innovative ideas to enter the process. This could be innovative in terms of financing but also construction or environmental/social mitigation
- Governments, particularly from developing countries, have been encouraged to absorb risks and provide private sector guarantees such as supplying security, water flows, fuel, or electricity. long-term commitments/ownership of environmental and social impacts Business norms impede project transparency and participatory processes (e.g. power purchase agreements are typically confidential and not available to public; data on dam release regimes are kept secret for commercial reasons). How should the non-hydropower aspects of PPPs be financed? There is a mix of those elements that result directly from the decision to build a dam (internalizing externalities) and which therefore are borne by the developer and those items that are more of a development nature and the responsibility of government/development organizations. Companies need certainty on this and how to do that in the absence of an upfront regional assessment rather than individual project by project development approach that results from the existing concession system where regulatory frameworks are weak? Nothing wrong with the concession system per se, but how to substitute for weak development frameworks within which they operate?