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Economic and Financial
Instruments for IWRM
Introduction to IWRM
Part 1: Discovering IWRM
Goal and objectives of the session
To introduce the importance of water
To give an indication of the water crisis
To present the challenge in resolving the crisis
To define IWRM
To introduce the importance of a water management framework
Outline presentation
Overview of the importance of water
Water crisis: Facts
Challenges in addressing crisis
What is IWRM
Water management framework and core
elements
Benefits of the framework
Introduction
The Importance of Water
Water is essential to human survival (20-40 litres per person daily)
Effective primary health care
Fight poverty, hunger, child mortality, gender inequality and environmental damage.
Millennium Development Goals
Facts on Water Crisis
More than 2 billion people suffer from water
shortages in over 40 countries;
1.1 billion people do not have access to safe
drinking water;
4 out of 10 people in the world do not have
access to improved sanitation (very basic
facilities);
2 million tonnes per day of human waste is
discharged into water courses;
Every year 1.6 million children below 5 years old
die because of unsafe water and lack of basic
sanitation.
Reasons for Water Crisis
Water resources under pressure from population growth, economic activity, growing competition from many water users;
Withdrawals increased more than twice the rate of population growth;
Development and pollution are exacerbating water scarcity;
Uncoordinated development and management of water resources;
Climate change will impact on water resources.
Challenges
Improving access to water (all users) and sanitation
What is needed?
Government making this a priority;
Appropriate long-term financing;
Resolving competition among users and environmental challenges;
Advocacy on-behalf of poor;
Improved capacity of governments to deliver services to all users;
Government accountability in meeting the needs of all users.
What is IWRM?
A systematic process for sustainable
development, allocation and monitoring of
water resource use in the context of social,
economic and environmental goals and
objectives.
IWRM is a paradigm shift.
Departs from traditional approaches in three ways:
Cross-cutting and departs from traditional sectoral approach.
Spatial focus is the river basin;
Departure from narrow professional and political boundaries and perspectives and broadened to incorporate participatory decision-making of all stakeholders (Inclusion versus exclusion).
Interdependency
The basis of IWRM is that there are a variety of
uses of water resources which are interdependent.
The need to consider
the different uses of water
together
Examples of Competing but Interdependent Uses
The Water Balancing Act
Demand
• Increasing in all sectors
• Inefficient use
Supply • Quantity (Natural Scarcity,
Groundwater Depletion)
• Quality Degradation
• Cost of Options
IWRM
IWRM Dimensions
Integrated Water Resources Management
Water supply
& sanitation
Irrigation &
drainageEnergy Environ-
mental
services
Infrastructure for Infrastructure for management of management of
floods and floods and droughts, droughts,
multipurpose multipurpose storage, water storage, water
quality and source quality and source protectionprotection
Policy/ Policy/ Institutional Institutional frameworkframework
Management Management instrumentsinstruments
Political economy Political economy of water of water
managementmanagement
Other uses
including
industry and
navigation
Water Uses
Governance
Hea
lth
Wa
ter
Qu
ali
ty
Wa
ter
Su
pp
ly
Flo
od
s/D
rou
gh
ts
En
erg
y
Ag
ric
ult
ure
Ind
us
try
Po
llu
tio
n P
rev
Co
as
tal M
gt.
Ec
osys
tem
Mg
t.
Activity
Sectors
(water uses)
Social
Development
Economic
Development
Env .
Protection Objectives
Policy/Inst.
Framework
Management
Institutions
The IWRM Process
Feedback
Prosperity
IWRM Water and water related policies review and revision
IWRM Resource development, management, monitoring, and evaluation
IWRM Resource availability/use analysis and allocation
Water Management Framework
At the core of the water management framework is:
Treatment of water as an economic and social good;
Decentralised management and delivery structures;
Greater reliance on economic instruments;
Broader participation of stakeholders.
What will a Water Management Framework do?
1) Provide framework for analysing policies and options that will guide decisions in relation to:
Water scarcity;
Service efficiency;
Water allocation; and
Environmental protection.
2) Facilitate consideration of relationships between the ecosystem and socio-economic activities in river basins.
Think about it
Could you give examples from your own country
where interdependency of water uses exists?
End
The next presentation deals with the
principles of water management