Water: Managing the Worlds Finite Resource

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WaterManaging the WorldsFinite Resource

• Dr. Stephen F. Lintner
• Senior Technical Advisor
• The World Bank
• March 24, 2004

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Growing Demands

• During the past century, while the worlds
  population tripled, use of water has increased
  six-fold
• Emerging issue of climatic and hydrologic
  variability makes management more complex
  especially in developing countries

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Global Action

• Global action is needed to secure access to safe
  water supply and sanitation meet food, energy
  and industrial needs and maintain ecosystems 

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World Bank Group
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World Bank A Partner

• Established in 1944
• Over 180 member countries
• Focus on poverty reduction, including Millennium
  Development Goals
• Commitment to environmentally and socially
  sustainable development
• Supporting responsible growth

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World Bank Group

• International Bank for Reconstruction and
  Development (IBRD)
• International Development Association (IDA)
• International Finance Corporation (IFC)
• Multilateral Investment Guarantee Agency (MIGA)
• International Centre for the Settlement of
  Investment Disputes (ICSID)
• Supports Consultative Group on International
  Agricultural Research (CGIAR)

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Sector - Policies and Strategies

• Water Resources
• Environment
• Energy
• Forestry
• Rural Development
• Social Development
• Infrastructure Action Plan
• Water and Sanitation Program
• Environmental and Social Safeguard Policies

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World Bank Types of Operations

• Structural and Sector Adjustment Loans
• Poverty Reduction Strategy Credits
• Guarantees
• Investment Loans
• Financial Intermediary Operations
• Community Driven Development
• Social Funds
• Emergency Recovery/Post Conflict
• Global Environment Facility (GEF)
• Prototype Carbon Fund (PCF)

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Strategic Approach
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World Bank

• The World Bank is pursing an integrated approach
  to water resources planning and management at the
  regional, national and local level
• Activities should be tailored to a regions
  and/or countrys political, economic, social,
  historical and cultural circumstances

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Water - Policy and Strategies

• Water Resources Management Policy Paper
• Water Resources Strategy
• Regional Water Strategies
• National Water Strategies
• River Basin Programs
• Regional Seas Programs
• Lake Management Programs

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Support for the Water Sector

• Water Sector comprises 16 of overall lending
• World Bank supports programs and projects of many
  sizes
• Regional programs at the basin level
• National programs
• Large, medium and small projects
• Community level activities
• Global Environment Facility (GEF)
• Prototype Carbon Fund (PCF)

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Figure 1
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Water Resources Strategy

• Water management and development are both
  essential for responsible growth and poverty
  reduction
• The main challenge for water management is the
  pragmatic application of principles
• The main challenge for water development is
  inadequate stocks of hydraulic infrastructure and
  mobilizing required funding

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Need for Complementary Interventions
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Water Resources Strategy

• Principled Pragmatism
• Dublin Principles and Water Resources Management
  Policy Paper should be used as a filter to judge
  actions
• The Strategy must be tailored to the wide variety
  of country circumstances
• Progress is sequential, slow and determined by
  broader political economy

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Water and Development
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Water as a Driver ofResponsible Growth

• As the worlds population grows by 2 billion over
  next 30 years, action is needed
• Growing population needs improved water resources
  management
• Safe water supply and sanitation
• Increasing food needs
• Secure inputs for industrial processes
• Use for hydropower and cooling
• Maintenance of ecosystems

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Nile Basin Initiative

• Long-term cooperative program
• Poverty reduction focus
• 10 States, 4 of 10 poorest
• Transformational potential
• of water resources
• 90 Hydropower Potential undeveloped
• 85 Population without
• electricity
• 60 Irrigable land unirrigated
• Important aquatic ecosystems

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Scarcity

• Over the last 50 years, per capita water
  availability decreased due to
• Population growth
• Degradation of watersheds
• Conversion of habitats
• Pollution
• Salinity
• Loss of natural and man-made storage
• Climate variability

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Scarcity

• In order to alleviate water scarcity, we must
• Engage political leaders and the public
• Use broad based strategy and planning processes
• Invest in policy and institutional reforms
• Invest in infrastructure
• Manage water quantity and quality
• Support environmental management
• Support innovation

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Storage Per Capita All Uses
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Climate Variability

• Industrialized countries have invested in major
  hydraulic infrastructure to protect against
  climate variability
• Developing countries have as little as 1/100th of
  the infrastructure of a developed country with
  comparable climatic threats
• Hydraulic infrastructure is essential to address
  shocks of climate variability

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Adapting to Climate Change
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Impacts of Floods and Droughts

• Zimbabwe - Drought of early 1990s ? 50 reduction
  in GDP
• Mozambique - 1999 floods ? 30 reduction in GDP
• Brazil - 2001 drought-induced energy crisis ? 50
  reduction in economic growth

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Impacts of Floods and Droughts - Kenya
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Comprehensive Vision

• Shift to a multi-sectoral orientation in water
  resources planning and development
• Policy and institutional reforms becoming an
  integral part of water resources investments
• Freshwater, coastal and marine resources as a
  management continuum
• Operational integration upstream and downstream
  rivers, lakes and wetlands surface and
  groundwater quantity and quality
• Recognition of ecological functions and
  importance of environmental flows

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Sustainable Management

• River and lake basin management
• Water quantity and quality management
• Groundwater management
• Water harvesting, recycling and wastewater reuse
• Maintenance and restoration of ecosystems
• Maintenance and expansion of storage
• Shared benefits
• Adapting to climate variability/change

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Public Engagement

• Importance of a shared vision
• Planning and management processes that provide
  for stakeholder participation
• Expanded use of community based management
• Systems that allow for adaptive change
• Public accountability, transparency and
  responsiveness

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Agricultural Water Management Initiative
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Water Sector Uses
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Reaching the Rural Poor

• Fostering an enabling environment for
  broad-based, sustainable rural growth
• Enhancing agricultural productivity and
  competitiveness
• Fostering non-farm economic growth
• Improving social well-being, managing and
  mitigating risk and reducing vulnerability
• Enhancing sustainability of natural resource
  management

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Achievements and Challenges

• Significant achievements in food security
• 40 of food produced on 17 of land
• Increased food availability and affordability
• Employment and income opportunities
• Complementary investments in rural infrastructure
• Multiplier effects growth in rural economy
• 2/3 additional food production by 2025 will come
  from irrigated agriculture

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Integrated Water
Resources Management
Institutional Framework
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More Crop Per Drop

• Making Existing Systems More Productive
• Strengthened Management
• Ensuring Integrity of Infrastructure
• Rehabilitation of Existing Investments
• Improved On-Farm Water Use
• Participatory Management by Farmers
• Private Sector in Investments and Management

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Water Productivity

• Rural water management, including irrigation and
  drainage, will be viewed in the context of
  integrated catchment and watershed systems
• Recognize the competition between agricultural,
  municipal and industrial users
• Measures will be supported to address
  environmental and social aspects including
  allocation of water for ecological functions

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A Proactive Approach

• Facilitates pro-poor interventions
• Addresses irrigated and rainfed systems
• Increases efficiency and productivity
• Sustains natural resources
• Promotes agricultural growth
• Uses appropriate and cost-effective technologies
• Supports innovation
• Enhances food security

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Water Security and Beyond
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Addressing Water Security

• Integration of water resources fully into the
  planning process
• Continued reform and capacity building
• Development of water resources infrastructure
• Reappraisal of existing investments
• Recognition of climate change and/or variability
  as risks to be managed

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Beyond Water Security

• Increased water productivity
• Water for food
• Water for power
• Water for environmental functions
• Diversification of type and size of interventions
• Diversification of financing mechanisms both
  public and private

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Actions to Support Implementation

• From promises to action on the ground
• From either financing capacity building or
  infrastructure to learning by doing
• From rhetoric to pragmatic solutions
• From fragmentation to cooperation

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Moving Forward

• Major opportunities exist for combining needed
  investments in water infrastructure with actions
  to support improved governance and continued
  reform
• Environmentally and socially sustainable
  approaches to water resources management are
  central to responsible growth and poverty
  reduction