Options for Pro-Poor Water Options for Pro-Poor Water ReformsReforms

SIMI KAMALSIMI KAMALMember GWP TECMember GWP TEC

Chairperson, Hisaar FoundationChairperson, Hisaar Foundation

ContextContext

• The greater part of the world’s poor reside in Asia The greater part of the world’s poor reside in Asia Pacific region (75 percent) Pacific region (75 percent)

• The poor in Asia Pacific region are concentrated in environmentally fragile ecological zones

• Millennium development goal of halving world Millennium development goal of halving world poverty by the year 2015poverty by the year 2015

• Current trend of establishing Integrated Water Current trend of establishing Integrated Water Resources managementResources management

We have to ask the question “can we really We have to ask the question “can we really reduce poverty through water reforms?”reduce poverty through water reforms?”

Scope of PaperScope of Paper

• Experience from the Asia Pacific regionExperience from the Asia Pacific region

• Case study from PakistanCase study from Pakistan

• Rationale for pro-poor water reform Rationale for pro-poor water reform optionsoptions

What Does Water Reforms Mean?What Does Water Reforms Mean?The term water reform is usually understood The term water reform is usually understood to cover:to cover:

• GovernanceGovernance

• LawsLaws

• InstitutionsInstitutions

• ProcessesProcesses

• RegulationsRegulations

Access and Control Over LandAccess and Control Over LandIn Asia Pacific Region:In Asia Pacific Region:

• Economic and social disparities distort Economic and social disparities distort access to land and wateraccess to land and water

• Existing social and cultural biases further Existing social and cultural biases further distort the intent of inheritance lawsdistort the intent of inheritance laws

• Inadequacies of legal structure limits Inadequacies of legal structure limits ownership and control by poor women and ownership and control by poor women and other disadvantaged groupsother disadvantaged groups

• The relationship between water and The relationship between water and poverty is often determined by some poverty is often determined by some external factorsexternal factors

• Political will and political representationPolitical will and political representation

• Local government linkages and Local government linkages and decentralizationdecentralization

Four distinct sectors in the Four distinct sectors in the debatedebate

• Irrigation systems and poverty Irrigation systems and poverty reductionreduction

• Land and water rights in relation to Land and water rights in relation to povertypoverty

• Reduction of poverty through Reduction of poverty through participation and user managementparticipation and user management

• Environment, poverty and Environment, poverty and conservationconservation

Size of Land HoldingsSize of Land Holdings

• In the Asia Pacific region the average farm size is now approximately 1.6 hectares.

• In China average farm size has fallen from 0.56 hectares in 1980 to 0.4 hectares in 1999.

• In Pakistan it has fallen from 5.3 hectares in 1973 to under 3 hectares in 2004.

• In comparison the average farm size is 67 hectares in Latin America.

Irrigation Systems and Poverty Irrigation Systems and Poverty ReductionReduction

• Irrigation has long been seen as a main Irrigation has long been seen as a main tool of reducing povertytool of reducing poverty

• It is seen as a package of technologies, It is seen as a package of technologies, institutions and policies that underpins institutions and policies that underpins increased agricultural output in the Asia increased agricultural output in the Asia Pacific regionPacific region

• Past experience has shown that this Past experience has shown that this package has not yet fully succeeded in package has not yet fully succeeded in doing away with povertydoing away with poverty

• Similar irrigation reform packages in Similar irrigation reform packages in different contexts have different resultsdifferent contexts have different results

• In China irrigation and agriculture have In China irrigation and agriculture have developed in the context of a long-term developed in the context of a long-term national program to eradicate poverty national program to eradicate poverty

• Vietnam has adopted fair land distribution Vietnam has adopted fair land distribution approach to land (and irrigation water), and approach to land (and irrigation water), and rural development as a wholerural development as a whole

• In Indonesia, irrigation development has In Indonesia, irrigation development has been part of a large transmigration scheme been part of a large transmigration scheme funded by governmentfunded by government

• South Asia has adopted policy in which South Asia has adopted policy in which distributional issues have largely been distributional issues have largely been ignoredignored

• Irrigation reforms have benefited the poor Irrigation reforms have benefited the poor in China and Vietnam much more than in in China and Vietnam much more than in South AsiaSouth Asia

Irrigation BenefitsIrrigation Benefits

• Indirect broader benefits of irrigation Indirect broader benefits of irrigation usually much larget than direct local-level usually much larget than direct local-level benefitsbenefits

• This means less impact on local povertyThis means less impact on local poverty

• Despite overall poverty-reducing nature of Despite overall poverty-reducing nature of irrigation, income poverty exists in most irrigation, income poverty exists in most canal irrigated areascanal irrigated areas

• Around a third of all households in Around a third of all households in irrigation systems live in overtyirrigation systems live in overty

Water Rights, Land Rights and Water Rights, Land Rights and PovertyPoverty

• Water rights are understood and Water rights are understood and internalized largely as customary practicesinternalized largely as customary practices

• Regulations on water rights are often Regulations on water rights are often unclear and incompleteunclear and incomplete

• Water users may have little knowledge of Water users may have little knowledge of the laws and regulations that define formal the laws and regulations that define formal

water rightswater rights

What are Water Rights?What are Water Rights?

• Water rights may be composed of various Water rights may be composed of various bundles of rights to access, consume, bundles of rights to access, consume, manage and transfermanage and transfer

• Water rights are usually structured Water rights are usually structured differently and are more limited than differently and are more limited than rights to land and movable propertyrights to land and movable property

• The term “water use rights” seems more The term “water use rights” seems more appropriateappropriate

• Water rights are usually a form of property Water rights are usually a form of property rightsrights

• Secure property rights can play a vital role Secure property rights can play a vital role in expanding opportunities for poor people in expanding opportunities for poor people to escape from poverty to escape from poverty

Reduction of Poverty through Reduction of Poverty through Participation and User Participation and User

ManagementManagement

• Past 25 years have been many attempts to Past 25 years have been many attempts to improve irrigation management through improve irrigation management through increased participationincreased participation

• This was driven in part by:This was driven in part by:– frustration with irrigation operation and frustration with irrigation operation and

maintenance maintenance – head-tail inequalities in water distributionhead-tail inequalities in water distribution– Neglected repairsNeglected repairs

• Lack of resources for maintaining Lack of resources for maintaining infrastructureinfrastructure

Replace-ment

Interest

EfficientO & M

Financial Requirements Who pays

TaxpayersTaxpayers

UsersUsers

a. Australia

Excess man-power

O & M

Replace-ment

Interest TaxpayersTaxpayers

TaxpayersTaxpayers

TaxpayersTaxpayers

UsersUsers

UsersUsers

No oneNo one

b. Pakistan

Financial Requirements

Who pays

The Financing of Water Services in PakistanThe Financing of Water Services in Pakistan

Source: Pakistan’s Water Economy: Running Dry, Report, The World Bank, November 8, 2005, pg 59

’’Token’ particpationToken’ particpation

• Meetings heldMeetings held

• Water user associations formedWater user associations formed

• Trainings conductedTrainings conducted

These are used to measure user These are used to measure user participation and management participation and management instead ofsubstantive shanges instead ofsubstantive shanges

Participation in political Participation in political vacuumvacuum

• Water user groups can end up as Water user groups can end up as political pressure groups with political pressure groups with aspirtions other than equitable aspirtions other than equitable distribution of waterdistribution of water

• Show little result in terms of increased Show little result in terms of increased incomes or reduced costsincomes or reduced costs

• No set of agreed indicators on what is No set of agreed indicators on what is ’pro-poor’ participatory management’pro-poor’ participatory management

Water conservation and Water conservation and enviromentenviroment

• Policies on water conservation often Policies on water conservation often disregard livelihoods of men and disregard livelihoods of men and womenwomen

• The poor depend heavily on The poor depend heavily on environmental ’goods’environmental ’goods’

• Sometimes one kind of right (for Sometimes one kind of right (for example water irrigation right) can example water irrigation right) can take away another (access to take away another (access to common enviromental goods)common enviromental goods)

Struggling to Address Poverty Struggling to Address Poverty Through Water Reforms – The Through Water Reforms – The

Case of PakistanCase of Pakistan

Pakistan’s Water ScenarioPakistan’s Water Scenario• The vulnerability of the vast Indus Basin The vulnerability of the vast Indus Basin

irrigation system and greater need for irrigation system and greater need for operating flexibility and assurance is operating flexibility and assurance is now accepted in Pakistannow accepted in Pakistan

• High population growthHigh population growth

• Persistent povertyPersistent poverty

• Lagging growth in the rural sectorLagging growth in the rural sector

• Looming constraints on water resources Looming constraints on water resources for irrigation for irrigation

• Poor development and management Poor development and management strategystrategy

Poverty ConditionsPoverty Conditions• Realities of water availability, it’s Realities of water availability, it’s

regime, the climate, weather, delta regime, the climate, weather, delta conditions and the market have changedconditions and the market have changed

• The way of managing farms and using The way of managing farms and using water at farm level has notwater at farm level has not

• About 45 % of cultivable area is under About 45 % of cultivable area is under cultivationcultivation

• Poor management and distribution of Poor management and distribution of irrigation water has rendered a large irrigation water has rendered a large area of land uncultivablearea of land uncultivable

• Low crop yield Low crop yield

• Thousands of local farmers whose livelihood Thousands of local farmers whose livelihood depended on agriculture are facing depended on agriculture are facing economic hardshipeconomic hardship

• 97 percent of 140 MAF of surface water used 97 percent of 140 MAF of surface water used in irrigation, managed by public sectorin irrigation, managed by public sector

• Unchecked exploitation of groundwater in Unchecked exploitation of groundwater in private sector (20 MAF)private sector (20 MAF)

Comparison of Productivity Per Comparison of Productivity Per Unit of Land and WaterUnit of Land and Water

Productivity Per Unit of Land

France 7.60 Tons/hectare

Egypt 5.99 Tons/hectare

Saudi Arabia 5.36 Tons/hectare

Punjab (India) 4.80 Tons/hectare

Punjab (Pakistan) 2.32 Tons/hectare

Productivity Per Unit of Water

Canada 8.72 Kg/m3

America 1.56 Kg/m3

China 0.8 Kg/m3

India 0.39 Kg/m3

Pakistan 0.13 Kg/m3

Low Irrigation Charges as a benefit Low Irrigation Charges as a benefit to Poorto Poor

• The very low irrigation service charges in The very low irrigation service charges in Pakistan are justified on account of poverty and Pakistan are justified on account of poverty and are assumed to benefit the poorare assumed to benefit the poor

• In the setting of inequities in land and water In the setting of inequities in land and water distribution the low level of irrigation charge distribution the low level of irrigation charge does not necessarily benefit the poordoes not necessarily benefit the poor

• Low charges lead to under-spending on O&M Low charges lead to under-spending on O&M works and the system performance is very poorworks and the system performance is very poor

• The application of a single level of The application of a single level of irrigation service charges across areas irrigation service charges across areas and system has led to a situation where and system has led to a situation where the poor landless farmers end up the poor landless farmers end up subsidizing the rich landowners.subsidizing the rich landowners.

Land Tenancy System & PovertyLand Tenancy System & Poverty• The existing pattern of land The existing pattern of land

distribution in Pakistan is not distribution in Pakistan is not egalitarianegalitarian

• Organization of production is heavily Organization of production is heavily dominated by sharecropping dominated by sharecropping arrangements where the tenants are arrangements where the tenants are insecureinsecure

• Unless the tenant’s position is improved, Unless the tenant’s position is improved, the landowners are likely to receive a the landowners are likely to receive a lion’s share of the total benefits of lion’s share of the total benefits of watercourse improvement, a watercourse improvement, a substantial part of which is being substantial part of which is being subsidized by the government.subsidized by the government.

Water Sector ReformsWater Sector Reforms

• Government of Pakistan has embarked upon water sector reforms in the country

• These have been implemented in parts of the irrigated areas of the two larger provinces, Punjab and Sindh

• These reforms have combined irrigation and drainage functions into single Provincial Irrigation and Drainage Authorities supported by Water Management Ordinances 2002

• The idea is to move towards farmer management of both irrigation and drainage

Participatory Institutions Set Participatory Institutions Set Up as Part of Water Sector Up as Part of Water Sector ReformsReforms• Area Water Boards (AWBs)

• Farmer Organizations (FOs)

• Watercourse Associations (WCAs)

• These participatory organizations are to slowly take over the rehabilitation and maintenance of 10 canal command areas

The Reality on the GroundThe Reality on the Ground

• In theory the system sounds equitable and feasible

• The problem arises in the way the Ordinance defines a farmer who may become a member of the Farmer Organization

• This ‘farmer’ is one who owns land

• This leaves out the majority of farmers that actually deal with water on a daily basis and till the land – the poor landless sharecroppers.

What Can be DoneWhat Can be Done

• In order to enhance the probability of the benefits of water rehabilitation and infrastructure development reaching the poor landless farmers, the inclusion of both men and women from this group is necessary in the WCAs and FOs

• Such inclusions many not be forthcoming substantively in the short term

• It can be fostered through offering infrastructure development and repair investment incentives on high priority to those WCAs and FOs that include landless sharecroppers and women

Official Government PolicyOfficial Government Policy• Integrating irrigation, hydropower and Integrating irrigation, hydropower and

agricultural development investmentagricultural development investment

• Modernizing both the water Modernizing both the water infrastructure and the institutional and infrastructure and the institutional and governances management systemsgovernances management systems

• Balance of investments in water Balance of investments in water infrastructure and water managementinfrastructure and water management

• Balance in supply management and Balance in supply management and demand managementdemand management

• Secure water entitlements or rightsSecure water entitlements or rights

Government StrategyGovernment Strategy

• The new initiatives in the water sector The new initiatives in the water sector are modeled to recover the are modeled to recover the maintenance and restoration costmaintenance and restoration cost

• Water ConservationWater Conservation

• Renovation of remaining 90,000 Renovation of remaining 90,000 watercourses (45,000 out of 135,000 watercourses (45,000 out of 135,000 have already been lined)have already been lined)

• Improving watercourse maintenanceImproving watercourse maintenance

• Organizing sustainable water users Organizing sustainable water users associations (WUAs)associations (WUAs)

• Introducing water saving irrigation Introducing water saving irrigation technologytechnology

Realities!Realities!

• Expenditure on water supply and sanitation (normally held to be the most pro-poor of water programmes) for the year 2006-2007 was projected as 0.12% of the GDP

• Current annual development plans claim to spend approximately 40-50 percent each year on water infrastructure resources development – the type of development that does not generally benefit the poor

• Not clear how water entitlements and rights are to be secured

• Not clear how the demand for more irrigation water will be balanced with need for conservation and environmental flows

• The mighty river Indus has no water downstream from Kotri Barrage for 10 months of the year and the Indus delta has been effectively destroyed.

Rationale for Pro-Poor Rationale for Pro-Poor Water Reform OptionsWater Reform Options

Defining ‘Pro-Poor’ More Defining ‘Pro-Poor’ More ClearlyClearly• Any arguments for and policy for pro-poor water

reform must clarify what is meant by the term ‘pro-poor’

• Too often pro-poor intervention is taken to mean any investment or programme that creates physical facilities and institutions, the socio-economic performance of which is seen in terms of aggregate benefits to society as a whole – not specific benefits to defined groups of the poor.

Measuring the ‘Pro-Poor’ in Measuring the ‘Pro-Poor’ in Water ReformsWater Reforms

• For water reforms to be pro-poor, the criteria For water reforms to be pro-poor, the criteria should be not only be the change in the structures should be not only be the change in the structures of water institutions, the new laws, the number of of water institutions, the new laws, the number of hectares developed or rehabilitated, but also the hectares developed or rehabilitated, but also the number of households and persons who benefited number of households and persons who benefited and by how much. and by how much.

• We need to be able to measure not only the We need to be able to measure not only the aggregate productivity benefits but also the various aggregate productivity benefits but also the various types of benefits (economic, social, development, types of benefits (economic, social, development, political) and the share of the poor in total benefitspolitical) and the share of the poor in total benefits

Need for Separate Sets of Need for Separate Sets of IndicatorsIndicators

To define specific benefits to the poor and then to To define specific benefits to the poor and then to measure their achievement requires different sets measure their achievement requires different sets of appropriate indicators for different contexts of appropriate indicators for different contexts

• For water entitlements as part of access to environmental For water entitlements as part of access to environmental goodsgoods

• For water rights as groups, individuals and institutions in For water rights as groups, individuals and institutions in irrigation and agricultureirrigation and agriculture

• For access to potable water in rural and urban contexts For access to potable water in rural and urban contexts (where the poor may pay many times more than the rich). (where the poor may pay many times more than the rich).

• A look at Asia Pacific experiences has shown that no A look at Asia Pacific experiences has shown that no single set of water reform interventions have been single set of water reform interventions have been sufficient for effective poverty alleviation in all water sufficient for effective poverty alleviation in all water sectors sectors

• A balanced and realistic approach is required under A balanced and realistic approach is required under each set of circumstanceseach set of circumstances

• An effective package of pro-poor water reforms may An effective package of pro-poor water reforms may require interventions in areas other than waterrequire interventions in areas other than water

• This points towards more proactive use of IWRM This points towards more proactive use of IWRM approaches that calls for a balance among water approaches that calls for a balance among water efficiency, equity and environmental sustainabilityefficiency, equity and environmental sustainability

Approaching Different Water Approaching Different Water Reform SectorsReform Sectors

• We have seen how different factors impact upon We have seen how different factors impact upon different sectors of water use and management different sectors of water use and management

• To be pro-poor each of these sectors would have To be pro-poor each of these sectors would have to work with different sets of interventions under to work with different sets of interventions under different conditionsdifferent conditions

• Sometimes reform processes will have to create Sometimes reform processes will have to create the necessary conditions first, within which pro-the necessary conditions first, within which pro-poor approaches can be realizedpoor approaches can be realized

Pro-Poor Irrigation ReformsPro-Poor Irrigation Reforms

Irrigation and agriculture reforms are likely to generate Irrigation and agriculture reforms are likely to generate significant outcomes for the poor only if some or all significant outcomes for the poor only if some or all of the following conditions exist or can be created:of the following conditions exist or can be created:

-- Land holdings are more or less of the same size (and not Land holdings are more or less of the same size (and not skewed between some huge farms and many tiny ones) or skewed between some huge farms and many tiny ones) or land is better distributed through land reformsland is better distributed through land reforms

-- Farmers are socio-economically homogeneous (ie Farmers are socio-economically homogeneous (ie all hold all hold land titles rather than some owning land while the others are land titles rather than some owning land while the others are landless and caught in a system of sharecropping land tenure) landless and caught in a system of sharecropping land tenure) and can compete for benefits equallyand can compete for benefits equally

-- Irrigated agriculture is profitable as a wholeIrrigated agriculture is profitable as a whole

-- Actual benefits of irrigation go to all types of farmers (both Actual benefits of irrigation go to all types of farmers (both land owners and the landless) and can be easily calculated land owners and the landless) and can be easily calculated

-- There are incentives in place for better managing service There are incentives in place for better managing service delivery and qualitydelivery and quality

-- Farmers pay for water based on satisfactory service delivery Farmers pay for water based on satisfactory service delivery (ie service providers are made accountable)(ie service providers are made accountable)

-- Irrigation schemes and programmes are specifically Irrigation schemes and programmes are specifically designed to benefit the poor by putting in specific conditions designed to benefit the poor by putting in specific conditions for investments, repairs and rehabilitation of water for investments, repairs and rehabilitation of water infrastructure infrastructure

Water Rights ReformWater Rights Reform

• In terms of water rights as a means of alleviating In terms of water rights as a means of alleviating poverty, in situations where land ownership poverty, in situations where land ownership determine water rights, it is land ownership that determine water rights, it is land ownership that needs to be tackled effectively as a pro-poor needs to be tackled effectively as a pro-poor interventionintervention

• In cases where a right to quantum of water is In cases where a right to quantum of water is determined by type of use, tradition or legal determined by type of use, tradition or legal entitlement, water reform will need to ensure that entitlement, water reform will need to ensure that all those that are entitled are clearly defined as all those that are entitled are clearly defined as such, through legal recourse.such, through legal recourse.

• Given that the Asia Pacific region has millions of farmers, both land holding and landless, and millions of people who have direct environmental entitlements, it would be extremely challenging, if not impossible, to recognize individual water rights

• Water rights can be held by collective organizations such as water user associations, local government and water utilities.

• However in a region of many inequalities, this option would be open to abuse

The argument for the role that secure rights to land can play in reducing poverty are much more compelling in the Asia Pacific context than water rights

Poor-Poor Participation Poor-Poor Participation ReformReform

• As yet no set of agreed indicators to show poverty As yet no set of agreed indicators to show poverty reduction or degree of ‘pro poor-ness’ as a result of reduction or degree of ‘pro poor-ness’ as a result of stakeholder participatory and user management of stakeholder participatory and user management of waterwater

• Water reform options in this area are likely to remain Water reform options in this area are likely to remain perfunctoryperfunctory

• Indicators need to be developed Indicators need to be developed

• Ways found to determine the direct and impacts of Ways found to determine the direct and impacts of participatory decision-making and user management, participatory decision-making and user management, especially in circumstances where the participants are especially in circumstances where the participants are socially or economically ‘unequal’. socially or economically ‘unequal’.

Water Conservation ReformWater Conservation Reform

• There has been perhaps the greatest thrust in terms of water There has been perhaps the greatest thrust in terms of water reform initiatives in this area reform initiatives in this area

• There has to be a stated and proactive pro-poor affirmative There has to be a stated and proactive pro-poor affirmative action (of the type seen in women’s empowerment movements action (of the type seen in women’s empowerment movements and interventions)and interventions)

• Conservation attempts often end up displacing the very poor Conservation attempts often end up displacing the very poor whose survival depends on environmental entitlementswhose survival depends on environmental entitlements

• Water conservation projects can undergo a process to explicitly Water conservation projects can undergo a process to explicitly state the number of poor people, the nature of their water state the number of poor people, the nature of their water entitlements, and how they can be helped to come out of poverty entitlements, and how they can be helped to come out of poverty (or at least be prevented from becoming even poorer). (or at least be prevented from becoming even poorer).

Thank You!Thank You!