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Sf••??.,ATIONAL REFERENCE CENTREFOR COMMUNITY WATER SUPPLY ANDSANITATION (IRC)

Water and sustainable development

Rob Koudstaal, Frank R. Rijsberman and Hubert Savenije

In this paper, it is proposed that water resources should be managed as an integralpart of a nation's social and economic development. Water resources managers shouldbroaden their scope of work to include an integrated management approach. Insteadof the traditional 'supply oriented approach' in which they act in response to ever-increasing demands for water from different sectors of the economy, water resourcesmanagement agencies should play a more active role in guiding and stimulating socio-economic development through more efficient water use. Demand management shouldbe an important tool which should go beyond the improvement of technical efficien-cies. Most important is to develop economic and institutional approaches that acceptcharging for the full costs of the utilization and management of water resources.Implementation of such an approach will require more sectoral integration than iscurrently the case and will have considerable implications for organizations, staffing,institutional arrangements and corresponding capacity building.

In 1977, the United Nations Water Conference in Mardel Plata demonstrated a clear consensus that water isa key element in the development of many nations. Awidely distributed Plan of Action was formulatedwhich focused on improving conditions for lowincome groups, ft initiated the International DrinkingWater Supply and Sanitation Decade (IDWSSD) inthe 1980s, which formally started in November 1980.Expectations were high that properly managed waterresources would greatly enhance social and economicdevelopments in the decade.

Although the link between properly managed waterresources, economic development and social well-being is now widely recognized, policies for the sus-tainable use of water resources have largely failed tomaterialize. In many countries, the quantity and qua-lity of surface and groundwater resources are deterior-ating. Water resources management policies to date

Rob Koudstaal and Frank R. Rijsberman are Directors ofResource Analysis, Zuiderstraat I !0: 2611 SJ Delft, TheNetherlands and Hubert Savenije is Associate Professor inHydrology at the International Institute for Hydraulic andEnvironmental Engineering, PO Box 3015, 2601 DA Delft.The Netherlands.

This paper is an abridgement of a more extensive report which wasprepared for and published as a keynote paper by the InternationalConference on Water and the Environment - Development Issuesfor the 21st Century. 26 31 January 1992. Dublin. Ireland.

have focused on the. development of water resourcesto satisfy the ever increasing demands for water orwater related goods and services, and on the mitiga-tion or reduction of droughts and floods.

The issues that water resources managers will haveto deal with in the 1990s call for a more integratedapproach to water resources management. In manydeveloped and developing countries, national policiesare formulated based on such integration, and effortsare growing to implement integrated approaches.International organizations strongly support thischanging focus. The New Delhi Statement on safewater and sanitation for the 1990s [21], for example,refers to integrated water resources management intwo of its four 'guiding principles'. The statement firstcalls for protection of the environment and safeguard-ing of health through integrated management of waterand liquid and solid wastes. It also calls for an inte-grated approach in institutional reforms for the watersector. Other appeals for integrated water resourcesmanagement policies can be found in OECD's recentreport on the environment [18]. The OECD reportrecommends an integration of water quantity andquality management with the environmental concernsof the economic sectors. The report also considersappropriate pricing of natural resources to be a keytool for integrated water resources management.Similarly, the Asian Development Bank has adoptedthe integration of environmental management and

0165-0203/92,040277-14© 1992 Butterworth- Heinemann Lid .2(0-5-2^19-/I ooo

Water and sustainable development: R. Koudstaal, F. R. Rijsberman and H. Savenije

natural resources planning and management into con-cepts of development planning [1]. It can be concludedthat 'integrated management' has been adopted byvarious national governments and international orga-nizations, each from their own perspective, as thesolution to a host of problems.

Without attempting to produce a definitive defini-tion of the often-used word 'integrated' as it relates towater resources management, in this paper integratedmanagement will be assumed to have the followingcharacteristics:

o there is an interaction between quantity, qualityand biological aspects of both groundwater andsurface water;

• water demands and residual generation by differ-ent sectors of the economy are considered in rela-tion to sectoral development and managementplans, objectives and policies;

o full account is made of the relevant on-site and off-site environmental issues, in particular the long-term carrying capacity of natural systems;

• proper attention is paid to the tasks and responsi-bilities of all public and private agencies involvedand to their linking mechanisms;

• there is public participation: social and culturalissues are considered, including the role of womenand the traditional use of water;

• implementation aspects, including financing,monitoring and control, play a decisive role inplanning for water resources management; andfinally

• institutional and human resources developmentfor the execution of management tasks are import-ant components.

The first question that this paper addresses is: how canintegrated water resources management contribute tosocio-economic development?

To answer this question, it is important to reviewthe context, or environment, in which water resourcesmanagement is practised. The section entitled,'Changing contexts: issues and problems', reviews theproblems and issues that are likely to shape waterresources management in the 1990s.

The second question this paper addresses is: whatcan - or should - water resources managers do inresponse to the new challenges ahead? In the sectionentitled, integrated water resources management. . .",an attempt is made to outline some of the criticalelements, or directions for successful water resourcesmanagement in the 1990s. Some of the elements listedin that section are not new, but have not been verywell integrated into the profession to date, whileothers represent new directions that need to be furtherdeveloped.

The problem that remains is how the suggestions toalleviate the problems and issues of water resourcesmanagement can be implemented. Many experts feelthat the problems concerning the world's fresh andmarine water resources are grossly underestimated.Worldwide public opinion and political interestappear to concentrate on climatic issues. In 1988,during the VI World Congress in Ottawa, Canada, theCommittee on Water Strategies for the 21st Centuryof the International Water Resources Associationconcluded that the Brundtland report, Our CommonFuture, tends to underestimate severely the serious-ness of the water-related components of environmen-tal problems and pays no attention to the water scar-city now developing in Africa.

Possibly the most important reason why problemsrelated to water resources are likely to increase in theforeseeable future is that there is no single, clear,tangible water problem, one easily definable like the'energy shortage' or the increased concentration ofCO2. The water problem actually consists of a host ofdiffuse issues that are intricately linked with many, ormost, human activities, and cannot be solved througha single global strategy. The world's attention is moreeasily focused on issues such as the extinction of exo-tic species, the disappearing rainforests, famines orholes in the ozone layer than on the more mundaneissues of sustainable use and development of waterresources. And yet, three quarters of the world'spopulation still do not have access to safe and reliabledrinking water and most of the serious environmentalproblems are water-related.

In this setting it is important to try to answer thequestion: how can the international community con-tribute to the development and implementation of theintegrated water resources management concept? Toanswer that question, this paper focuses on integratedwater resources management, both at the nationaland at the international level. The objective of thispaper is not to present a blueprint for action, but togenerate a discussion on the effectiveness and the fea-sibility of possible measures.

Changing contexts: issues and problemsTo date, water resources management has focusedlargely on water resources development projectsdesigned to satisfy the rapidly increasing demandsfrom the various water using activities. In this paperthis is referred to as the supply-oriented approach.Water resources management has. in fact, been largelyconcerned with engineering, that is. with the planning,design, construction and operation of water resourcesinfrastructure. Gradually, over the last 20 years, it hasbecome clear that water resources management needs

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Water and sustainable development: R. Koudslaal, F. R. Rijsbennan and H. Savenije

to broaden its focus to deal with the environmental,social, institutional and legal aspects of water deve-lopment and use and also the problems of integrationamong different water using sectors and, increasingly,financing the provision of services in a climate ofeconomic restraint.

Some of the major issues that water resourcesmanagers will have to deal with in the 1990s andbeyond are outlined below.

Scarcity of water resources

Water is only useful for human activities if it is avail-able at the right time, in the proper location and if it isof satisfactory quality. It not, water is likely to be aburden rather than a resource.

A major part of the education of a water resourcesprofessional, generally water resources engineers, hasbeen spent on learning how , to harness waterresources: how to train rivers, build dams, providewater supplies and sanitation facilities, protect againstfloods, and irrigate and drain the farmer's fields. Untilrecently, it was generally understood that water isusually available even in arid countries. The aim ofwater resources development, therefore, was to makesure that it reached the user in a timely fashion, inadequate quantity and quality.

Without trying to prove the point in extenso, it issuggested here that in many cases all water resourcesthat could be developed have been developed, andmore. In many places, eg the mega-cities with theirstill rapidly growing populations, it is hard to imaginejust where future water resources will come from tomeet the rising demand. In many cases, the best damsites have already been used, groundwater levels havealready dropped etc. The situation is no better in thecountryside. A FAO report [11] states that world wideproblems of real scarcity are imposing serious limi-tations on agricultural water use.

Water resources managers, or their successors inthe next century, are very likely to encounter a differ-ent kind of water resources scarcity.'A scarcity thatcan not be solved by engineering measures. Thatscenario is exacerbated by the fact that all indicationspoint to continued rapid growth in many countriesand to even faster growth of cities.

This water scarcity, which could be called 'the newscarcity' to distinguish it from the old scarcity whichcould be solved by engineering measures, will requiredifferent solutions from the water resources pro-fession, solutions that will have to include demandmanagement. Demand management will be discussedlater in this paper.

Internationally shared water resources

The new scarcity of water resources has also resultedin, and will continue to present, problems in interna-tionally shared river basins. Continued waterresources development will likely lead to increasedcompetition, and conflicts, between countries overshared water resources. An example of a situation inwhich a country depends on others for its waterresources is Hungary. Only 4% of the surface water inHungary originates in the country, the other 96%enters the country as cross-boundary flow. A similarexample in Africa is Mozambique. In the south of thatcountry less than 2% of the total available surfacewater originates in Mozambique territory [6]. Otherexamples include: the Rhine river, which is shared byfive European countries; the Colorado river, which isshared by Mexico and the USA; the Ganges, whichcrosses from India into Bangladesh.

No international legislation exists on how to sharethe benefits of such internationally shared resources.In 1966, the Helsinki rules [12] provided a usefulframework but agreement between states or nationson shared water resources remain basically the subjectof direct negotiations. There is a strong need for inter-national guidelines which address the water quantityand water quality problems of shared water resources.The draft Law of the Non-Navigational Use of Inter-national Water Courses, prepared by the Internatio-nal Law Commission [22], addresses this need but sofar has not been universally adopted.

Environmental degradation

The past two decades have shown a considerablechange in opinion on the importance of the environ-ment to economic development. Deterioration ofenvironmental quality is no longer seen as anunavoidable cost of rapid economic growth, instead itis seen as a limitation or constraint to the medium-and long-term prospects of sustainable development.The environment is widely recognized as a necessarycomponent of economic development and nowadaysdevelopment related policies, administrations, organi-zations and individual projects of national and inter-national agencies invariably pay attention to environ-mental issues. Proof of this recognition can be seen inthe fact that in the decade between 1972 and 1982, thenumber of countries which had an environmentalministry or similar organization grew from 11 to 111

[3]-In the 1980s, the World Bank formally adopted a

new lending poiicy on projects that have damagingenvironmental side effects and, for example, will notfinance investments that result in toxic waste dis-

NATURAL RESOURCES FORUM November 1992 279


charge across international borders. Other examplesof environmental concern are the June 1991 confer-ence in Beijing attended by 41 ministers from develop-ing countries [4] and the Gl meeting in London in July1991 [14], both of which addressed global environ-mental issues.

The resolution of global environmental problemsrequires a fundamental policy re-orientation at thenational level and cooperation at the internationallevel. At the international level, the question of res-ponsibility for global environmental problems createsconflicts between the developing and developednations. The Beijing declaration makes clear theposition of the developing countries [4]. It claims forthe developing countries: 'the sovereign right to usetheir own natural resources in keeping with their deve-lopmental and environmental objectives and priori-ties', and does not accept the idea that environmentalconsiderations may be used to introduce any form ofconditionality in aid or development financing, or toimpose trade barriers. In the Beijing declaration, thedeveloped countries are considered to be responsiblefor the degradation of the global environment andconsequently must take the lead in eliminating thedamage to the environment as well as in assisting thedeveloping countries to deal with the problems facingthem. The declaration says, 'there should be preferen-tial and non-commercial transfer of environmentallysound technologies to the developing countries'.However, such changes in the approaches and coordi-nation of the developed world will not guarantee amore efficient use of water resources in the developingworld without substantial re-orientation and struc-tural changes at the domestic level.

In developed countries, considerable efforts overthe past decades have concentrated on waste waterreduction and treatment and on structuring a coordi-nated environmental management programme amongcountries, economic sectors and public and privateentities. The success of all those efforts has been some-what limited, but improvements have started tomaterialize. For example, the pollution of waterwaysby organic substances has been substantially reducedand significant pathogenic microbial contaminationof drinking water has been virtually eliminated [18].Conditions for sustainable development, however, arenot improving. New discoveries of environmentaldegradation, on both the national and global scales,occur at an ever increasing rate.

In developing countries, integration of environmen-tal issues into water resources management is oftenonly at the starting phase and less information existson the dimension of the problem and its adverse effecton sustainable development. Often, pollution andover-exploitation of groundwater aquifers is wide-

spread and a threat to future socio-economic develop-ment.

Improved techniques for the economic evaluationof the environmental effects of development have ledto a better understanding of the cost of non-sustain-able development on impact assessment [13,15].Included in those techniques are efforts to developmethodologies for environmental resource accountingsand to formulate indicators which will enable coun-tries to assess their development not just in terms ofyear by year economic performance but in terms of itsstock and the efficient utilization of its naturalresources. The goal of such techniques is to identifywhat is long-term sustainable development.

In the developing countries, many environmentalproblems have the following common denominators:

• the problems started some time ago and have amomentum of their own which will be difficult toreverse;

• the solution to those problems will require interna-tional coordination and the upgrading of nationalmechanisms and capabilities to deal with them;and

• often the problems which adversely affect the long-term prospects for the sustainable developmentaffect their short-term economic prospects as well.

Economic and financial constraints

As more and more countries move towards a freemarket system, the former socialist countries, both inEurope and in the developing world, will be welladvised to ask what the consequences of this shift willbe for the use of their natural resources.

Unfortunately, both free market and planned eco-nomies incorporate failures which lead to inefficientuse of natural resources, including water. In botheconomies, the prices of natural resources often donot reflect their real value or scarcity. In free-marketsystems this is, for instance, caused by: (i) what econ-omists call externalities, as environmental problemsoften are; and (ii) price distorting policies of thegovernment such as, for example, the Common Agri-culture Policy (CAP) of the European Community. Incentrally planned systems the pricing of naturalresources is often independent of considerations ofscarcity or environmental degradation.

In setting or influencing the price of naturalresources such as water, governments usually use cri-teria which are strongly oriented towards short-termproduction targets rather than towards the long-termsustainable use of those resources. Traditional econ-omic discounting techniques used for the evaluationof future time streams of costs and benefits tend to


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disregard long-term effects. Long-term, in this con-text, is anything over a generation.

Water resource managers need to concern them-selves with the fact that criteria and methods are lack-ing to evaluate the impact of alternative courses ofaction on the long-term sustainable use of waterresources. Moreover, the challenge to them is todemonstrate to decision-makers the value of sustain-able water resource development; to decision-makerswho are under constant pressure to expand economicdevelopment, and who operate under tight financialconstraints.

Donor coordinationInternational support for development comes mainlythrough bilateral and multilateral channels. The callfor more and more effective support is increasing evenas resources are becoming scarcer, the scale of theproblem is growing larger and technological andeconomic gaps between developed and developingcountries are widening. It would appear from pastexperiences that the mechanisms employed for deve-lopment support have not been particularly effective,and that innovative new approaches need to be deve-loped.

One example can be found in the evaluation of theresults of the International Drinking Water Supplyand Sanitation Decade (IDWSSD). Given the resultsof the Decade, it was estimated that to achieve fullcoverage by 2000, using conventional technologiesand approaches would require five times the currentlevel of investment [21]. However, financial andmaterial support from the developed countries for thecountries in Africa, South East Asia and Latin Amer-ica, is not expected to grow in the coming decade.Moreover, developments in Eastern Europe and theformer USSR will compete for the same developmentfunds.

The challenge for donor countries and agencies inthe 1990s will be to reach an increased level ofefficiency in the use of the available resources and todevelop appropriate institutional arrangements fordonor coordination. UNDP [21], in its Delhi state-ment, calls for a reduction in costs of services throughincreased efficiency and the application of low costappropriate technology. In a similar vein, an analysisby the World Bank [23] states: 'the role of the WorldBank may require modification. More important thanlending for projects or for structural adjustments maybe the development of innovative approaches toaddress international and domestic institutionalproblems'.

This implies that international organizations areexpected to play a more important role in the 1990s.

Bilateral aid tends to focus on 'more of the same'.Most of the bilateral donors have their own specificobjectives, approaches and political targets, whichmay result in isolated actions and corresponding inef-ficient use of resources. That is why real change,which requires better coordination and integration,appears to have a better chance through internationalagencies.

Malfunctioning institutions

Most water resources studies focus either on projects(usually water resources development projects) or onplanning (such as water resources master plans orregional development plans). Rarely do those studiespay explicit attention to institutional issues or institu-tional reform or to implementation incentives. Imple-mentation incentives are measures that aim to provideincentives to water users to change their water-usingbehaviour.

UNDTCD in its report, Lessons for the 1990s [20],concluded from an analysis of water managementsince the adoption of the Mar del Plata action plan,that little has changed since 1977 and that mostcommon problems remain. Those problems include: adominance of unregulated use of resources; inade-quate and inefficient water resources management;failure to retain staff; and inappropriate and inade-quate water legislation.

There are strong indications both at the projectlevel and at the overall policy level, that improvedperformance of the water resources sector will dependon institutional reform, that is, changes in organiza-tions, in laws and regulations, in linking mechanismsbetween sectoral agencies etc, rather than in addi-tional technological improvements or more infras-tructure. This is true for irrigation systems, forinstance [2,5], and for water supply and sanitationsystems, according to WHO's evaluation of the Inter-national Drinking Water and Sanitation Decade[24,25].

Global water supply during the decade has kept upwith population growth but not by a wide margin.According to WHO information presented at the NewDelhi meeting [21] the number of people remaining tobe served was substantially reduced in the rural areas,but the urban unserved grew. From a review of theIDWSSD by that same meeting, eight key lessonshave been formulated. They are:

(i) Government should encourage active participa-tion and growing self-reliance to enable peopleto provide their own services.

(ii) Governments should concentrate less on direct


Water and sustainable development: R- Koudstaal, F. R. Rijsberman and H'. Savenije

intervention and more on enabling public andprivate institutions to deliver services.

(iii) Governments need to improve their understand-ing of what services people want and are willingto pay for.

(iv) Appropriate pricing is an important tool toimprove sector performance.

(v) Technological innovations are essential for cop-ing with sector development problems.

(vi) Focusing on the role of women can enhance thesustainability of improvements in water supplyand sanitation.

(vii) The establishment of achievable targets andeffective monitoring systems are useful instru-ments for enhancing efforts.

(viii) Improve coordination through building natio-nal and international collaborative networks.

The most important institutional issues identified insubsequent WHO reports [24,25] are set out below.

Lack of sectoral integration

Traditionally, the organization of administration issuch that ministries correspond to sectors of the econ-omy. Their task is to optimize the production of theirrespective sector. However, sustainable developmentand the integrated management of natural and waterresources require coordination between such sectors.Unfortunately, such coordination is often missing orfunctioning badly.

Decentralization of government

There is strong pressure in both the developed and thedeveloping countries to decentralize government man-agement. Experience has shown that at lower levels,knowledge and understanding of social and environ-mental issues is more detailed, and lines of problemidentification, decision-making and implementationare shorter. Also, lower;levels of government are oftenmore organized along the lines of general agencies andless compartmentalized. Experience shows thatgeneral agencies are better equipped to care for suchaspects as social issues, monitoring and control than isa national government. At the same time, however,aspects such as equity between social groups orregions, national policies on export and import, orcentral government financing, require the involvementof a national government. Water resources plannersand managers, therefore, need to be able to advisegovernments on the most appropriate level of decen-tralization in specific instances.

Privatization

Another difficult institutional issue is how muchgovernment control there should be of the waterresources sector. Government involvement is clearlyneeded to safeguard public interest in water resourcesmanagement, particularly to compensate for marketfailures. Such involvement can relate to, for example,the regulation and control of overexploitation or pol- •lution of resources; the provision of public goods; themanagement of common property resources; or theprovision of a socially required minimum level ofwater supply to low income groups.

Beyond socially required minimum levels, there isno absolute need, however, for governments to beinvolved in, for example, the production of water forpublic supply. Such services could be privatized, aswas done recently in the UK, provided the necessarysafeguards to control monopolies are in place. Inmany countries some combined form of public andprivate management has been established. There areindications that privatization of some water-relatedservices would result in more efficient use of resources.It is clear, therefore, that water resources pro-fessionals will have to be able to analyse the advan-tages and disadvantages of different levels of privati-zation to suit their individual countries.

Impacts on stakeholders

Planners have also found, and it was a costly lesson,that it pays to analyse carefully what the impacts ofvarious water resources plans will be on the variousstakeholders. Stakeholders, that is, everybody with astake in water resources management, from waterusers and water managers to politicians, have to beinvolved in the planning and management of waterresources. This goes both ways, planners need toinvolve decision-makers in the development of plans,just as much as they need to ensure public participa-tion. Water resources planners in the future will there-fore need to be able to carry out social impactanalyses as well as economic analyses. As a case inpoint, the role of women in development projects hasemerged as an important issue for the planning andmanagement of water projects. Their role will have tobe understood and planned for.

Integrated water resources management forsustainable developmentThe connotation of the word integrated in relation towater resources management has evolved slowly, ref-lecting the broadening scope of water resources man-agement. In relation to sustainable development, the



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Figure 1. Schematic representation of integrated water resources management.

meaning of the word integrated clearly goes beyondsuch traditional concepts as: the coordination amongwater management agencies; the interaction betweengroundwater and surface water; or a planningapproach which considers all possible strategies andimpacts. At the beginning of this paper we presentedwhat we consider to be the main characteristics ofintegrated water resources management, viewed as aninstrument for sustainable development. Integratedmanagement in this sense refers to the fact that waterresources should be managed as an integral part of anation's social and economic development. Thisdiffers substantially from a traditional approachwhere water resources management has been supplyoriented in pursuit of ever increasing growthscenarios, and where its efforts were mainly focusedon providing the proper conditions for socio-econ-omic development by removing water shortagesbefore they occur. According to the concept of inte-grated management presented here, water resourcesmanagers would play a more active role in stimulatingand guiding sustainable socio-economic developmentthrough concerted actions towards both supply anddemand.

The main concept of this approach is schematicallyrepresented in Figure 1. The definitions of water

resources system, management and planning appliedin the figure are as follows.

The Water Resources System is considered aninput-output system, which includes all elements toproduce water and related goods and services to meetfinal and derived demand from society. Such systemsessentially consist of the following four components:(i) the total of water and its physical, chemical andbiological constituents; (ii) the natural subsystem,including rivers, lakes, vegetation and soils; (iii) theman-made infrastructure such as canals, diversionweirs, dams and water treatment plants; and (iv) theadministrative subsystem including the existing legis-lation and regulations as well as the institutionalframework consisting of agencies and their linkingmechanisms.

Water Resources Management (WRM) comprisesthe totality of tasks required to produce water andwater related goods and services. Such tasks includeplanning and analysis, research, monitoring, directproduction of water, provision of information, issuingregulations and standards and assessment of availableresources. Typically. WRM is executed through a var-iety of public and private entities. The ultimate objec-tive of water resources management is optimal socio-economic development and maximization of societal


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Water and sustainable development: R. Koudstual, F. R. Rijsberman and H. Savenije

wellbeing. This implies that WRM belongs among theresponsibilities of governments. It should be empha-sized that WRM objectives include long-term con-siderations related to sustainable development.

The general objective of Water Resources Manage-ment is to develop and utilize water resources in anefficient, environmentally sound, economically sus-tainable and equitable manner to satisfy the demandof society for water and water-related goods andservices.

Planning for WRM refers to the formulation,analysis and presentation of strategies for WRM, con-sisting of the following components:

(i) Supply oriented physical measures, which refer towater resources infrastructure and correspond-ing operating rules to change time, location andquality characteristics of supplied water and tohandle, modify and dispose wastes.

(ii) Demand oriented implementation incentives.which aim to induce water users to a desiredbehaviour through a set of economic and regula-tory measures such as: charges, taxes, permitsand zoning.

(iii) Institutional arrangements to implement (i) and(ii), specifying responsibilities and tasks of exe-cuting agencies and the modes of interactionbetween such agencies and the private sector.

The horizontal axis in Figure 1 represents the interac-tion between the water resources system and its users:the system supplying water and conditioning waterresources in response to demand from water users.This axis provides the management 'spindle' which iscontrolled through supply and demand oriented man-agement measures. An essential part of the scheme isthe input-output concept of both the water resourcessystem and the water users, which relates those sub-systems with the environment and the social and econ-omic conditions of the society. Both should be inter-preted broadly. The environment includes the naturalenvironment and man-made infrastructures, while thesocial and economic conditions refer to the popula-tion, their economic activities, cultural heritage andthe political and administrative structure. Relationsare two directional: outgoing arrows from the waterresources system and users represent 'impacts on andcontributions to'; ingoing arrows mainly refer to 'con-ditions for'. The 'state' of the environment and socialand economic development provide triggers for waterresources management actions.

Apart from the "supply arrow', outgoing arrowsfrom the water resources system refer to the direct andindirect effects on socio-economic development andon the environment. Management and demand areconsidered inputs into the water resources system.

Other ingoing arrows refer to the conditions set by theenvironment and by social and economic develop-ment on the performance of the water resourcessystem. Examples include natural water availability,the existing infrastructure, and the institutional andhuman resources involved in the management of thewater resources system.

Similar relations exist between water users and theenvironment and social and economic conditions.Relations with the environment can include suchthings as the generation of residuals and the con-straints related to the availability of natural resources.Relations with social and economic conditions caninclude such things as the relationship between theproduction of food and the social and cultural charac-teristics of agricultural practices.

Of course, all these considerations are not new, andconsiderable efforts have been dedicated to all theaspects and the relations mentioned above. FAO, forexample, already pays explicit and extensive attentionto water demand and institutional issues and has doneso since the 1970s [8,9,10]. FAO's focus has been,however, mainly on the technical aspects of the issue.In other situations where the emphasis has been onexploitation of resources for socio-economic develop-ment, the environment is, at best, taken as a con-straint. Approaches where the emphasis lies on thesustainability of the system, and where the interactionbetween the sub-systems is determined by the.carryingcapacity of the socio-economic system and theenvironment, are favoured by conservationists.

It should be emphasized that the concept of inte-grated water resources management which is pre-sented here in relation to sustainable developmentgoes beyond technicalities and the mere identificationand consideration of all (individual) relations. Waterresources management focused on sustainable deve-lopment substantially broadens the scope of the workof water resources managers and places them in adifferent position compared to the past. Waterresources managers have a new role to play, a rolethat includes interaction with other sectors of theeconomy and with considerable implications for man-agement activities. It should be recognized that pro-viding more water is not always the best solution andthat measures to increase the efficiency of water utili-zation or to improve the operation of water resourcesagencies, should be considered as realistic alterna-tives. Demand management will become an importantfactor in the management of scarce resources: in set-ting priorities where and to whom to improve accessto water of good quality. Water resources manage-ment should be an important means for regional plan-ning and an important tool in socio-economic deve-lopment and its related aspects of equity.


Water and sustainable development: R. Koudslaal, F. R. Rijsberman and H. Savenije

In the following sections, we will examine thoseaspects of integrated water resources managementthat are not yet widely applied, but which we consideressential to an integrated approach.

Sustainable development

Since the presentation of the Brundtland Report, OurCommon Future, in 1987, the concept of sustainabledevelopment has become widely recognized as themost promising approach to developing our resourceswithout depriving future generations of their opportu-nities to enjoy the Earth's natural resources and itsenvironment.

The value of the concept of sustainable develop-ment is that it emphasizes that the potential, or carry-ing capacity, of resources should be examined first,rather than just planning and minimizing adverseenvironmental impacts later. This is a bottom-upapproach that starts with the productive capacity ofthe natural environment, rather than a top-downapproach in which the environment is looked at as aconstraint to development. When seen this way, theconcept of sustainable development is also a valuabletool for water resources planners and managers todeal with the scarcity of water resources that can beexpected in the future.

The approach set out in Figure 1 could be a goodworking model for sustainable development. In thisapproach, the management of water resources is sti-mulated through triggers stemming from the environ-ment and society's socio-economic well-being, actingthrough both supply- and demand-oriented actionsdirected at a system that has found a balance betweenimpacts and carrying capacity. The danger of imbal-ance, however, remains ever present. Especially intime of economic recession when people and politi-cians are inclined to attribute more weight to socio-economic development and accept that future gene-rations pay the bill. The scheme set out in Figure 1, towork properly, needs the constant support of organi-zations that are not influenced by political and econ-omic instabilities. Hopefully, international organiza-tions can provide that support.

Demand management

The concept of water as an economic resource haslong been promoted but is far from universallyshared. In many countries and cultures, water is stillconsidered a free good that should be provided at lowcost in the amounts and qualities desired. WHO [24],in its report on Water quality, rightly states in itsstrategy for the 1990s that: "the perception of water asa freely available public good must be abandoned

altogether and its limited supply and competitiveeconomic value fully recognized'. Demand manage-ment entails the formulation and application of incen-tives to limit demand and increase efficiency. It shouldbe considered as one of the most important compo-nents of an integrated water resources managementstrategy (the others being physical measures and insti-tutional arrangements). Implementation incentives toensure that a demand strategy is followed can begrouped in two main categories:

• Economic instruments, which include: charges;subsidies; taxes; and regulations which createmarkets where water and emission rights aretraded.

• Legal instruments, including, for example, generalquota or individual licences for extraction or dis-charges, and ambient water quality standards.Such regulations are often combined with finan-cial enforcement incentives such as fines andpenalties.

Traditionally, for demand management, governmentagencies have merely used legal instruments, applyinga command and control approach: direct regulationscoupled with systems of monitoring and sanctioningof non-compliance. The general principles of econ-omic instruments and their importance for integratedmanagement, however, have been widely studied andaccepted as potentially powerful tools. Discussionsabout their use in practice started about 25 years ago,but there appears to be a general reluctance (or lack ofpolitical will) to implement such instruments. OECDreports [16,17] summarize the experience in demandmanagement in OECD countries.

• Licenses - legal instruments - are common,including license fees to generate revenues to payfor water control and supply works. Charges overand above such license fees to account for thevalue or scarcity of the resources are less common.The report concluded that the main reason for theapplication of charges is as a source of revenue forthe treasury.

• Economic incentives are used only in combinationwith direct regulations, but economic efficiency isseldom a stated goal of the economic instruments(emission trading rights form an exception).

• The charges that are implemented in many coun-tries are far below the desirable level from aneconomic efficiency point of view. Where effluentcharges have been closer to an economic efficiencylevel, the effect has been a substantial reduction ofindustrial water use and discharges.

• There is a general reluctance to implement econ-omic instruments. One important bottleneck is theadministrative effort thai is required initially. The


Water and sustainable development: R. Koudsiaal, F. R. Rijsberman and H. Savenije

change from a situation where only few polluterspay negligible amounts to one in which more firmspay higher rates, will only be acceptable when thisis seen to be necessary and justified.

• The most effective charges appear to be effluentand user charges which are directly related to thequantities of water used. Metering is essential.

« Tax differentiation appears to be another effectiveinstrument. It invites comparison of alternativesby the consumer and is often administratively sim-ple because it uses the existing tax system.

o Subsidies are used mainly to compensate for theadverse effects of direct regulation and not aseconomic incentives to promote more environ-mentally friendly behaviour.

• Emission trading has been widely applied from thepoint of view of economic efficiency. It implies ashift in decision-making responsibility fromgovernment authorities to the individual activities(industries, treatment plants). Substantial costsavings have been recorded. The administrativeburden on the government is high, however.

It can be concluded from the OECD study that thereis a growing understanding that the application ofdemand oriented measures will be crucial to futurewater resources management.

Sectoral integration

Most water uses, such as public water supply, agricul-ture, navigation, recreation and mining, representdifferent sectors of the economy, and are managed bydifferent responsible ministries and agencies. Suchentities have their own production oriented objectives.The public water supply sector is concerned abouttotal volumes of potable water, the agricultural sectorabout food, the navigation sector about transportedgoods etc.

National, regional or sectoral development plansgenerally assume that water is available at low cost oreven free: costs of access to water do not often play animportant role in sectoral investment and operationaldecisions. Consequently, little attention is paid to theefficient use of water or, in more general terms, to anefficient use of natural resources. Cross-sectoralefforts such as water resources and land use planning,which aim explicitly at the development of society as awhole, attempt to fill this gap. Implementation ofcross-sectoral plans, however, still depends on sec-toral agencies.

In most countries, the political will to increase thecoordination of water resources management amongsectors is low. though generally some kind of structurefor coordination does exist. What is lacking is a capa-

city for implementation even when the coordinatingbodies produce master plans. Unfortunately, import-ant decisions on water policy, eg who pays how muchfor water, are often made elsewhere. Still, an import-ant impact of the coordination exercise can be anincreased understanding by technical officers of theneed for and the issues involved in coordination.

Institutional arrangements and capacity building

Institutional arrangements here, refer to tasks andresponsibilities of agencies at different levels ofgovernment, the corresponding linking mechanismsbetween them, and the laws, standards and regula-tions that form the institutional framework in whichagencies work.

Proper institutional arrangements are importantfor all the tasks of water resources management. Thisincludes planning and analysis, monitoring, construc-tion and implementation. As mentioned above, minis-tries in both developed and developing countries tra-ditionally focus on productive growth of the economicsectors they represent. Utilization of natural resourcesfor sustainable development is not an issue that fitsinto that structure. Environmentally sustainable deve-lopment requires coordinated decision-making onplanning and implementation issues, which in manycountries is missing or not working.

To create an institutional arrangement in whichcoordinated decision-making can be implemented,three possible linking mechanisms can be envisaged.

(i) A single entity which has overall supervisoryresponsibilities. This does not mean that theentity should undertake all water managementtasks itself; many of the tasks of 'integrated'management can be delegated to other entities,but they would be hierarchically subordinate tothe supervisory agency. In theory, a water man-agement authority could be created in thismodel, but it would have to take over powerfrom many other agencies, and it could there-fore be quite unpopular with sectoral agencies.

(ii) Where no agency with overall supervisory res-ponsibility for water management exists, one ofthe many agencies involved could be given theresponsibility for heading a joint task force,working group, or coordinating committee on acontinuous basis. Such a task force could becomprised of representatives of the various sec-toral government agencies, as well as representa-tives of local and provincial government. This isthe model followed in the Netherlands for thedevelopment of management plans for the Eas-tern Scheldt, Western Scheldt. Krammer-Vol-


Water ami sustainable development: R. Koudstaal, F. R. Rijsberman and II. Savenije

kerak, and Haringvliet-Hollandsch Diep-Bies-bosch areas.

(iii) Another type of linking mechanism is repre-sented by the Delaware River Basin Commis-sion (DRBC) in the USA. This interstate-federal agency combines the powers of the stateswith the powers of the federal government. Thelegislation establishing the DRBC gave it broadpowers, both supervisory and operational. TheDRBC has specific responsibility for integratedplanning. This is accomplished by developingand maintaining a comprehensive plan, and byreviewing all activities proposed by other agen-cies which could significantly affect the waterresources of the basin. The DRBC has authorityto veto any proposal which it considers to havean adverse impact on water resource manage-ment in the basin.

Two points merit emphasis. First, the most difficultproblem with respect to the implementation of waterresources management plans involves integrating landuse plans by local governmental agencies with waterresources management plans. As long as land useplanning is the responsibility of local governmentagencies, implementation of some of the necessarymeasures to achieve the desired outputs from waterresources will not be possible.

Second, the extent to which integrated analysis canbe achieved is to a large extent dependent on thetraining and interest of the individuals who are doingthe analysis, and the context in which the planning isdone. The evolution of planning in the US Corps ofEngineers is illustrative. For several decades followingthe passage of the Flood Control Act of 1936,planners in the Corps considered only physical struc-tures to reduce flood damage, to improve water qual-ity and to provide public water supply. No 'non-structural' measures, including 'demand management'measures, were considered. Only after many years,substantial external pressure, rejection of Corps pro-posals which excluded consideration of such alterna-tives, and the addition'of personnel, with broadertraining and backgrounds in other disciplines, didplanning by the Corps include a wider range ofoptions.

Capacity building

An important aspect of institutional arrangements isto create the capacity to implement effectively inte-grated water resources management plans. That capa-city depends upon the financial, administrative andtechnical capabilities of the institutions involved andon a favourable policy environment.

WMO in its report [25] states that an importantaspect of capacity building is the ability of a waterauthority to collect, analyse and elaborate infor-mation on water resources. This should include envir-onmental and socio-economic information which isessential for integrated water resources management.

One important aspect of capacity building is theavailability of human resources. There is an urgentneed for adequately trained professionals who canwork in the multi-sectoral environment of integratedwater resources management. In addition to an under-standing of the technical disciplines related to thevarious water users, the future water resourcesmanager should be knowledgable about economics,ecology etc, and be able to undertake legal and socialanalysis in a complex society. Here lies an importanttask for universities and educational institutes toprepare the next generation of water managementprofessionals for the immense tasks that they are toface. One of the problems is that the teachers whohave to educate the future generation make use ofexperiences gained in a world less complex than thefuture one will be. Equally important, trained pro-fessionals should be able to work in an enablingenvironment with good career opportunities andincentive structures. If that is not taken care of, acostly brain-drain will follow.

Public participation and stakeholder involvement

Stakeholders can be defined as people, organizationsor institutions that have a direct interest in the waterresources system. Stakeholders include: water users,politicians, influential persons, pressure groups,research institutes etc. In planning water resourcesdevelopment, the involvement of stakeholders isessential to making the plan work, because the invol-vement of the stakeholders is a prerequisite forcommitment.

Water users, probably the most important group ofstakeholders, play a dual role in water resources man-agement: on the one hand, they are the ultimate bene-ficiaries of the water made available, but on the otherhand, they are the ultimate water managers, whosebehaviour in terms of water use and waste generationplays a decisive role on the condition of the waterresources system as a whole. One group of stake-holders that requires specific attention is women. It isslowly being recognized that women play a centraland crucial role in the supply, use and management ofwater resources in many countries, and that this roleshould be recognized more explicitly in waterresources planning and management.

The position of stakeholders and the related socialissues are therefore crucial in integrated water


I L


resources management. Planning that does not paysufficient attention to both has little chance of beingsuccessfully implemented. There is a great deal oftruth in the saying that planning requires both strongplanning mechanisms on a national level and a strongsocial structure on a local level. The desired behaviourof stakeholders can be stimulated through propereconomic incentives and regulations, but it can neverbe completely enforced by government agencies andwill always depend on their cooperation and commit-ment. An improved understanding on the part ofwater resources managers of the role of water in thelives of the stakeholders and the need for their effec-tive participation is essential for successful demandmanagement, and can substantially contribute to theacceptability of its controversial effects. Similarly, thesuccessful formulation of alternative or additionalmeasures and the distribution of costs and benefits inrelation to both willingness and ability to pay dependsupon an understanding of who the stakeholders are.

Many water resources projects in the recent past,however, still show a considerable lack of public parti-cipation or considerations of social issues. Many riverbasin projects, for example, concentrate on dam con-struction and the direct benefits of a regulated riverflow. As a result, productive land may be lost, popula-tions may have to be resettled and riverine productionsystems, including flood water agriculture and fishing,may be seriously damaged. Examples include the Kar-iba Dam on the Zambesi river, Lake Kanji in Nigeria,Keban Dam in Turkey and the Ubolratana Dam inThailand [7,19]. Other examples relate to Bangladesh,where polder construction has generated unequalbenefits between farmers and fishermen, and amongdifferent farmers. Fights and destruction of dikes haveoccurred on numerous occasions.

Fortunately, the news is not altogether bad. Inmany areas the awareness of the importance of publicparticipation and the use of local knowledge is grow-ing. In Bangladesh, due to experiences like the onecited above, considerable efforts are now made forlocal participation in flood control and drainageprojects. The responsibility for implementation, ope-ration and maintenance of such projects now lies prin-cipally with the local authorities and farmer organiza-tions.

Priorities for actionEssentially, water resources management is a nationalresponsibility. A sustainable use of natural resourcesthat is economically efficient as well as equitable,implies that decisions need to be taken to allocatefinancial as well as natural resources among compet-ing users or groups of users. Typically, such decisions

which will affect the availability of resources to futuregenerations are the mandate of national governments.Consequently, a strong organization at the nationallevel, including experienced and trained staff, andoperational linking mechanisms between all the agen-cies involved, is a prerequisite for adequate waterresources management.

The institutional structure at the national levelshould be complemented and supported through insti-*tutions at the local level. That includes, for example,village communities, irrigation associations and localwater boards. Experience has shown that sociallydesirable use-levels for the various uses can be stimu-lated through management actions, but cannot beenforced without the understanding and participationof the water users.

Priorities for water resources management

Integrated water resources management may enhancethe role of water resources in socio-economic develop-ment in both developed and developing countries.However, it should be kept in mind that such develop-ment will need to be sustainable from an environmen-tal as well as a social point of view. Some proposals toimprove the development and use of the waterresources system are given below.

• Demand management should be developed intoan operational alternative to supply management.Water should be considered an economic resource,and consequently adequate pricing should beimplemented where applicable. The price of watershould not only cover the direct costs of produc-tion, but should include its scarcity value as well.In the development of water pricing systems spe-cial attention should be paid to: (i) pollution andover-exploitation (mining) in relation to long-termsustainable use of the water; and (ii) social aspectsof equity concerning the access to water and theability of low income groups to pay.

• Public participation and community management.Large-scale infrastructure has proven to havelarge, and often adverse, social and environmentalimpacts. Water resources development should paymore attention to the self-reliance of local commu-nities, based on traditional approaches which areoften socially acceptable and environmentally'sound'. To achieve that objective requires publicparticipation at all stages in the planning process.In addition, community management should beconsidered a viable alternative to complement thenecessary strong role of government coordinationand planning.

• Functional institutional arrangements (structure



and linking mechanisms) are crucial for implemen-tation of integrated water resources management.Institutional conflicts can lead to issues of: coordi-nation with other sectors of the economy and theoverall economic development planning process,including the development and operation of cross-sectoral information systems; implementation ofplanned actions, in particular in relation todemand management; and enforcement of regula-tions.

o Careful planning and adequate supporting analy-sis is an important vehicle to prepare for successfulimplementation of integrated water resourcesmanagement. Proper planning can improvedecisions on investments and on allocation ofwater. Planning should not be a blueprint exercisebut should be an open-ended cyclical process.What is required at the national level is a capabi-lity for planning rather than cook-book masterplans. A capability for planning would include: (i)the availability and access to reliable and relevantdata, including monitoring and control data onimplemented measures; (ii) proper institutionalarrangements for implementation; and (iii)adequate and well-trained staff.

• Monitoring and control is important for both sup-ply and demand management and should coverboth the water resources system and its users.With respect to the water resources system, atten-tion should focus on water quality issues, such as:sources of pollution, distribution and accumu-lation of pollutants in the ecosystem, and harmo-nization of sampling and analysis procedures.However, not only the performance of the waterresources system should be monitored. Waterresources managers should enforce strict com-pliance with regulations governing the behaviourof water users and the impacts of water utilizationon the natural environment. Without such moni-toring and control, demand management is notlikely to be successful.

» In particular in developed countries, integrationbetween water, air, s'oil and coastal managementshould be improved. Interactions to be consideredare not only physical, chemical and biological, butalso utilization and regulation. For example, suc-cessful air pollution abatement measures, mightwell result in an increase in water pollution.

At this point, a word of caution is necessary.Although the need for, and the objectives of, inte-grated water resources management appear to bewidely supported, translation of such support intoimplementable policies for the sustainable use ofwater resources is difficult and time consuming.

Action plan for the international communityAn action plan for the 1990s for national governmentsand international agencies designed to promote, deve-lop and implement integrated water resources man-agement, should concentrate on the following areas:

• There needs to be improved coordination of donorsupport for water resources development in deve-loping countries. Long-term support to implementsustainable development and use of naturalresources is needed instead of short-term supportfor project implementation.

• The development and implementation of interna-tional rules and legislation on shared rivers andriver basins as proposed by the International LawCommission should be given high priority.

• Research and technological developments for themore efficient use of water are strongly affected bygovernment policies and actions. Such actionsshould be supported and coordinated on an inter-national level. Of special relevance to waterresources management today are: waste and pollu-tion control technologies; water saving technolo-gies in agriculture and industries, including re-useof water; and the public health aspects of irriga-tion projects.

• Institutional support. Institutional arrangementson a national level are crucial for proper imple-mentation of water resources management. Exist-ing knowledge and experience at the internationallevel should be mobilized and used to supportindividual nations to strengthen their institutionalarrangements. Long-term programmes, preferablythrough United Nations organizations, should bedeveloped and promoted to this end.

• Education, training and capacity building areessential for a new approach to the implemen-tation of water resources management. Educationand awareness of the importance of an efficient useof water resources for sustainable development, isat the root of the understanding that water is not afree resource any more. Training of waterresources managers is instrumental in passing onthe concept of integrated management and provid-ing them with the tools for implementation.Managers are needed with a firm grasp of econ-omic, social, environmental and legal aspects aswell as engineering aspects of resources manage-ment.

• Awareness and promotion. Continuous efforts arerequired to increase the awareness of waterresources problems in relation to sustainable deve-lopment and to develop and promote integratedwater resources management. Studies, publica-tions, workshops, creation of new institutes or


IWater and sustainable development: R. Koudstaal, F. R. Rijsberman and H. Savenije

support of existing ones, are among the maininstruments in this respect. It may be necessary tomount a strong lobbying effort to give the issues ofwater resources management and sustainabledevelopment a higher priority on the internationalenvironmental agenda.

Concerted actions are required at international, natio-nal and local levels. Demand management and corres-ponding institutional changes are high priorityactions, which essentially belong to national and/orlocal responsibilities. The international communityplays an important role in: the development andimplementation of international rules and legislation;research and technology development for a moreefficient water use; and awareness and promotion. Inrelation to developing countries, priority actions fordonor organizations should include improved coordi-nation and institutional support, education and capa-city building.

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tainable Development, Manila, Philippines, October1989.

2 Viqar Ahmed and Michael Bamberger, Monitoring andEvaluating Development Projects: The South AsianExperience, EDI Seminar Series, World Bank, Wash-ington, DC, 1989.

3 Warren C. Baum and S. M. Tolbert, Investing in Deve-lopment, Lessons of World Bank Experience, WorldBank, Oxford University Press, 1985.

4 Beijing, Protecting the Environment, Final Declarationof the Ministerial Conference of Environment and Deve-lopment, Conference of 41 developing countries from18-19 June 1991 in Beijing, China, in preparation of theUNCED 1992 conference, 1991.

5 Ronald G. Cummings, Victor Brajer, James W.McFarland, Jose Trava and Mohammed T. El Ashry,Waterworks: Improving Irrigation Management in Mex-ican Agriculture. WRI Paper No 5, World ResourcesInstitute, Washington, DC, 1989.

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by Improved Irrigation, Drainage and Water Use atFarm Level, Quezon City/Manila, Philippines, 7-16October 1970, Irrigation and Drainage Paper 12, Foodand Agricultural Organization of the United Nations,Rome, 1972.

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13 Maynard M. Hufschmidt et al, Environment, NaturalSystems and Development; an Economic ValuationGuide, The Johns Hopkins University Press, Baltimoreand London, 1983.

14 London, Final declaration of the G7 conference, Lon-don, 15-17 July 1991.

15 NOAA, The Use of Economic Analysis in ValuingNatural Resource Damages, US Department ofCommerce, National Oceanographic and AtmosphericAdministration, Environmental Law Institute, Wash-ington, DC, USA, June 1984.

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basin projects in Africa', Environment, Vol 31, No 2,March 1989.

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