Escolar Documentos
Profissional Documentos
Cultura Documentos
Nirvikar Singh
Department of Economics University of California, Santa Cruz
Presentation for Federalism and Reform in Asia Project: 2010 Conference December 1-2, 2010
December 2, 2010 1
Outline
Introduction Water Issues Federal Institutions Analytical Review Current Developments Conclusion
December 2, 2010
Introduction
Indias potential water supply shortfall could be 50% of possible demand in 2030 80% of the projected shortfall will be manifested in agriculture Increased industrial and urban residential demand for water will need new infrastructure Climate change will be an additional challenge Water disputes and conflicts may increase in severity Governance institutions at all levels matter
3
December 2, 2010
Water Issues
India has 16% of the worlds population, but only about 4% of the total available fresh water Per capita storage capacity is relatively low Many manifestations of a perceived crisis
Supply and access urban, rural, groundwater depletion, contamination Irrigation inadequate and inefficient investment, poor maintenance Quality industrial pollution, household sewage Floods Conflicts
4
December 2, 2010
December 2, 2010
Economics of Water
Provision of infrastructure Maintenance of infrastructure Efficient pricing Regulation of externalities Incentive provision
December 2, 2010
Federal Institutions
Local water infrastructure a local government responsibility Water is in the State List Exception is regulation and development of inter-state rivers and river valleys
December 2, 2010
Federal Institutions
Water Resources Center Inter-state rivers All other Agriculture Procurement, PDS, CSS All other
State
Local
Potential only
8
December 2, 2010
Federal Institutions
Vertical coordination
International National Center-State State-Local Water resources Agriculture Water resources Environment Water resources Urban development
Horizontal coordination
December 2, 2010
Analytical Review
Harmon (upstream rights) History (historical use) Hobbes (contractual solutions) Coase theorem does not address distributional issue Coase result of separation of efficiency and allocation depends on absence of
December 2, 2010
Analytical Review
Inter-state agreements may benefit from intra-state improvements in allocation Local markets or user associations Investments without prior agreements on rights can be inefficient Noncooperative investments may be inefficient
11
December 2, 2010
Analytical Review
Enforcement issues
December 2, 2010
12
Current Developments
National Water Mission (2009) Part of National Action Plan for Climate Change Five goals of NWM:
Comprehensive water data base in public domain and assessment of impact of climate change on water resource Promotion of citizen and state action for water conservation, augmentation and preservation Focused attention to over-exploited areas Increasing water use efficiency by 20% Promotion of basin level integrated water resources management
December 2, 2010
13
Current Developments
NWM implementation
To be coordinated with national and state plans Proposes passage of state-level legislation Proposes capacity building at the level of local governments and local water user associations Proposes dedicated Mission secretariat Under MoWR Vertical two-tier, center and states Horizontal across ministries
Coordination proposals
December 2, 2010
14
Current Developments
December 2, 2010
15
Current Developments
Possible incentives to state and local governments for implementing reforms in water management
Set of possible criteria for evaluation, including subsidy reduction and creation of new regulatory institutions
Local level
Main NWM document mentions engaging with local governments and water user associations Sub-committee reports prposed funding for WUAs, as well as a discussion of operational models and supporting legislative changes
Relative disconnect between national and state policies on the one hand, and local implementation on the other
December 2, 2010
16
Current Developments
Hierarchy of specialized water management associations from national to river basin down to local level Uniformly remove a set of decisions with respect to water sharing and use outside the general political orbit, without tilting power towards the center
Amendments to ISWD in 2002 have not solved political problems of inter-state river disputes
Monetary investments required for improved efficiency are also not large in total
17
December 2, 2010
Current Developments
Water-saving agricultural practices not part of the NWM funding framework Ministry of Agriculture efforts, but with relatively low allocations National Policy for Farmers and National Mission for Sustainable Agriculture are not detailed documents, nor are they coordinated with NWM
River-interlinking scaled back still issues of costbenefit, especially versus water-saving innovation Urban water infrastructure and use
JNNURM channels funds to municipal governments Need institutional development of these governments
18
December 2, 2010
Conclusion
India faces severe but manageable challenges with respect to water resources, over the next two decades and beyond Government responses display beginnings of integrated approach to water management
Quality of analysis higher than in the past Still need prioritization and rigorous cost-benefit analysis Translating national policies and strategies into state and local action Coordination across ministries, particularly those responsible for agriculture and for water resources
19
Challenges
December 2, 2010