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

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1. chapter 1 part 1 introduction to iwrm

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