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In Mexico: Sergio Jellinek +1-202-294-6232
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Gabriela Aguilar Martinez +52 (044)-55-54-56-42-23
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In Washington: Kristyn Schrader +1-202-458-2736
Kschrader@worldbank.org MEXICO CITY, March 17, 2006—New investments in water management and development are essential for growth in developing countries, and they need to be sustainable – achieving the right balance between water security, and social and environmental protection – according to the new World Bank report, Water for Growth and Development (310k pdf). The report was released today during the Fourth World Water Forum taking place in Mexico City, March 16th – 22nd. “Simply constructing new infrastructure projects is not enough on its own,” said Kathy Sierra, World Bank Vice President for Infrastructure. “It is essential to manage and govern water resources effectively. Such water investments will lead to responsible growth, embracing both environmental sustainability and social development.” According to Water for Growth and Development, water security means access to reliable water supplies, good governance, and the possibility of managing acceptable risks from floods and other unpredictable weather events. A ‘minimum platform’ of investments is needed for water security, to ensure water underpins, rather than undermines, economic growth. Investments are needed in both infrastructure and institutions – with the right balance between the two. The report states that water investments must be designed to achieve responsible growth, weighing appropriately the right balance between water security and social and environmental sustainability. They must also be designed with the future in mind and be capable of adapting to changing needs and values as developing countries grow. “In the face of grinding poverty,” said Sierra, “developing countries confront difficult trade-offs in order to provide new infrastructure while aspiring to good social and environmental practice. In making such trade-offs it is important to recognize that the values of society will change with economic growth and that because this infrastructure is built to last for decades, it should be adaptable to the expectations of future generations. This is the central challenge of responsible growth.” The report points out that this requires new thinking and poses a series of challenges to everyone involved – developing countries, donor countries, and civil society. With the right infrastructure and effective management, water becomes much less of a barrier to development and much more of a stimulant of the growth needed for economic and social progress. How Water Interventions Affect Poverty Water for Growth and Development presents four ways water management and infrastructure can help reduce poverty in the developing world: · Broad-based river regulation and water storage schemes can benefit all people, including the poor. · Water resource projects can be aimed at the poor, such as restoring degraded water catchment areas in poor regions. · Broad-based water service projects can benefit everyone, including the poor, for example by improving the performance of water utilities. · Water service initiatives can be aimed at the poor, as with projects to provide water, sanitation and irrigation services to those without them. In most developing countries, action will be required on all four fronts. Water and Growth The publication explores whether investments in water management and development are a cause of growth, a prerequisite to growth, or a consequence of growth, concluding that the answer is dependent both on a country’s hydrology and its level of economic development, as the following three scenarios show: · Most industrial countries have “harnessed their hydrology.” The flows of most major rivers in these countries are managed, allowing water to be stored and water quality protected to ensure reliable and safe supplies. Examples include, The Netherlands, Norway, Japan, Australia, and the United States. · Many intermediate economies remain “hampered by hydrology.” In these countries, much investment has been made in water infrastructure, such as for hydropower and irrigation. However, many are still vulnerable to floods and droughts that can hold back growth. In other cases, weak institutions and limited human capacity can mean new infrastructure is not designed and managed well. Examples include India, South Africa, and Poland. Mexico has a strong history of water management and institutions, with a modern water law, a national water authority, water user associations, basin councils, a water rights system, and an incipient water market. Still, rapid population growth, depletion of groundwater aquifers, inefficient irrigation and water pollution are now compromising growth in Mexico’s most dynamic northern and central regions. · Many of the least-developed countries are “hostage to hydrology.” These countries often suffer both from harsh climates with extreme seasonal and annual rainfall variations, and from under-investment in water infrastructure and management capacity. Catastrophic events such as droughts and floods can have huge social and economic effects, often with large-scale losses of life. The expectation of such events discourages investment, undermining economic growth even in good years. Examples include Ethiopia and Yemen. In Ethiopia, rainfed agriculture accounts for nearly half of the country’s economy and employs some 80 per cent of the population. High rainfall variability and a lack of river regulation and water storage capacity have seriously undermined growth and perpetuated poverty. Potential GDP growth rates may be reduced by over a third as a result. Even a single drought can cut growth potential by 10 percent over an extended period. Financing basic water security The cost of closing the infrastructure gap in developing countries is truly daunting. Meeting this challenge will not only take innovations in water resource management, development and governance, but also in financing. All rich countries have achieved basic water security through public service provision, and have done so primarily through public finance with a judicious mix of private financing. Public financing for basic water security has been and will remain essential, but the scale of needed investments cannot be provided by public funds alone so the private sector will have an important complementary role to play. All investment, whether public or private, should be complemented by robust regulatory and monitoring frameworks, designed with the active participation of water users and civil society. To access the Water for Growth publication & brochure, please see ‘Water Fair Publications’ box on: www.worldbank.org/4wwf For information on the World Bank & Water in general: www.worldbank.org/sustainabledevelopment www.worldbank.org/water www.worldbank.org/wss # # # |
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