Module 9 - Investments in Agricultural Water

A poverty focus is needed

Through expansion and productivity increases, agricultural water management has also contributed to poverty reduction, yet much more could be done. In particular, the rainfed areas where most poor people live have been largely bypassed by the green revolution and by public investment in enhanced water management. New investment in agricultural water must address poverty reduction by focusing on the adoption of efficient water management practices and technologies suitable for smallholders (such as the treadle pump) and on research and scaling up of alternatives to conventional irrigation (such as water harvesting and in situ rainwater conservation).

Private investment needs a conducive environment

Public investment in agricultural water is justified where it is efficient and pro-poor, but there is also great scope for governments to promote private investment, both by large-scale commercial operations and by smallholders. Private investment requires an investment climate providing security for investments, including secure land and water tenure. Governments can also promote public-private partnerships to reduce risks.

Agricultural water investment has to fit within broader development policy and a water resource management framework

The complexity and political sensitivity of water issues have important implications for agricultural water investments. Water is seen as a strategic input in food security policy and in poverty reduction strategies. It is also a key environmental resource. In addition, water is an input to other sectors and has to be managed within an integrated framework, especially where it is scarce. Water is also often a transboundary resource, and optimal management requires planning at an international, basin-wide scale.

The benefits of agricultural water

In many regions, irrigated agriculture is the main source of rural employment. Typically more productive than rainfed agriculture, irrigated agriculture reduces risks associated with climatic uncertainty. Investment in irrigated agriculture can benefit the poor if they are included in the design of projects, if they participate in the management of irrigation systems, and if they are exposed to new economic opportunities through the development of markets.