sharing benefits of transboundary waters through cooperation david grey the world bank international...

Sharing Benefits of Transboundary Waters through Cooperation

David Grey

The World Bank

International Conference on Freshwater Bonn, 2001

River basin management& boundaries

• Basins within nations with strong central government

• Basins within federal nations with strong state governments (transboundary waters)

• Basins shared by nations (international transboundary waters)

Legal complexityPolitical complexity

International transboundary waters

• Extent: 260 “river” basins shared by 2+ nations

• Culture: river/society, pride, sovereignty

• Jurisdiction: no entity unless negotiated

• Politics: ‘anarchy’ of international relations

• Principles: UN Convention foundation

• Tensions: longstanding, always, growing with demand, ‘water wars’….

‘New Geography of Conflict’

“Possible flashpoint for resource conflict”

“Water systems & aquifers• Jordan• Nile• Tigris – Euphrates• Amu Darya• Indus• Mountain Aquifer (W.

Bank/Israel)”

Overview

• What are the benefits of cooperation?

• How can these benefits be shared?

• Some lessons and conclusions

Benefits of International Waters Cooperation

The Challenges The Opportunities

Level 1:

Benefits to the river

Limited water resour. management: degraded watersheds, wetlands, biodiversity, & water quality.

Improved water quality, riverflow characteristics, soil conservation, biodiversity; a pre-requisite

Benefits of International Waters Cooperation

Sub-optimal water resources development

Improved hydropower & agricultural production, flood-drought management, environmental conservation & water quality

The Challenges The Opportunities

Level 2:

Benefits from the river

Level 1:

Benefits to the river

Limited water resour. management: degraded watersheds, wetlands, biodiversity, & water quality.

Improved water quality, riverflow characteristics, soil conservation, biodiversity; a pre-requisite

Benefits of International Waters Cooperation

Sub-optimal water resources development

Improved hydropower & agricultural production, flood-drought management, environmental conservation & water quality

The Challenges The Opportunities

Level 2:

Benefits from the river

Level 1:

Benefits to the river

Limited water resour. management: degraded watersheds, wetlands, biodiversity, & water quality.

Improved water quality, riverflow characteristics, soil conservation, biodiversity; a pre-requisite

Level 3:

Costs because of the river

Tense (+/-) regional relations & political economy impacts

Policy shift to cooperation & development, from dispute; from food & energy self-sufficiency to security; reduced conflict risk & military expenditure (+/-)

Benefits of International Waters Cooperation

Sub-optimal water resources development

Improved hydropower & agricultural production, flood-drought management, environmental conservation & water quality

The Challenges The Opportunities

Level 2:

Benefits from the river

Level 1:

Benefits to the river

Limited water resour. management: degraded watersheds, wetlands, biodiversity, & water quality.

Improved water quality, riverflow characteristics, soil conservation, biodiversity; a pre-requisite

Level 3:

Costs because of the river

Tense (+/-) regional relations & political economy impacts

Policy shift to cooperation & development, from dispute; from food & energy self-sufficiency to security; reduced conflict risk & military expenditure (+/-)

Level 4:

Benefits beyond the river

Regional fragmentation

Integration of regional infrastructure, markets & trade

Sharing the benefits

The Challenge• Optimal river development may give unacceptable

distribution of benefits• A mechanism for redistribution & compensation• ‘Fairness’ – subjective & situation specific• Potential benefits to be shared

– Water quantity/quality; water supply; hydropower; agricultural production; fisheries; transport; eco-tourism; trade….

• Political decisions

Sharing the benefits

Principles• Some international consensus on principles

– 1997 UN Convention on the Law of the Non-navigable Uses of International Watercourses (SADC Protocol, etc)

• “Equitable and reasonable utilization” • “No significant harm”• No consensus on prioritization

– UN Convention ‘vital human needs’

• No consensus on specific criteria

Sharing the benefitsPotential Criteria

• Physical factors: geography, hydrology, contribution to flow • Socioeconomic factors: total population, dependent

population, economic & social needs • Water Uses: existing & potential, efficiency of use• Alternative sources: availability & costs• Externalities: upstream & downstream• Conservation: impacts & efforts to preserve• Formulae: Equal (or proportionate) shares of flows or benefits

Sharing the benefits

Past practices • Compensation for lost benefits• Equal apportionment of flow to each riparian • Prioritization of uses • Payments for water • Absolute sovereignty of tributaries • Equal allocation of benefits, and • Relinquishing of prior uses

(after: Wolf)

Sharing the benefitsSome possible mechanisms

• Water sharing– (Re)assigning rights

• Payments for water – Payment for use rights, bilateral sale or water markets

• Payments for benefits – Compensation for lost benefits, payments to allow new uses

• Purchase agreements – power, agriculture, etc.– Agreed price can effect a transfer of benefits

• Financing & ownership arrangements– Agreed terms can effect a transfer of benefits

• Bundling broader benefits– Trade, transport….

Lessons in Benefit Sharing

• Importance of political PROCESS• Perception of fairness essential to sustain cooperation

on transboundary waters• Sharing benefits &/or water• Benefit bundles: the broader the better• Innovative benefit sharing mechanisms• Unique solutions

Process: the key lesson• Imperative of trust

– Build capacity to “level playing field”– Wide civil society engagement: basin “community of interest”– Share experiences “in the bus”

• Riparian ownership: ownership builds commitment– Self-financed institutional arrangements essential

• Riparian commitment – “Shared Vision”: recognizing “win-win”– Share benefits, not only water

• Inclusiveness & subsidiarity– Build basin-wide framework– Achieve early results through sub-basin action

Conclusions• No blueprints: from simple to very complex

• Process as important as product to achieve cooperation

• Twice as long & costly as planned - & then some

• From river cooperation to economic integration

• An instrument to support PROCESS? – sustainability & security (‘public goods’)

Share experiences ...