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Environment Strategy PapersEnvironmental Rafik Hhj`Hans Olav lbrekkand WVaterResources Strategy Series

ManagementrNumber2Manage ment October 2001FTnE COPYThe World Bank EJ Environment Departmen


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ENVIRONMENTSTRATEGY PAPERS No. 2

Environmental and WaterResources Management

Rafik HirjiHans Olav Ibrekk

October 2001


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The International Bank for Reconstructionand Development/THE WORLD BANK1818 H Street, N.W.Washington, D.C. 20433, U.S.A.Manufactured in the United States of AmericaFirst printing October 2001

In 2001, the World Bank completed the comprehensive two-year process of preparing its EnvironmentStrategy, Making Sustainable Commitments: An Environment Strategy for the World Bank. It was endorsedny the Bank's Board of Directors and published in October 2001. Several background papers were preparedand published by the Bank's Environment Department to stimulate constructive dialogue and intellectualziscussion on a range of issues within the Bank as well as with client countries, partners, and other interestedstakeholders. The Environment Strategy Paper series includes revised versions of Environment StrategyDackground papers, as well as new reports prepared to facilitate implementation of the Strategy. This seriesaims to provide a forum for discussion on a range of issues related to the strategy, to help the transfer of goodxractices across countries and regions, and to seek effective ways of improving the Bank's environmentaloerformrance.


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Contents

v Prefacevii Acknowledgments1 Executive Summary7 Chapter 1: Water-Environment-Poverty Linkages7 Background

10 Sustainable Water Resources Development and Management11 Poverty Alleviation11 Notes13 Chapter2: Global Trends Relating to Water and Environmental Management13 Three Profound Changes in Thinking14 Changing Role of the Public and Private Sector14 Key Threats20 Key Challenges25 New and Emerging Opportunities25 Notes27 Chapter3: Global Lessons from Bank Experience27 What Ha s the Bank Been Doing?28 Lessons Learned37 Chapter 4: Strategic Framework Fo r Action37 Adopt Clear Framework for Environmenially Sustainable Water ResourcesDevelopment38 A Comprehensive Approach to Water Resources Management38 Mainstream Environmental Issues in Water Resources Planning and ManagementDecisionmaking40 Environment Uses of Water40 Water Quality and Pollution Management

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Environmental and Water Resources Management40 Climate Change Adaptation and Mitigation43 Chapter 5: Way Forward43 Develop Human Resources44 Analytical Work45 Strategic Partnerships46 Indicators

Annexes49 Annex A: Regional W ater-Related Environmental Priorities53 Annex B: Linkages Among Water, Environment, and Dimensions of Poverty55 References57 Color Graphics

Boxes5 Box A. Overall assessment

11 Box 1, Sustainability outcomes for water use15 Box 2. Water pollution and human health16 Box 3. Challenges for managing groundwater contamination17 Box 4. Impact of poor land use on Mombasa water supply infrastructure18 Box 5. Impacts of poor drainage19 Box 6. Problems caused by Water Hyacinth24 Box 7. World Commission on Dams: Priorities for sustaining rivers and livelihoods28 Box 8. Key environmental findings of OED's evaluation of the implementation of theWater Resources Management Policy of 199328 Box 9. Environment and poverty alleviation objectives of Water ResourcesManagement Policy31 Box 11. Integrating environmental and social considerations in power sector planning

in Nepal33 Box 12. Strategic Partnership for Nutrient Reduction in the Black Sea/Danube Basins34 Box 13. Environmental flow assessments for the Lesotho Highlands Water Project35 Box 14. Overall assessment46 Box 15. Suggested ind icators

Tables11 Table 1. Linkages between water, environment, and poverty

Figures7 Figure 1. Water and water-based ecosystems values8 Figure 2. Water-stressed and water-scarce countries: 2025 projections

23 Figure 3. Wastewater generated and reused in selected countries

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Preface

T omprove the management of water The paper isbased on a review of regionalsector investments, the World Bank is environment strategies (prepared for thepreparing a Water Resources Sector Environment Strategy), on a review of the water

Strategy, and to enhance the main-streaming of sector portfolio and country focus studies (donethe environment in Bank investments, the Bank for the Water Resources Sector Strategy), andis preparing an Environment Strategy. This on consultations with other sector boards andbackground paper is the Environment Depart- Bank staff.ment's contribution to both these efforts. Itfocuses on the environmental sustainability of Chapter 1 outlines water-environment andwater-related investments and policies sup- poverty linkages. It identifies the six dimensionsported by the Bank and evaluates how effec- of poverty and how environment and watertively the Bank is integrating environmental management are related to each other. It alsoquality objectives in water resources planning presents a possible set of sustainable outcomesand management. for the water sector. Chapter 2 addresses

emerging global trends related to water andA second objective of this paper is to review environmental management. Chapter 3 summa-the World Bank's efforts to mainstream the rizes lessons from Bank experience. Chapter 4environment in its lending and non-lending presents the implications for the Bank in termswater resources activities and operations, and of a strategic framework for action, and Chapterto draw lessons for enhancing the environmen- 5 considers how to support implementation oftal sustainability of water sector investments. the strategic framework.

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Acknowledgments

T his paper was prepared by Rafik Hirji the World Bank and Deborah S.Rubin fromand Hans Olav Ibrekk of the Environ- Cultural Practice. Guidance was provided byment Department with support from the Water Supply and Sanitation Sector Board

Walter Garvey, David Hanrahan, Nagaraja Rao and many Bank staff during the preparation an dHarshadeep, and Stephen F.Lintner of the review process, including Inger Andersen,World Bank, and Alfred Duda of the Global Mohamed Bekechi, Greg Browder, Jack Fritz,Environment Facility. The paper also benefited Jose Furtado, Agi Kiss, Magda Lovei, Andreafrom comments on early drafts provided by Merla, Douglas Olson, Robert Robelus, KateJohn Briscoe, Franklin Cardy, Salah Darghouth, Stevens, and Heinz Unger.John Shepherd, and Le e Sumter Travers from

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Executive Summary

T his paper reviews the World Bank's freshwater biodiversity on which people,efforts to mainstream the environment in especially the poor, often depend directly.its lending and non-lending water Hence, it is essential to maintain the stability,

operations. It isalso intended to inform ongo- health, and productivity of the water resourcesing Bank efforts to prepare a Water Resources system.Sector Strategy and an Environment Strategy.The paper summarizes lessons from past and A Systemic Water Crisis. Over the past severalongoing practice and recommends a strategic decades, food production as a result of theframework for enhancing the environmental green revolution has improved dramatically,sustainability of water sector investments. It is and access to drinking water expanded for 2.4based on a review of regional environment billion people, while access to sanitationstrategies, on the water sector portfolio and facilities improved for 600 million since 1980.country focus studies, and on consultations The world, however, continues to experience awith other sector boards and Bank staff. systemic water crisis as a result of unsustain-

able use and management of water resourcesThe Resource Base. The water resources due to poor social, environmental, or economicsystem-consisting of water (in rivers, aquifers, policies and actions. At the same time, there isand lakes) and land- and water-based ecosys- a need to increase water supplies and servicestems (watersheds, wetlands, and floodplains)- to needy populations in an environmentallyis essential for the sustenance and health of all sound manner. Traditional problems concern-species. The resource provides services with ing the provision of water supply and sanitationmany direct, indirect, option, and non-use services in urban and rural areas will requirevalues. As a source of natural capital, it is a concerted efforts: more than a billion people doprimary input for a whole array of human not have access to potable water supply and 3needs and economic development activities. As billion do no t have adequate sanitation. With aa sink, it is used as a receptor for wastewater rapidly increasing population, the problems ofdischarges. Fresh water sustains the integrity of food security and growing demand for water tothe ecosystems that serve important ecological generate electricity, meet domestic supply, andand hydrological functions and as hubs of support industrial development persist.

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Environmental and Water Resources ManagementNew Threats. The water sector faces new The potential hydrological, ecological, andthreats and challenges related to the local and economic consequences of these new threatsbasinwide degradation of water resources to the water sector are significant. They cansystem from water allocation conflicts, water threaten the ability of the water resourcepollution, and land degradation, along with system to continue providing the basic hydro-similar issues at the transboundary level and logical and ecological services that traditionalclimate change considerations at the global services depend on; cause irreversible damagelevel. These will have a direct bearing on the to and further stress an already stressed waterway water resources are managed in the resource; undermine investments in waterfuture. supply, irrigation, and energy services; and

affect downstream coastal and marine re-Rapid urbanization, for example, isoutpacing sources. The cumulative effects on down-governments' abilities to provide clean water, stream waters often create new transboundar'ysanitation, and waste management services, problems that are difficult to deal with.and also forces governments to address theimplications of changing land use and en- The new threats have a disproportionatecroachment on recharge areas and wetlands. impact on the poor, who directly or indirectl'Excessive regulation and overabstraction of depend on terrestrial and aquatic ecosystemswater can alter natural flows, cause irrevers- for income generation. Because of social andible damage, and affect downstream uses, economic disadvantages, the poor often live intriggering a sequence of negative environmen- fringe areas, where access to potable suppliestal impacts. Water pollution from point and and adequate sanitation facilities is limited andnonpoint sources diminishes use of water for where higher mortality, morbidity, and diseaseother uses, increases cost of treatment, and rates prevail. Or they live in highly vulnerableharms ecosystem functions and people's areas (floodplains and degraded watersheds),health. Inadequate access to sanitation facili- where the buffering capacity to natural andties is contributing to waterborne diseases and humanmade shocks and disasters is dimin-illness. Destructive land use (poor cultivation ished. Also, poor communities relying onmethods, deforestation, and overgrazing) is flood recession agriculture, dry-season live-reducing storage; altering runoff, infiltration, stock water supplies, or fishing are often leftand available water supply; increasing soil ou t when major upstream water allocation orerosion, sedimentation of reservoirs, and urban/industrial development decisions areirrigation canals; and damaging water supply made without adequate consideration ofinfrastructure. Poor drainage is causing downstream uses.waterlogging and salinity problems, and, in afew cases, concentrating naturally occurring Key Challenges. To address the emergingchemicals to toxic levels. Introduction of alien threats, many challenges need to be consid-and exotic species isdevastating biodiversity, ered. Fundamental policy, legal, and institu-and invasive weeds are causing water losses tional reforms are needed to institutionalizeand quality deterioration, serious operational the principles of sound water resources andproblems and costly maintenance, and environmental management and to promotedamage to ecosystems. their effective implementation. Economic2 Environment Strategy Pdpers


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Executive Summaryanalysis of natural resources degradation ment. It called for treating water as a scarce(including valuation of resource degradation) resource with an economic value and pro-and management options needs to be inte- moted cost-effective interventions for linkinggrated fully in the project cost benefit analyses. land use management as an integral part ofHalting degradation and loss of ecosystem sustainable water management, for addressingfunctions needs to be a priority in important quantity and quality concerns in an integratedwatersheds, recharge areas, and wetlands. manner, for using river basins as planning andConcerted effort isneeded to address the manageme nt units, and for addressing water indeterioration of freshwater lakes and reser- an integrated manner. It supported participa-voirs. The promotion of drainage and sanita- tory management and focused on actions thattion projects needs to be examined carefully. improve the lives of the poor. Decentraliza-The technical, social, and institutional dimen- tion, p articipation, and sustainability havesions related to the reuse of wastewater become important guideposts for project andeffluents need careful study. policy design in the water sector. In addition,

with the support of the Global EnvironmentDemand management should be a central Facility, the World Bank has significantlyelement of water sector investments concern- expanded activities dealing with ecologicaling consumptive uses of water. To meet aspects of water resources management.growing water demand for domestic, indus-trial, irrigation, and energy supply, future Increased Role of the Private Sector anddevelopment of water resources will require Emerging Global Trends. Governments andadditional storage and regulation facilities the public sector are increasingly being(new dams, for example) and interbasin water transformed from owners and managers oftransfers. Such investments, if warranted, must water infrastructure and sole provider of waterintegrate social and environmental assess- services to facilitators, enablers, and regula-ments early in the planning process (as part of tors. As part of a growing trend, community-options assessment), and their outcomes based organizations, user groups, and autono-should effectively inform the project planning mous water utilities are assuming a greaterand management decisionmaking. The direct role in management, operation, andmanagement of transboundary waters needs to maintenance of these facilities. The privatebe based on frameworks promoting the sector is playing a larger role, particularly insharing of benefits and regional cooperation. the case of management of water utilities. It isAddressing the implications of climate change essential, however, to ensure that such reformson water resources management will require are complemented by an effective regulatorybetter preparedness, including adaptive framework for managing water resources andplanning and investment, mitigation, and local safeguarding sustainability of the resourcepredictive and forecasting capability. base. Globalization, new information tech-

nologies, and new interdisciplinary ap-Policy Shift. The 1993 Water Resources proaches provide opportunities to improve theManagement Policy Paper of the World Bank management of water resources, but suchpromoted a major shift from a sectoral to a interventions will be sustainable only ifcomprehensive approach to water manage- appropriate water resources managementHirji and Ibrekk 3


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Environmental and Water Resources Managementregulatory frameworks, economic regulators to nicate this message and mobilize support forprotect the public and the private sector actions that call for the protection of naturalagainst monopolistic behavior and other assets represents a major failure of the environ-factors, and safety nets to protect the poor are mental community.in place. Otherwise, the risks of creatingunnecessary or marginal investments and Safeguards. Environmental assessments (EAs)increasing debt burden will be magnified. have proved to be a useful tool for screeningand predicting potential impacts, bu t capacitvLessons Learned. Box A presents an indicative constraints and lack of commitment andassessment of World Bank-funded water political will hinder the effective integration cfprojects against the three environmental environmental issues in water projects. As aresult, often EA s have limited impact onprinciples in the Water Resources Manage- poetpann n eiinaig nment Policy Paper: safeguarding, demand pmaniagement, and protecting biodiversity! especially on the analysis of alternatives.environmental flow. The assessment reflects Demand Management. The Bank's Waterthe extent to which the principles have been Resources Policy gives a high priority toinstitutionalized in Bank policies and proce- encouraging and assisting countries in imple-dures and integrated in water resources menting demand management. Failure to usemanagement operations. (The assessment is economic instruments to manage waterbased on a "traffic light" characterization demand and to guide allocation often result inconsistent with the approach used in the inefficiencies. The strategy stresses the impor-Water Resources Sector Strategy: a "green" tance of using decentralized implementationlight implies that the principle has been fully processes and market forces to guide theincorporated into water projects; a "yellow" appropriate mix of public- and private-sectorlight, that some elements of the principle are provision of water services. Given that therepresent but that there are also many shortcom- are many environmental externalities associ-ings; a "red" light, that there is little progress.) ated with water development, as well as

supply monopolies, the comprehensiveAlthough environmentally sustainable use of framework includes development of a soundwater is a fundamental element of sound water regulatory environment and an incentive-resources management, the integration of based management by including concepts ofenvironmental quality objectives remains a charges, resource rights, pollution permits, andmajor challenge in water policy reform and catchment levies. Thus the framework iswater resources project planning, develop- intended to incorporate cross-sectoral andment, and management decisionmaking. It ecosystem interdependencies, along withremains the most poorly understood topic and socioeconomic concerns and institutions, andto enable participation of all stakeholders inis still considered an obstacle to development. thefoml ation ofoiis,aregulatosanThe value of natural assets such as watersheds, pbi in nt plans rewater.recharge areas, and wetlands as storagefacilities and as fundamental elements of the Protection ofBiodiversityand Environmentalhydrological cycle and ecological systems is Flows. Few water policies have recognizednot fully appreciated. The inability to commu- and given priority to environmental flow4 Environment Strategy Papers


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Executive Summary

requirements as important components of mainstreaming environmental quality objec-water us e or incorporated them in allocation tives into water resources planning, develop-procedures. Water allocation requirements for ment, and management programs and invest-environmental uses, including the protection ments. The main elements of the frameworkof biodiversity, should receive increased are:priority, given increased demand for water and Framework for EnvironmentallySustainablefrequent problems with degradation of water Water Resources Development-adopting aquality. The Bank should support development framework of objectives and criteria forand implementation of water policies that environmentally sustainable water resourcesinclude explicit environmental quality criteria management to mainstream integration ofthat define and se t priorities for environmental environmental quality objectives into wateruses of water, and that provide for a structured resources planning, development, and man-approach to address them in planning and agement decisionmaking.water allocation decisionmaking.

A Comprehensive Approach to Water Re-Strategic Framework for Action. The Strategic sources Management-considering water as aFramework for Action provides a basis for scarce resource with a scarcity value, treatingachieving the broad objective of systematically water as a unitary resource that needs to beBOX AOverall assessment Effective(Please see acolor version of this figure inAnnex C. age 57.) Institutionalized integrationSafeguard principles* All projects subject to EA* EA is n effective instrument for mainstreaming* Adequate EA capacity in he water sector Yellow Yellow/Red* Adequate consultations during the EA process* Sectoral environmental assessmentsDemand monagement principles* Demand management included inmost

WS S projects* Wastewater reuse increasingly being considered Yellow Yellow* Increased focus on sanitation* Increased focus on drainage* Use of water quality management strategiesProtection of biodiversitylenvironmental flow principles* Regularly addressed inBank-funded projects* Recognized as aconcern in many projects* Water policies include explicit environmentalcriteria Yellow/Red Yellow/Red

Legend:Red = Little progress.Green = The principle has been fully incorporated inwater projects.Yellow = Some elements of the principle are present, but there are many shortcomings.Hlrji dnd Ibrekk 5


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Env ronmental and Water Resources Managementaddressed in a comprehensive manner using concerns more fully into management strate-hydrologic basis (linking upstream and gies and programs through both preventivedownstream considerations of all sectoral and remedial actions to address control ofuses), supporting a shift from remedial to point and nonpoint source pollution of surfacepreventive actions, and improving the integra- and subsurface waters.tion of environmental quality objectives inregional and national water resources manage- Climate Change Adaptation and Mitigation-ment strategies and sectoral activities. supporting strategies for improving prepared-

ness for the impacts of climate change in waterMainstream Environmental Issues in Water resources planning and managementResources Planning and Management decisionmaking, including promotion ofDecisionmaking-promotingsystematic and adaptive planning and investment, strengthen-timely integration of environmental quality ing predictive and forecasting capability, andand biodiversity conservation objectives in encouraging development of strategic droughtwater resources policy reforms, projects, and management strategies.investment actions and in river basin planning,and changing the safeguard policy orientation Way Forward. Effective implementation of thefrom a "do no harm" to "promote improved Strategic Framework for Action will requiredevelopment." This also calls for recognizing undertaking a set of complementary measures,biodiversity as a global public good and including:integrating its tradeoff in water resources * Strengthening environmental managementplanning and management decisionmaking. capacity

* Use of interdisciplinary teamsEnvironmental Uses of Water-increasing * Facilitating knowledge sharingattention to downstream impacts of water * Improving analytical workprojects; promoting the allocation of water * Strengthening strategic partnerships.rights for ecological uses of water and con-ducting environmental flow assessments as Accomplishing these objectives will require aintegral parts of water resources management, long-term commitment by the Bank andplanning, and investment studies (including allocation of incremental resources for pro-environmental assessments). moting policy dialogue, cooperatively under-

taking sector studies, and preparing andWater Quality an d Pollution Management- supervising lending operations and thesupporting actions to integrate water quality provision of non-lending services.

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Chapter 1 IWater-Environment-Poverty Linkages

BACKGROUND serve important ecological and hydrologicalSyste inCrisis.hewaterresou functions and that people, especially the poor,system-inCistis Th water (riesrcs often depend on directly. Hence, it isessentialrA t aquifers, and lakes) and water-and to maintain the stability, health, and productiv-w aquifers, and lakes) and water- andland-based ecosystems (watersheds, wetlands, ity of the water resources system.

and floodplains)-is essential for the sustenance The World Water Vision, issued in Marchand health of all species. Figure 1 highlights the 2000, highlighted two key water managementmultiple uses, values, services, and functions ofwater and of land- FIGURE 1.Water and water-based ecosystem valuesand water-basedecosystems. As asource of naturalcapital, the water r _ ;resources systemprovides fundamen- jtal input for a wholearray of human DIRECT VALUES INDIRECT VALUES OPTION VALUES NON-USE VALUESneeds and economic Consumptive Ecosystem Premium Intrinsicdevelopment and non- functions and placed on significance inconsumptive services such as: possible future terms of:activities. As a sink, use of resources Water quality uses and Cultural valueit isused as a Domestic use Water flow applications. he-thAricIndustrial input Water storage including:receptor for waste- Irrigating crops Water purification P-. , B- .il.water discharges Watering stock Water recharge etc.Hydro-power~ Flood controlfrom point and Wild plants Storm protection L, enonpoint sources of Wild animals Nutrient retention retc ,.eI Fishing Micro-climate etcpoll1 ut on Fes h | Transport Shore stabilizationwater sustains the Recreation etc.integrity of theecosystems that Source: Turpie and Van Zyl 2001.

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Environmental and Water Resources Managementachievements of the past decades that have water supplies, and even larger numbers lacksignificantly improved the welfare of people. adequate sanitation facilities. TraditionalThe green revolution, facilitated by irrigation problems concerning the provision of waterexpansion, use of high-yielding crop varieties, supply and sanitation services in urban andapplication of fertilizers and pesticides, and rural areas will require concerted efforts: moreimproved management practices, resulted in a than abillion people do not have access tohuge increase in food production and cut food potable water supply, and 3 billion do notgrain prices in half. Access to potable drinking have adequate sanitation (World Waterwater has increased for 2.4 billion people, and Council 2000).1 With rapidly increasing600 million more people have access to population, the problems of food security andsanitation since 1980 (World Water Council growing demand for water to generate electric-2000). These achievements have contributed ity and support industrial development persist.enormously to a lessening of poverty by These emerging problems arise not only fromcountering the vulnerability to droughts, increased demand for water, but a!so fromimproving standards of living and health, and degradation of water resources and aquaticfostering economic development. ecosystems, which in part are a result of

policies and actions to address the traditionalDespite these achievements, major challenges problems.'remain. There is a persistent and systemicwater crisis in many countries. Water is a Environmental Degradation Threatensscarce resources in many countries (see Figure Functioningof the Resource Base. The rising2), and competition over its use is causing demand for and use of water, combined withsevere conflicts between and among user unwise land and water use practices, pose agroups. Droughts often exacerbate water use serious threat to people's health and foodconflicts in water-stressed areas, and they security because they threaten present andhighlight weaknesses in water management future productivity and functioning of watersystems. Large numbers of people remain resource systems. Economic and populationwithout access to safe and reliable drinking growth not only causes an increase in aggre-

FIGURE 2. Water-stressed and gate water use but also produces wide-rangingwater-scarce countries: 2025 projections and often negative effects on other vital

(Pleose see a full-sized, color version elements of the water resource system. Theseof his figure in Annex C,poge 58.) effects include, for example, degraded soils

and land, deforested and degraded watershedsthat result in damaging changes in the watercycle (including drying of rivers), increasedwastewater discharges that affect downstream

ii * ' bi 1tJ luses of water and the coastal and marineresources, and encroachment and interferencein the normal functioning of wetlands.Groundwater contamination by toxic sub-

Water Water stances reduces the use of water for drinkingSourceStrngelan andsos Sc93.ypurpose and increases public health risks.Source: Engelman an d LeRoy 1993.

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Water-Environment-Poverty Linkages

The situation in the Aral Sea demonstrates to address the effects. Compounding the crisishow these effects can take place at a basin or are difficulties in jointly managing the numer-regional scale, and the broad nature of the ous rivers, lakes, and aquifers shared by moreeconomic and social impacts. The desiccation than one nation, given their complex waterof the Aral Sea due to heavy withdrawals for rights arrangements and treaties.irrigation has resulted in the degradation ofdelta ecosystems, the destruction of the open Disproportionate Impacts on the Poor. Thewater ecosystem, loss of the fishing industry, majority of the poor live in rural areas andcreation of salt winds toxic to humans and depend directly or indirectly on terrestrial anddeleterious to crops, a depressed economy, aquatic (including coastal and marine) ecosys-and the creation of environmental refugees tems and biodiversity to support their liveli-(World Bank 1993). Annex A provides a hoods. Natural resource products such assummary of water-related environmental firewood and construction materials, alongproblems in each Region based on regional with non-timber forest products such asenvironmental strategies. medicinal plants, water, and fish, amount to a

large proportion of the household consump-Factors Precipitating the Emerging Crisis. The tion. And their use, collection, and saleemerging "water crisis" in many parts of the contribute significantly to household incomes.world is a result of unsustainable use andmanagement of water resources due to poor The sustainability of traditional agriculturalsocial, environmental, or economic policies systems of the rural poor depends on naturaland actions. The crisis has been precipitated resources, which provide fodder, compost,by the combined effects of uncertain water and nutrients. Because of social and economicsupply due to climate variability and climate disadvantages, the poor reside in poorlychange, declining availability of fresh water serviced and fringe areas such as rural areas,per capita as a result of demands of rapidly slums, and peri-urban squatter settlements, orgrowing populations, and increasing degrada- in vulnerable areas such as degraded landstion of surface and groundwdter resources due and floodplains, where there is limited buffer-to many types of unsustainable water and land ing capacity to withstand natural oruse practices. Destructive land and water use humanmade disasters such as floods, drought,activities undermine the integrity of aquatic or major changes in hydrology due to theecosystems and threaten both the natural abstraction or regulation of rivers.capital and invested capital and thesustainability of the water resources system. In contrast, the social and economic impact ofOverabstraction of surface water and some environmental problems, such asoverpumping of groundwater, along with saltwater intrusion or land subsidence induceduncontrolled discharges of municipal, indus- by groundwater pumping or the loss oftrial, and agricultural waste, impair water biodiversity values as a result of encroach-quality and impose considerable costs on ment, may be felt across the whole spectrumdownstream users. Often, more than one of the society. In reality, the brunt of thefactor contributes to a single problem, requir- economic burden falls disproportionately oning a set of policy decisions and interventions poor, disadvantaged communities with littleHirji and lbrekk 9


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Environmental and Water Resources Managementvoice. For example, water allocation decisions useful in assessing where present policies andfor hydropower, development of irrigation, or plans may lead or are leading, or in decidingurban/industrial uses are often made without among alternatives strategies. Box 1 outlinesadequate consideration of downstream uses one possible framework for definingand needs, and downstream communities wh o sustainability of the water resource system inrely on flood recession agriculture and dry- operational terms. Note how this frameworkseason water supplies for livestock (such as in has multiple dimensions: it concerns water formany parts of Sub-Saharan Africa) lose access both human needs and ecological functions,to resources, in large part, because their water quality and quantity, the integrity of theinterests are either not represented in the hydrologic system and protection of thedecisionmaking process or are barely consid- resource, availability and accessibility ofered. information, and the participation of stake-

holders in development and management.This framework has the same character asintegrated water management in the sense thatDEVELOPMENT AND MANAGEMENT consideration of just a single dimension (user,

Sustainability is a complex concept with as use, characteristic) of the water system doesmany definitions as there are settings and no t give an adequate framework for develop-advocates. Nevertheless, the lessons of water ment and management.development over the past decades demon-strate that ignoring this issue can lead to The elements outlined in Box 1 are commonlydiminished welfare and lost opportunities. An found in new water sector policy statementsimportant focus of the World Bank's Water developed in recent years, reflecting theResources Sector Strategy is he issue of widespread and common understanding of thesustainable water service delivery, including direction that future water management mustthe infrastructure vital to those services. Here take. It is proving much more difficult towe are concerned with the broader concept of translate these policy statements into strategiesa sustainable use of the resource base, and the and action plans, in part because they fre-conditions or criteria that might be used to quently involve fundamental changes inassess whether a particular development path institutions, changes in behavior and mind-set,is leading toward a sustainable outcome. and the social mobilization, inclusion, and

empowerment of water users who have beenSustainable water use can be defined as the excluded from water resource planning anduse of water that supports the ability of human development. The Water Resources Sectorsociety to endure and flourish into the indefi- Strategy devotes considerable attention to thenite future without undermining the integrity political economy of these change issues.of the hydrologic cycle or the ecologicalsystems that depend on it. Sustainable use of Another reason for the difficulty in translatingwater resources is a key element of the policy into action is the lack of an institutionalConvention of Biological Diversity. An y framework, and of the requisite capacity, tonumber of explicit goals and criteria could be plan and manage resources in a mannerdeveloped to express this concept and make it consistent with such a multidimensional,10 Environment Strategy Papers


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Water-Environment-Poverty Linkages

BOX I. monitoring systems for achieving sustainableSustainable outcomes for water use outcomes, it is difficult in the best of circum-stances to formulate such plans.* A minimum water requirement isguaran-

teed to al l humans (and realized) to maintainhuman health. POVERTY ALLEVIATION* Sufficient water isguaranteed to restore an dmaintain the health, services, an d functions Water and environment are linked to povertyof ecosystems. Specific amounts will vary alleviation in two important ways. First,depending on climatic an d other conditions. strategies to reduce or alleviate poverty shouldSetting these amounts will require flexible not lead to further degradation of waterand adaptive management.* Data on water resources availability, use, and resources or ecological functions and services,quality are collected and accessible to all and second, more sustainable water use andstakeholders. improved environmental quality should* Water quality is maintained to meet agreed contribute directly to reducing poverty. Astandards. broad definition of poverty extends well

* Human actions in a basin do not impair thelong-term renewability of freshwater stocks beyond i eand cons ti t ncludeand flows. inequality, health, opportunity, livelihoods,* Institutional mechanisms exist to resolve and vulnerability. Elements of a basic frame-conflicts over water. work for linking water, environment, and

* Water planning and decisionmaking are poverty are summarized in Table 1 andparticipatory, and all affected stakeholders elaborated on in Annex B.are represented.

Source: Gleick an d others 1995. NOTES1. In the East Asia and Pacific Region, some

integrated framework. Planning and develop- 290 million people lack access to safement continue to lie mainly in the hands of water, of which about three-quarters live innarrow, sector-focused agencies that lack the rural areas; in addition, approximately 240broader mandate, incentives, and experience million people in urban areas and 1,045with comprehensive participatory planning million in rural areas lack access to sanita-processes. Lacking good indicators and tion. In Middle East and North AfricaTABLE I. Linkages among water, environment, and poverty

Dimensions ofpoverty Examples ofwater and environmental linkagesIncome and consumption Access to water for productive use, access to natural resources, sustainablegrowthInequality and equity Secure tenure and access to natural resources, water rights and entitlementsSustainable livelihoods Sustainable land and water use practicesHealth Water quality, safe drinking water and sanitation, water bodies protected fromvectors and diseaseSecurity and vulnerability Improved disaster preparedness and response, water harvesting and conservationInclusion and empowerment Participation; devolution of ownership, rights, and responsibilities to water users,community groups, basin organizations, local governments

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Environmental and Water Resources ManagementRegion, 45 million people lack access to loads carried in surface waters), and industrialsafe water and 85 million people (30 discharge and agricultural runoff (influencingpercent of population) lack sanitation. In the chemical, biological, and physicalLatin America and Caribbean Region 70-90 properties of water).percent of the urban population and 20-70percent of the rural population have access The first-order environmental impactsto safe water. Similar variations can be related to water resources concern effectsfound in South Asia and in Africa (World on the quantity, timing, and quality of waterBank, 2000a). from direct use or management of surface

and groundwater and from all sectors that2. Water resources management activities use water or affect catchment waters.

include investments for urban, rural, Hydrological and water quality changes andindustrial, and agricultural water supply; other alterations may in turn cause second-sewage treatment; flood control; irrigation order impacts (such as on primary produc-and drainage; and hydropower and naviga- tivity) and third-order impacts (on the foodtion projects. Other sectoral activities web), with consequences for downstreamaffecting catchment waters include forestry, aquatic ecosystems, including wetlands,mining, and construction (indirectly influenc- floodplains, estuaries, the marine environ-ing flow and infiltration regimes and sediment ment, and human settlements.



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Chapter 2Global Trends Relating to Waterand Environmental ManagementT he World Bank's work in the water and ency, to applying the "user pays" principle, an d

environment sectors is influenced and to creating a legal and regulatory framework forshaped by the emerging trends in water rights and private-sector participation in

thinking and discourse about the concepts, water service delivery.principles, and approaches that govern waterresources management. Participation. The second major change is the

shift from centralized technical water resourcesplanning and management to the inclusion of

INTHREENPROFOUNDG CHANGEall stakeholders in planning and managementIN THINKING decisionmaking, implementation, and opera-Decentralization. Many countries are decen- tion of water infrastructure. This change tendstralizing political and economic to reshape objectives and priorities, and createsdecisionmakingto subnational levels, providing opportunities for more sustainable and efficientopportunities for institutional change, increased water use. What applies at the local leveldemocratization, more sharing of power over applies equally at the basin level, since allwater development and allocation, and a users and stakeholders, sub-basins, and ecosys-greater voice for civil society. This on-going tems constitute the whole system. Moreover,process dramatically affects the traditional top- achieving sustainable water use in a basindown orientation of water service agencies and requires commitment to and ownership by allfundamentally changes the planning process. stakeholders of both the goals of sustainableDecentralization, however, must be matched water resources and the means to achieveby capacity building efforts to ensure that local them. This is more likely to be achieved if therelevels can cope with an increasing responsibili- is an opportunity for informed and substantiveties and unequal power structures. Experience participation of stakeholders inindicates that countries with high levels of decisionmaking.economic and political freedom are more likelyto undertake reforms in water management, Sustainability.Water development and use isparticularly with respect to stakeholder partici- too important and too costly to be short-lived.pation, financial a ccountability, and transpar- Considerable resources invested in the water

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Environmental and Water Resources Managementsector are used inefficiently, and provisions for needs to be complemented by an effectiveoperation and maintenance are not sufficient regulatory framework for managing waterto maintain the condition of vital assets, resources. Privatization often is carried ou t inresulting in underuse and deteriorating conjunction with deregulation. While consid-performance. What has changed is the recog- erable information and experience has beennition that resource use and development generated on the process of privatization andshould be sustainable, and that there is an the development of regulatory frameworks, theintegrated, multidimensional outcome. The primary focus has been on economic andimplications of unsustainable land and water financial regulation, with little attention onuse practices (such as excessive water extrac- regulation of water resources. The contractualtion, single-purpose use, destructive land use, arrangements for private service providersurbanization, encroachment of wetlands, have brought into focus the need for anwater pollution, and so on) are significant. effective framework for environmental regula-Such practices not only cause irreversible tion.3degradation of the resource base and alter thehydrology (and therefore the available watersupply), they also undermine investments in KEY THREATSwater supply, irrigation, and hydropower The water sector is facing new threats that willinfrastructure as well as inflict harm onecosystems and biodiversity. have a bearing on the way water resourcesmanagement problems are addressed in the

future. Often, more than one threat is presentCHANGING ROLE OF THE PUBLIC AND at the same time, magnifying the cumulativePRIVATE SECTOR impacts.Governments and the public sector areincreasingly being transformed from owners Excessive Regulation, Abstraction, andand managers of water installations to facilita- Pumping. Water resources development fortors, enablers, and regulators. As part of a consumptive and nonconsumptive uses entailsgrowing trend, community-based organiza- the regulation, storage, and abstraction oftions, user groups, and autonomous water surface waters and pumping of groundwater.utilities are assuming a greater role in manage- Excessive regulation alters the natural flowment, operation, and maintenance of these regime. Overabstraction of water reduces thefacilities. The private sector is playing a greater downstream flow and subsequently diminishesrole, particularly in the case of management of the opportunity for other users to draw furtherwater utilities. Nevertheless, the role of water without causing significant deteriorationgovernment agencies in protecting the long- of the water environment and riparian habi-term interest of all by acting as the custodians tats. Overpumping of groundwater may inducefor-and champions of-the environmental saltwater intrusion and, in some cases, landand social dimensions of water management-emains important at both the national and the de. Wtou eqte cnsiderationtfrocal level. ~~~~~~damage. Without adequate considerations forocal level . environmental flow requirements, dams for. . ~~flood control, water supply, or hydropowerAn effective water sector, whether it is man- faged by the public sector or the private sector, generation or excessive abstractions for14 Environment Strategy Papers


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Global Trends Relating to Water and Environmental Managementirrigation or other consumptive purposes can and 14 years of age, who account for over 40trigger a sequence of negative impacts. These percent of the Region's population. Five of theinclude decreased downstream flows, reduced six leading causes of disease are waterborne-aquifer recharge rates, lowered water table, especially diarrheal diseases. Waterbornedesiccation of wetlands, destruction of habi- diseases are second only to respiratory dis-tats, and seawater intrusion. Often, environ- eases in causing mortality and morbidity in themental uses of water and water uses by 0-14 age group. Water pollution in the MENAdownstream communities have either been Region is compounding the problem of waterneglected altogether or addressed inad- scarcity and increasing the scale of waterequately in planning and management crisis.decisionmaking.

Addressing pollution of groundwater is aPollutionofSurface and Groundwater and daunting task. The main sources of groundwa-Degradation of Water Quality. Degradation of ter contamination in developing countrieswater quality affects ecosystem functions and include inadequate sanitation, industrialservices, increases health risks (see Box 2) , discharge and urban effluents, agriculture, andreduces options for use of the resource, and salinization. Remediation of groundwater isincreases the cost of treating water. In the difficult, time-consuming, and expensive, andMiddle East and North Africa (MENA) and the the results of cleanup efforts are uncertain (seeSouth Asia regions, the impact of poor water Box 3).quality on public health is significant. The highrate of waterborne diseases in the MENA Urbanization. The urban population, whichRegion is second only to Sub-Saharan Africa. has more than tripled in the past 50 years, isThe group most vulnerable to water-related projected to double in the next 25 years, anddisease and illness is children between birth over 90 percent of the addition will be in

BOX 2.Water pollution and human healthGlobally, water-related diseases and microbiological contamination from untreated or partially treatedsewage remain the overwhelming human health issue (for both mortality an d morbidity) inmany partsof Africa, Latin America, and Asia. Although there issignificant uncertainty associated with estimates ofwater-related disease, the annual toll is hought to be over 3 million deaths, most of whom are children.Human activities can generate low concentrations of contaminants over a arge area that flow diffuselyinto water bodies, presenting intractable management problems. Examples include runoff from trans-portation corridors, urban areas, agriculture, construction activities, forestry, mining operations, oratmospheric pollution. The World Health Organization has estimated that only 41 percent of the urbanpopulation in Latin America and the Caribbean ha s access to sewer systems. Over 90 percent of thecollected wastewater isdischarged directly to surface waters without an y treatment. For example,sewage from Bogota, Colombia, isdischarged in the Rio Bogota, creating enormous fecal coliformconcentrations downstream. Farmers withdraw this water to irrigate market crops, potentially leadingto consumer illness.Hirji and lbrekk 15


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BOX 3. wetlands has been lost. Of the more thanChallenges for managing groundwater 3,500 species currently threatened worldwicde,contamination 25 percent are fish and amphibians. Most ofBecause of geological variability, groundwater the loss of freshwater biodiversity originatescontamination can remain undetected for a long from systemic failure to understand thetime. This time lapse isexacerbated indevelop- linkages between development activities anding countries, where the extent an d severity of their impact upon freshwater ecosystems, agroundwater contamination remain largely poor understanding of the intrinsic value ofunknown for three reasons: biological species, and the difficult tradeoffs* Lack of monitoring and surveillance pro- associated with meeting local and national

grams* Time elapsed after polluting event due to needs versus the needs of the global commu-slow migration of contaminants and dispersal nity, especially when the cost of conservationin aquifer is not borne by the global community. Inte-* Expense of monitoring, modeling, an d grating operational measures for safeguardingremedying contamination. adequate levels of protection of endemic

habitats also remains a major challenge.developing countries. Environmental services,institutions, and policies have failed to keep Destructive Land Use. Destructive land Lusepace with rapid urbanization. Provision of imposes a huge economic cost on wateradequate water supply, sanitation, and waste supplies, land productivity, and water re-services is a major challenge. There is a need sources infrastructure. Poor cultivation prac-to develop appropriate water policies to tices, deforestation, and overgrazing canimprove use efficiency, reduce waste, and deplete vegetative cover and topsoil, alterimprove service and appropriate water tech- runoff and infiltration rates, reduce storagenologies to serve the growing Llrban popula- capacity, increase the frequency and intensitytion. The implications of changing land use of floods, and affect groundwater recharge.and encroachment on important recharge They also increase soil erosion and sedimentareas and wetland systems also need to be tranisport and deposition. Sediment depositionaddressed. reduces the economic life of storage struc-

tures, lowers conveyance capacities in irriga-Loss of Wetlands and Freshwater Biodiversity. tion canals and river channels, increasesGlobally, the use and importance of wetlands operation and maintenance costs, and raisesand freshwater biodiversity is yet to be fully the cost of water treatment due to increasedunderstood and appreciated. Policymakers and coagulants and flocculants required forwater managers often still consider wetlands reducing high turbidity levels in treatmentas wastelands and not as essential components plants. Excess sediments also wear downof the water resource system. Throughout the pumping equipment and turbines. Box 4world, human use of water and bad planning describes the impact of poor land use on ahave led to drier and polluted rivers, lakes, major water supply infrastructure. Often, it isand groundwater resources-with dramatic more cost-effective to promote sustainableeffects on natural ecosystems. In the past land use and watershed management practicescentury, over 50 percent of the world's than to restore degraded catchment, replace16 Environment Strategy Papers


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Globa Trends Relating to Water and Environmental Managementwater supplies, or institute higher levels of salinity, compounded by groundwater over-treatment. 4 draft, dropping water tables, and seawater

intrusion.Drainage, Salinity, and Toxicity. Poor drain-age can shorten the economic life of irrigation Poor drainage may also induce leaching andinvestments due to declining land productiv- concentration of naturally occurring sub-ity. In poorly drained soils, when recharge stances. In California, large-scale applicationexceeds historic rates, water levels tend to rise, of irrigation water in part of the San Joaquincausing waterlogging and salinity buildup (see Valley, where the trace element seleniumBox 5) . Irrigation schemes and leaking water occurs naturally in the soil, has accelerated itsconveyance facilities increase recharge to leaching. The collection of drain water andsubsequent evaporation highly concentratedgroundwater and may flood the root zone. this toxic element at the Kesterson NationalIrrigtion analsatr andwasteaterWildlife Refuge ponds. Ingestion of drainpipelines, and agricultural drains serve as' ~~~~~~~~~~watery birds and other fauna resulted inrecharge sources and may introduce contami- .

many deaths and species deformation-nants into the groundwater. High water tables amounting to a major disaster and an embar-increase vulnerability to damage from flooding rassment to the state.and reduce crop yields. Irrigation developmentin the Indus Basin in Pakistan illustrates IntroducedAlien and Exotic Species. Theclassical cases of a range of groundwater- introduction of exotic species-whetherrelated problems-waterlogging and soil intentional or otherwise-is believed to be the

BOX 4.Impact of poor land use on Mombasa water supply infrastructureMombasa water demand far outstrips supply. This coastal city of Kenya experiences regular and severewater shortages. The primary source of supply is he Baricho intake on the Galana Sabaki River about40 kilometers north of Malindi. It was constructed in 1981 (with a conventional water treatment plant)with a design capacity of supplying Mombasa and coastal areas with 60,000 cubic meters (m ) per day.During the short period of operations of this Bank-funded project, however, no more than 35,000 m 3/day was ever realized from the source. By 1 86, serious siltation problems at the intake had resulteddue to upstream catchment degradation on the Galana-Sabaki Rivers. High sediment load during thewe t season elevated the raw water turbidity levels to 6,000 Nephelometric Turbidity Units (NTU). Dryseason levels are 40- 10 0 NTUs.The heavy silt load created severe operational difficulties during the wet season and were very costly tomitigate. The intake facilities at Baricho had to be de-silted every day, dosage and volume of coagulantstripled from 4 to 12 tons/day, and pump and pump bearings wore down frequently due to the abrasiveaction of silt and sediments. During the wet season, pump bearings often had to be replaced every twoweeks. Because of the excessive operation and maintenance as well as replacement costs, the surfaceintake facility at Baricho, including the treatment works, was abandoned after less than a decade ofoperation, representing a huge economic and financial cost primarily due to poor catchment manage-ment. The surface source was replaced with nine boreholes along the banks of the Sabaki River and a5,000 m3 contact tank for chlorination. The boreholes provide about 55,000 m3 /day, of which 45,000m3 goes to Mombasa and 10,000 m3 to Malindi.Hirji and Ibrekk 17


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BOX 5.Impacts of poor drainageWaterlogging. Some arid and semiarid regions have inadequate natural drainage, or nonfunctioningdrains. In these areas, repeated irrigation and seepage from water conveyance facilities surpasseshistoric recharge rates, and causes water table rise. Flow patterns through subsurface strata may bealtered, leading to migration of agrochemicals or soil leachate into adjacent, high-quality groundwater. Innorthwest India-Punjab, Haryana, Rajasthan, and Gujarat-water tables were typically 25 metersbelow land surface before crop irrigation began. The water table ha s risen 25-30 centimeters a yearsince the 1 90s. By the 1920s, irrigation-induced waterlogging and salinity were observed, and by the1950s this had become widespread in certain districts of the Punjab and Haryana. Crop yields declined,and farmers abandoned some areas.Soil Salinization. Irrigation water contains dissolved minerals. Plants absorb the water through the rootsand transpire, or the water evaporates through the soil surface, and mineral salts concentrate in theroot zone. In arid regions, more irrigation water (and therefore salt) isapplied to the land, and lessrainfall isavailable to leach away accumulating salts. The naturally saline soils in many arid regionsfurther exacerbate the problem. Excess salts require plants to expend more energy to acquire waterfrom the soil and make the necessary biochemical adjustments to survive. Energy diverted fromessential physiological processes may result in suppressed growth or in desiccation and wilting of theplant. The Food and Agriculture Organization estimates that 10-48 percent of irrigated lands areaffected by salinity on a global basis. According to a survey by the Bank, in the Sa n Lorenzo ProjectIrrigation and Land Settlement in Peru, 20 percent of the land was uncultivable at the time of evaluation.In the Rio Sinaloa Project in Mexico, 17 percent of the project area was abandoned. In both cases,inadequate drainage resulted in waterlogging, salinity accumulation in the soil, and diminished cropproductivity.second greatest threat to global biodiversity Water managers have underestimated theafter habitat loss (Shumway 1999). The economic loss associated with the prolifera-accidental introduction of alien species of tion of invasive weeds and plants. The world-fauna (such as the sea lamprey and zebra wide infestation of different kinds of invasivemussels in thie Great Lakes of North America floating weeds, such as water hyacintih, fern,and Asiatic clams in the Central Valley Project and lettuce, severely degrades surface waters,in California) has caused severe degradation of causes losses in quantity and quality, andsurface water bodies, harmed species inhabit- increases operations and maintenance cost ofing particular ecosystems, and affected aquatic various types of infrastructure facilities. Box 6biodiversity. The introduction of Nile perch in provides examples of the severity of theLake Victoria in the late 1950s, for example, operational problems caused by water hya-resulted in the extinction of 200 to 300 species cinth in many water subsectors. Introducedof haplochromines (cichlids), representing the weeds flourish under nutrient-rich conditionslargest mass extinction of vertebrates world- (near municipal wastewater discharge andwide (Kaufman 199 1). This has altered the runoff carrying fertilizers). Some weeds,food web so that biomass now accumulates at including the water hyacinth, have a doublinglower trophic levels, which might be contrib- time of about two weeks. Managing weedsuting to the anoxic conditions in the bottom of under such high (exponential) growth condi-the lake. tions is often a serious problem. Mats of18 Environment Strategy Papers


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Global T-rends Relating to Water and Environmental Managementfloating weeds reduce oxygen and light, water use. It will alter precipitation patterns,deplete plankton, and alter the food chain. the magnitude and timing of runoff, and theThis can destroy native fish, aquatic plants, intensity and frequency of floods andand other wildlife. Balanced ecosystems that droughts. This is likely to lead to more extrememay have evolved over millions of years can cycles of floods and droughts, with concomi-be destroyed within years. Water-weed masses tant economic damage. Water levels in closedalso harbor carriers of human and animal water bodies such as tropical lakes will bediseases and increase occurrences of malaria, impacted greatly. In addition, climate changebilharzia, river blindness, encephalitis, and will degrade water quality through higherschistosomiasis. Water managers are only now temperature and increased pollutant load fromrealizing the significance of the operations and runoff and overflows from waste facilities.maintenance costs of aquatic weed growth, Impacts on water resources will also resultbut have yet to fully realize the significant from rising se a levels (estimated to rise 3-35economic consequences associated with the inches (0.09-0.88 meters) over the nextphysical loss of water quantity and quality century), adversely affecting freshwater(especially in water-scarce regions) and of supplies in coastal areas. For low-lying areasecosystem services due to the proliferation of (such as Bangladesh) and small island states, inweed growth. particular, this is ikely to be the most signifi-

cant environmental concern of the century.Climate Change. The Intergovernmental Panel This introduces additional dimensions ofon Climate Change (IPCC) ha s presented uncertainty and complexity in the domain ofestimates of a 1.4 -5.8 degrees Celsius water resources management. Itwill affect theincrease in global temperature due to green- economies of many single-purpose projects.house gases over the next century (IPCC Warmer temperatures will also result in2001 a). Global warming will have adifferen- changes in water demand. Irrigation, thetial impact on available water resources and largest water user, is he most climate-sensitiveBOX 6.Problems caused by Water Hyacinth* Hydroelectric power generation. Water hyacinth causes major operational problems at three

Hydropower plants on the Awash River (Ethiopia), Chiplima hydropower plant (India), Owen Fallspower plant (Uganda), the Kafue river Hydro scheme (Zambia), Hydro scheme at Bayano (Panama),and Brokoponto (Surinam). Inall cases, physical barriers (intake screens) have failed to eliminate orreduce th e problems, and the problems increase maintenance costs and down time.

* Irrigation an d drainage. InEgypt, more than 3,000 kilometers of canals and drains are infested,increasing canal roughness and reducing h ydraulic efficiency. Increased evapotranspiration islowering flow rates by 45-60 percent. Major weed infestation occurs in he Itoikin Rice irrigationcanals (Nigeria), and in rrigation canals, reservoirs, tanks, waterways, and lakes in ndia.

* Ports an d waterways. At Port Bell (Uganda), continuous mechanical removal isneeded to maintainclear passage for ships to dock. InNigeria, water transport system disruptions have increasedvariable and fixed costs of commercial boat transportation, and led to fewer trips, reduced operat-ing profits, and higher fares.

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BOX 6. (continued)Problems caused by Water Hyacinth* Urban water supply. Urban water supplies from Lake Victoria ainja, Uganda) and Lake Chivero

(Harare, Zimbabwe) are subject to increased maintenance costs because of blocked intakes andhigh water treatment costs due to high organic matter and taste and odor problems.* Industrial supply. In parts of the Vaal River system (South Africa), hyacinth infestation ha s increasedwater loss by 24-40 percent through evapotranspiration and reduced supply for mining companiesand industries.

* River basinlenvironmental management. Lake Raw Pening (Philippines) isused extensively as anirrigation, hydroelectric, fishing, and recreational resource. Water hyacinth covers 60 percent ofthe lake area and poses a major constraint on the efficient use and management of the resource.Water hyacinth is a major constraint to the use of the Citarum river basin (Indonesia) as multipur-pose hydroelectric, fisheries, tourism, and drinking water supply source. It is considered a"supercritical" river basin due to the environmental degradation.

* Fisheries. Water hyacinth is serious problem for summer fishing in Sa n Jacinto dam Bolivia and forartisanal fishing in Benin. It ha s resulted in40-50 percent reduction in catches from the Niger riverand Shire river (Malawi). In India's Chilika Lake, hyacinth covers about 40 percent of the surfacearea and inOoty Lake, about 40-60 percent of the area, affecting fisheries and recreation.

* Biodiversity/Ecosystem services. An environmental assessment of the Niger River delta (in 1 95)rated water hyacinth as a high priority issue with major impacts on the ecosystem, related eco-nomic activities, and community livelihoods. In Thailand, the water hyacinth ha s contributed to aloss of up to 75 percent inaquatic biodiversity of the lower Chao Phraya River Basin.

Source: Joffe and Cooke 1997.

use. Industrial and municipal demand as well multiple sectors that use water as well as theas instream water uses such as aquatic ecosys- sectors whose activities have an impact ontem maintenance, instream water quality, water resources (such as forestry, health, andhydroelectric power generation, navigation, environment).and recreation will also be affected.

A wide range of policy tools are needed toKEY CHALLENGES complement traditional environmental regula-

tory instruments; to promote greater participa-Policy an d Institutional Challenges. Market tion, transparency, and accountability in theand policy failures and distortions in the planning and management decisionmakingBank's client countries hamper the integration process; to encourage greater environmentalof environment in water projects. The public responsibility in the private sector; and to usesector has a key role to play in establishing market mechanisms. Countries need topol ic es, incentives, and an effective regulatory develop a capacity to introduce and enforceand institutional framework to encourage environmental policies, reform public sectorsustainable use of resources, eliminate market management and institutions, and implementdistortions, and create markets for environ- clear and consistent rules and guidelines formental services. It has a central role in promot- assessing environmental impacts of develop-ing a coordinated approach to managing the ment projects and programs. Without full-cost20 Environment Strategy Papers


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Global Trends Relating to Water and Environmental Managementpricing, the present vicious cycle of waste, ments need to be legally recognized, properlyinefficiency, and lack of service for the poor defined, and accorded appropriate priority inwill continue. Better understanding needs to water resources policies and legislation inbe developed of the many components of order to incorporate this important us e inwater resources management (over and above overall water allocation decisionmaking.the cost of water supply) that need funding.These include administration, monitoring and Degraded Watersheds, Recharge Areas,enforcement of water rights, and measures for Wetlands, and Loss of Ecosystem Functions.protecting watershed and recharge areas, Watersheds, aquifers, and wetlands providecontrolling pollution, protecting wetlands, and natural storage besides serving other functions.so on. Addressing all these challenges will Environmental degradation of water resourcesentail finding the political will to undertake exacts its own costs in human terms. De-policy, regulatory, and pricing reforms. graded watersheds and recharge areas result in

reduced and unreliable water supply. Destabi-Excessive Regulation and Abstraction and lized wetlands result in uncertain food sup-Increased Water Use Conflicts. Water scarcity plies and altered hydrological and ecologicalha s increased the competition among and functions. Declining productivity of commer-between extractive and consumptive uses of cial and subsistence fish, shellfish, or water-water and intensified conflicts between fowl populations carries economic costs anddifferent users. In water-scarce basins, alloca- severely affects indigenous peoples and fishingtion decisions are often a zero sum game. The communities. Recreation and tourism maydecision to regulate, store, or allocate water diminish. If wetlands are no longer availablefor one purpose affects its availability for other to provide storm-surge protection, local andpurposes and diminishes the potential for downstream areas may sustain more frequentother users to abstract further water without and severe flood damage. Groundwatercausing significant deterioration of the water recharge patterns may be altered, flooding orenvironment and riparian habitats. In many drying out food crops or contaminating waterparts of the world, growing demands from supplies. To safeguard the productivity ofcities and industries are competing with water resources, it is essential to protectdemands for irrigation, hydropower is compet- watersheds, recharge areas, and ecosystemsing with irrigation, and hydropower and from irreversible degradation.irrigation are at odds with environmental uses.Water scarcity invariably has a significant Lakes and Reservoirs. Lakes and reservoirs areimpact on the functioning of aquatic ecosys- critical elements of the earth's freshwatertems, since environmental flow and quality are hydrological system, contain most of theoften ill defined and accorded the lowest earth's surface stores of liquid fresh water, andpriority, relative to other consumptive and must be managed as part of a larger ecosystemnonconsumptive uses. As a result, they are rather than as independent units. Lakes andmarginally integrated into the planning, reservoirs provide water for drinking, irriga-design, operation, and management tion, industrial processes, and power genera-decisionmaking processes of water sector tion. Increasingly, the ecological integrity ofinvestments. Environmental flow require-Hirji and Ibrekk 21


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Environmental and Water Resources Managementlakes and reservoirs has been threatened. irrigated lands. The need for complementaryRecently, the global water community has not drainage projects has to be carefully examinedpaid adequate attention to the specific con- when supporting irrigation investments. Incerns and requirements of lake and reservoir addition, efforts need to be undertakenmanagement. There is a need to initiate a systematically to support well-planned andprogram for developing lessons learned from ecologically sensitive drainage activities tolake management programs and for effective correct and/or mitigate drainage problems insharing and dissemination of such information existing irrigation systems and to deal withto a broad community and to agencies respon- drainage issues associated with urban andsible for preparation of action plans (Ayers and industrial wastewaters in some locations.others 1996).

Sanitation. An estimated one billion peopleGreater Attention to Economic Values. The around the world lack access to potable waterBank has made efforts to estimate the eco- supply and 2-2.5 billion people lack access tonomic costs of water quality degradation, but adequate sanitation facilities. Populations withaccurate assessment has been hampered bythe lack of data. It is no t obvious that the poor accsto ad e ater supl andsanitation facilities face a very high risk of"pollute-now-clean-up-later" pathway isinevitable, but the costs of protecting water exposure to waterborne diseases and illnesses.systems, in terms of human and institutional Projections indicate that the mortality andresources and financial investmnents, are very morbidity rates among the 0-14 year olds in

the MENA Region can be reduced by overhigh for many poorer countries. Present g yapproaches have tended to ignore the benefits one-third by increasing the availability ofof environmental management and economic potable drinking water supplies, and thatcost of degradation of water resources and improved sanitation, particularly increasedaquatic ecosystems and their accounting as household connection to sewers, could loweropportunity costs of damaging economic them a further 20 percent (World Bank 1994).activities and management approaches. Many Bank funding for sewerage and sanitation hasimportant options and nonuse values are left been limited. To improve public health, aout of the economic analysis altogether. major shift in strategy is needed. The supportUnderstanding the opportunity cost implica- for sanitation as a complementary activity totions of water supply and allocation is central water supply investments needs to be carefullyfor making informed decisions on supply examined.development and allocation tradeoffs.

Aquatic Weed Control. The proliferation ofDrainage. Inadequate drainage in high water aquatic weeds due to a combination oftable areas contributes to the loss of productiv- factors-intentional/accidental introductionity of agricultural land or diminished crop and the existence of a nutrient-rich environ-productivity-both natural and invested ment that provides the conditions for growth-capital-due to stagnation of surface waters, is creating a serious operational problem aswaterlogging, and salinization in many well as a maintenance problem due to the22 Environment Strategy Papers


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Global Trends Relating to Water and Environmental Managementphysical obstruction to water flow at munici- views of parties with diverse perspectives on apal water supply, hydropower and irrigation range of social, environmental, and politicalintakes, irrigation canals, navigation routes, choices that have been associated with majorand fishing sites. Weed growth isalso causing infrastructure development. The Worldsevere losses due to evapo-transpiration and is Commission on Dams (WCD) was set up toaffecting water quality due to the deconiposi- review the development effectiveness of damstion of highly organic waters. Although there and to develop internationally acceptableare several methods to control weed growth, criteria, guidelines, and standards for thean effective strategy requires an integrated development of dams. The WCD Final Reportapproach that involves physical, chemical, and proposes a new framework for decisionmakingbiological control methods. for dam projects that emphasizes consider-

ation for environmental and social issues andReuse of Effluent. It is clear that reuse or more active involvement of stakeholders. (Seerecycling of lower-quality water, including Box 7.)treated effluents, will be an increasinglyimportant component of overall water re- lnterbasin Water Transfers. The increasing usesources management. The practice of using of interbasin water transfers to address localpartially treated or diluted municipal wastewa- water deficits can be a solution or a threat. Itter for farm and nonfarm irrigation is growing can be a cooperative way to address waterand likely to continue, particularly in watersupply needs in one region by transportingscarce regions. Figure 3 shows the proportion abundant supply from another.3 The outcomeof wastewater generated and reused in Israel, of such transfers hinges on careful planning.Morocco, Tunisia, and Jordan. Wastewater Large transfer projects in Central Asia werereuse potentially offers substantial benefits, bu t abandoned due to environmental implicationsalso carries substantial risk. If adequate and changing political and economic condi-precautions are not taken, reuse can contami- tions in the region. The social, economic,nate the soil and groundwater with heavy environmental, and political implications ofmetals and cause infections from intestinal interbasin water transfer should be carefullynematodes and bacteria, especially those that assessed.6 Given current pressures for water,cause cholera. A range of technical options is even with effective demand management andavailable, bu t there often remain a number of Figure 3. Wastewater generated andsocial, institutional, behavioral, or cost reused in selected countriesobstacles to be overcome before reuse be- 400 -comes widespread. The International Water 35 0 si _ _ ~~~~~WastewatergeneratedManagement Institute is carrying out research : 300 gener-t-to identify conditions under which wastewater r 25 0can be used for irrigating and fertilizing crops .; 200without putting people or the environment at ' 150risk. v 00Construction of Dams. Large dams have 0 -_isi, _Israel Morocoo Tunisia Jordanbecome highly contested because of polarized Source: Saghir, SchiffIer, and Woldu 2000.Hirji and lbrekk 23


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Environmental and Water Resources Managementconservation measures, interbasin water portions of countries sharing water resources,transfers may be necessary in some areas of it can also be a factor for channeling effortsthe world for maintaining urban areas and toward integration and searching for jointsupporting economic development. development opportunities.Transboundary Water Management Issues. Climate Change. The greatest vulnerabilitiesNunierous river basins, groundwater aquifers, are likely to result in water resources systemsand coastal and marine environments cross that are not managed (IPCC 2001 b). Adaptiveboundaries between as well as within coun- planning to integrate the likely impact oftries. The primary management challenges are climate change on the planning and design owallocation or sharing of water, pollution water resources projects will be essential, ascontrol and management of water quality, retrofitting will be much more expensive. Thenavigation and flood control, and degradation integration of climate change considerationsof freshwater, coastal, and marine ecosystems. needs to build on water resources manage-The concerns about environmental flow ment policy and institutional reforms address-requirements in transboundary water-sharing ing natural climate variability. It will bearrangements have rarely been addressed necessary to review engineering designadequately.7 The need for cooperative man- standards as they relate to the construction ofagement of shared water resources will water supply and land drainage projects and toincrease significantly with the demands from consider the anticipated sea level rise. Thereexpanding populations and economic growth. also a need to review the existing engineeringWhile transboundary waters can be a factor design criteria and methodology. It will beintensifying conflict among nations and necessary to re-examine the operations of

BOX 7.World Commission on Dams: Priorities for sustaining rivers and livelihoodsTh e WCD has suggested the following strategic priorities for sustaining rivers and livelihoods:* A basinwide understanding of the ecosystem's functions, values and requirements, and how

community livelihoods depend on and influence them, is required before decisions on developmentoptions are made.

* Decisions value ecosystem, social and health issues as an integral part of project and river basindevelopment, and avoidance of impacts is given priority, in accordance with a precautionaryapproach.

* A national policy is developed for maintaining selected rivers with high ecosystem functions andvalues in their natural state. When reviewing alternative locations for dams on undeveloped rivers,priority is given to locations on tributaries.

* Project options are selected that avoid significant impacts on threatened and endangered species.When impacts cannot be avoided, viable compensation measures are pu t in place that will result ina ne t gain for the species within the region.

* Large dams provide for releasing environmental flows to help maintain downstream ecosystemintegrity and community livelihoods and are designed, modified and operated accordingly.

Source: World Commission on Dams 2000.



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Globa Trends Relating to Water and Environmental Managementexisting single-purpose storage facilities to Recent information technology (IT) advances,consider flood control and drought manage- development of computerized datasets and ament as an additional objective. The predictive rapidly expanding skill base now provide theand forecasting capabilities at regional and opportunity to radically change the waynational levels in vulnerable countries need to projects are designed, implemented, andbe strengthened. monitored. The advent of IT helps stakeholders

and managers to manage water resourcesNEW AN D EMERGING OPPORTUNITIES more efficiently by providing real-time infor-

mation on the state of the resource, newGlobalization. In recent years, a quickly rising modeling and forecasting abilities, new spatialshare of economic activity in the world is analysis tools such as geographic informationtaking place between people who live in systems, and greater information to stakehold-different countries. This growth in cross-border ers. Environment and water resources manage-economic activities takes various forms: ment can be improved by sharing knowledgeinternational trade, increased market access to systematically to ensure that stakeholders whogoods and services, foreign direct investments, need the information get it on time.and capital market flows. Global water andenvironmental management experiences could Skills Levels. The emerging water resourcesbe shared and adopted to meet local needs. and environmental management challengesOn the other hand, if this is done without are complex, multifaceted, andadequate considerations of local social, multidisciplinary. Addressing these effectivelyeconomic, and cultural conditions and requires that countries and developmentadequate regulatory provisions to safeguard institutions have the right skills mix. It will bethe sustainability of resource use, the chances important for these agencies and the Bank toof creating unnecessary or marginal invest- recruit environment specialists with strongments and an increased debt burden can be backgrounds in water resources or watermagnified. One risk associated with a short- resources specialists with strong backgroundsterm investment orientation in the water sector in environmental management. In addition,is the adoption of unsustainable practices that specialist skills in freshwater ecology, watercan deplete as well as degrade the resource quality management (environmental engineer-base. ing), and environmental economics also need

to be strengthened. Specialists will also needTechnology. Without major technological to be conversant with IT.innovation, there is little hope of bringing thewater equation into balance (World WaterCouncil 2000). Technological innovation is NOTESneeded at the community level (innovative on- 3. An effective water resources managementsite sanitation technologies, for example), at regulatory framework serves the interest ofthe basin level (such as use of decision support the public or private supplier of water, thesystem for addressing multiple objectives such public (also the consumer), and otheras flood control and hydro power generation), sectoral users (such as agriculture, energy,and at the high-end utility level (for instance, and mining). The supplier requires a secure,use of membrane filters in water treatment). reliable, and protected source of waterHirji and Ibrekk 25


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Environmental and Water Resources Managementsupply, which requires regulations and transfer project exporting water from theinvestment in watershed protection, water-rich highlands in Lesotho to thepollution control, administration, monitor- water-deficit industrial hub of South Africa.ing, and enforcement of water rights (typical 6. Associated with interbasin transfers areresponsibilities related to resource manage- environmental impacts that result in threement). The interests of the other users and distinct zones: the exporting area, thethe consumers also extends to ensuring that importing area, and the path linking the twothe supplier operates the water resources areas. The exporting area can experiencesystem in a sustainable manner (for ex- reduced flows, changed seasonal hydrol-ample, pumps groundwater within an ogy, reduced dilution, and decreased wateraquifer's safe yield and does not overpump supply. Impacts in importing areas canin vulnerable areas such as coastal aquifers, include damage from inefficient use ormeets downstream environmental flow overuse of water and scouring and erosionrequirements and effluent discharge stan- in the receiving rivers. Impacts on the pathdards, and encourages water conservation) linking the two areas usually result from theand does not create conflict with other storage and conveyance facilities (Hirjiinterests using the same water supply 1998).source. 7. The recent flood-related loss of lives in

4. Several cities in the United States (including Mozambique has highlighted the weak-Portland, OR, Ne w York, NY, and Portland, nesses in the system. The Cabora Bassa andME) found that $1 nvested in watershed Kariba dams are both being operated asprotection could save $7.50-200 in new single-purpose reservoirs for the generationwater treatment facilities (Reid 2001). of hydropower. No regular or seasonal

5. Interbasin water transfers form an important releases are made for environmentalpart of the Government of China's strategy purposes. This has eliminated seasonalfor addressing acute water shortages in the flooding and flood recession agriculture,northern China plain. In India, inter

environment and wrm wb 2001

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