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KINGDOM OF CAMBODIA Nation Religion King ruiqivs Water Security, Food Security and Livelihoods in Cambodia and the Lower Mekong Basin by Watt Botkosal Deputy Secretary General, Cambodia National Mekong Committee Chairperson of Cambodia Water Partnership <[email protected]> Paper submitted to Conference on The New Politics of Water: Water security and economic growth in emerging economies Session 3: “Water and Regional Development” Chatham House, London, 14-15 June 2011 6/14/2011 CAMBODIA NATIONAL MEKONG COMMITTEE (CNMC)

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Page 1: Water Security, Food Security and Livelihoods in Cambodia and the Lower Mekong … · 2012-12-03 · 1 Abstract Water resources management and water-related development can, at the

KINGDOM OF CAMBODIA

Nation Religion King

ruiqivs

Water Security, Food Security and Livelihoods in Cambodia and the Lower

Mekong Basin

by Watt Botkosal

Deputy Secretary General, Cambodia National Mekong Committee

Chairperson of Cambodia Water Partnership

<[email protected]>

Paper submitted to

Conference on The New Politics of Water:

Water security and economic growth in emerging economies

Session 3: “Water and Regional Development”

Chatham House, London, 14-15 June 2011

6/14/2011

CAMBODIA NATIONAL MEKONG COMMITTEE (CNMC)

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Table of Contents

Page

Table of Contents ................................................................................................................. i

Table of Figures ................................................................................................................... i

List of Abbreviations ........................................................................................................... ii

Abstract ............................................................................................................................... 1

1. Introduction ......................................................................................................................... 2

2. A Mekong Basin Perspective of Water Security-the Water and Regional Development in

the Mekong Basin ....................................................................................................................... 2

3. Water and livelihoods in Cambodia .................................................................................... 4

4. Trends .................................................................................................................................. 6

5. Challenges ........................................................................................................................... 8

6. Constraints ........................................................................................................................... 9

7. A structural imbalance ...................................................................................................... 10

8. Needs and opportunities .................................................................................................... 10

9. Water-related development in Cambodia .......................................................................... 11

10. Community involvement ............................................................................................... 11

11. Regional organizations and initiatives .......................................................................... 12

12. A transition process ....................................................................................................... 13

13. Policy implications ........................................................................................................ 14

14. Acknowledgements ....................................................................................................... 15

References ......................................................................................................................... 16

Table of Figures

Table 1: Water withdrawals in the LMB, 2000 .......................................................................... 7

Figure 1: Map of Cambodia and her location in the Mekong River Basin ................................ 2

Figure 2: The contribution of agriculture to employment and GDP ........................................ 10

Figure 3: Location of the 4-Ps Area ......................................................................................... 11

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List of Abbreviations

ADB : Asian Development Bank

AFTA : ASEAN Free Trade Area

APEC : Asia-Pacific Economic Cooperation

APWF : Asia-Pacific Water Forum

AQIP : Agriculture Quality Improvement Project

BDP : Basin Development Plan

CamboWP : Cambodia Water Partnership

CARDI : Cambodia Agricultural Research and Development Institute

CAVAC : Cambodia Agriculture Value Chain

CNMC : Cambodia National Mekong Committee

CRBOM : Centre for River Basin Organizations and Management

GMS : Greater Mekong Sub-region

GTZ : German Development Cooperation

GWP : Global Water Partnership

IWRM : Integrated Water Resources Management

JICA : Japan International Cooperation Agency

MOWRAM : Ministry of Water Resources and Meteorology

MRC : Mekong River Commission

MWRAS : Mekong Water Resources Assistance Strategy

RGC : Royal Government of Cambodia

SIDA : Swedish International Development Corporation Agency

SRI : System of Rice Intensification

WTO : World Trade Organization

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Abstract

Water resources management and water-related development can, at the same time, support

macro-economic growth and rural livelihoods. These two objectives can add value to each

other and are, when approached in parallel, an effective poverty alleviation measure.

The transition between today and the future is a major challenge. If conducted smoothly, the

sector will emerge as prosperous and competitive, well placed to generate income for the

farmers and food for the population. If conducted less smoothly, there is a risk of

unemployment, and farm incomes that are even lower than today. This can happen if the

changes take place too fast, or without appropriate support.

Agricultural development must be cautious and gradual. There is always a risk of unforeseen

adverse side effects when implementing new technologies, and even when implementing

existing and well proven technologies in new places.

Poverty alleviation is an over-ruling concern, which - in the context of water resources

management - can be supported by mainstreaming the livelihoods perspective throughout

development policies and planning.

The present paper is a compilation of observations on the related challenges of water security,

food security and livelihoods, which, between them, provide an important part of the basis for

a prosperous society.

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1. Introduction

The Kingdom of Cambodia is the country located in South East Asia, lying in the Mekong

River Basin that shared by 6 countries including China, Myanmar, Thailand, Lao PDR,

Cambodia and Viet Nam. The Mekong River is the main water sources for the country that its

basin is about 86% of country territory. The total area of the country is 181,035 km2

by

hydrological and planning aspects, the country Mekong River Basin can be divided to 5 sub-

basin areas i.e. Strung Treng (near border of Lao PDR); Kratie (down area after Stung

Treng); Sekong-Sesan-Srepok; Tonle Sap; and Mekong Delta.

The Mekong River basin generates 75,000 MCM/year of surface water runoff, and its

aquifers contain an estimated 17,600 MCM of groundwater. This is more than 100 times the

amount that is used at present. Annual rainfall varies between 1,400 mm and 3,500 mm. Each

year, the Mekong River carries 475,000 MCM from Cambodia to the South China Sea

(MOWRAM, 2004).

Figure 1: Map of Cambodia and her location in the Mekong River Basin

2. A Mekong Basin Perspective of Water Security-the Water and

Regional Development in the Mekong Basin

The Mekong flows for almost 4,800 km from its source in Tibet through China and Myanmar

in the Upper Mekong Basin, and Lao PDR, Thailand, Cambodia and Viet Nam in the Lower

Mekong Basin (LMB) into the East Sea, draining a basin area of 795,000 km2 and with a

mean annual discharge of approximately 475 km3. The per capita water resources of 8500

m3/person/year are high relative to other international river basins. There is a very large

difference in wet and dry season flow. The associated flooding and drying of major parts of

the floodplain creates a rich riverine ecology. The Mekong is the second most bio-diverse

river in the world after the Amazon, and supports the world’s largest fresh water capture

fishery of about 2.3 million tons per year.

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However, current development of water and related resources in the Mekong Basin is limited

relative to other international river basins. Most water is used in the most downstream end of

the Mekong Basin, the Vietnam delta, which is now one of the world’s most productive

agricultural areas. Thailand fully uses the wet-season flow and the very low dry-season flow

of its Mekong tributaries. There are currently only minor diversions from the mainstream

upstream of the delta. Existing reservoir storage of water is less than 5% of the mean annual

flow, insufficient to redistribute water significantly between seasons. As a result, the flow

regime in the Mekong mainstream is close to its natural state.

Much of the Mekong Basin remains among the world’s poorest areas. A considerable part of

the Lower Mekong basin’s 60 million people rely on the goods and services provided by the

Mekong river system for their food security and livelihoods. While all Lower Mekong Basin

(LMB) countries are making good progress towards achieving the Millennium Development

Goals, about 25% of the population of Cambodia and Lao PDR has incomes below the

poverty line, with much higher percentages in many rural areas. Food security and

malnutrition pose great challenges. About half of all households have no safe water supply

and half of all villages are inaccessible by all-weather roads. Throughout the LMB,

inequalities are generally increasing between urban and rural groups.

All LMB countries have poverty reduction strategies and sector plans in place that include

water supply for drinking and irrigation, flood management, hydropower generation, fisheries

and other uses of Mekong water. Hydropower development by the private sector is

accelerating, particularly on Mekong tributaries in Lao PDR where it will become an

important source of foreign exchange revenues. Given the people’s high reliance on the

river’s natural system, such development must be undertaken with equal consideration to

conserve riverine ecology.

The recent IWRM-based Basin Development Strategy for the Lower Mekong Basin,

produced by the MRC shows that there is considerable scope for further basin

development that will improve water, energy and food security. This makes it unusual, if

not unique among the world’s river basins. Continued dam construction in China and in the

LMB for hydropower generation will considerably increase the dry season flows by

redistributing water from the wet to the dry season. The increased flows offer an opportunity

to source the countries’ ambitious irrigation plans, including possible diversions into the

Cambodian delta and into Northeast Thailand, without affecting the natural dry season flows.

The natural dry season flow will be protected through the MRC procedure on the

maintenance of the flows on the mainstream. Good development opportunities are also

identified in the fisheries, navigation, flood and environmental sectors.

However, the Strategy also identifies the significant risks associated with the trapping of

sediments and the blockage of migratory fish by dams, which must be managed and

mitigated, both at the national level, and where relevant, through cooperation at the

transboundary level. The Strategy defines a range of strategic actions for basin development

and basin management in order to move development opportunities to implementation and

sustainable development. One of these actions is the establishment of mechanisms for sharing

benefits, risks and impacts among the countries and basin population groups. The

implementation of these actions will be aligned, to the extent possible, with MRC

Programmes and national sector planning and management cycles.

Climate change models for the Mekong basin predict higher than average flood season flows

and largely unaffected dry season flows. The Delta would be vulnerable to any rise in sea

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levels. The frequency and intensity of floods and droughts would increase. Increased average

flood flows could be offset by increased storage capacity in the basin. Drought mitigation

strategies are needed for rainfed areas that cannot be reached by irrigation; in some areas

groundwater will be a solution. A comprehensive basin-wide and multi-sector study is needed

of long-term flood management options for the Mekong Delta to respond to growing

pressures from land development, sea level rise, climate change, and upstream development

plans.

All of the above is relevant to Cambodia. Large irrigation expansions are being studied in

Cambodia, in particular in the undeveloped Cambodian delta, linked to major investments in

flood control, and elsewhere, linked to hydropower development on Mekong tributaries.

There is scope for expansion of paddy field fisheries in irrigated areas and for the

development of aquaculture, using the experiences of Vietnam. Both countries are improving

water transport and trade. The Cambodian capital Phnom Penh can now be reached by sea

going ships via the Mekong Delta. At the same time, Cambodia has been implementing

integrated water resources management (IWRM) and collaborating with the other basin

countries through the MRC on a variety of basin-wide issues, including the protection of its

important fisheries sector from upstream developments. While private investments are now

readily available in the water sector, the capacity to implement and enforce improved

regulations and procedures is still limited.

3. Water and livelihoods in Cambodia

A substantial part of Cambodia's economy and the majority of livelihoods are water-

dependent and will remain so in the foreseeable future. 1 Cambodia is still an agrarian

economy as agriculture contributes 33% of GDP (2004 data) compared to industry 29% and

services 38%. About 82% of the total population live in rural areas and thus depend on

agriculture as their main sources of income and livelihood. Poverty is still prevalent in

Cambodia. At the national level, the poverty level is still relatively high, 25% of the

population in 20102 of which 80.5% are concentrated in rural areas. Poverty is often

associated with poor food security (ADB and CNMC, 2009).

Water has always been at the heart of Cambodia’s economy and culture. Cambodia water is

strongly dominated by the hydrological and climate condition of the Mekong River Basin

whose catchment cover over 86% of the country’s territory. The Mekong River System is

shared by Cambodia, Vietnam, Lao PDR, Thailand, Myanmar, and China. As one of the most

downstream of the Mekong River, Cambodia’s water, food and energy security challenge is

strongly related to what is taking place or being planned in other Mekong countries.

Theoretically water in Cambodia is abundant, but its availability depends upon the season,

geography and climate. Much of the runoff occurs in flood events (flow in flood season is

accounting for 85-90 % of the total annual water volume) or inaccessible to human being

because of its remote or inaccessible location and part of the runoff needs to be maintained

for other in-stream uses and other social and ecological purpose (WRI Earth Trends, 2000-

2001).

1 Watt Botkosal (Jul 09)

2 RGC (June 10)

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Many communities experience water shortage in the dry season and annual flooding. More

frequent abnormal flood and drought have caused increasing concern. It is yet to be

ascertained how rising temperatures, greater variability of rainfall, and rising sea levels will

affect Tonle Sap basin. According to global climate modelling downscaled to the basin level

by the MRC and its partners, the likely change in rainfall patterns and extreme temperatures

could increase the likelihood of drought and flood risks and affect agriculture and farmers in

poor areas (MRC, 2010).The principle costs of drought relate to the impact of agricultural

drought: reduced yields or total loss of crops, especially rice, together with reduced livestock

and fishery yields as well as increased susceptibility to disease, and additional hardships

The links between water, livelihoods and economic development are quite visible in the

country. Agriculture remains a key sector both in terms of livelihoods and economic growth.

Rice is by far the predominant crop in terms of volume, while a variety of other crops (and

livestock) contribute significantly (and increasingly) to the income generation. The typical

production system is rainfed paddy, but 21 percent of the cultivated area (590,000 ha) have

infrastructure for supplementary wet season irrigation, recession irrigation, or full dry season

irrigation. 'To predict GDP, you have to be a bit of a weatherman in Cambodia. Irrigation is

vital for sustained growth in agriculture and to reduce volatility. To increase crops

significantly year after year, Cambodia needs to invest more heavily in canals and dams to

free agriculture from boom-and-bust cycles that depend on the monsoon', according to World

Bank senior country economist Robert Taliercio.3 MOWRAM aims to expand the irrigated

area by 20,000 ha per year.

Floods and drought are widespread. Sometimes, floods and drought occur at the same time in

different places within a province. In its Strategic Plan on Water Resources Management and

Development4, MOWRAM notes that 'most Cambodian people face a shortage of freshwater

during the dry season, and also during the 'small dry season' in the wet season, but in the

rainy season face too much water in some areas and other areas are still facing with

shortage of water due to lack of irrigation infrastructure. Irrigation infrastructure is

insufficient, old and run-down, which has a severe impact on water storage, distribution and

supply, sanitation, and food production'.

The economic growth is strongest in the area around the capital, Phnom Penh, in the coastal

zone and in some border areas, while remote rural areas have a low growth rate. The

differences generate imbalances, for example regarding employment opportunities, which in

turn pull a migration from the countryside to the growth centers.

This effect is enhanced by the traditional rainfed paddy cultivation being highly seasonal,

with a shortage of labour for a few weeks per year and a surplus in the remaining time. 5

Urbanization has many benefits, but if it proceeds too fast there will be adverse side effects.

The same is the case for the inevitable adjustments of the structural imbalance between

agricultural production and employment. Provision and consolidation of rural livelihoods can

restrain these processes and provide time for the related developments of public services and

infrastructure.

3 Quoted in Phnom Penh Post Dec 1 2006

4 MOWRAM (Feb 06)

5 The storage capacity is limited with a large part of the country being within the Mekong floodplain

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Cambodia has adopted an Integrated Water Resources Management (IWRM) (see Law on

Water Resources Management, 2007) 6

. IWRM requires coordinated management and

development of water, land, and related resources (fish etc.) in order to maximize the

resultant economic and social welfare without compromising sustainability of vital

ecosystems (Global Water Partnership 2000: 22).

4. Trends

Cambodia’s economy has grown rapidly over the last decade—largely driven by growth in

the garments, construction and tourism sectors. However, despite the growth in these sectors,

Cambodia’s economy still remains predominantly agricultural. Although agriculture’s share

of GDP has declined gradually over time, in 2008 it still accounted for 26 percent of GDP

and employed over 56 percent of the total labour force.

On average, growth in the agricultural sector is lower than growth in the industry and services

sectors. Industry posted a 14% growth in 2010, compared to -9.5% in 2009, while the

agriculture grew 4% in 2010, compared to 5.4% in 2009 contributing to 1.5% of economic

growth (Naron, 2011).

Crops make up the largest share of the agricultural sector, followed by fisheries, livestock and

forestry. The main agricultural crops are rice, maize, cassava, soybeans, tobacco and rubber.

Of these, rice is the most important crop in Cambodia, averaging 55 percent of total

agricultural produce, or 9 percent of GDP, during 1994–2006. The total paddy rice

production amounted to 7.9 million tons and paddy rice surplus of 3.8 million tons or

equivalent to 2.4 million tons of milled rice. Rice exports increased 45% in the first 11

months of 2010 to US$27.5 million. The increased was due to the EU’s ―Everything But

Arms‖ initiative (import quotas were cancelled and exempted from import tax. Further

increase is expected with the implementation of the recently adopted rice policy (Naron,

2011). It is also the staple food source. Rubber grows rapidly, driven by high prices (prices of

rubber increased from $1,000 in 2009 to $4,500 at present (Naron, 2011). The cultivated area

increased to around 170.000 hectares, of which 35,300 ha are mature. The current rubber

production amount to 46,000 tons out of 250,000 tons of Cambodia’s potential for rubber

production.

The agriculture remains the biggest water users as 98 percent of fresh water withdrawals goes

to irrigated agriculture (ADB, 2010a, MRC, 2010a) in the form of both blue water - receding

flood water storage, diversion of water from stream and from ground water sources - and

water from precipitation (soil moisture) (MRC, 2003, MRC, 2010b). Estimates of sectoral

water withdrawals (including the industry sector) in the Mekong Region are presented in

below.

6 Law on Water Resources Management of the Kingdom of Cambodia

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Table 1: Water withdrawals in the LMB, 2000

Country Total

(million m

3)

Per Capita

(m3 per

person)

Sectoral Withdrawals (% of total)

Agriculture Industry Domestic

Cambodia 4,091 311 98 1 2

China 630,289 494 68 26 7

Lao PDR 2,993 567 90 6 4

Myanmar 33,224 699 98 1 1

Thailand 87,065 1,429 95 2 2

Vietnam 71,392 914 68 24 8

(FAO Fresh Water Resources, 2005)Note: Data presented above are for the whole countries.

The irrigated agriculture in the form of receding flood water storage, diversion of water from

streams and from ground water sources will continue to grow Cambodia in the next 20 years

as country remains to be agriculturally dominated economy (BDP, 2003).

Davis (Ed) (2003) projected that by year 2025 the share of domestic and industrial uses will

substantially increase to about 11% and 15% respectively of the total water withdrawal in

Cambodia and other countries in South East Asia. Similar projection was made in the MRB -

2000 domestic and industrial water consumption in the Mekong Basin was estimated at

2,773.58MCM which constituted less than 1% of the average annual Mekong flow. The

increase in water demand for agricultural, domestic and industrial sectors will further worsen

the competition for water resources during the low flow conditions in the drier and driest

years. Moreover, the increase in domestic and industrial water use leads to a proportional

increase in the demand for waste water systems/facilities and improved sanitation that are

still in bad shape and require substantial investment and management.

Given the tropical climate, ample unused arable land and large unskilled labour force, Cambodia has comparative advantages in agriculture. Promoting agriculture and agro-industry is widely recognised as the best strategy for broadening the economic base to offset macroeconomic shocks, ensure food security, improve the livelihoods of rural people and reduce poverty. The adoption of new rice policy by the government (focusing on rice export) is expected to improve investment in agricultural intensification and extensification. It will lead to transition from producing rice only for consumption (subsistent agricultural production) to rice production for commercialization. With farm consolidation and commercialization, there is an observed trend that more farmers are becoming “waged labors” and „landlessness”.

Water resources management in Cambodia and the Lower Mekong Basin is influenced by a

number of trends, including the following: 7

• General technological development of production systems (new technology, improved access to existing technology) in Cambodia and elsewhere, affecting the efficiency of production systems and the related competitive advantages;

• Lower trade barriers (as promoted by AFTA, APEC, ASEAN and WTO, not to speak of the Asian 'noodle bowl' of bilateral trade agreements); 'porous borders'; increased global food prices; and increased weather irregularities - all of which, separately or jointly, will impose new efficiency criteria for primary production systems due to exposure to regional and global competition;

• Continuous urbanization and changed lifestyles; higher demand of water and energy; and increased generation of solid waste and wastewater;

7 ADB and CNMC (Dec 09)

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• Expanding tourism;

• Demand of cassava for biofuel, causing shifts of land use and production systems - not to speak of escalating prices (driven by demand from China), which in turn affects the economic feasibility of biofuel production in Thailand and Cambodia (where the first such plant became operational in 2009, but had to suspend operation due to high commodity costs);

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• The need of climate proofing and adaptation to climate change;

• Large land concessions for industrial farming, expectedly introducing new crops, new production technology, and perhaps competition for land and water;

• Gradually expanding hydropower (and storage) capacity. This can provide new opportunities for dry season cultivation. The Yunnan cascade made visibly increase the dry season flows in the Mekong, depending on the extent of upstream withdrawals;

• A (possibly slow) structural change decreasing the significance of primary production in the national economy in the course of time, moderated by a possible long-term global commodity price escalation;

• A gradual consolidation of recent decentralisation/ deconcentration reforms, including commune-level development planning;

• Increasing professional dialogue and networking, at the national level, Mekong Basin level (MRC) and the international level (APWF, GWP, and others); and

• The capture fisheries yield being under pressure from habitat degradation, obstruction of migration routes, and over-exploitation.

5. Challenges

In this connection, there are two over-ruling water-related challenges:

• Wider WSS (and electricity) coverage, including rural areas; and

• Better revenue generation in water-dependent (agricultural) production systems and related value chains.

Both objectives will be supported by increased water efficiencies and economic efficiencies

of water uses. Other measures are improved irrigation infrastructure, provision of storage

capacity, and open-minded attention to the potentials of groundwater utilization.9

This can provide higher yields and crop diversification, both of which are highly attractive in

their own right, but can also provide employment more evenly over the year. So can support

to other water-related rural livelihoods, for example by expanding the value chains that build

on (water-dependent) primary production, as well as continued development of tourism and

recreation.

8 SEACouncil (Apr 11) and Saidak (Oct 10)

9 Watt Botkosal (Jul 09)

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6. Constraints

While a governance framework is pretty much in place in support of these challenges, there

are some visible constraints to 'development and management of water, land and related

resources': 10

• Inter-sector streamlining and inter-agency dialogue take place at the bottom (commune) level and the top (national planning) level of public administration, but to a less extent in between.

• There is an open-ended need of human resources development (including, but not limited to the 'end users' in the water user associations.

• The knowledge base for decision-making (about states, causes, effects, and management options) is less than ideal in many ways.

• There is a clear scope for strengthened land management of agricultural lands, headwater areas, and aquatic habitats.

Small farm sizes and poor soils can make it next to impossible to make a living out of one

single crop of rice per year, and a single failed crop can cause a serious social shock to the

household, possibly involving loss of the land. Chea Samnang 11

observes that 'the low level

of irrigation in the country, coupled with the poor performance of existing irrigation

facilities, discourages diversification of local farming systems. Without good water

management and control, farming remains a highly risky activity. Farmers are hence unable

to take full advantage of modern farming technologies'.

Lowered trade barriers will enhance the competitive advantages and disadvantages, which are

presently suppressed by regulation of trade and prices. This, in turn, will tend to move

production towards locations with competitive advantages, notably including lower

production costs. Since the production costs are partly determined by the production

efficiency, this effect can be partly controlled by measures that enhance the efficiency of a

production system. Notably, production systems with particularly low efficiencies will face

difficulties when trade barriers are lowered or removed. In response to lower trade barriers,

the demand of water will increase for production systems with high water efficiencies and

high economic efficiencies, in competition with production systems with low efficiencies. 12

13

Another effect of free trade is the adjustment of commodity prices to regional or international

market prices. This will from case to case result in a higher or lower price, irrespective of the

present local production costs, and hereby a more or less arbitrary reallocation of income

among primary producers that have hitherto been at least somewhat sheltered by the trade

barriers.

10 As stipulated in Global Water Partnership's definition of Integrated Water Resources Management (IWRM)

11 Chea Samnang (Jan 04)

12 Thi Thanh Van Ngo and T. K. Nielsen (Oct 06)

13 Over the period 2000-05, Cambodia was the only ASEAN country with declining industrial efficiency (in terms of

output per worker), according to ILO (2007). The direct revenues from land concessions have been far below

expectations, if not non-existent, indicating that the productive efficiency has been very low, according to The World

Bank (Nov 04)

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7. A structural imbalance

The figure below shows an imbalance between the contribution of agriculture to employment

and to the national economy. This imbalance can exist for a while - for many years indeed -

but must be sorted out in the course of time, in support of socio-economic harmony.

Source: Van (Apr 10), using data from CIA World Factbook 2009

8. Needs and opportunities

Examples of water-related development needs and opportunities are listed below:

• Access to safe water, sanitation and electricity;

• Support to increased income for traditional small-scale farmers (which will form a large part of the population for years to come), including cultivation technology, crop diversification, access to markets, and development of markets;

• Support to sustainable livelihood development in general and rural livelihoods in particular, applying a value chain perspective, for example by development of agricultural extension services and agro-industry processing (possibly export-oriented);

• Continued irrigation system rehabilitation and development, and expansion of small-scale and medium-scale water storage capacity;

• Improved land use and land management;

• Support to water user associations;

• Continued hydropower and micro-hydropower development;

• Continued tourism development (in support of rural livelihoods outside the agricultural sector);

• Coordinated groundwater management, covering quantity and quality;

• Monitoring and licencing of surface water withdrawals, groundwater withdrawals, sewage discharges and sand extraction;

• Flood, drought and pest preparedness, warning systems and disaster relief;

Figure 2: The contribution of agriculture to employment and GDP

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• Poor soils improvement/management (often a precondition for crop diversification);

• Management of protected areas, national parks and critical upper watersheds; and

• Broad human resources development.

9. Water-related development in Cambodia

For a number of years, MOWRAM, ADB, JICA, Finland and others have implemented major

water-related development programmes in the Tonle Sap Basin. Among many other

important water-related development initiatives may be mentioned the Agriculture Quality

Improvement Project (AQIP), Cambodia Agricultural Research and Development Institute

(CARDI), and the Cambodia Agriculture Value Chain (CAVAC) programme, funded by

Australia.

Human resources development is a cornerstone of national water resources development and

will remain so for years to come. A beneficial water allocation requires the basic availability

of water, and a functional infrastructure, but also very much the availability of required

managerial and technical skills, awareness, and confidence at all levels of management,

including the scheme level and the farm level. 14

10. Community involvement

In Cambodia, the Government policy on decentralization and de-concentration delegates

power and ownership to the local (provincial) government for administration and financial

management. 15

In 2002, and again in 2007, elections were held for 1,621 commune councils,

each representing some 9,000 people on the average. The communes, in turn, are sub-divided

into villages. The communes conduct their own development planning, based on their unique

local insight, but are in a state of early consolidation, affected by financial, technical and

managerial fragility.

Since 2005, Cambodia National Mekong Committee and Cambodia Water Partnership under

financial supports from GWP and ADB have

conducted pilot studies of participatory,

IWRM-based development in the so-called 4-

Ps Area (the Prek Preah, Prek Krieng, Prek

Kampi, and Prek Te basins, covering parts of

two provinces, Kratie and Mondulkiri) in

Northeastern part of Cambodia, on the left (or

eastern) bank of the Mekong River. The basin

area is 12,500 km2 and the population is

around 143,000 persons.

14 Yem Dararath and T. K. Nielsen (Sep 06)

15 Chapter comprehensively based on Watt Botkosal (Oct 09)

Figure 3: Location of the 4-Ps Area

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The following aspects were found to be important determinants of successful IWRM-based

development planning:

• Political will is a necessity, in this case notably at the provincial governmental level, as well as national aspects above the basin level: Legal framework, institutional arrangements, and allocation of budgets.

• Local knowledge shall be encouraged and applied, along with new scientific knowledge, in support of each other for decisions and management.

• Community involvement is the basic factor for all management of natural resources. In this area, local communities utilize, protect and manage the natural resources by themselves and their involvement must be encouraged and promoted to any investment project and programme.

• Effective partnerships must be maintained, involving the communities, and building strong networks to facilitate the coordination of initiatives by different communities/stakeholders.

11. Regional organizations and initiatives

Four Lower Mekong Basin Riparian countries, Cambodia, Laos, Thailand and Vietnam

signed 1995 Mekong Agreement16

which being equally desirous of continuing to cooperate in

a constructive and mutually beneficial manner for sustainable development, utilization,

conservation and management of the Mekong River Basin water and related resources, have

resolved to conclude this Agreement setting forth the framework for cooperation.

The Agreement provides the legal mandate of the Mekong River Commission. It defines the

scope of the work and cooperation related to coordinated and joint planning for balanced and

socially just development in the Mekong River Basin while protecting the environment and

maintaining the ecological balance. The Agreement also sets out a framework for the

achievement of the strategic objectives of IWRM, recognizing that development decisions by

sector agencies in the sovereign riparian countries of the Mekong River Basin may have

trans-boundary consequences, and that the MRC as an inter-governmental river basin

organization is reliant on the endorsement of its approaches by its Member Countries.

The Agreement was recalled at the first Mekong River Commission (MRC) Summit in April

2010 by the Heads of the four MRC Member Governments with their reiteration to the

objective of their cooperation as first set out in the 1995 Mekong Agreement and

reaffirmation of their political commitment to its implementation.

Regional IWRM-related development is taking place under several programmes implemented

by ADB, MRC, The World Bank, and by individual donor countries.

Reflecting the Member Countries’ shared views on the future, the IWRM-based Basin

Development Strategy approved by the MRC Council in January 2011 forms the overarching

strategic framework for development-oriented work of the MRC over the next five years

2011-2015. It provides a framework for transboundary governance of this development

16 MA (April1995)

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process, including alignment of national plans and projects, basin management processes and

the identification of strategic analyses to address current knowledge gaps. 17

MRC pursues a balance between pro-active social and economic development on the one

hand and conservation of finite natural resources and fragile ecosystems on the other. This is

reflected by the 'Shared Principles of IWRM' as confirmed by the MRC Council in January

2011: 18

• Institutional and regulatory frameworks with clear pathways of accountability – establishing the ethic and performance of good governance

• Knowledge‐driven planning and management, with open sharing of information

• Community and stakeholder participation; partnerships between government and community for demand-responsive approaches to development

• Integration and coordination of policies and programmes across sectors, countries, competing stakeholder interests and levels of government, achieving an acceptable balance between economic, social and environmental benefits and impacts

The Greater Mekong Subregion Programme (GMS) (initiated in 1992) covers Cambodia,

China, Laos, Myanmar, Thailand, and Viet Nam. It is comprehensively supported by ADB.

This programme promotes and facilitates investments, mainly in transport infrastructure, as

well as cross-border trade, flood protection, and (recently) agricultural development. One of

its 'strategic pillars' is 'managing the environment and shared natural resources'. A regional

'Environment Operation Centre' was established in 2006 in Bangkok under with funding by

ADB, The Netherlands and SIDA.

The Mekong Water Resources Assistance Strategy (MWRAS) was prepared in 2004 by The

World Bank and ADB. In 2006 it was transformed into an assistance and investment

programme called the Mekong Water Resources Partnership Programme (MWARP). In the

southern part of the Lower Mekong Basin, this programme comprises major development

thrusts in the so-called '3-S Area' (the Se Kong - Se San - Sre Pok river basins, covering parts

of Cambodia, Laos and Viet Nam), as well as in the Delta (covering parts of Cambodia and

Viet Nam).

Since 2003, GTZ in collaboration with MRC has implemented a major 'watershed

management project' covering the Lower Mekong Basin. It comprises capacity-building and

various decision-support measures.

12. A transition process

Many Asian countries are in a stage of transition with respect to agriculture and water-

dependent livelihoods. The process will affect many households over a time span of decades. 19

The agricultural sector will diversify, and the thrust of its development may occur for

production systems other than rice. Food production will increase, but the process will see a

big loss of employment.

17 MRC (Jan 11b)

18 MRC (Jan 11b)

19 Chapter comprehensively based on Thi Thanh Van Ngo (Apr 10)

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Less labour-intensive production systems will prevail. The technological development will

proceed in the direction of further diversification and continued efficiency improvements,

covering primary production, livestock and processing.

The production unit - the farm size - will increase, driven by new technology that requires

less labour but more capital, combined with a need of higher production efficiencies - more

output and higher value per unit of input. Labour-intensive production systems - such as the

System of Rice Intensification (SRI) - will be marginal.

The changes are driven by a combination of circumstances. Lower trade barriers will increase

the exposure to competitive pressure, reflecting comparative advantages and disadvantages,

as well as exposure to global price fluctuations - a tendency that will interact, in an

unpredictable way, with escalating weather irregularities caused by a global climate change.

New lifestyles will affect the demand of many commodities, including food (and energy) -

for example if people consume more meat. It is a distinct possibility that the new demand of

biofuel will become permanent, further adding pressure on commodity prices.

Lower trade barriers will increase the exposure to price fluctuations. Also, there will be a

much higher exposure to competition, which will benefit the more efficient production

systems at the cost of less efficient ones.

The use of pesticides (and fertilizers) will escalate, partly necessitated by the diversification.

Pesticides can end up in the environment and can contaminate edible fish and water used for

drinking.

The transition between today and the future is a major challenge. If conducted smoothly, the

sector will emerge as prosperous and competitive, well placed to generate income for the

farmers and food for the population. If conducted less smoothly, there is a risk of

unemployment, and farm incomes that are even lower than today. This can happen if the

changes take place too fast, or without appropriate support.

The transition will take place on a background of increased demand of water for households

and industries. The population of Asia as a whole is estimated to grow by a factor of more

than 3 between 1950 and 2050. The household demand is the population multiplied by the per

capita demand, both of which are growing - the latter more than the former. The required

larger amounts of food must be produced with less water.

13. Policy implications

Below are listed some policy implications, in random order, as applicable from case to case. 20

• Efficiency improvement is a general aim, considering the need to improve the income of the farmers, in an increasingly competitive environment, while, at the same time, producing more food with less water. This comprises the water efficiency - ton per m3 of water output - as well as the economic efficiency - value generated per m3 of water.

• Another important aim is livelihood generation, in its own right, expectedly mainly outside the farms, but preferably including rural livelihoods, in order to reduce the rate of (an

20 Chapter comprehensively based on Thi Thanh Van Ngo (Apr 10)

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unavoidable and possibly eventually beneficial) urban migration. Towns must grow, and will, but best at a rate that allows for facilities, infrastructure and services to grow accordingly.

• Gentle, pro-poor market regulation can be applied in support of shifting to new products (perhaps biofuel), and in support of a common national aim of affordable food prices while at the same time maintaining an income of the farmers that at least exceeds their production cost. A high predictability will support the intended outcome and reduce the risk of adverse effects.

• Credit, including (but not limited to) micro-credit, is a general precondition for investment and innovation. Some kind of risk insurance can make it possible for the farmers to keep their land in case of emergencies.

• Water uses must be regulated. There is a particular scope for strict regulation of new, water-dependent industries, because these can adapt more easily than existing ones with older technology - and sometimes even saving water, energy and money at the same time. The regulation must cover both surface water and groundwater.

• Disaster preparedness (for floods, drought and pests) must be in place.

• Organisation of farmers (like in water user groups) can facilitate efficiency improvements, other kinds of technological development, environmental awareness, and access to markets.

• Soil management will become more important (and the benefits more visible) when water is sparse and in connection with diversifying the cultivation on lands that are not well suited crops other than rice.

• Use of pesticides must be kept at acceptable levels, supported by education and awareness campaigns and supportive extension and weather forecast services.

• Continued research is required, including international networking, knowledge-sharing and active collaboration. Results must be made available to the end users (and adapted to site-specific needs) by pilot and demonstration activities, well functional extension services, and networking among farmers - possibly across borders.

Agricultural development must be cautious and gradual. There is always a risk of unforeseen

adverse side effects when implementing new technologies, and even when implementing

existing and well proven technologies in new places.

Poverty alleviation is an over-ruling concern, which - in the context of water resources

management - can be supported by mainstreaming the livelihoods perspective throughout

development policies and planning.

14. Acknowledgements

I would like to thank all friends who have shared ideas and comments during preparation of

this paper and whose inputs are valuable for this paper and their key documents as references.

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