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Meeting the Water Reform Challenge

Meeting the Water Reform Challenge

(2012)

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Book Details

Abstract

Water policies around the world are in urgent need of reform. Despite improvements in some sectors and countries, progress on meeting national, regional and international goals for managing and securing access to water for all has been uneven. Rallying policymakers around a positive water reform agenda needs to be a high priority and calls for strong political commitment and leadership. 
This report on Meeting the Water Reform Challenge brings together key insights from recent OECD work and identifies the priority areas where governments need to focus their reform efforts. It calls for governments to focus on getting the basics of water policy right. Sustainable financing, effective governance, and coherence between water and sectoral policies are the building blocks of successful reform.

Table of Contents

Section Title Page Action Price
Cover\r Cover
Table of contents 7
Acronyms and abbreviations 11
Executive summary 15
Framing the challenges 16
Meeting the water financing challenge 17
Meeting the water governance challenge 19
Meeting the water coherence challenge 21
Chapter 1:\rFraming the water reform challenge 25
Introduction 26
Key water trends and projections 27
Changes in OECD water abstraction rates 29
Future global water demand is expected to increase significantly to 2050 30
Increasing water stress 31
Groundwater exploitation is becoming unsustainable 32
The human and economic impact of weather-related disasters is increasing 32
Water quality is expected to deteriorate globally 34
Reaching the MDG goal for access to improved drinking water sources 36
The MDG goal for sanitation is a significant challenge 38
Emerging issues in water policy 40
Seeing water as an essential driver of green growth 40
Allocating enough water for healthy ecosystems 42
Ensuring sustainable financing of the water and sanitation services 43
Fostering greater coherence among water, energy, environment and food policies 43
Developing alternative sources of water 44
Filling information gaps 45
Designing reforms that are realistic and politically acceptable 46
Build a broad constituency 47
Explore a mix of policy options and build capacity 47
Factor in financial sustainability from the start 47
Manage the political process 47
Notes 48
References 48
Chapter 2:\rMeeting the water financing challenge 51
Introduction 52
What are the benefits from investing in water and sanitation? 52
Estimating the benefits from investing in water supply and sanitation 53
Economy-wide assessments of benefits of water quality improvements 56
How much investment is needed? 58
Closing the financing gap 60
Improving the efficiency of operations 61
Opting for different levels of service to reduce initial capital costs 62
Finance to close the gap: A combination of the 3Ts 62
Increasing revenues: Tariffs 63
Increasing revenues: Taxes 65
Increasing transfers (i.e. Official Development Assistance and philanthropic\rdonations) 66
Bridging the financing gap: Tapping repayable sources of funding 67
The role of the private sector to help mobilise financing 72
Beyond water and sanitation: Financing water resources management 75
A framework for financing water resources management 76
The benefits and beneficiaries of water resources management 77
Costing water resources management 80
Seeking cost savings in WRM 81
Who pays for what and how? 83
Thinking strategically about financing WRM 86
Moving forward on the water financing challenge 87
The need for strategic financial planning 87
A “Toolbox” to support financial planning 91
Taking a holistic approach 92
Notes 92
References 93
Chapter 3:\rMeeting the water governance challenge 97
Introduction 98
A multi-level governance approach for addressing complexity in the water sector 99
Rationale for a multi-level governance perspective 99
The multi-level governance approach to water policy 100
Observations from the institutional mapping of roles and responsibilities in the water sector 104
Institutional mapping at central government level 104
Institutional mapping at sub-national government level 106
Main conclusions on OECD countries’ institutional organisation of water policy 108
Challenges to co-ordinating water policies across ministries and between levels of government 110
Governance fragmentation at the metropolitan level 114
Multi-level Co-ordination of Water Policies 116
Co-ordinating water policy across ministries and public agencies 118
Co-ordinating water policies between levels of government 120
Co-ordinating water policies across sub-national actors 122
Moving forward on meeting the water governance challenge 125
References 127
Chapter 4:\rMeeting the water coherence challenge 129
Introduction 130
Framing the coherence challenges 130
Impacts of governance in the energy and agriculture sectors on water governance 132
Linkages between energy, water and the environment 133
Key water-energy linkages 134
Water for cooling thermoelectric power plants 134
Water impacts of hydropower and other renewable electricity 135
Water impacts of liquid fuels1 137
Impacts of water treatment, distribution and use on energy demand 138
Coherence between water and energy policies: Policy objectives and technological options 139
Approaches to enhancing policy coherence 141
Exploiting win-wins 141
Avoiding conflicts 141
Managing trade-offs 142
Institutional gaps hindering policy coherence in water and energy 142
Moving forward on coherence between water and energy policies 144
Institutional re-organisation 144
Enhanced data collection and analysis 144
Co-ordinated planning 145
Public consultation 146
Programmes 146
Regulations 146
Operational management 147
Economic instruments 147
Linkages between agriculture, water and the environment 147
Key water-agriculture linkages 148
Water resources 149
Water quality 150
Water and energy 151
Droughts and floods 152
Water and ecosystems 153
Water and climate change 153
Coherence between agriculture and water policies: Key obstacles 154
Difficulties and failure to address the complexity and diversity of agriculture and water linkages 154
Differences in the spatial and temporal scales between water and agricultural policies 155
Incoherencies between agriculture and water policies 156
Inconsistencies and rigidities in the institutions governing the agricultural and water sectors. 157
Coherence between agriculture and water policies: Key benefits and risks 159
Moving forward on the water and agriculture coherence 163
Moving forward on the water, energy and agriculture coherence challenge 166
Notes 167
References 168
ORGANISATION FOR ECONOMIC CO-OPERATION\rAND DEVELOPMENT 172