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Managing Water for All

Managing Water for All

(2009)

Additional Information

Book Details

Abstract

Part of OECD Water Resources and Sanitation Set - Buy all four reports and save over 30% on buying separately! 
Water is a key prerequisite for human and economic development, and for maintaining ecosystems. However, billions of people lack access to water and sanitation services, mainly due to poor governance and inadequate investment and maintenance. The situation is becoming more urgent due to increasing pressure, competition and even conflict over the use of water resources. The OECD has been working over the last two years to address these challenges. The results are summarised in this report, which emphasises the economic and financial aspects of water resources management and water service provision, the need for an integrated approach (including governance considerations) to address these complex policy challenges, and the importance of establishing a firm evidence base to support policy development and implementation. 
This report examines: strategic financial planning for water supply and sanitation that balances the key sources of revenues for the water sector – the “3Ts” of taxes, tariffs and transfers; the design and implementation of water pricing strategies that balance financial sustainability with other policy objectives; recent developments in private sector participation in the water sector; and trends and the future outlook of water use in agriculture. It considers both developing and OECD countries and offers concrete recommendations and checklists for action. The report is an invaluable resource for policy makers, academics, NGOs and all others interested in the challenges facing the water sector today.

Table of Contents

Section Title Page Action Price
Cover\r Cover
Table of Contents 7
List of Abbreviations and Acronyms 11
Executive Summary 13
The benefits of strategic financial planning for water supply and sanitation 14
Tariffs: reconciling different policy objectives 16
How to best harness the capabilities of public and private actors for water supply\rand sanitation services 17
Economic instruments to promote sustainable water use for agriculture 18
Notes 19
Introduction 21
Overview 21
Structure of the report 21
Notes 22
Chapter 1:\rSetting the Stage 23
The economic backbone of water policies 24
The economic nature of water services 24
Water: a resource to be managed and a source of services that come at a cost 26
Financing water services: an essentially political issue 27
Selected pitfalls of financing for water services 28
Current water policy challenges 31
Water scarcity and possible consequences and responses 32
Current status and future prospects 32
Possible policy responses 34
Access to water supply and sanitation in developing countries 35
Rehabilitation of water supply and sanitation in OECD countries 38
The evolution of the policy debate 38
The evolution of the international consensus on water-related issues 38
Moving the dialogue forward: this report’s value-added 40
Notes 41
Annex 1.A1:\rProjected Expenditures on Water and Wastewater Services 42
Annex 1.A2:\rA Brief History of International Conferences on Water 43
References 45
Chapter 2:\rFinancing Water and Sanitation Services: Key Challenges and the Way Forward 47
Financing water supply and sanitation: redefining the perspective on the problem 48
Strategic financial planning: policy options to reduce costs 49
Reducing costs: improve the efficiency of operations 49
Revising investment plans and adapting service levels 51
Strategic financial planning: policy options to increase revenue from the 3Ts 54
Increasing revenues: tariffs 55
Different cost recovery mechanisms for different water services 56
Affordability constraints 56
Process matters: gradual tariff increases 58
Increasing revenues: taxes 58
Increasing the supply of finance: transfers (i.e. ODA) 61
Policy dialogue on WSS financing: good practices from OECD and developing countries 65
Informing policy choices: the value of strategic financial planning 65
Making strategic financial planning work: basic principles from lessons learned 66
Actors and stakeholders 66
Process 67
Analytical base 67
Capacity 67
Role of donors\r 68
Notes 68
References 70
Chapter 3:\rWater Services: The Central Role of Tariffs 73
The 2007-08 OECD survey: main trends and data limitations 74
Tariff level data and their interpretation 76
Tariff structures: definitions and recent trends 78
Pricing “water”: the challenge of multiple objectives 79
Pricing as a cornerstone of a sustainable cost recovery strategy … 79
… but also so much more, and therein lies the challenge 80
Choices concerning policy objectives 82
Implications for water pricing 82
Tariff structures to address the policy trade-offs 83
Financial sustainability vs. economic efficiency: the “hidden” trade-off 83
Financial sustainability and affordability: how to achieve both through tariffs and other measures 85
The importance of objective measures of affordability 85
Affordability for society as a whole vs. affordability for vulnerable groups 85
Affordability needs to be assessed locally 86
Achieving both financial sustainability and affordability: tariff structures andother measures 90
Pricing sanitation and wastewater management: a special challenge 92
Notes 94
Annex 3.A1:\rComparison of Data from GWI Surveys and the World Bank IB-Net Database for EECCA Countries and BRIICS 96
Annex 3.A2 Criteria Matrix for Assessment of Tariff Structures 100
References 102
Chapter 4:\rBeyond Money: The Roles of Governments and Private Actors in Water Services 105
Trends in private sector involvement in water supply and sanitation: new actors, new responsibilities 107
The emerging diversity of the private sector 107
Poor risk management reduces sector financing 109
Government responsibilities: the need for clarity 113
Public sector as the enabler: commitment, consistency of policy and capacities at all levels 113
Developing high-quality regulation 114
Beyond public and private roles: the key elements for successful private sector participation 117
Co-operation between the public and private sectors 118
Responsiveness to needs and leveraging public participation 120
Private responsibilities: the elements of responsible business conduct 120
Notes 122
References 124
Chapter 5:\rManaging Water Resources in the Agricultural Sector 127
Recent trends and outlook 129
OECD policy experiences and options for sustainable water resource management in agriculture 135
1. Recognising the complexity and diversity of water resource management in agriculture 135
2. Reforming institutional systems for water management in agriculture 137
3. Ensuring charges for water supplied to agriculture cover delivery costs3 138
4. Enhancing agriculture’s resilience to climate change and climate variability impacts 140
5. Improving policy integration between agriculture, water, energy and environment policies 141
6. Addressing knowledge and information deficiencies to better guide water resource management 143
Notes 145
References 146