Water institutions and sector performance: A subjective theory of institutional change

Institutional developmentOrganizational changeEvaluation

Water challenge and institutional response (a cross-country perspective)

This cross-country evaluation of institutional responses to problems in the water sector shows that changes in the nature of water problems have changed the development paradigm underlying water institutions. There is increasing recognition of how decentralized allocation mechanisms can influence economic forces and stakeholders in water sector decisions. As the notion of water provision as a public good and welfare activity gives way to the concept of water as an economic good and an input of economic activity, there is more policy concern about efficient and equitable use, cost recovery, and financial viability. All of the countries the authors studied (Australia, Brazil, Chile, China, India, Israel, Mexico, Morocco, South Africa, Spain, and Sri Lanka) are committed to changing the policies and institutions that have caused the present water sector crisis, but they are at different stages of institutional reform. Among cases discussed, Australia and Chile (and, in the United States, California and Colorado) are at an advanced (though not ideal) stage of institutional change. Israel, with its technologically advanced water sector, could well be ahead of them when the proposal to allow water transfers and decentralize water development and distribution systems takes practical shape. Tentative conclusions reached by the authors are: 1) Attempts to fix isolated parts of the water sector will influence other dimensions but an integrated approach is best. At the heart of such an approach should be institutional changes aimed at modernizing and strengthening legal, policy, and administrative arrangements for the whole sector. 2) Institutional changes taking place everywhere suggest that the opportunity costs of (and net gain from) institutional change is not uniform, suggesting that opportunity and transaction costs vary. 3) Funding agencies should focus efforts and resources in countries, areas, and subsectors that already have enough critical mass in institution-building to ensure success and lower transaction costs. 4) The sequence and pace of reform should reflect realities of scale economies and political pressures from reform constituencies. When possible, political economy should be exploited to move reform along more quickly.Environmental Economics&Policies,Water Conservation,Water and Industry,Water Supply and Systems,Decentralization,Water Supply and Sanitation Governance and Institutions,Town Water Supply and Sanitation,Water and Industry,Water Conservation,Water Use

Quantifying institutional impacts and development synergies in water resource programs : a methodology with application to the Kala Oya basin, Sri Lanka

The success of development programs, including water resource projects, depends on two key factors: the role of underlying institutions and the impact synergies from other closely related programs. Existing methodologies have limitations in accounting for these critical factors. This paper fills this gap by developing a methodology, which quantifies both the roles that institutions play in impact generation and the extent of impact synergies that flows from closely related programs within a unified framework. The methodology is applied to the Kala Oya Basin in Sri Lanka in order to evaluate the impacts of three water-related programs and the roles of 11 institutions in the context of food security. The results provide considerable insights on the relative role of institutions and the flow of development synergies both within and across different impact pathways. The methodology can also be used to locate slack in impact chains and identify policy options to enhance the impact flows.Economic Theory&Research,Food&Beverage Industry,E-Business,Rural Poverty Reduction,Climate Change

The political nexus between water and economics in Brazil:A critique of recent policy reforms

The reform of water policies in Brazil has involved a combination of regulatory norms and economic-incentive instruments. Nonetheless, contrary to its formal objectives, the process has largely failed to prevent widespread environmental impacts and growing spatial and sectoral conflicts. The main reason for such failures is the perverse influence of market rationality, which is particularly evident in the reorganization of the public sector, the quantification of the monetary value of water, and the payment for environmental services

Social science in a water observing system

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/95008/1/wrcr12336.pd