Impact on food security and rural development of reallocating water from agriculture:

The competition for limited water resources between agriculture and more highly valued domestic and industrial water uses is rapidly increasing and will likely require the transfer of water out of agriculture. This paper reviews and synthesizes the available evidence of the effects of water transfers from agricultural to urban and industrial areas on local and regional rural economies; and analyzes the potential impacts of a large reallocation on global food supply and demand. It concludes with a discussion on the potential for water policy reform and demand management to minimize adverse impacts when water is reallocated from agriculture. It is argued that comprehensive reforms are required to mitigate the potentially adverse impacts of water transfers for local communities and to sustain crop yield and output growth to meet rising food demands at the global level. Key policy reforms include the establishment of secure water rights to users; the decentralization and privatization of water management functions to appropriate levels; the use of incentives including pricing reform, especially in urban contexts, and markets in tradable property rights; and the introduction of appropriate water-saving technologies.Agricultural resources., Resource allocation., Water resources, Water use Management.,

World food markets into the 21st century: environmental and resource constraints and policies

Projections of global food supply and demand to the year 2020 indicate that food production in the aggregate is likely to keep pace with growing populations and incomes, and that real food prices will be stable or slowly declining. This article examines the possible environmental and resource constraints to long‐term food production growth and explores the implications of these possible constraints for food and resource policies. The article reviews and synthesises the evidence on biophysical limits to crop productivity; plant genetic resources and biotechnology; the availability of plant nutrients; soil and land degradation; the increasing scarcity and declining quality of water; and the impact of global climate change on agriculture.International Relations/Trade,

Water resources development in Africa: a review and synthesis of issues, potentials, and strategies for the future

This paper analyzes how water resources development and water policy reform can be deployed to address the twin problems of food insecurity and water scarcity in Africa and, in particular, Sub-Saharan Africa. The paper reviews the current status of water supply and demand, and the existing and potential irrigated land base in Africa; reviews the performance of existing irrigation systems and assesses the magnitude of the potential contribution and cost-effectiveness of new irrigation development to future food production in Africa; and explores the potential for water conservation through demand management. Meeting the challenges of food security and water scarcity in Africa will require both selective development and exploitation of new water supplies and comprehensive policy reform that encourages efficient use of existing supplies. The most significant reforms will involve changing the institutional and legal environment in which water is supplied to one that empowers water users to make their own decisions regarding the resource. Irrigation development will not be the main source of food production growth in Africa, but increased investment in irrigation could have an important role in reducing projected cereal import demands. Rehabilitation and improvement of existing irrigation systems can be an attractive option, but projects must be selected carefully.Water conservation., Water resources development Management., Water supply., Food security., Irrigation Management Research.,

Reforming water allocation policy through markets in tradable water rights: lessons from Chile, Mexico, and California

Increasing water scarcity, rising costs of irrigation subsidies, and general economic liberalization are creating strong incentives for comprehensive water reform with establishment of tradable water rights and the development of markets in these rights. Experiences in Chile, Mexico, and California indicate that water allocation through markets in tradable water rights offers a viable approach to improving the efficiency of water allocation, and should receive serious consideration from developing country policy makers. Laws establishing tradable rights should be simple and comprehensive, should clearly define the characteristics of water rights and the conditions and regulations governing the trade of water rights; should establish and implement water rights registers; delineate the roles of the government, institutions, and individuals involved in water allocation and the ways of solving conflicts between them; and provide cost-effective protection against negative third party and environmental effects which can arise from water trades.Water-supply Management., Irrigation., Right of property., Water rights., Trade regulation.,

Confronting the environmental consequences of the Green Revolution in Asia:

Intensive double or triple monocropping of rice has caused degradation of the paddy micro environment and reductions in rice yield growth in many irrigated areas in Asia. Problems include increased pest infestation, mining of soil micronutrients, reductions in nutrient-carrying capacity of the soil, build-up of soil toxicity, and salinity and waterlogging. Emerging sustainability problems in intensive rice agriculture show the need for a greater understanding of the physical, biological and ecological consequences of agricultural intensification and greater research attention to long term management of the agricultural resource base.Green Revolution Asia., Rice Yields Asia., Environmental degradation., Sustainability., Resource management., Agricultural resources.,

Total factor productivity and sources of long-term growth in Indian agriculture:

This paper assesses total factor productivity (TFP) growth in India, examines the sources of productivity growth, including public and private investment, and estimates the rates of return to public investments in agriculture. The results show that significant TFP growth in the Indian crops sector was produced by investments primarily in research but also in extension, markets, and irrigation. The high rates of return, particularly to public agricultural research and extension, indicate that the Government of India is not overinvesting in agricultural research and investment, but rather that current levels of public investment could be profitably expanded.Crops Economic aspects., Government spending policy India., Agricultural research Economic aspects.,

Does efficient water management matter?: physical and economic efficiency of water use in the river basin

With growing water scarcity and increasing competition across water-using sectors, the need for water savings and more efficient water use has increased in importance in water resources management. Improvement in the physical efficiency of water use is related to water conservation through increasing the fraction of water beneficially used over water applied, while enhancing economic efficiency is a broader concept seeking the highest economic value of water use through both physical and managerial measures. Physical and economic efficiency measures are both useful indicators for water management at the irrigation system and river basin level. However, the relationship between physical efficiency and economic efficiency is not always clear and the values of these measures may indicate different directions for water policy and investments in irrigation. Open research questions include, for example: does enhancement of physical water use efficiency always lead to improved economic water use efficiency? How does the change in responsiveness of water allocation and irrigation technology to economic incentives affect physical and economic irrigation efficiency? What is the impact on physical and economic efficiency of various structural and nonstructural improvements? To explore these issues, an integrated economic-hydrologic river basin model is applied to the Maipo River Basin in Chile. A series of modeling scenarios are defined and policy implications from physical and economic efficiencies for basin-wide irrigation water management are analyzed.Irrigation Economic aspects., Water resources development., Water conservation., Chile.,

Transforming the rural Asian economy

Developing Asia as a whole has taken remarkable strides since the food crises of the 1960s. Improvements in food security, poverty reduction, and per capita income initiated by the Green Revolution have been substantial and lasting. Although life has improved for most rural Asians, about 670 million still live in poverty, and they must tolerate lower levels of health, education, and general well-being than their urban counterparts. To complete the economic transformation in rural Asia requires further growth, but growth that is more equitable and environmentally sustainable than it has been in the past. Meeting this challenge will warrant more efficient application of the lessons already learned about agricultural growth, public-sector investment, rural poverty reduction, and natural resource protection. The authors argue that six emerging challenges will also need special attention: (1) Making growth pro-poor; (2) Managing the legacy of the economic crisis; (3) Managing globalization; (4) Revitalizing agricultural research and technology dissemination; (5) Managing land and water scarcity and degradation; and (6) Building good governance and social capital.

BASELINE PROJECTIONS: GLOBAL FOOD MARKETS

International Relations/Trade,

Water Allocation Mechanisms: Principles and Examples

From the earliest times, water resources have been allocated on the basis of social criteria - maintaining the community by ensuring that water is available for human consumption, for sanitation, and for food production. Societies have invested capital in infrastructure to maintain this allocation. Yet social change, including changes in (and more understanding of) how goods are distributed, has produced new issues in water allocation. Population growth has made water scarcity a major problem in many countries and water pollution, while by no means a recent problem, is more widespread than ever before. Traditionally the state has played a dominant role in managing water resources, but inefficient use of water, poor cost recovery for operating and maintenance expenses, the mounting cost of developing new water sources, and problems with the quality of service in agency-managed systems has led to a search for alternatives that make water allocation and management more efficient. The authors address some of the basic principles of treating water as an economic good and of allocating it among the sectors. After outlining the economic principles behind allocating scarce water resources, they review the actual means of various mechanisms used for allocating water, including marginal cost pricing, social planning, user-based allocation, and water markets. Giving examples from experience in several countries, they weigh the pros and cons of different approaches to water allocation, showing that no single approach is suitable for all situations. Clearly that state must play an important regulatory role, for example, but how effectively it does so depends on the relative political influence of various stakeholders and segments of society. User-based allocation is generally more flexible than state allocation, but collective action is not equally effective everywhere; it is most likely to emerge where there is strong demand for water and a history of cooperation. The outcome of market allocation depends on the economic value of water for various uses, but moving toward tradable property rights in water may ease the process of intersectoral reallocation by compensating the"losers"and creating incentives for efficient water use in all sectors