Session III: Strategic Implications--What Does This Imply

Session III: Strategic
Implications--What Does This
Imply for the World Bank
David Grey, World Bank
International waters: some realities
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wide range of different IW problems
political dimensions
timing & opportunity
role of key people (‘spark plugs’)
counter-cultural role for Bank
biggest threat: poverty/inequity/asymmetry
beyond water
Reality: African water resources
• hydrologic variability
– drought & flood
– +/- 40%
• growing demand -> scarcity
– 1990 8 countries stress/scarcity
– 2020 18 countries (600M people)
• 60+ international rivers
• RISK- diversification->economic integration
– water storage / economic production (power, food)
– mobility of labour & commodities
Africa: many international basins
basin
no.
countries
Nile
10 Sudan, Ethiopia, Egypt, Uganda,
Congo
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Niger
9
Zambezi
8
Volta
6
Limpopo
4
Tanzania Kenya, Rwanda, Burundi,
Eritrea, Zaire
Zaire, CAR, Angola, Congo, Rwanda,
Zambia, Tanzania, Cameroon, Burundi
Niger, Nigeria, M ali, Guinea, Burkina, C.
d’Ivoire, Togo, Benin, Cameroon, Chad
Zambia, Angola, M alawi, M ozambique,
Tanzania, Namibia, Zimbabwe, Botswana
Burkina, Ghana, Togo, Cote d’Ivoire,
Benin, M ali
South Africa, Botswana, M ozambique,
Zimbabwe
Africa: WB support to addressing
the challenge
• 2 track approach in partnership
• Support national WRM policy reform
– civil society engagement
– capacity building
– investment
• Support international rivers engagement
– cooperative frameworks
– win-win investments
National WRM: blend of policy instruments
Regulatory
Information
Economic
Participatory
International
Waters: Nile
Basin case
Ten riparians:
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Burundi
D.R. Congo
Egypt
Eritrea
Ethiopia
Kenya
Rwanda
Sudan
Tanzania
Uganda
Nile Basin Initiative: Strategic Action
Program
Shared Vision
The Riparian’s Shared Vision
Shared Vision
Sub-Program
Subsidiary
Action
Sub-Programs
Action on the Ground
To achieve sustainable
socio-economic development
through equitable utilization
of, and benefit from, the
common Nile Basin water
resources.
Nile Basin Initiative: the strategy
A Multi-Track Approach
• 1. Support to individual
countries
• 2. Sub-basin Subsidiary
Action Programs
5. International Discourse
4. Cooperative Framework
Ethiopia
Eastern Nile
Eritrea
• 3. Basin-Wide Shared
Vision Program
• 4. Cooperative Framework
• 5. International Discourse
Rwanda
Burundi
Sudan
Egypt
Tanzania
Southern Nile
Kenya
DRC
Uganda
3. Nile Basin
Cooperating partners supporting
Nile Basin Initiative
Initial
Cooperating Partners
Growing pre-Consortium
Partnership
CIDA-UNDP-WB
CIDA
UNDP
Canada
Denmark
Finland
GEF
Germany
Italy/FAO
IUCN
GTZ
Current
Nile Team
World Bank
SIDA
Netherlands
Norway
Sweden
UK
UNDP
US
World Bank
Strategic implications for WB: questions
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understand international waters challenge?
learn from our experience?
comparative advantage?
external conditions?
internal conditions?
“rules of engagement”?
partnerships?
International waters challenge - scope & scale
Poverty ->Development
Political
relations
Insecurity -> Security
Degradation -> Sustainability
From experience: key strategic questions
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Lending vs non-lending?
Selective vs non-selective?
Level of risk?
Level of complexity?
Universal vs opportunistic?
Let’s examine high case…..
Comparative advantage
variable by region (‘wholesale/retail’); take retail:
• development/poverty mandate
• access to capital: carrot of investment
• innovative project financing (PPP, guarantees)
• economy wide skills/experience: ‘knowledge Bank’
• beyond water & environment
• convening power: clients, donors, private sector
• political access (‘diplomacy’): power of personality?
• international mandate & accountability
Comparative disadvantage
• ‘big hammer for small nut’
• country/sector matrix vs intercountry/inter-sector need
• lack of regional instruments
• lending pressure
• directive tendency
• domestic politics of key board members
External conditions
• politics/people/potential: opportunity
• win-win potential: cooperation better than
non-cooperation
• riparian demand->commitment->ownership
• transitional institutional arrangements ->
cooperative framework
• inclusive framework, subsidiary action
Internal conditions
• Management
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long-term commitment
budget commitment (high cost)
high risk (high return)
personality link valuable (limited ‘personal capital’)
• Staff: counter-cultural skills
– specialist ‘integrators’ as well as sector specialists
– relationship builders/communicators/ negotiators
– ‘no footprint’ (vs ‘footprint culture’)
• Facilitating/enabling policies (vs restrictive)
Partnerships
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riparians in driving seat
riparian/donor/NGO/private permutations
strategic: define roles & responsibilities
share goals, tasks, risks, costs
technical, financial, political, …..
reduce potential for failure, increase potential
for success
• high short-term costs, high long-term benefits
Rules of engagement = strategy
A. Engaging…
• do more, better, but be selective & opportunistic
• meet external/internal conditions
• select from 3 possible options
– 1. Stay away
– 2. Limited support to others, possible transition 1->3
– 3. Full immersion, with partners
• for 3: seek comparative advantage; -> high risk &
complex
• establish strategic partnerships early
Rules of engagement = strategy
B. Once engaged…..
No blueprints, only lessons….
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promote political commitment to shared vision
ensure riparian ownership (eg core funding….)
strengthen relationships/communications
focus on development: sharing benefits not water
look beyond water for linkages
link vision to framework to action (investment)
seek multi-stakeholder engagement
no footprints, unless footprints requested &
necessary
Concluding thoughts
Can pick your friends not your neighbors;
international waters challenge is
to make your neighbors your friends;
BUT
good fences can make good neighbors.
Lesson: no blueprint, compromise, change course,
&
do not let the best be the enemy of the good