Water and a Green Economy in
Latin America and the Caribbean
(LAC)
UNECLAC Natural Resources and Infrastructure Division
UN-Water Decade Programme on Advocacy and
Communication (UNW-DPAC)
Santiago, Chile, June 2012
ThisdocumenthasbeenpreparedbyCaridadCanalesandAndreiJouravlev,EconomicAffairsOfficersoftheNaturalResourcesandEnergyUnit,DivisionofNaturalResources
andInfrastructure,EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)
andbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC).
TheauthorswouldliketothankfortheircontributionsandcooperationAdrianCashman,
CERMES-UniversityoftheWestIndies;ElisaColomdeMorán,SpecificWaterCabinetof
thePresidencyoftheRepublicofGuatemala;ThomasChiramba,SilasMogoiandIsabel
Martinez,UnitedNationsEnvironmentProgramme(UNEP);TimJones,DJEnvironmental;CarlosLloret,FundfortheProtectionofWater(FONAG),andRubenAvendaño,EmpresasPúblicasdeMedellin.Theviewsexpressedinthisdocument,whichhasbeen
reproducedwithoutformalediting,arethoseoftheauthorsanddonotnecessarilyreflecttheviewsoftheOrganization.
UnitedNationsPublication
©UnitedNations,June2012.
Allrightsreserved
MemberStatesandtheirgovernmentalinstitutionsmayreproducethisworkwithoutpriorauthorization,but
arerequestedtomentionthesourceandinformtheUnitedNationsofsuchreproduction.
Water
and
a
Green
Economy
WaterintheGreenEconomyinPractice:TowardsRio+20
1
Content
Water
and
a
Green
Economy
WaterandaGreenEconomyinLAC
2
Abstract ..............................................................................
3
Foreword.WaterandtheGreenEconomy:expectations
forRio+20 ...........................................................................
4
Introduction ........................................................................
6
I. Mainstreamingwaterintoagreeneconomy ...............
8
A. Agriculture ....................................................................
10
B. Industry
.......................................................................
11
C. Cities ...........................................................................
12
D. Watersheds ...................................................................
13
II. WaterandagreeneconomyinLatinAmerica
andtheCaribbean ........................................................
14
A. Challenges ....................................................................
18
B. Approaches ...................................................................
20
C. Lessonslearnt ...............................................................
21
Bibliography .......................................................................
25
III. Casestudiesfromtheregion
SpecificWaterCabinetofthePresidency
oftheRepublicofGuatemala .................................................
27
Pro-poorfinancingandtariffsinMedellin,Colombia ....................
28
TheFundfortheProtectionofWater(FONAG),Ecuador ................
36
Water’spotentialroleinsupportingagreeneconomyinBarbados
..
40
IV. Theexpert’sperspective..............................................
42
Annexes ..............................................................................
49
Annex1:Toolsforchange .....................................................
49
Annex2:Issuespresentedfordiscussion
attheZaragozaConference .......................................
51
T
Theresultsofthisconference,intheformofabestpracticesguide,areacontributionto
thepreparatoryprocessfortheUnitedNationsConferenceonSustainableDevelopment
(UNCSD)whichistakingplaceinBrazilinJune2012(Rio+20).TheEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)NaturalResourcesandInfrastructure
Divisioncollaboratedintheorganizationoftheconferencebycoordinatingtheregional
sessionforLatinAmericaandtheCaribbean,withtheparticipationofexpertsfromBarbados,Brazil,Colombia,CostaRica,Ecuador,Guatemala,Mexico,Nicaragua,Peru,and
othercountries.Thisdocumentisareportofthisconferencewithspecificemphasison
theLatinAmericanandCaribbeanregion.
Water
and
a
Green
Economy
heInternationalConference“WaterintheGreenEconomyinPractice:TowardsRio
+20”tookplaceinZaragoza,Spain,3-5October2011.Theeventbroughttogetherparticipantsfromvariousregionsoftheworldwiththeaimtosharethepracticalexperiencesthathaveworkedandthosethatneedtobeadjustedinordertodealwiththeworld’s
newandemergingproblems.Varioustoolsandapproacheswerepresentedwhileexperts
andpractitionerswereabletodiscussandexchangeperspectivesonhowtoimprovewater
governanceand,moreimportantly,toadvancethewatersectortowardsthegreeneconomy.
Abstract
Abstract
3
Foreword
Water
and
a
Green
Economy
4
WaterandtheGreen
Economy:expectations
forRio+20
omentumhasbeenbuildingonwaterasapriorityissueforRio+20.Inthepreparatoryprocess,Brazilsupportedtheideaofwaterbeingakeyemergingissuetobe
addressedattheconference.MemberStates,majorgroupsandcivilsocietyhave
becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRio.The
UNagencies,theSecretariatandUN-Waterhaveprovidedsupportandsubstantiveinputstotheprocess.
M
Rioisprovidinganopportunityforassessingprogressoninternationalcommitmentsin
water.Therearethreeglobalreportsthatprovidethebasistodoso:the2012JointMonitoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservices,the
WaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UN
WorldWaterDevelopmentReport4.Internationally,goalsinaccesstowaterandsanitationservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992),
MDGs(2000),JPOI(2002),andtheDushanbeWaterAppeal(2003).
ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoals
onaccesstobasicsafedrinkingwaterservices.From1990to2010,2000millionpeople
haveobtainedaccesstoimprovedbasicdrinkingwaterservices.Insanitation,thesituationisamajorconcernsincealthough1800millionhaveobtainedaccesstoimproved
sanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservices.
TheUN-Waterglobalsurveyof133countriesonthestatusinthe‘applicationonintegratedapproachestothedevelopment,managementanduseofwaterresources’willbe
deliveredtoRio+20.Preliminaryfindingsfromthesurveyindicatethatmostgovernments
havemadeprogresswithwatersectorreforms;butthattheimplementationprocess
whichseesprinciplesturnedintopolicy,laws,strategiesandplansisslow.
Thepovertyagenda,andtheconcernwithequityandplanetaryboundaries,areverymuch
atthecenterofRiopreparatorydiscussions.Ifthereisanissueinwhichinequities“inthe
accesstowaterandsanitationservices”andtheplanetarylimits“ofwaterresources”
ThepreparatoryprocessforwaterinRiohasbeenlong,withmanyproposalsrangingfrom
concretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingcooperation,coordinationandpolicycoherenceandimprovingwaterresourcesallocationand
management.Notalloftheseproposalshavebeenincorporatedinthenegotiatedoutcome
documentandtheremaybestilladisconnectioninthediscussiononwaterandthegreen
economy.Theexpectationisthattherewillbeadvancesinthewateragendaonaccessto
basicwaterandsanitationservices,IntegratedWaterResourcesManagementandCooperation.Thisincludesacallforimprovingefficiencyandreducepollution,improvewastewater
treatment,anduseoftreatedwastewaterandothernon-conventionalwaterresources.
AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-Waterconference“Water
andtheGreenEconomyinPractice:TowardsRio+20”on3-5October2011inZaragoza,Spain,
focusedontoolsforthetransitiontoagreeneconomy.Itidentifiedfourprioritywater-related
lociwherechangeneedstotakeplaceinthetransitiontoagreeneconomy:agriculture,industry,citiesandwatersheds.Sixtoolswereproposedwhichcanbeusedtofacilitatechange
andsupportthetransitiontowardsagreeneconomy:(1)economicinstruments;(2)green
jobs;(3)costrecoveryandfinancing;(4)investmentsinbiodiversity;(5)technology;and(6)
waterplanning.Thesetoolscanenableusto‘domorewithless’,overcomebarriers,harness
opportunitiesandchangebehavioursinordertoachieveagreeneconomy.
AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesection
II),theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwater
supplyhasalreadybeenmetwithfewexceptions(Haiti,DominicanRepublicandJamaica).
Regardingsanitation,theregionwillbeclosetomeetingthegoalwithalsofewcountries
potentiallymissingthetarget(Haiti,Bolivia,Nicaragua,SaintLucia,Jamaica,Colombia,
PeruandBrazil)(JMP,2011).However,morethan30millionpeoplestilllackaccessto
safedrinkingwater,whilemorethan120millionpeopledonothaveaccesstosanitation.
Infact,servicequality(intermittency,waterqualitycontrol,etc.)ismediocreandinfrastructureisofteninpoorcondition,whichisillustratedbyhighwaterlosses—bothcommercialandphysical—thatreachabout40%inthelargecitiesintheregionandupto
almost75%insomeextremecases.Coverageinruralareasismuchlowerandthose
withoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsociety.Moreover,overtwothirdsofsewageisdischargedintothenearestwaterbodies
withoutanytreatmentcausingwidespreadwaterpollutionproblems.
TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRegionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplementingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementation
challenges.
Josefina Maestu
Coordinator
UN-WaterDecadeProgramme
onAdvocacyandCommunication(UNW-DPAC)
Foreword
are compelling this is water. Rio represents a unique opportunity not only to assess
progressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimplementactionstoaddressthese.Actionsthatmanyconsiderneedtofocusonhowtoprovidebasicservicestothebottombillionandonenvironmentaldegradation.
Water
and
a
Green
Economy
WaterintheGreenEconomyinPractice:TowardsRio+20
5
Introduction
Water
and
a
Green
Economy
6
Introduction
hemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearnt
frompracticalimplementationexperiencesandhighlighttheimportanceofthesocial,economicandpoliticalcontextofeachregion,tofacilitatethetransitiontowards
agreeneconomy.TheformatoftheeventemphasizedtheexperiencesandconcreteproposalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsof
theworld.
T
Thespecificobjectivesoftheeventweretwofold:
Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy.
Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsa
greeneconomy,andtoillustratetheirpracticalapplicationthroughspecificexamples
inthedifferentregionsoftheworld.
TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyand
Communication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCooperationandDevelopment(OECD),theInternationalLabourOrganization(ILO),theWorld
Bank,theUnitedNationsEnvironmentProgramme(UNEP),theUN-WaterDecadeProgrammeonCapacityDevelopment(UNW-DPC),theUnitedNationsEconomicandSocial
CommissionforWesternAsia(ESCWA),theUnitedNationsEconomicCommissionfor
LatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE).
Thecasespresentedattheconferencedemonstratedhowappropriateregulation,investmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationservices equitably, efficiently and sustainably and for managing water resources in an
integratedwaycancontributetoreducepoverty,protecttheenvironmentandfostersocioeconomicdevelopment.Theconferencealsohighlightedtheimportanceofinstitutional
strengthening,politicalcommitment,technicalcapacitydevelopmentandlong-termvi-
WaterintheGreenEconomyinPractice:TowardsRio+20
Watertechnologyandinnovationmustbefocalpointsofdevelopment.
Economicinstrumentsareakeyaspectofthegreeneconomyplatform.
Constantlyincreasingeconomic,socialandenvironmentalefficiencymustbecomea
basicpremisethataccompaniesthegreeneconomy.
Politicalcommitmentandenablingpoliciesarefundamental.
Thisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldat
theconferenceandwhichfocusedonLatinAmericaandtheCaribbean.Thefirstchapter
describeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20
process.Italsofocusesonfourwater-relatedissues(agriculture,industry,cities,and
watersheds)wheresignificantchangesareneededinordertomovetowardsagreen
economy.Chaptertwosetstheregionalcontextandexploressomeofthechallengesthat
thecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainable
andefficientuseoftheirwaterresources,andfacilitateatransitiontowardsagreeneconomy.Italsodescribessomeofthelessonsthathavebeenlearntintheregion.Chapter
threeisabriefcompilationofcasestudiesthatwerepresentedduringtheconference.
Thesehighlightsomeofthelessonslearntandtheeconomic,environmentalandsocial
impactstheyhavehadasaresultoftheirimplementation.Thelastchapterisacompilationofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframe
ofwaterinthegreeneconomy.
Introduction
Wateristheengineforthegreeneconomy;itisimportanttoensurethattheystayconnected.
Water
and
a
Green
Economy
siontoaddressthechallengesofthegreeneconomy.Otherconclusionsthatcameoutof
thediscussionsheldduringtheeventwere:
7
Mainstreamingwaterintoagreeneconomy
Water
and
a
Green
Economy
8
I. Mainstreamingwater
intoagreeneconomy1
hefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(Riode
Janeiro,1992)intendedtocreateasharedvisionforreconcilingeconomicgrowth
withenvironmentalprotectionandbuildingamoreequitableworld.Itwasthen,in
whatwascalledtheEarthSummit,whensustainabledevelopmentwasofficiallylaunched
intothemainstream.Twentyyearslaterthegovernmentsoftheworldaremeetingagain
inRiodeJaneirofortheinternationalconferenceknownasRio+20.However,theworld
isnowfacingmajorandoverlappingglobalcrises—theeconomicandfinancialcrisis,acceleratingenvironmentaldegradation,waterscarcityandpollution,andtheemergingimpactsofclimatechange.Allthesechallengesnotonlyhindersocioeconomicdevelopment
butalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety.
T
TheobjectivesoftheRio+20conferencearethree-fold.First,theeventaimstosecurerenewedpoliticalcommitmentforsustainabledevelopment.Second,theconferencewillbe
an opportunity to stake stock of the progress made towards previous internationally
agreedcommitments.Lastly,therewillbeaspecialfocusonnewandemergingchallenges.Rio+20willalsofocusontwothemes:i)howtobuildagreeneconomywhichdeliverssustainabledevelopmentandliftspeopleoutofpoverty;andii)howtoimprovethe
institutionalframeworkandinternationalcoordinationforsustainabledevelopment.
Theemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthe
preparationforRio+20andsimplyput,itisthepracticalandoperationalframeworkthat
willservetoimplementthethreepillarsofsustainabledevelopment(environmental,economicandsocial).Theconcepthasalreadyservedanimportantpurpose:actingasacatalystandrallyingindividual,nationalandinternationalactorstoworktogethertowardsa
commonvision.
1 BasedontheConferenceBook:WaterintheGreenEconomyinPractice:TowardsRio+20.
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysustainabledevelopmentissues,suchashealth,energy,foodsecurity,andpoverty.Indevelopingcountries,accesstodrinkingwatersupplyandsanitationservicesisafundamental
preconditionforpovertyreduction,economicprogressandenvironmentalprotection.The
multiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealth,lifeexpectancy,perspectivesforeconomicdevelopment,andthefreeingoftimeforeducation
and economic activities, are well known, as illustrated in recent ECLAC studies of
GuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservices,
inordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorboth
intermsofpublicpolicyandbudgetallocations(Lentini,2010andOblitasdeRuiz,2010).
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffood,energyandclimatechange.Sustainingeconomicgrowthisonlypossibleifwerecognisethelimitedand
fragilecapacityofecosystemstosupplythewaterneededforagriculture,industry,energy
generation,humanwatersupplyandtheproductionofthemanygoodsandservicesdemandedbysociety.Thegreeneconomyimpliesmanagingwaterinawaythatcatalyses
socialandeconomicdevelopment,whilealsosafeguardingfreshwaterecosystemsand
theservicestheyprovide.Watermanagementmustbeimprovedinordertoachievefood
security,conserveecosystemsandreducetherisksfromwaterscarcityandpollution,
naturaldisasterssuchasfloodsanddroughts,andfromclimatechange.
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutional
mechanismstofacilitateintegratedwaterresourcesmanagement,aswellasthetransferandadoptionofnewtechnologywithemphasisonwaterconservation,improvedirrigationmethods,waterreuseandefficiencyimprovements.Manycountrieshavemade
progressinwatersectorreforms;buttheimplementationprocesswhichseesprinciples
turnedintopolicy,laws,strategies,plans,institutionalcapacityandconcreteresultsis
veryslow.Somecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislative
stepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceand
achieveuniversalcoverageofdrinkingwatersupplyandsanitationservices.
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowards
acceleratingsocioeconomicgrowth,reducingpovertyandinequities,whileatthesame
Water
and
a
Green
Economy
Whileitisevidentthat“business-as-usual”isfraughtwiththedisastrousconsequences
alongtheroad,articulatingthedetailsofagreeneconomyandidentifyingpossiblepathwaystogettherewillbeamajortaskfortheRio+20summit.Furthermore,ofcritical
importancetothesuccessoftheconferencewillbethewayinwhichtheneedsandconcernsofdevelopingcountriesareaddressed.Areoccurringandlegitimateconcernrelatestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreen
economyandavoidthemistakesthedevelopedworldhasmade.Thecapacityofnational
governmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthe
lossofjobsinsomesectors)varygreatly.Thereisaneedforastrongsocialcomponent
toaccompanythetransitiontoagreeneconomy,whichconsiderstheimpactsofsuch
changesonbroadersocialoutcomessuchasaccesstoeducation,healthandbasicservices,particularlydrinkingwatersupplyandsanitation.Therearealsoconcernsaboutthe
introductionofnewconditionalitiesthatmightrestricttrade,financing,internationalinvestment,andofficialdevelopmentassistance.
Mainstreamingwaterintoagreeneconomy
WaterintheGreenEconomyinPractice:TowardsRio+20
9
Water
and
a
Green
Economy
Mainstreamingwaterintoagreeneconomy
WaterandaGreenEconomyinLAC
10
timealigningtheseadvanceswithenvironmentalimprovement.Withregardtowater,
sustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfour
priorityissuesthatwereidentifiedfortheZaragozaConference:agriculture,industry,
citiesandwatersheds.
A. Agriculture
Agricultureaccountsforabout70%ofglobalwaterwithdrawalsandfouroutoftenpeoplearoundtheplanetworkintheagriculturesector.Thechallengeisnotjustaboutincreasingagriculturalproductiontomeettheaspirationsofagrowingpopulationand
globaleconomy.Whiletheworldcurrentlyproducesenoughfoodtofeedeveryone,more
than900millionpeoplegohungrybecausetheycannotaffordtopayforit.Paradoxically,
economicprogressandadvancesinalternativeenergythreatentoworsenthesituationfor
thepoorest.Thesedevelopments,ifnotproperlymanaged,risktodriveupbasicfood
prices,divertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsand
eventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdeveloped
countries.Small-scalefarmersoftenoccupymarginallandanddependmainlyonrainfallforproduction.Thismakesthemhighlysensitivetoclimatevariabilityandchange,
andextremeeventssuchasdroughtsandfloods.
Agreeneconomyrequirestheachievementoffoodsecurity,butbyusinglessnaturalresourcesinamoreefficientway.Thiscouldbeachievedthroughimprovedresourceefficiency,substantialinvestmentsandinnovations.Itimpliesincreasingcropsthatensure
ahigherefficiencyintermsofnutritionperdropofwater.Thefollowingaresomeofthe
approacheswithintheagriculturalsector,highlightedintheZaragozaConferencefor
transitioningtothegreeneconomy.
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)and
pullmechanisms(accesstomarkets).
Attentiontotheinterdependenciesbetweenwater,food,energyandclimate.Thereis
aneedtoalignplans,strategiesandprogramsdealingwithelementsofthatnexus
andrecognisepotentialtradeoffsbetweenlandandwateruse,biodiversity,green
housegasemissionreduction,etc.
Ensurethatwell-functioningmarketsprovidetherightsignals:
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveand
negativeenvironmentalexternalitiesofthefoodandagriculturesystem,willcontributetoresourceuseefficiency.
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices.
Improvementofirrigationefficiencyinagriculture.
Promotionofwastewatertreatment.
Althoughtheindustrialsectoronlyusesabout20%ofglobalfreshwater,industrialwater
useisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswith
growingurbanandagriculturalwaterdemands.Oneofthemajorchallengesforindustrytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationof
freshwaterresourcesaroundtheworld.Manyindustriesusemoreresourcesthantheir
productionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficient
technologiesandfailuretoadoptpropermanagementsystems.Inmanycountriesindustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresource
depletion,whichthreatenopportunitiesforsustainableeconomicgrowth.Butthetechnologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldeterioration.Industry,astheprimemanufacturerofthegoodsandservicesthatsocieties
consume,hasacriticalroletoplayincreatingmoresustainableproductionandconsumptionpatterns.Inthetransitiontoagreeneconomy,theenvironmentalservicessectoroffersopportunitiesforindustries,asitcanassisttheminassessing,measuringand
managingtheirenvironmentalimpacts,aswellasinthemanagementandsafedisposal
ofpollutionandwaste.
Thecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustries
tobecomemoresustainable.Thelargepublicspendingprogramsbeingproposedand
implementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrial
developmentonmoresustainablepathwaysofgrowth.Thefollowingaresomeexamples
ofhowindustrycanbecomemoresustainable:
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrial
processes(production,transformation,marketing,consumption,recycling)viagovernmentandmarketincentivesandregulations/standardsandconsumercampaigns.
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforother
processes,industriesandindustrialclusters.
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymore
perunitofwaterwouldpromoteincreasedwateruseefficiency.
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindustryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgood
practicesofcorporatesocialresponsibilityaroundwater.
Water
and
a
Green
Economy
B. Industry
Mainstreamingwaterintoagreeneconomy
WaterintheGreenEconomyinPractice:TowardsRio+20
11
WaterandaGreenEconomyinLAC
Water
and
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Green
Economy
Mainstreamingwaterintoagreeneconomy
C. Cities
12
Halfofhumanitynowlivesincities,andwithintwodecades,nearly60%oftheworld's
populationwillbeurbandwellers.Citiescannotbesustainablewithoutensuringreliable
accesstodrinkingwatersupply,sewerageandwastewatertreatment.However,existing
institutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcities
withtheprovisionofwaterservices.Althoughworldwidetheproportionofpeoplewith
access to water and sanitation gradually increases, in 2010 there were more urban
dwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasic
sanitation(morethan130million)thanintheyear2000.
Slumsorinformalsettlementsareoftenbuiltonunstableslopes,orinotherareasof
highrisk.Naturaldisasters,suchasfloodsanddroughts,formamajorchallengefor
cities,especiallyforslumareas.Thefrequencyofnaturaldisastersisexpectedtoincreaseinthefutureasaresultofclimatechange.Pollutionposesanothermajorproblemforcities.Urbansettlementsarethemainsourceofpoint-sourcewaterpollution.In
manycities,wastewaterinfrastructureisalmostnonexistent,inadequateoroutdated.
Waterstorage,treatmentanddistributionsystemsareoftenpoorlymaintainedresulting
inelevatedwaterlosses,bothtechnicalandcommercial,oftenexceeding40-60%.
Withthemajorityoftheworld’seconomicactivityandnowover50%ofitspopulationconcentratedinurbanareas,citieshaveacentralroletoplayinthetransitiontowardsagreen
economy.Howcitiesdevelophasfar-reachingeffectsoneconomies,energy,waterand
landuseandclimatechange.Thetransitionofcitiestoagreeneconomyrequiresacombinationofsustainableurbandevelopment,protectionofurbanecosystems,effective
managementofwastewaterandpollutioncontrol,efficientwateruseandimprovedgovernance.Thefollowingapproachescancontributetoasustainableurbandevelopment:
Expansionofnetworkinfrastructurefordrinkingwatersupply,sewerageandstormwaterdrainagewhilegettingthemostoutofexistingnetworks.
Integratedurbanwatermanagement,includingmanagingthecompleteurbanwater
cycle,tofacilitatethemulti-functionalnatureofurbanwaterservicesinordertooptimisetheoutcomesofthesystemasawhole.Thisinvolvesmanagingfreshwater,
human water supply, sewerage, wastewater treatment, wastewater reuse and
stormwaterlinkedwithintheresourcemanagementstructure,usinganurbanarea
asthegeographicalunitofmanagement.
Integrationoflandandwatermanagement.
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessustainablewateruse.
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable.
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystems.Thisisparticularlythecasefortheworld’spoor,astheyoftendependdirectlyonwaterandother
ecosystemservicesprovidedbyrivers,lakesandwetlandsfortheirlivelihoods.Current
unsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationof
aquifersandwatersheds,environmentaldegradationandthelossofinlandandcoastal
wetlands.Protectingfreshwaterecosystemsrequiresrecognisingthespecialcharacteristicsofwater;achangeinonepartofariverbasinnecessarilyhasconsequencesdownstream.
Thereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederive
fromecosystemservices—especiallythoseprovidedbyfreshwaterecosystems.Theprotectionandsustainablemanagementoftheseecosystemscanthereforeplayacritical
roleinpovertyreductionstrategies,bysecuringthecontinuedcost-effectivedeliveryofthe
water,foodandotherservicesthatthepoorrelyon.Recognisingthevaluable,lessvisibleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunityto
recoversustainableeconomicgrowth,socialequityandpovertyreductionpathswhileimprovingandprotectingtheenvironment.Thereisalreadysolidevidencethatecosystem
basedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractive
intermsofsustainabilityandeconomicefficiency.
Oneofthekeywaysthatwatermanagers,otherstakeholdersandthoseconcernedwith
conservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancial
measuresthatprovideincentivesforthesustainablemanagementofecosystems.Oneof
themostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosystemservices.
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwater
ecosystems:
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoaccountecologicalconsiderations.
Managementofriverbasinsasintegratedsystems.
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas.
Buildingresilience,adaptiveness,andadaptability,andlearningfromthepast.
Duetotheinherentuncertaintyoffutureclimatechangeprojections,watermanagementneedstobeflexible,soastobeabletocopeunderarangeofpossiblefutures.
Waterreuse,particularlyinperi-urbanagriculture.
Water
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Economy
D. Watersheds
Mainstreamingwaterintoagreeneconomy
WaterintheGreenEconomyinPractice:TowardsRio+20
13
Water
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WaterandagreeneconomyinLAC
14
II. Waterandagreen
economyinLatin
Americaandthe
Caribbean2
heLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdofthe
world’swaterresources.However,theseresourcesareunevenlydistributedamong
andwithincountries.Thepatternofwateruseintheregion,givenitsoverallsize,can
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareas.
Manylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemiaridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrowingpollution.LatinAmericaandtheCaribbeanisalreadytheworld’smosturbanized
developingregion,withmorethan80%ofthepopulationlivingintownsandcities(UN,
2012)inmanycasesinprecariousconditions,asthe100millionpeoplestilllivinginslums
(ECLAC,2010).
T
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertime.Attention
hasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhydroelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyand
sanitationservicesinthe1970sand80s,toincreasingemphasisonnon-structuralmeasures,waterconservation,environmentalprotectionandpollutioncontrolinthe1990sand
2000s,astheregionstartsfacingchallengesofincreasingwaterscarcity,pollutionand
climatechange.Thegovernmentsoftheregionhavealsorecognizedtheimportancethe
watersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationof
poverty.Thefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyon
fulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagement
translatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersupplyandsanitationservices,asillustratedforexamplebytheWaterforEveryoneProgrammeinPeru(seeBox1).
2 BasedonECLACcontributiontoWWAP(2012),soonavailableasLee(2012).
WaterintheGreenEconomyinPractice:TowardsRio+20
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverage
ofdrinkingwatersupplyandsanitationservices,butalsoasanexampleofwhatitrefers
toasa“cost-basedapproach”tothealleviationofextremepovertyorindigence.Afteridentifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty
(inthesensethatextremepovertyfallsoutsidethemarketsystem),Stateinterventionis
presentedastheonlywayoftacklingit.Inadditiontoconditionalcashtransfers(“demanddrivenapproach”),one-offinterventionsarebeingproposedtoreducewhatthestudyrefers
toasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincome
availableforsatisfyingbasicneeds,andultimatelytogenerateasmallamountofsavings
andallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthe
market.
WhatistherationalefortheWaterforAllProgramme?Familieslivinginextremepoverty
inLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(which
theybuyindrumsfor3.7USDpercubicmetre).Eachfamily’swaterbillthereforetotals
11USDpermonth.In2006,familiesconnectedtothepublicwaternetworkpaid0.4USD
percubicmetreofwater.Therefore,ifthefamilieslivinginextremepovertywereconnectedtothenetworkandconsumedthesameamountofwaterasbeforetheywereconnected,eachfamily’smonthlywaterbillwould,intheory,fallto1.2USD.
Ofthehouseholds(whichaveraged5.3persons)involvedintheprogramme,70%hadan
incomeofbetween74USDand220USD.Connectingtothepublicnetworkledtoaverage
savingsof5.8USDfor56%ofthosehouseholds,with21%ofhouseholdssavingover7.4
USD.Ofthosewhowerenotconnected,63%saidtheywouldbuymorefoodwiththesavingsmadebyconnectingtothewaternetwork,thusconfirmingthetheorythatthiswould
increasedisposableincome.Themainbenefitofconnectionwasbetterhygieneandfewer
diseases,accordingto89%ofthosesurveyed(thatistosaythatmostofwhomwerenot
awareofpotentialsavings);whileonly12%pointedtothesavingstobemade(higherdisposableincome)asabenefit.Lastly,thehouseholdsthatwerenotconnectedconsumed
anaverageof3.2cubicmetresofwaterpermonth.
Theempiricalevidenceshows,however,thatonceconnectedtothenetwork,familieslivinginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetres
per month—more than tripling their water consumption. Despite this, their monthly
spendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonth,representingamonthlysavingofapproximately7.4USD.
Ifafamily’smonthlynominalincomeis148USD,anadditional7.4USDpermonthasaresultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5%increase
inincome.However,ifweconsiderthat50%ofnominalincomeisspentonunavoidable
expenses,theincreaseindisposableincomewouldbe10%.
Unliketraditionalprogrammesthataredemand-driven,theWaterforAllProgramme,
beingacost-basedapproach,entailsaone-offinvestmentcostofconnectingtothepublic
waterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
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InPeru,theWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiative
duringthe2006presidentialcampaign.Althoughitisstilltooearlytoassesstheimpactof
theprogramme,anECLACstudyanalyzesitsdesignandimplementation,identifiessome
ofitsproblemareasand,takingintoaccounttheexperiencegainedfromitsexecutionso
far,proposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorin
Peruforthecomingyears(Garrido-Lecca,2010).
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BOX1.“WATERFORALL”PROGRAMMEINPERU
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fortheservicewithonlyasmall,pre-existingcrosssubsidythatcoversaninitialconsumptionblock.Therefore,intermsofsustainabilityandfromafiscalpointofview,the
programmerequiresonlyaone-offeffort,whichdoesnotjeopardizeitscontinuityorthe
beneficiarieschancesofescapingfromextremepoverty.
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackof
basicservicesandinadequatesanitaryconditions,whichleadstosavingsinmedicalcosts,
medication,andlostworkingdays,aswellaslowercostsandahighernominalincome
and,therefore,anadditionalincreaseindisposableincome,whichcanbeusedtosatisfy(in
part)theneedsoffamilieslivinginextremepoverty.
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanaverageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDper
episode(9USDdirectcosttothefamilyand19USDcosttotheState).Therefore,acutediarrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposable
familyincomeof34USD(8.5USDx4).InadditiontothedirectincreaseindisposableincomegeneratedbytheWaterforAllProgramme,theestimatedmonthlysavingfromlower
healthcostswillalsoleadtoanindirectincreaseindisposableincome—takingaccount
onlyoftheeliminationoftheepisodesofacutediarrhoealdiseases—ofabout4%permonth
(resultinginatotalincreaseindisposablefamilyincomeof14%permonth).Thisisthe
trueimpactoftheWaterforAllProgramme.
Source:Garrido-Lecca,Hernán(2010)y(2011)
Themainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhave
notchangedsignificantlyinrecentyears.Therehasbeenawidespreadinabilitytoestablishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofextremeeventsandexternalities(waterpollution,aquiferdepletion,etc.)underconditions
ofscarcityandconflict.Thewatersectorstillexhibitsmanyexamplesofpoormanagement;whenformalnormsexist,theyareofteninadequatetodealwiththeproblemsat
handandtheoperationalcapacitytoimplementthemtendstobeextremelylimited;there
isageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpoliticalsupport.Ingeneral,thereisaninabilitytorespondtocrises.
Despitemuchimprovement,reliableinformationisoftennotavailable,includingonthe
resourceitself,itsavailability,usesandusers,ontheinfrastructureandonfutureneeds.
Poorwatermanagementintheregionmeansconflictsovertheresourcearestillpersistent and widespread. Issues over water allocation and pollution, and competition
amongstsectors—irrigatedagriculture,industry,mining,urbanwatersupply,waterfor
environmentalprotectionandindigenousgroups—willincreasesignificantlyaseconomic
developmentcontinuestoaugment.In2011theregiongrewby4.3%andalthoughin2012
itsgrowthratedecreased,itstillhadapositivetrendreachingalmost4%(ECLAC,2011a).
Atthesametime,LatinAmericaandtheCaribbeanhavethemostinequitableincome
distributionintheworld(ECLAC,2011b).Achievementsofuniversalservicecoverage,
managementofwaterconflictsandresolutionofenvironmentalproblemsarehampered
bytheseinequalities(Box2).
Theoutlookfortheglobaleconomyremainsbleak,withrecessionsplaguingthedeveloped
countriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfollowingseveralyearsofvigorousgrowth.However,theoutlookisnotuniformthroughoutthe
regionassomecountriesarebetterpositionedthanotherstodealwiththecrisis.Regardingthosethatareill-prepared,makingbudgetcutsintimesofcrisismayseemtheonlyfeasibleoption.However,thiscanhavedreadfulmediumandlong-termconsequences,for
botheconomicefficiencyandsocialequity.
Theimmediateconsequencesincludeanapparentfiscalrelief,acontractionofeffectivedemand(leadingtolowertaxrevenue,andthusfeedingintothebudgetarydownwardspiral),
likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreases
stemmingfromworkdelays.Thecancellationofprojectsdirectlytranslatesintoloweremploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsand
employmenttobepreserved,usuallytothebenefitofthemiddleclass).Existingcapitalis
consumedandthequalityofservicesdeclinesascapitaldepreciates.Coveragegoalsare
suspendedordelayed.Thenumberofpoorcontinuestoincrease,becauseofbothnatural
growthandtheverydynamicsofthecrisis.Regardingimmediateconsequences,effortsto
seethatlargersegmentsofsocietybenefitfrominfrastructure,aresetasideuntilthenext
economicboom.Socialintegrationbecomes,atbest,aprocyclicalpolicyintensifyingthe
challengetoreducesocialinequalitiesandeconomicinefficiency.
Source:FerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcoverage.Attheregionallevel,theMDGtoreducebyhalftheproportionofpeoplewithout
accesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(Haiti,DominicanRepublicandJamaica);regardingsanitation,theregionwillbeclosetomeeting the goal with also few countries potentially missing the target (Haiti, Bolivia,
Nicaragua,SaintLucia,Jamaica,Colombia,PeruandBrazil)(JMP,2011).However,servicequality(intermittency,waterqualitycontrol,etc.)ismediocreandinfrastructureis
ofteninpoorcondition,whichisillustratedbyhighwaterlosses—bothcommercialand
physical—thatreachabout40%inthelargecitiesintheregionanduptoalmost75%in
someextremecases.Coverageinruralareasismuchlowerandthosewithoutdrinking
waterandsanitationservicesarethemostimpoverishedsegmentsofsociety.Morethan
30millionpeoplestilllackaccesstosafedrinkingwater,whilemorethan120million
peopledonothaveaccesstosanitation.Moreover,overtwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwater
pollutionproblems.
Currently,theregionproduces31%oftheglobalsupplyofbio-fuelsand48%ofsoybean
(Bárcena,2011).Tendenciesshowthatagriculturalproductionwillkeepongrowingin
mostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000
and2007(ECLAC,FAOandIICA,2010).Irrigationcanplayanimportantroleinincreasing
agriculturalyields,however,inmanycountriesthelevelsofirrigationefficiencyrange
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BOX2.SOCIALINEQUALITIESANDECONOMICINEFFICIENCY
INTIMESOFCRISIS
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between30%and40%(SanMartin,2002).Expansionoftheareaunderirrigationhas
shiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewater
fromtheagriculturalsectortourbandrinkingwatersupplyincities.
Manypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimate
change,andthiscouldpotentiallythreatentheprogressmadetowardsachievingthe
MDGs.Theexpectedeffectsofclimatechangewillgeneraterisks,challengesandopportunitiestowatermanagement.SomeofthesecanbeseenintheAndeancountries
whichexperienceElNiño-SouthernOscillation(ENSO)andinthoseresultingfromthe
successionoflongdroughtsinthenortheastofBrazil(Samaniego,2009).Moreover,the
countriesestimatedtobeinareasofhighandextremeriskfromclimatechangeare
oftenthepoorestcountriesoftheregioninCentralAmerica,theCaribbeanandthe
Andes.Themostseriouschallengesarisingfromclimatechangeforwaterresources
managementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowing
areas:
Asignificantdeteriorationinthequality,quantity,andavailabilityofwaterforalluses
inmanyriverbasins.
Damagetocoastalareasduetoapotentialriseinsealevels,whichinturnwillaffect
riverregimesandcontributetosalinewaterintrusionintofreshwateraquifers.
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanes
andtropicalstormsduetohigheroceansurfaceandairtemperatures.
A. Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfront
donotallcomefromwithinthewater“box”.Therehavealwaysbeenstrongexternaldriversorforcesaffectingbothwatermanagementandthewaterresource.Themoresignificantofthesecomefromgeneralsocialchange,butalsoincludemacroeconomicpolicies,
oftenanegativeinfluence,stemmingfromabruptchangesindomesticpoliciesandfrom
outside,suchastheratherrecenteconomiccrisis,butsometimespositiveasmacroeconomicadministrationhasimproveddomesticallyandglobally,aswiththeexpansionof
worldmarketsinrecentyears.
Waterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproach.
Amongthesethefollowingaresignificant:coordinationofsupplyanddemandpolicies;
policies for the quality and quantity of water resources; the joint use of surface and
groundwater;themultipleuseofresourcesandmulti-purposeprojects;coordinatedmanagement of land use, vegetation cover and water; management of externalities; improvements in data collection and information management; and environmental
conservation policies. The Specific Water Cabinet created by the Government of
Guatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovernmentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabove
mentionedmanagementissues.
Advanceshavebeenachievedbothatthenationallevel,throughtheimplementationof
newwatermanagementsystemsbasedonnewlegislation(Hantke-Domas,2011);and
attheriverbasinlevelwithwatershedorriverbasinorganizations.However,theseefforts
havebeenisolatedandhadlimitedsuccess.Overthelasttwodecades,thewatersupply
andsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecountriesoftheregion,therehavebeenfewsuccessstories,asinmanycases,reformsencountereddifficultiesorwentastrayduetothelackofconsensus,capturebyspecial
interestgroups,andespeciallyfailuretoconsiderthestructurallimitationsofnational
economiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserviceprovision.Lackofintegratedplanningandfailuretorecognizethatwatermanagement is a complex issue that requires adequate regulatory capacity, has hindered
advancesinmanycountries.Publicawarenessandstakeholderparticipationarekeyto
solvingconflicts.Notinvolvingcommunitiesindecisionmakingprocesshasprovedto
haveexplosiveeffects,asseeninthecaseofCochabamba3,Bolivia.Althoughthesituationinthisrespecthasimprovedovertheyears,itisingeneralstillaffectingtheproper
managementofwaterresourcesintheLatinAmericaandtheCaribbeanregion.
Agingwaterinfrastructure,insufficientinvestmentsandinadequateregulatoryframeworksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyand
sanitationservices.Tariffsshouldserveasapropersignaltowaterusers,howeverthey
oftendonotreflectevenoperationalandmaintenancecosts.Somecountries,suchas
Chile,haveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthe
poor;howeverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbean.
Providersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattaindue
tohighlevelsofpovertyandthefactthatdecisions,oftentakenoutsidetheeconomic
realm,settariffsthataretoolow.Thereisaneedtobringtariffstocostrecoverylevels,
butaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)
andcreationofeffectivesubsidysystemsforthepoor.
3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupply
andsanitationservicesinCochabamba,oneofthebiggestcitiesinBolivia.However,therewaslimited
publicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasoutdated(LawNo.2029).These,coupledwithotherirregularities,generatedastrongreactionamongthepublicintheformofprotestsagainstexcessiveratehikes.In2000theprotestsbecameviolent,thecontract
signedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066).
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InLatinAmericaandtheCaribbean,institutionsareoftenweak,theylackoperationalcapacityandrulesareinsufficientornotenforced.Fragileinstitutionalframeworks,corruptionandcapture,notonlyinthewatersector,butingeneral,negativelyaffectwater
management.Theabsenceofappropriatewatermanagementinstitutionscausesuncertainty,deepensconflictsoverwaterandhamperssocioeconomicdevelopment.Water
resourcesmanagementneedsclearrules,objectivecriteria,strongandefficientgovernmentinstitutions,transparencyandaholisticapproachwhichinmostofthecountries
oftheregionaremissing.Therehasbeenanefforttotransittowardsintegratedwater
resourcemanagementasaframeworkthatcanhelpovercomethesechallenges;however,itoftenremainsasatheoreticalconceptdifficulttotranslateintoreality.
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B. Approaches
20
Somecountrieshaveimplementedsignificantreforms.Forexample,Brazilhasadopted
anewwaterlegislationandanationalwatermanagementpolicy;newwaterlawshave
alsobeenrecentlyadoptedinHonduras,Nicaragua,Peru,Venezuela,amongothercases;
Chilehasreformeditswaterlawandthewatersupplyandsanitationsector,andprivatizedallwater-relatedutilities;Mexicoreformeditswaterlegislationandcreatedriver
basincouncils.
Economicinstruments,suchassubsidies,tariffsandchargeshavebeenimplementedin
theregionwithmixedresults.Inthecountriesoftheregion—whichdonothavethe
humanandfinancialresourcesofdevelopedcountries,noraStateorprivateapparatus
withtheequivalentorganizationandmanagementcapacity—interestintryingtoapply
theseisnotalwayscompatiblewiththebasicconditionstheyrequire.Economicinstrumentshavehadarelativelylimitedimpactintheregionthusfar,largelyduetothefact
thatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomake
fulluseofthem.
Furthermore,goodresultsaregenerallyvetoedbytheprevailingconditionsofuserinformality,lackofinformation,perversenessorignoranceaboutgoodpracticesconcerningtheuse(orratherabuse)ofwater,incombinationwithanalmostabsoluteinabilityto
enforcethelawevenwhereformallegalconditionsexist.Amongotherbasicconditions
thatarelacking,mostofthecountriesoftheregiondonothaveefficientlyinstitutionalizedsystemsofwatermanagement.Withoutthis,verylittlecanbedone,bearinginmind
theenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwatermanagementinmostcases.Widespreadpoverty,lackoftrainedpersonnel,insufficientcontrolandmonitoringsystems,theconcentrationofeconomicandsocialpower,theease
withwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceor
becapturedbyspecialinterests,allconstituteimpedimentstotheuseofeconomic,orany
other,instruments.Allthisisnottosaythateconomicinstrumentsarenotusefulforimprovingtheuseandmanagementofwaterresources,particularlyatsectorallevel.Forexample,manysystemschargeforthecostofadministeringwaterresources.Thereare
alsoexamplesofchargesintendedtorecovercostsofwaterworks,payforwater-related
servicesandwastewatertreatment,coveradministrativeexpensesandinducewaterconservationandenvironmentallysoundbehaviour4.Manycountriesoftheregionhavealreadyimplementedorareimplementingsystemsofchargesforwaterasaresourceor
forwastewaterdischargestotheenvironment.
Improvingefficiencyhelpsachievingequity.Byprovidingservicesefficiently,costscanbe
reducedallowingtheallocationofresourcesintomaintenanceandexpansion.Atthesame
4Forexample,theRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbe
consideredwhensettingpublicutilityrates.Italsoestablishestheobligationforserviceproviderstoprotect,conserve,restoreandmakerationaluseofnaturalresourcesutilized.InNovember1999,forthefirst
time,theHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvironmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityofforestecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflow.Nowtheresourcesobtained
areusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas.
WaterintheGreenEconomyinPractice:TowardsRio+20
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices.
Drinkingwatersupplyandsanitationinthefightagainstpoverty,forsocialcohesion
andintegrationandgreenemployment.
Generationandmanagementofnewandunconventionalwatersources(suchasseawaterandbrackishwaterdesalination,wastewaterreuse,marketreallocation,watershedmanagementandpaymentsforenvironmentalservices)forhumansupplyand
othercompetinguses(especiallyminingandinsomecase,export-orientedagriculture).
Domesticwastewatertreatmentandrecycling,fullwatercyclemanagement.
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwastewatertreatment).
C. Lessonslearnt5
Aswaterissocloselylinkedtosociety,economyandtheenvironment,therearenosimpleoreasyanswersthatguaranteegovernance.Theonlypossiblesuggestionisthatalthoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformal
contentarrangeddifferently(suchaslawsandinstitutionalarrangements),everysociety
hasnaturalconditions,powergroups,powerstructures,andrequirementsthatmustbe
consideredspecificallyintheprocessofdesigningthesystem.Otherwise,thereisarisk
ofignoringfactorsnecessarytoensureviability.
Notwithstanding,themanagementofaresourceoritsassociatedpublicservicesconsistentlyshowcertaincharacteristics.Thisisclearfromthetypicalcharacteristicsofthe
legislationgoverningwateranditsassociatedpublicservices.Inthisrespect,someconsiderationsaretentativelypresentedthat,inthelightofpracticalexperiencesacrossthe
region,maybeconsideredtobegenerallyvalid.
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState.
Waterlawsmustdeterminespecificallythatwateruserights,whengrantedunder
conditionsof,orwhichaimat,effectiveandbeneficialuseandthatdonotcauseenvironmentaldamage,areprotectedbyprivatepropertyclausesintheconstitution.
5 FromSolanesandJouravlev(2006).
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Wateruseefficiency,lossreductionandmetering.
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time,totransitiontowardsagreeneconomy,LatinAmericanandtheCaribbeancountrieswillalsoneedtofocusonelementssuchas:
21
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislative
change,includingtraditionalandindigenoususes,theyshouldberecognizedinaccordancewiththeireffectiveandbeneficial,historicalandcurrentuse,withoutthisaffectingthepossibilityofimposingappropriateregulations.
Fortheregulationofdrinkingwatersupplyandsanitationservices:
Reasonabletariffsandprofits.Itisimportanttobearinmindthatprivatizationdoesnot
miraculouslymakeunprofitableoperationsprofitable.
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguarantees
thelow-incomegroupsabasicminimumsupply.
Therighttoadequateandopportuneinformation,bothfortheregulatorsandforcustomers.
Obligatoryuniformregulatoryaccounting;andcontroloftransferprices,holdingsand
intra-holdingtransactions.
Regardingcentralizationanddecentralization:
Dependingontheactivitiesinvolved,determinetheappropriatelevelfordecentralizationorcentralization,inaccordancewithtechnicalconsiderationsandeconomiesof
scaleandscope.
Preservearesidualcapacityatthecentrallevel,topromoteorimplementthenecessaryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorunabletocarryouttheirfunctions.
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbetweendecentralizedauthorities:(i)equityandreasonableness;and(ii)notcausingsignificantharm
Regardingwatermanagementinstitutions:
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindependentfromsectorinfluences,withauthorityandresourcesinlinewithitsresponsibility.
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimizingitseffectasasocioeconomicdevelopmentfactor.
Therefore,itseemsappropriatethatthewaterresourceshavetheirownstableand
independentinstitutions,evenwhenthesearecloselylinkedtoinstitutionsresponsibleforthestrategicvisionofnationaldevelopment.
Water-relateddecision-makinghaseconomiccontent,andspecialinterestgrouppressurescanpromoteordissuadesuchdecisions.Accordingly,waterauthoritiesshould
WaterintheGreenEconomyinPractice:TowardsRio+20
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices:
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulation,regulationandprovisionofservices.
Theregulatormusthaveindependenceandstability,andbesubjecttorulesofgood
conductandethics.
Theregulatormusthavethenecessarypowersandresources.
Theregulatormusthaveappropriatelegalcapacities.
Regardingfuturechallengessuchasclimatechange:
Improvinginformationonwateravailabilityitsusesandusers,andtheexpectedimpactsofclimatechangebothonthewatercycleaswellasonwateruseandusers,and
definingclearchannelsfortakingthisinformationintoaccountinwatermanagement
decision-makingprocesses.
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsin
climaticconditions.
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdischargepermits)duringshortagesandimprovingpossibilitiesforimposingconditionalities,favouringenvironmentalsustainabilityandresiliencyobjectives.
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocation,especiallyduringshortages.
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwater,
betweenwaterallocationandpollutioncontrol,betweenmanagingwaterdemandand
supply,andbetweenthemanagementofwaterresources,land,andrelatedecosystems.
InTable2,thekeylessonshighlightedinthecasestudiespresentedintheregionalsessionaresummarized.Theyexemplifyapproachesandconcreteactionsthathavebeen
undertakentoimprovewaterresourcemanagement;makewatersupplyandsanitation
servicesfinanciallyandenvironmentallysustainable,andimprovewatergovernance.
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Riverbasinlevelorganizationsarevalidoptionsforwatermanagement.Criticalrequirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusive
functionsfocusedonwaterresources,andadequateauthorityandfunding.
WaterandagreeneconomyinLAC
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotected
fromarbitraryremoval.
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
24
Case
LessonsLearnt
Greeningofpublicwater
utilityregulation:lessons
fromtheNational
Superintendencyof
SanitationServices
(SUNASS),Peru
Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisan
efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservices.
However,animportantpreconditionispublicinvestmentintheuniversalizationofservicecoverage
Providingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviate
extremepovertyandexclusion
Projectsdesignedwiththeconsiderationoftheenvironmentaldimensionpresentreduced
maintenanceandoperativecosts;futureexpendituresonnewsupplyinfrastructureareavoided
Communitiesacceptsubsidizingthosewhocannotaffordtopayforwaterservices,however,
theyarenotwillingtopayonbehalfof“freeriders”
Itisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasis,
thereisnosolutionthatcanfitall
Transparencyinthewaterbillenhancestheenduserunderstandingofhisorherswater
consumption
Designandapprovalofthe
Multi-annualSectoral
PlanforWaterandthe
Environmentandthe
creationoftheSpecific
WaterCabinet,Guatemala
Policycoherenceandcoordinationisnecessarytoimprovewatermanagement
Consensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccess
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothe
successofwatergovernancewithinthesector
Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof
waterinColombia
Colombiahasalegal,institutionalandfinancialframeworkthatallowstoimplementmeasuresfor
theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
Whenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcement,the
positiveeffectsontherationalizationoftheuseofwaterareclearandeffective
Afinancialstrategyofenvironmentalinvestment¿associatedwitheconomicgrowthandthe
useofnaturalresources?ismoreeffectivethanexclusivedependenceonthepoliticalwillof
nationalauthorities
Financialsustainabilityofthewaterauthoritiesisnecessary,butnotsufficient,toensurethe
effectivenessofwatermanagement
Whilesupervisionandcontrolofwaterusersisnecessary,appropriatemonitoringofwater
authoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater
managementinCentral
Americaasan
environmental,
economicalandsocially
feasiblechoice
Communitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroups
Thislevelofinvolvementgenerates/shouldmakeuseofeconomiesofscalethatenhancethe
provisionofservices
Theapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsothe
protectionofforests,rechargeareas,integratedwatershedmanagement,andsustainable
agriculturalpractices
Water has become a valuable resource for agricultural purposes and for small scale
hydroelectricgeneration
The development of networks has allowed knowledge sharing and the adoption of best
practicesindifferentcommunities
Pricesthatreflectthe
costsandbenefitstothe
poorinBogotáand
Medellín,Colombia
Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumption
Financial sustainability of water utilities can be attained, reducing their dependence on
governmentbudgetallocations
Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
Cashman,Adrian(2011)Water’spotentialroleinsupportingagreeneconomyinBarbados,InternationalConference“WaterintheGreenEconomyinPractice:TowardsRio
+20”(Zaragoza,Spain,3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a), Balance
preliminardelaseconomíasdeAméricaLatinayelCaribe,SantiagodeChile.
—(2011b),PanoramasocialdeAméricaLatina2011,SantiagodeChile.
—(2011c),CircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean,No.35,EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC),Santiago,Chile.
—(2010),ElprogresodeAméricaLatinayelCaribehacialosObjetivosdeDesarrollodel
Milenio.Desafíosparalograrlosconigualdad,LC/G.2460,SantiagodeChile.
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC),theFoodandAgricultureOrganizationoftheUnitedNations(FAO),andtheInter-AmericanInstitutefor
CooperationonAgriculture(IICA)(2010),TheOutlookforAgricultureandRuralDevelopmentintheAmericas:APerspectiveonLatinAmericaandtheCaribbean2010,SantiagodeChile
Ferro,GustavoandLentini,Emilio(2009)CircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica
Water
and
a
Green
Economy
Bárcena,Alicia(2011), OpeningstatementbyAliciaBárcena,ExecutiveSecretaryofthe
Economic Commission for Latin America and the Caribbean (ECLAC), at the Latin
AmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConferenceonSustainableDevelopmentSantiago,7September2011.
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a
Green
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andtheCaribbean,No.33,EconomicCommissionforLatinAmericaandtheCaribbean
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http://www.cepal.org/drni/noticias/circulares/1/36321/Carta30in.pdf
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Garrido-Lecca,Hernán(2011),“Designandimplementationofandlessonslearnedfrom
theWaterforAllProgramme.”,CircularoftheNetworkforCooperationinIntegrated
WaterResourceManagementforSustainableDevelopmentinLatinAmericaandthe
Caribbean, No. 33, Economic Commission for Latin America and the Caribbean
(ECLAC),Santiago,Chile
(http://www.cepal.org/drni/noticias/circulares/2/42122/Carta33in.pdf).
—(2010), InversiónenaguaysaneamientocomorespuestaalaexclusiónenelPerú:
gestación,puestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT),EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC),LC/W.313,Santiago,
Chile(http://www.cepal.org/publicaciones/xml/4/41044/lcw313e.pdf)
Hantke–Domas,Michael(2011),AvanceslegislativosengestiónsostenibleydescentralizadadelaguaenAmericaLatina,EconomicCommissionforLatinAmericaandthe
Caribbean(ECLAC),LC/W.446,SantiagodeChile.
Hantke-Domas,MichaelandAndreiJouravlev(2011),Lineamientodepolíticapúblicapara
elsectordeaguapotableysaneamiento,EconomicCommissionforLatinAmericaand
theCaribbean(ECLAC),LC/W.400,SantiagodeChile.
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011),JMPwebsite,
WorldHealthOrganization(WHO)andtheUnitedNationsChildren'sFund(UNICEF)
(availableonInternet:http//www.wssinfo.org)
Samaniego,JoseLuis(2009),ClimateChangeandDevelopmentinLatinAmericaandthe
Caribbean.Overview2009,EconomicCommissionforLatinAmericaandtheCaribbean
(ECLAC),LC/L.3140,SantiagodeChile.
SanMartín,Orlando(2002),WaterResourcesinLatinAmericaandtheCaribbean:Issues
andOptions,Inter-AmericanDevelopmentBank,Washington.
SolanesMiguelandAndreiJouravlev(2006),Watergovernancefordevelopmentandsustainability, Economic Commission for Latin America and the Caribbean (ECLAC),
LC/L.2556-P,SantiagodeChile.
UnitedNations(2012),WorldUrbanizationProspects:The2011Revision,UnitedNations
DepartmentofEconomicandSocialAffairs/PopulationDivision,NewYork.
WRI(WorldResourceInstitute)(2011),Waterresourcesandfreshwaterecosystems.Earth
Trends2005(http://earthtrends.wri.org)
WWAP(WorldWaterAssessmentProgramme)(2012), TheUnitedNationsWorldWater
DevelopmentReport4:ManagingWaterunderUncertaintyandRisk,Paris,UNESCO.
nresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwith
nationaldevelopment,theGovernmentofGuatemalacreatedtheSpecificWaterCabinet(GEA)asthecoordinatingagencyforpolicy,planningandbudget.ThemostsignificantchangesresultingfromimplementationofGEAare:
I
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanagementandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy.
Establishingacoordinatingagencyatthehighestpoliticallevel.
Linkingthenationalwaterpolicyto,particularly,socialpoliciesandruraldevelopment,environmentalandclimatechangepolicies.
Settingcommongoals,objectives,andstrategiclinesofactionforallgovernmental
agencies,thusestablishingapointofreferenceforlocalinstitutions.
Contributingtoimproveinstitutionalperformanceattheministeriallevel,addingvalue
toactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofa
nationalnature.
Institutionally,GEA’scoordinatingworkhasallowedforseparatingthemanagementand
governanceofwaterfromthemanagementandpreservationoftheenvironment;has
identifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMorán,SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala.
Water
and
a
Green
Economy
SpecificWaterCabinetofthePresidencyofthe
RepublicofGuatemala6
Casestudiesfromtheregion
III.Casestudiesfrom
theregion
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Casestudiesfromtheregion
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ecosystems;andhashighlightedtheneedforadministeringtheenvironmentalgoodsand
servicesprovidedbywaterinaspecificandspecializedmanner,distinguishingthemfrom
thoseprovidedbyforestsandbiodiversity.IthasalsoclearlydemonstratedthattheleadershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotecting,improvingandrecoveringwaterresourcesmustbestrengthened,preciselysothatit
canperformthefunctionofdirecting,regulatingandsupervisingasregardsquality,quantityandconduct;and,atthesametime,itmustsetitselfapartfromactivitiescorrespondingtoothergoverningbodies,suchasmeasuringtheresourceandadministeringuse
rights,andthoseactivitieswherejoint,horizontalactionisindispensable,suchasrisk
management.
GEA’sgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocreateincentivesforandimplementanationalstrategicwatermanagementprocessthat
promotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjectives.WiththeestablishmentoftheNationalWaterPolicy(2011),commonobjectives,
principles,directionsandstrategiclineshavebeendefined,suchthatsectoractionsand
budgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectives
aswellasnationalandpublicinterestones,andmunicipalgovernmentsandthesystem
ofdevelopmentcouncilshaveanationalpointofreference.Intermsofwatergovernance,
GEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofany
interagencyplanningorcoordinationtocoordinatedmanagement,establishingpolicy,
planningandbudgettoolsbasedonacommonpolicyandstrategy;progresswasmade
indefiningaMultiyearSectoralPlanfortheEnvironmentalandWater;and,whererisk
managementisconcerned,thefocushasshiftedfromrespondingtoemergenciescaused
bynaturaleventstoaddressingthecausesofwater-relatedrisks.Sinceitscreation,GEA
hasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategy;participateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentaland
Water,aswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwith
Transformation.IthasalsobroughtaboutinstitutionalchangesintheMinistryofPublic
HealthandSocialWelfare(MSPAS),intermsofleadershipindrinkingwatersupplyand
sanitationservices,andregardingthedefinitionandimplementationofapolicyfortransboundarywaters.Aninstitutionalmechanismforcoordinatingwaterpoliciesatthehighestlevel,likeGEA,couldbeusedasamodelincaseswherecountriesarelackingsolid
institutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublic
interestobjectives.
WaterintheGreenEconomyinPractice:TowardsRio+20
C
Peoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancial
capacitytoaffordaminimumwaterserviceallowance,andtheinabilitytosaveenough
moneytopayfortheirconsumption.Thishasbeenacrucialissueinthewatersectorin
thedevelopingworldformanydecades.Inaddition,experienceshowsthatlowornoincomeisnottheonlybarrierinhibitingaccesstowaterservices.Otherconditionsassociatedwithpovertyintheseareas,suchassocialunrest,violence,unemploymentand
underemployment,urbandisplacement,andotherrelatedfactors,threatentoundermine
economiceffortstoguaranteeaccesstoservices.
Inmanycitiesinthedevelopingworld,asinMedellín,thepoorperi-urbanpopulationnot
onlylivesunder“border”economicconditions,enteringandexitingtheformalworld,but
alsoinextremesocial,legal,andinstitutionalsituation.Thisinterceptionofmultiplegeographical,economicandsocialstressfactorsconstitutesamajorchallengetoextendingwaterservicescoveragetotheseareas.Moreover,thispopulationismorevulnerable
toexternalsocialandeconomicshocks(unemployment,sicknessordeathofmembers
ofclosesocialnetworks,etc.).
Governmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilityto
addressthesechallengesinservicesprovision.TheexperienceofEmpresasPúblicasde
Medellín(EPM),waterservicesproviderforMedellínandtheAburráValley8 inColombia,
istocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporate
socialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestsegmentofthepopulation.Aportfolioofinitiativeshasbeenspecificallydesignedwiththe
aimofguaranteeinguniversalaccesstopublicservices,andtopreventthisvulnerable
populationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionand
consumptionoftheseessentialandvitalservices.
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellin.EPMisapublicutilitiesprovidingwater,electricity,gasandtelecommunicationsservices,anditsmainmarketisthemetropolitanareaofMedellinandtheDepartmentofAntioquia,withpopulation
7 RubénD.Avendaño,EmpresasPúblicasdeMedellín.
8TheAburráValleyisthebasinoftheMedellínRiverandoneofthemostpopulousvalleysoftheAndeanRegionofColombiawithmorethan3millioninhabitants.Itishometotencities:Medellín,Barbosa,Bello,Caldas,Copacabana,Envigado,Girardota,Itagüí,LaEstrellaandSabaneta.
Casestudiesfromtheregion
olombia,asisthecaseofmanycountriesoftheregion,hasimplementeddifferenteconomicreformstoimprovethelivingstandardsofitspopulation.Inthepublic utilities arena, measures have been taken in terms of tariff structure and
changesintheinstitutionalframework.However,therearestilleconomic,socialand
legalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinking
watersupplyandsanitationservices,especiallyforthepoorestsegmentsofthepopulation.
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of5.2millionpeople.ItisthesecondlargestwaterandsanitationutilityinColombiaand
currentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatter’s
annualbudget.
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperations.
Itdemonstratesgoodfinancialresults,highservicequalitystandards,highcreditratings
bynationalandforeignfinancialagenciesandthesocialacknowledgment9 ofitsperformanceandcommitmenttoimprovethequalityoflifeofitscustomers,especiallythepoor.
EPMprojectsaredevelopedinaccordancewithstrictfinancial,technicalandlegalprinciples,andallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguarantee transparency in all contractual processes. Its management and directors are
independentofanypoliticalinfluence.Inaddition,EPM’scorporategovernancemodel
anditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowth
andsustainabilityofthecompany.
Theapproach:costrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellin,EPMhasdesignedandimplementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds.
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalcapacitytounderstandtheproblemandtodesignandimplementeffectivesolutions.EPM
hastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentificationtotheimplementationandevaluationoftheprograms.Thisprocessrequiresfirstof
all,aclearunderstandingoftheinitialsituationtoenabletheformulationofappropriate
andcomprehensivestrategies.Aconceptualframeworkisfirstdeveloped,basedoninterdisciplinarystudiesandanin-depthanalysisoftheuser’seconomicandsocialbehaviourthatisaffectedbyrules,regulationsandorganizations.Thenextstepistheplanning
oftheintervention,identifyingtherolesandresponsibilitiesoftheactorsinvolved(nationalgovernment,localgovernment,nongovernmentalorganizations,thirdparties,and
theEPMitself),followedbythedesignofmechanismsthatbetterrespondtothemainobjective—serviceuniversalisation.Finally,duringandafterimplementation,thedevelopmentandapplicationofpermanentmonitoringandevaluationtechniquesisessential.
Inthepursuitofitsgoalsaspublicservicesprovider,andinresponsetothechallenges
facedinitsservicearea,EPMhasdesignedthefollowingstrategiestoincreaseaccessto
drinkingwatersupplyandsanitationservices,preventservicesdisconnectionandtoimprovethequalityoflifeofitscustomers:
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-income
householdsintheperi-urbanareasoftheAburráValley.Theprogramofferslong-term
9Asdemontratedinthesurvey“Medellíncómovamos”,acivilinitiativecreatedin2006toevaluatethequalityoflifeinthecityofMedellin(http://www.medellincomovamos.org/).
FinancingandRe­financingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata1,
2and310)anddebtsintheirwater,sanitationandenergybills,tohaveaccesstolowcost
financingwithminimumguaranteestopreventdelinquentaccountsandservicedisconnection.Beforeservicesuspension,clientshaveoptionofpaying80%oftheirdebtwithin
theircurrentbillandtheremaining20%thefollowingmonthwithoutcharges.Disconnectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreements
andthefinancingofthedebtforuptofiveyearsatDTFrate.Inthecaseofclientsthathave
beenaffectedbydisplacementornaturaldisasters,thedebtcanberefinancedforupto
tenyearswithnointerest.
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatrisk
ofhavinganillegalconnection.Theprogramallowsreconnectionofservices(whichare
prepaid)anddebtpaymentover120monthschargedatDTFrate.Thecustomerpurchases
aPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheenergyservicespurchased.OfthepaymentmadethroughthePIN,90%isforthepurchase
ofenergyandtheremaining10%contributestorepaymentofthedebtwithEPM.Thusfar,
EPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoption
forwaterservicesisbeingpiloted.
SocialFinancingProgram(SPF)
TheSFP/EPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccording
tothetypeofproductoractivityfinanced.Priorityisgiventostrata1to4householdswhich
constitute96%ofcardholders.Thecreditisintendedforuseinfinancinghomeimprovements
andenergyandwaterappliances,withtheobjectiveofimprovingefficienciesandthequality
oflifeofcustomers.Thecreditisbilledinmonthlyinstalmentswiththeutilityservices.
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandassociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansion,operation and maintenance projects. EPM hires these organisations to build local
10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories
(strata1to6)accordingtolocation,incomelevelandpublicservicesprovision.Thisclassificationdeterminespeople’staxes,publicservicestariffs,modalitiesofaccesstohealthservice,amongothers.Strata1,2and3have
preferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions.
Casestudiesfromtheregion
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocredit.Beneficiariesoftheprogramarethenabletofinancetheconstructionorimprovementofin-house
andexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutility
services.EPMoffersthisservicebasedonhouseholddemandandcreditispayableover
tenyearsattheaveragemarketinterestratefordeposits(DTFrate).Thecreditcomponent
oftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyorganisedcommunityentities,helpingtostrengthenlocaltechnicalandbusinesscapacity.
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infrastructureandtheprocurementrequirementsarespecificallydesignedtoenable
themtoobtaincontracts.
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ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinand
seekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasin
Medellin.Thechargeisappliedaccordingtotheaverageuser’ssocioeconomiclevelwithoutusingindividualmeters.
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis2.5
cubicmeterspermonth.“MinimumDrinkingWaterConsumptionAmountforLife”isaMunicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof2.5
cubicmeterspermonthperperson.Householdstargetedbytheprogramarethoseinthe
ruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocial
programsduetounmetbasicneeds.EPMappliestherespectivediscountinthecustomers’
bills.Theprogramalsoincludesinformationcampaignstopromotetherationaluseofwater.
Nationaldemand­sideandsupply­sidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity
(strata1,2and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpaymentcapacity(strata5and6)andindustrialandcommercialusers,andbymunicipality
funds.Thelevelofsubsidydependsonthestrata:strata1receivesa50-60%subsidy;
strata2a30-40%subsidy;andstrata3a10-13%subsidy.
Thenationalgovernmentalsoprovidessupply-sidesubsidies,investinginpublicservicesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithout
passingontheadditionalcosttousers.
Economic,environmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditions
ofthepopulationitserves.Someofitsimpactsarelistedbelow:
NetworkConnectionFinancingProgram(NCFP)
Economicimpacts:During1999-2011,45milliondollarswereinvestedinwaterandsanitationservicesthroughtheNCFP.Theprogramhasresultedinatotalof5millionininterestratesavingsforconsumerscomparedtoconventionalfinancing.Indirectbenefits
oftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanitationservicessector.
Environmentalimpacts:EPMhaswastewatertreatmentplantsthatcleanresidualwater
beforeitisdischargedintotheMedellinRiver.AstherivergoesthroughtheentireAburrá
Valley,theNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystem.
FinancingandRe­financingConsumption(RFWC)
Economicimpacts:TheRFWCfinancedalmost330thousandcustomersatatotalcostof
95milliondollarduringthe2008-2010period.
Socialimpacts:Ofthebeneficiariesoftheprogram,92%arelow-incomehouseholds
(strata1,2and3).Theschemehasthereforeaddressedinequitiesandcontributestothe
improvementofqualityoflifeofitsbeneficiaries.
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservices,onlytheenergyprogram
hasbeenfullyevaluated,withthefollowingresults:
Economicimpacts:Duringthe2008-2010period,theprogramsawinvestmentsof9.3
milliondollars.Importantly,PPallowscustomerstoconsumepublicservicesaccording
totheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection.
Environmentalimpacts:Theprogramincludeseducationinrationalenergyuse,which
hasresultedinareductioninconsumptionof60kilowatthourperfamily.
Socialimpacts:Atotalofalmost71thousandnetworkconnectionshavebeenmadeinthe
lastthreeyears,benefittingsome202thousandpeople(with7%fromstrata1,2and3).
Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergy
servicesby2014.Itcontributestotheimprovementofqualityoflifeandprovidesamechanismtoavoidillegalconnectiontopublicservices.
SocialFinancingProgram(SPF)
Economicimpacts:Overathreeyearperiod,SPFfinanced28milliondollars.Theprogram
promotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancial
services,withlowinterestratesandrepaymentflexibility.Itstimulateslocal,regionaland
nationaleconomies.
Environmentimpacts:TheSFPhasfacilitatedtheadoptionofanewgenerationofefficientappliances,contributingtosignificantenergy,waterandgassavings,withcorrespondingenvironmentalbenefitsfromreducedresourceuse.
Socialimpacts:AsofAugust2011,theEPMGroupCardhasfinanced63thousandhouseholdsin17municipalities.Theschemehasissuedalmost40thousandcardsinthree
years.Participantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappliances.
Casestudiesfromtheregion
Socialimpacts:Directimpactsonwaterandsanitationprovisionduring1998-2010include:over10thousandhouseholdconnectionstowaterservicesandalmost14thousandsewerageconnections,benefittingsome56thousandpeople.During2008-2010,the
waternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilometres.Theprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytraining
andhascontributedtopovertyalleviationthroughjobcreation.
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34
Economic impacts: During the 2008-2010 period, 31 contracts with organisations in
AburráValleyweremade,totalling10milliondollars.Theinitiativehasgeneratingalmost400jobsinthewaterandsanitationsector.Thishasenhancedtheincomeofcommunitiesandcontributedtothedistributionofwealth,stimulatinglocal,regionaland
nationaleconomies.
Environmentalimpacts:Thecommunityorganisationcontractsincludeenvironmental
protectionclausescomplementedwithauditorprocedurestoverifycompliance.
Socialimpacts:Theinitiativehascontributedtopovertyreductionasaresultofjobcreation;strengthenedskillsinmanagement,operationandprocurement;andsuccessfully
promotedcommunity-basedschemes.
Waterservicesprovisioninperi­urbanareas
Economicimpacts:Duringthe2008-2010period,126thousanddollarswasinvestedin
waterservicesprovisionforperi-urbanareas.
Socialimpacts:Thisprogrammecontributestotheuniversalisationofpublicservices,
riskreductionandlifequalityimprovementforperi-urbanpopulations.duringthe20082010periodover6thousandpeoplebenefited.Customereducationprogramshavebeen
implementedtoencouragesustainableandrationalwateruse.
MinimumDrinkingWaterConsumptionAmountforLife
Economicimpacts:TheMunicipalityofMedellinhasinvestedatotalof1.2milliondollars
in2010.Inthatyear,thetotalsavingsachievedwere270thousanddollars,equivalentto
a12%(about5dollars)inmonthlysavingsperfamily—resourcesthatvulnerablefamiliescaninvestinmeetingotherneeds.
Environmental impacts: 92% of beneficiary households practice rational water consumption,withcorrespondingenvironmentalbenefits.
Socialimpacts:Theprogramprovidesaspecificquantityofdrinkingwateratnocostto
vulnerablefamiliesinMedellín.Ithasbroughtpositiveresultsandimprovementsinsocialconditions.In2010,some26thousandhouseholdsbenefittedfromtheprogramand
for2011,theyareexpectedtoriseby72%(45thousandhouseholds).Byguaranteeing
vulnerablefamilies'accesstowater,themunicipalityisimprovingeconomic,socialand
healthconditionsofitspopulation.Theincidenceofillnessisreducedasaresultofthe
increasedavailabilityofdrinkingwatersupply.
Nationaldemand­sideandsupply­sidesubsidies
Economicimpacts:Duringthe2008-2010period,over140milliondollarsinwaterand
sanitationsubsidieswereprovidedtothelowerincomepopulation(strata1,2,3)of17
municipalities,reducingthecostofwaterandsanitationservicesforusers.Onthesup-
WaterintheGreenEconomyinPractice:TowardsRio+20
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblem,mostdevelopingcountrieshavecopiedmodelsfromelsewhereinthepursuitofhigherstandardsofliving.Butexperienceshowsthatduetodifferentsocial,economic,legalandculturalconditionsbetweencountries,modelscannot
simplybetransplantedwithsuccessguaranteed.Itisthereforenecessarytoidentifycommonfactorsfromwhichthetransferabilityofanapproachcanbeinferred.
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffectivenessofEPMtoolsinreachingpublicservicesuniversalisation.Themainconclusion
ofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachievinggoodresults,butinordertohelppeoplelivingundervulnerableconditions(lessthan
5%ofEPMtargetpopulation)moveupinthesocialscale,thefollowingchangeswere
needed:
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasinsurancemechanismsagainstshockslikedeath,illnessoraccident);
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingto
users’vulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk);and,
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerable
population.
Inadditiontolocalandnationalgovernments,thereareinternationalagencies,nongovernmentalorganisationandprivateentitiesthatallocateresourcesandareinterested
inimplementingprogramstoimprovesocialwelfare.Furthermore,moreeffortsmustbe
madetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninorderto
concentratefocalisationstrategiesinthesamepopulationandimprovetheireffectiveness.
Lessonslearntfromimplementation
Knowyourtargetpopulationwell.Programstargetingthepoormustbedesigned
onthebasisofathoroughanalysisofthebeneficiaries’conditionsandtheirlocalparticularitiesinordertostructureflexibleandcustom-madeoptionsforsocialimprovement.Thisrequiresinterdisciplinarystudyofeconomic,socialandpsychology
Casestudiesfromtheregion
Socialimpacts:Theinitiativehasbenefittedsome700thousandusersandaddressedsocialinequitiesintheregion.
Water
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Economy
plyside,EPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserviceprovision.
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Casestudiesfromtheregion
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behaviour,aswellasoftherules,regulationsandinstitutionsthataffectsocialconducts.
36
Asuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesuc­
cesswhenthepracticeistransferredeventoasimilarcontext.Asinitiativesaredesignedtosolveaspecificsituation,whatcanbetransferredisnotthepracticeitself
butthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation.
Donotthinkthetargethasbeenalreadyreached.Constantmonitoringandevaluationisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceimprovementsleadingtoincreasedefficiencyandeffectivenessofmeasures.
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelopmentandgeneratespositiveexternalities.
Creditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavings
forconsumers.Thus,creditoptionsfordelinquentaccountsmustbeconsideredjustas
temporarymeasuressoastoavoidconsumers’dependencyorpovertytraps.
Jointeffortsgeneratehighimpact.Collaborationandcooperationbetweengovernments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebest
waytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinsocialwelfare,throughjointcommitmenttotheachievementofacommontarget.Theresponsibilitiesandrolesofeachactorshouldbeclearlyidentified.
heFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin
2000foraperiodof80yearsandregulatedunderEcuador’sstockmarketlaw.Essentially,theFundisanexampleofpaymentfortheenvironmentalservicesprovidedbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES).
T
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualityby
supportingactionsdirectedatprotectingwaterresources,basedontheprinciplesoflongtermnaturalsustainability.
FONAGfocusesontheUpperGuayallabamba,OyacachiandthePapallactariverbasins
whicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoand
itssurroundingarea.FONAG’sareaofoperationcoversover5thousandsquarekilometresandishometoabout2millioninhabitants.
Inordertoavoidthedegradationoftheseriverbasins,FONAGissupportingactionsdirectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomoreproductive.
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwater
enteringtheMicaQuitoSurreservoir,partofthesystemthatprovidesdrinkingwaterto
thecityofQuito.Themainprobleminthisriverbasinisrelatedtopoorlivestockmanagementpracticesinnearbyareas,whichcausewaterpollution,soilerosionandadversely impact nature conservation in the Antisana Ecological Reserve. Preparatory
studiesatanestimatedcostof22thousanddollarsarecurrentlyunderway,withequal
contributionsbyFONAGandthenongovernmentalorganisation,TheNatureConservancy
(TNC),andadditionalcounterpartfundingfromtheimplementinginstitution.
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuador’smost
denselypopulatedareaandfacesoneoftheworstproblemsofwatershortage,competition
andpollution.Thewaterneedsofthepopulationofthisareaaresuppliedbysurfacewater
fromtheupperEsmeraldasriverbasin,groundwaterandsometransfers.Theaquifers
surroundingQuitousedtobeanimportantsourceofdrinkingwatersupply.However,the
deteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersupplysystemshaveledtotheprogressiveclosureofwells.Inordertosupplytheneedsofthe
population,waterhastobetransferredfromriverbasinsintheAmazonianregion:drinkingwaterforQuitoisextractedfromtheAntisana,OyacachiandPapallactarivers;waterfor
theTabacundoirrigationprojectfromtheBoquerón,MonterasandSanJerónimorivers;
11ThomasChiramba,SilasMogoiandIsabelMartinez,UnitedNationsEnvironmentProgramme;TimJones,
DJEnvironmental,andPabloLloret,FONAG.
Casestudiesfromtheregion
TheFundfortheProtectionofWater(FONAG),
Ecuador11
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Casestudiesfromtheregion
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andirrigationwaterforCangaguafromtheRiverOyacachi.Thesituationhasbeenworsened
byadeepcrisisinnationalwaterresourcesmanagement,owingtoirregularitiesanddeficienciesinwaterallocationandpooradministrationofwater-relatedconflicts.
38
Theapproach:paymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesand
theprogrammeofcommunicationandeducationonwater-relatedissuesinQuito,which
werebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDevelopment (USAID). The Metropolitan Drinking Water and Sewer Company of Quito
(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000.Itwasset
upasaprivatetrustfundundernationalstockmarketlaw.TheNationalElectricCompany
joinedtheventureinMay2001;AndeanBreweryinMarch2003;theSwissAgencyforDevelopmentandCooperation(COSUDE)inJanuary2005;andTesaliaSprings,acompany
sellingbottledspringwaterandrelatedproducts,inApril2007.Members’contributions
varybetweenafixedrateof1.25%(in2008)onthedrinkingwaterandseweragesalesof
EMAAP-Q,toafixedannualamountpaidbyotherparticipants.Thefundcurrentlyholds
closeto6milliondollarsandinvestmentswereestimatedatsome0.8millioninfinancial
returnsand2.9millionincounterpartfunds.
Apilotprojectwassetupin1998,paymentstoFONAGbeganinJanuary2000andfinancingofwatershedprotectionprojectswasinitiatedinJanuary2002.Thetrustfund
providesastable,long-termfinancialmechanism,usingrevenuesderivedfromitsequity
toco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneeds
ofQuitoMetropolitanDistrictanditssurroundingarea.
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesof
buildinganew“waterculture”(wheretheactiveandresponsibleparticipationofallstakeholdersandactorscreatesamorejust,sharedandsustainableuseofwaterresources
withimprovedhealthanddevelopmentoutcomes)andadvancingtowardsintegrated
waterresourcemanagement.Todothis,itdevelopedaclearmission:
FONAGrehabilitates,caresforandprotectsriverbasinsandwatershedsthatsupplywater
totheMetropolitanDistrictofQuitoandsurroundingareas.
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheircitizenshipresponsiblyonbehalfofnature,especiallywaterresources.
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselocatedin:
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)
WaterintheGreenEconomyinPractice:TowardsRio+20
Amongotherpracticalactions,workisbeingdonetoimprovelivestockmanagement
aroundtheOyacachiriverbasin,throughacampaigntovaccinate,identifyandexecutea
programmetoprovidetheseherdswithvitaminsandridthemofparasites.
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscommunityactors,localauthorities,governmentalbodies,non-governmentalorganisations,
andeducationalinstitutions.
FONAG implements its programmes directly, conceiving them as a way of building
processesthatarecapableofchangingpeople’sattitudestowardnatureandencouragingresponsiblewaterresourcesuseandmanagement.
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasof
FONAG’sactivities:
Watermanagement.
Sitesurveillanceandmonitoring.
Restorationofvegetationcover.
Environmentaleducation.
Traininginintegratedwaterresourcesmanagement.
Communication.
Theprojectsareinterventionsundertakenbysupportinginstitutions,communities,educationalorganisationsandlocalgovernments.Theyareshort-term,withamaximumdurationoftwoyears.Therearecurrently20suchprojectscoveringallofthesub-basins
withinFONAG’sareaofoperation.Oftheinstitutionalbudget,20%isassignedtothese
projects.
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinesses,privateandinternationalinstitutions.SpecificprojectsareanintegralpartofFONAG’ssix
Casestudiesfromtheregion
ThroughtheEcuadorianCentreforAgriculturalServices(CESA),FONAGisseekingto
conserve water resources, improve animal husbandry and agricultural practices,
strengthenlocalcapacitiesandprovideaccesstofinancialservices.Allthesecomponents
weredevelopedduringaninitialimplementationphaselastingfifteenmonths,atanestimatedcostofabout80thousanddollars,withpart-fundingprovidedbyFONAGandcofinancingfromTNCandCESA.
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The activities implemented by FONAG are the result of various consensus-based
processescarriedoutamongtheparticipatinginstitutions.
39
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programmes,whichareledbylike-mindedinstitutionswithco-financingprovidedby
FONAG.Itssuccessisbasedinlargeparton:
Casestudiesfromtheregion
Water
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Green
Economy
Aphilosophyofmodestbutsteadygrowth.
40
Limitingitsfinancialsupportforprogrammes/projectstotherevenuederivedfromits
equitycapital.
Attractionofincreasinglysignificantcounterpartfunding.
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyear
andleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpenditureofnearlyfourtimesthisamount.
Economic,socialandenvironmentalbenefits
Throughthefund,morethan65,000hectaresofwatershedsarenowunderimproved
management.Upstreamfarmersreceivesupportforwatershedprotectionprogrammes,
asopposedtocashpayments.Almosttwothousandpeopleareestimatedtohavereceived
increasedeconomicbenefitsassociatedwithwatershedmanagementandconservation.
Scalingupandlessonslearntfromimplementation
Lessonslearnt:
Governments,nongovernmentalorganizations,bothnationalandinternational,developmentassistanceagencies,thecorporatesectorandlocalcommunitiescanworkeffectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear.
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthrough
counterpartcontributions.
Restricting use of the fund to yields from interest and investments —not capital—
meansthatthefundgrowsslowlybutsustainably.
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshave
beenvitaltoFONAG’ssuccess.
Astable,long-termfinancialmechanismprovidesthesecurity,stabilityandsustainabilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitates
itsoperation.
arbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewith
anopeneconomydependentontourismanditsuseofitstropicalislandattributes,
theimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds.
Thechallengefacingthecountryishowtorespondinawaythatissustainable,provides
increasedemploymentopportunitiesinawaythatdoesnotcompromisethecountry’s
environmentalresourceswhileatthesametimeoptimisingtheiruseandcontributesto
thewell-beingofcitizens.In2009,thethenPrimeMinisterannouncedhisvisionforBarbadostobecome“themostenvironmentallyadvancedgreencountryinLatinAmerica
andtheCaribbean”.Followingthisdecision,theGovernmentofBarbadosinitiatedascopingstudytomapouthowthisvisioncouldbeachieved.
B
ThecommitmenthasbeenreiteratedbythecurrentGovernment,throughthePrimeMinisterandtheMinisterforEnvironmentandDrainage.Barbadoshasatrackrecordof
championingenvironmentalissuesandconcernsontheinternationalstageanddomesticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyresponsibledevelopmentthroughnationaldevelopmentplans,policiesandprojects.The
challengesfacedinmakingthechangewere:
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingof
“green”policies.
Limitedeconomicresourcesforimplementation.
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivate
sectorinvolvement.
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforethe
abilitytotranslateunderstandingintoactionislimited.
Itisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutions
havetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedsto
beassignedtosuchchangestoenablethemtobecomepartofanengineforgrowth.At
thesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathave
previouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneeda
changeinmindsetonthepartofbothgovernmentandprivatesector.Akeychallengeis
thecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoption
andimplementationforallparties.
Whilethereisacommitmentonthepartofseniordecision-makers,atthesametime,the
studysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthat
adoptionofgreenorientatedpoliciesmightincreasecosts.Furthermoretheneedfor
greaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciated,and
12 AdrianCashman,CERMES-UniversityoftheWestIndies.
Casestudiesfromtheregion
Water’spotentialroleinsupportingagreeneconomyin
Barbados12
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Casestudiesfromtheregion
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ontheother,thereisatendencyinsomesectorstobeconservativelyprescriptive.Policy
coherenceandcoordinationemergedasanareawheremoreattentionisrequired.
42
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandmanagementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncountries.Itiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnew
employmentandbusinessopportunitiesthoughitisexpectedthatthepromotionofa
greeneconomywillleadtonewemploymentopportunities.Alreadyacentreforthepromotionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesis
beingdiscussed.Thepotentialbenefitstotheenvironmenthavebeenidentifiedandthis
isespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisresponsiblefor,thelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability.
D
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedintheregionandthethinkingofthosecloselyinvolvedinthedevelopmentofpolicies,programmes
andstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy.
InterviewwithColinHerron,GrisellMedina
andFrederikPischkefromtheNationalWater
CommissionofMexico(CONAGUA)
1. Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesman­
agementandutilizationinitscontext?
Agreeneconomydependsonthesustainableandintegratedmanagementofwater
resources.Waterneedstobemanagedmorerationallytofacethechallengesofgrowingpopulations,increasingpercapitaconsumptionandthemanifestationofclimate
changeandvariability.Let’snotforgetthatwaterisembeddedintheproductsweconsumeandthattheprovisionofwaterconsumesenergy,justastheprovisionofmany
sourcesofenergyrequireswaterresources.Cleanwateristhusaresourcethatwe
needtoprotectsoastomakethetransitiontoagreeneconomypossible.
2. WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaand
theCaribbean?
Despiteabundantwaterresourcesandarelativelystrongeconomy,theregionfacesa
challengetodistributeitswealthmoreequitably,enablingeconomiestodevelopwith-
Water
and
a
Green
Economy
uring2012severalleadingexpertsonwaterissueswereaskedtoansweraseries
ofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissues
andtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean.
Theexpert’sperspective
IV.Theexpert’s
perspective
43
Theexpert’sperspective
Water
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WaterandaGreenEconomyinLAC
44
outdepletingnaturalresources.Aconcreteexampleisreducingthewastagealong
foodsupplychains,thussavingwaterandenergywhilelimitingthelandneededto
provideadditionalnutrition.Manyissue-specificsolutionsimplyunintendednegative
impacts.Thusthereisaneedforconscientioustrade-offstobemadebetweenwater,
energyandfood,withprogressevaluatedagainstthethreepillarsofsustainabledevelopment.
3. Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutiliza­
tiontomovetowardsagreeneconomy?
Agricultureandenergyarethemainprioritiesforwaterresourcesmanagement.The
researchthatprovidedinputintoformulatingMexico’s2030WaterAgendaestimated
thatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubic
meters.ThecostofclosingthisgapwouldbemorethanUSD4.16billionannually.
Moneyisnottheonlyobstacle;norisitthemostcomplex.ThemajorityoftheinitiativesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctions,capacitydevelopmentandtheimplementationofeconomicincentivesforamorerational
useofwater.
4. Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterre­
sourcesmanagement,efficient,equitableandsustainablewaterutilizationtotran­
sitionintoagreeneconomy?
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitable
andrationaluseandreuseofwaterresourcesandtoestablishanenablingenvironment,throughinvestmentsinstrongwaterinstitutionsandhumancapacity,aswell
asnaturalandbuiltinfrastructure.ThepriceofwaterinmostcountriesofLACdoes
notreflectitsrealvalue,asshownbytariffsthatdonotcoveroperatingandmaintenancecosts.Thebusinesscommunityneedstoembracewaterasastrategicasset
thathastobeprotectedthroughoutitssupplychain.Inthissense,thewholeofsocietycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthrough
dailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterresources.
5. Whichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressin
thisarea?Whatarethemostinterestingorpromisingexamplesinthecountriesof
theregion?
Togiveaconcreteexample,theGovernmentofMexicohasestablishedthroughaparticipatoryprocessits2030WaterAgenda,whichlaysoutaseriesofobjectivesandrelatedactions,aswellasatimeframeandreportingprocesstoachievethebalanced
supplyanddemandforwaterresources,cleanwaterbodies,universalaccesstowater
servicesaswellassettlementssafefromcatastrophicfloods.TheAgendaisnotjust
agovernmentcommitment,butisaninitiativebythewholeofMexicansociety,thusensuringthatwaterissuesareatoppriorityforallinterestedstakeholders,notjustwater
managers.
Agreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainable
developmentitisintendedtoachieve.Theequityaspectrequiresustoensurethat
everypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitation,
whichprovidethebasisforleadingaproductivelife.Althoughahugeachievementin
itself,wecannotstopthere.Whatisalsoneededisanintegratedapproachtowaterresourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionat
thenegotiationtable,aswaterresourcesaremanagedforaneconomicdevelopment
thatbenefitsall.
7. WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSus­
tainableDevelopment(Rio+20)?
Waterisavitalresourceforsustainabledevelopmentandshouldbeconsidereda
crosscuttingelementforanyissuerelatedtotheenvironment,socialwellbeingand
economicdevelopment.Solvingwatermanagementchallengeswillhelpusadvance
significantlyineradicatingpoverty,achievingfoodsecurity,adaptingtoandmitigating
climatechange,improvingpublichealth,enhancingenergygenerationanduse,balancingsustainableruralandurbandevelopmentandmaintainingecosystemservices.
Let’sfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolutionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyina
changingclimate.
Theexpert’sperspective
6.TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbean
andtherelativelylowlevelofeconomicdevelopment,howcanwemakesurethatthe
transitiontowardsagreeneconomyis“inclusive”;contributingtopovertyalleviation
insteadofaggravatinginequalities?
Water
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Green
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InterviewwithVictorPochat,independentconsultant
Theexpert’sperspective
Water
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Green
Economy
1. Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesman­
agementandutilizationinitscontext?
46
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproach,
myfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy“asonethatresultsinimprovedhumanwell-beingandsocialequity,whilesignificantlyreducingenvironmentalrisksandecologicalscarcities”-istowonderifitis
enoughtogivetoeconomy,togetherwiththecomprehensiveadjective“green”-which
seemstoinvolvethesocialandenvironmentalissues-analmostuniqueroleforthesolutionofthemainworldwideproblems.Nevertheless,whateveristhescopeofthat
definition,theroleofwaterresourcesmanagementandutilizationwillbealwayssubstantive,giventhecloserelationshipbetweenwaterandallthesocial,environmental
andeconomicsectors.
2. WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaand
theCaribbean?
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbean
naturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterritory,watershouldbepresentinalleconomicdecisionsandthecorrespondingconsiderationoftheirsocialandenvironmentalconsequences.
3.Whatarethemainprioritiesinimprovingwaterresourcesmanagementanduti­
lizationtomovetowardsagreeneconomy?
• Developmentofmoreefficienttechnologiesforreductionofwaterconsumptionin
agriculture,industriesandurbanareasandforwastewatertreatment.
• Developmentofnewproductsinordertoreplacethecurrentpollutantfertilizers
andpesticides.Developmentofnewtechnologiesforreducingcontaminantsfromindustrialprocesses.
• Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossibletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfy
waterandcleanenergydemands.
4. Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterre­
sourcesmanagement,efficient,equitableandsustainablewaterutilizationtotran­
sitionintoagreeneconomy?
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommitmentofthemaindecision-makers,whogenerallyarethoseauthoritiesrelatedtothe
politicalandeconomicfieldsandnottothewaterresourcesfield.Thishappenseven
whentheglobalagendaandpublicdeclarationsshowwaterasapriority.Otherimportantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresentativesofhealth,socialandproductivesectors,suchasagriculture,energyandindustry,
andevenofenvironmentalfieldsrelatedtoothernaturalresources,suchassoils,
forestsandfisheries.
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegovernmentalareasresponsibleofwaterresourcesmanagement,bythemselves,andby
theircloserelationshipwiththeothergovernmentalareas,aswellasbyalong-term
planningwithinthedifferentareasofwatermanagement.Interestingexamplesisthe
organizationoftheNationalWaterResourcesManagementSystemofBrazilandthe
planneddevelopmentoftheWaterSupplyandSanitationservicesofChile.
6.TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbean
andtherelativelylowlevelofeconomicdevelopment,howcanwemakesurethatthe
transitiontowardsagreeneconomyis“inclusive”;contributingtopovertyalleviation
insteadofaggravatinginequalities?
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuildingforthedevelopmentofnewtechnologies,particulareffortsshouldbemadetoincorporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildren
andtheupdatingplansforadults,inordertoreducethecurrentgapsinknowledge,
oneofthemaincausesofsocialinequalities.
7. WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSus­
tainableDevelopment(Rio+20)?
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992
RioConference,byrecognizingthevitalroleofwaterforothernaturalresourcesand
theenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirsocialimplications.Ontheotherhand,itwouldbenecessarythatalltheactorsrelated
toenvironmentalissuesunderstandthenecessityofgettingoutofthe“environment
box”andmakeespecialeffortstostronglycommittothemanyimportantdecisionmakersactinginthepoliticalandeconomicfieldsinordertoworktogethertowards
asustainabledevelopment.
Theexpert’sperspective
5. Whichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressin
thisarea?Whatarethemostinterestingorpromisingexamplesinthecountriesof
theregion?
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Economy
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Theexpert’sperspective
Water
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Economy
InterviewwithMaureenBallesterosVargas,President
ofGlobalWaterPartnership(GWP)CostaRica
48
1. Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesman­
agementandutilizationinitscontext?
Myapproachofa“greeneconomy”isbasedontheneedofamoresustainablegrowth
ofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecognized;thisgrowthshouldgraduallycreateagreaterwelfareforall.Waterisalinker
elementofdevelopmentandthereforeitisessentialforasustainedgrowthofacountry.Throughwater,asignificantincreaseinlevelsofinclusionofthepoorestinthe
economycanbeachieved.Also,anintegratedwaterresourcemanagementissupportedbyanadjacentecosystemmanagement.
2. WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaand
theCaribbean?
TheIWRMisavitalelementforeffectivegrowth,healthimprovementofthepopulation,
equitableaccesstowaterandsanitation,andresourcesustainabilityforthefuture
throughtheprotectionofecosystems.
3.Whatarethemainprioritiesinimprovingwaterresourcesmanagementanduti­
lizationtomovetowardsagreeneconomy?
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwater
managementinstitutionstohaveabalancebetweendevelopmentandconservation
andwheretheconceptof“greeneconomy”istransversetotheworkandtasksofthese
institutions(GreenInstitutionalCulture).
Inordertomakethesereforms,insomecasesitwillberequiredlegalchanges,which
weknowisoftendifficultinLatinAmericancountries.Also,theissueoffundingis
quiteimportant.Allthesechangesmentionedrequireinvestmentresourcesthatcountriesarenotalwayswillingtoassign.
4. Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterre­
sourcesmanagement,efficient,equitableandsustainablewaterutilizationtotran­
sitionintoagreeneconomy?
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirect
actions.
Asecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonot
allowchangestobemade.Also,inmanyofourcountries,untilafewyearsago,there
wasn’tanypressureoverallocationandaccesstowaterasitexistsnow.Thus,there
isanewjunctureinwhichcountriesdonotknowhowtorespondinaquickway.And
finally,thefourthissuedealswiththeallocatedfinancialresourcesinnationalbudgets.Watermanagementusuallyhasaverylowpriorityandallthesechangesmentionedbeforerequireanimportantinvestmentindevelopingcountrieswherethereare
alwaysotherurgentpriorities.Thissituationdelaysinvestmentaimedatreform.
Initially,legalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseen
aspriority.Inordertoaccomplishthesereformswemustworkdirectlywithlegislators.Also,aculturalchangemusttakeplacethroughgreatercitizenparticipation
processestoraiseawarenessabouttheimportanceofwaterresources.Thebenefits
ofappropriatewatermanagementshouldalsobeincludedonnationalaccounts.I
wouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997,thecreationoftheANAandthemanagementimprovementsmadesincethen.
6.TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbean
andtherelativelylowlevelofeconomicdevelopment,howcanwemakesurethatthe
transitiontowardsagreeneconomyis“inclusive”;contributingtopovertyalleviation
insteadofaggravatinginequalities?
Watermanagementprocessesarecompletelylinkedtonationalpolicyprocesses;
thereforedemocraticschemesstrengthenparticipationprocesses.Thus,itwouldbe
essentialthatcountriesrespondtomoreparticipatorydemocracies.Also,theapproach
of“greeneconomy”andrelatedIWRMshouldnotbediscussedonlyonatechnical
level,itshouldalsotranscendtoapoliticallevel;otherwiserequiredchangeswillnot
bemade.
7. WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSus­
tainableDevelopment(Rio+20)?
a. Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttaking
intoaccountthebalancethatmustexistbetweenthevarioussocialgroups,economicsectorsandtheuseofnaturalresources.
b. Anefficientwatermanagementallowsthemaintenanceofhealthyecosystems,the
reductionofpovertyandthegenerationofwealth.
c. Watersecurityunderstoodaseaseofaccess,qualityandavailabilityfacilitatesdevelopmentmodels.
d.Inordertomakethenecessarychangestowardsa“greeneconomy”itisessential
theparticipationofalldecisionmakers.
Theexpert’sperspective
5. Whichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressin
thisarea?Whatarethemostinterestingorpromisingexamplesinthecountriesof
theregion?
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Annexes
Annex1.Toolsforchange
hesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme
(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthe
discussionsandpresentationsheldintheZaragozaConference.
T
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemservices;consumerdrivenaccreditationandcertificationschemes,arrangementstosend
economicsignals(includingtradingofwaterandoffsetschemes);reducinginputsubsidiesincludingelectricity;ensuringthatincentivesandsubsidiesdonotconflictwithor
damageothersectors;introducingfinancialincentivesforsavingwater;promotingthe
useof“bestavailabletechnology”standardsinindustry;reviewingwaterallocationmechanismstomaximizethecontributionofwatertoeconomicgrowth;providingeffective
pricesignals,andmoralandfinancialmotivationforchangesininfrastructureandtechnologystandards,socialhabitsandattitudes,andstandardbusinesspractices.
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnecessary,aswellasnewinvestments.Alloftheseaffectthetypesofjobsgenerated,aswell
theirquantityandquality.Thereisanoverallneedtoimproveskillsandtraining,includingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoidentifyeducationandtrainingneeds.Labourmarketandtrainingpoliciescanplayakeyrole
infacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhileminimizingtheassociatedsocialcosts.
WaterintheGreenEconomyinPractice:TowardsRio+20
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanagementprotectionandwetlandandforestrestoration,whenitiscost-effectiveforachieving
waterpolicytargets.Governmentsareencouragedtoconsiderecologicalinfrastructureas
oneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecurrentglobalfinancialcrisisandintheirregularnationalbudgets.Investinginecologicalinfrastructureisimportantforallcountries.Developingeconomiesinparticulararehome
tohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystem
services.
Promotionofwatertechnologies
Greentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarkets,
contributingtojobcreation.Thisincludescoolingmethodsforenergyplants,desalination
withwindenergy,andchangestodripirrigation.Innovationisakeydriverofproductivity.Itrelatestobothtechnologicalandnon-technologicalapproaches,suchasintegrated
environmentalstrategies,responsiblemanagementpracticeandnewbusinessmodels
(suchaseco-efficiency).
Annexes
Thisrelatestoimprovingwaterchargingandfinancearrangements.Thisneedstoincludeimprovingaccesstofinancingforthepoor.Crosssubsidizingofwaterusemaybe
consideredtofacilitateaccesstowaterservicesforthelow-incomegroups.Establishing
financingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnology
development,adaptationandadoption.Financingisimportantfortheinvestmentsaimed
atimprovingtheeffectiveness,efficiencyandresilienceofwatersupplyandofwateruse.
Thisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwaterintensivecrops;investinginreplacingandmaintainingoldinfrastructure,improvingirrigation systems, and decreasing wastage; investing in sustainable agriculture and
freshwatersystems.Fordevelopingcountries,inparticular,financemaybeneededtoincreaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewater
transmissionlossesinirrigationcanalsandotherwatersystems.Financeisalsoneeded
toimprovestorageandwaterquality,andforinvestinginhardinfrastructure,suchas
dams,toprotectcurrentassetsatrisk,wheneconomicallyefficienttodoso,anddevise
retrenchmentstrategiesforothercases.Infrastructuredevelopmentmusttakeintoaccounttheimpactsonwaterquantityandwaterquality,biodiversity,energyandresource
efficiency.Financeisalsoessentialforwaterresourcesmanagement,inparticularfor
investingintheinstitutionsandmechanismsneededtoallocatewateramongcompeting
demandsinanequitableandsustainablemanner.
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Annex2.Issuespresentedfordiscussionatthe
ZaragozaConference
Issues
Relevantissuesforthegreeneconomy
Agriculture
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities
NoexcuseMDGs–basicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry
Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers
Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
International Decade for Action ‘Water for Life’ 2005-2015
A Decade for Water, a Decade for Life
Towards the primary goal of the Water for Life Decade, Spain has agreed to provide resources to the United Nations to
establish an Office to support the International Decade for Action. Located in Zaragoza, Spain, and led by the United Nations Department of Economic and Social Affairs (UNDESA), the Office implements the UN-Water Decade Programme on
Advocacy and Communication (UNW-DPAC) aiming at sustaining the global attention and political momentum in favour
of the water and sanitation agenda at all levels during the Decade.
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ECLAC, which is headquartered in Santiago, Chile, is one of the five regional commissions of the United Nations. Its purpose is to contribute towards the economic and social development of Latin America and the Caribbean, coordinating
actions directed towards this end, and reinforcing economic ties among countries and with other nations of the world.
ECLAC also provides advisory services to Governments, and formulates and promotes development cooperation activities and projects of regional and sub-regional scope commensurate with the needs and priorities of the region.
Compiled by the Economic Commission for Latin America and the Caribbean (ECLAC)
and the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)
The views expressed in this publication are those of the participants in the International UN-Water Conference ‘Water in the Green Economy in
Practice: Towards Rio+20’ and do not necessarily reflect the views of the United Nations Secretariat, the United Nations Office to support the International Decade for Action (UNO-IDfA) ‘Water for Life’ 2005-2015 of the Economic Commission for Latin America and the Caribbean (ECLAC).
The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on
the part of the Secretariat of the United Nations, the UNO-IDfA ‘Water for Life’ 2005-2015 or ECLAC concerning the legal status of any country,
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