Post on 10-Mar-2018
Santiago Chile June 2012
UNECLAC Natural Resources and Infrastructure DivisionUN-Water Decade Programme on Advocacy and Communication (UNW-DPAC)
Water and a Green Economy in Latin America and the Caribbean(LAC)
WaterintheGreenEconomyinPracticeTowardsRio+20
ThisdocumenthasbeenpreparedbyCaridadCanalesandAndreiJouravlevEconomicAf-fairsOfficersoftheNaturalResourcesandEnergyUnitDivisionofNaturalResourcesandInfrastructureEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)TheauthorswouldliketothankfortheircontributionsandcooperationAdrianCashmanCERMES-UniversityoftheWestIndiesElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemalaThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgramme(UNEP)TimJonesDJEnvironmen-talCarlosLloretFundfortheProtectionofWater(FONAG)andRubenAvendantildeoEm-presasPuacuteblicasdeMedellinTheviewsexpressedinthisdocumentwhichhasbeenreproducedwithoutformaleditingarethoseoftheauthorsanddonotnecessarilyre-flecttheviewsoftheOrganization
WaterandaGreenEconomy
UnitedNationsPublicationcopyUnitedNationsJune2012Allrightsreserved
MemberStatesandtheirgovernmentalinstitutionsmayreproducethisworkwithoutpriorauthorizationbutarerequestedtomentionthesourceandinformtheUnitedNationsofsuchreproduction
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WaterandaGreenEconomyinLACWaterandaGreenEconomy
Con
tent
Abstract 3
ForewordWaterandtheGreenEconomyexpectationsforRio+20 4
Introduction 6
I Mainstreamingwaterintoagreeneconomy 8
A Agriculture 10
B Industry 11
C Cities 12
D Watersheds 13
II WaterandagreeneconomyinLatinAmericaandtheCaribbean 14
A Challenges 18
B Approaches 20
C Lessonslearnt 21
Bibliography 25
III CasestudiesfromtheregionSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala 27
Pro-poorfinancingandtariffsinMedellinColombia 28
TheFundfortheProtectionofWater(FONAG)Ecuador 36
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados 40
IV Theexpertrsquosperspective 42
Annexes 49
Annex1Toolsforchange 49
Annex2IssuespresentedfordiscussionattheZaragozaConference 51
2
Abstract
TheInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquotookplaceinZaragozaSpain3-5October2011Theeventbroughttogetherpar-ticipantsfromvariousregionsoftheworldwiththeaimtosharethepracticalexperi-
encesthathaveworkedandthosethatneedtobeadjustedinordertodealwiththeworldrsquosnewandemergingproblemsVarioustoolsandapproacheswerepresentedwhileexpertsandpractitionerswereabletodiscussandexchangeperspectivesonhowtoimprovewatergovernanceandmoreimportantlytoadvancethewatersectortowardsthegreeneconomy
TheresultsofthisconferenceintheformofabestpracticesguideareacontributiontothepreparatoryprocessfortheUnitedNationsConferenceonSustainableDevelopment(UNCSD)whichistakingplaceinBrazilinJune2012(Rio+20)TheEconomicCommis-sionforLatinAmericaandtheCaribbean(ECLAC)NaturalResourcesandInfrastructureDivisioncollaboratedintheorganizationoftheconferencebycoordinatingtheregionalsessionforLatinAmericaandtheCaribbeanwiththeparticipationofexpertsfromBar-badosBrazilColombiaCostaRicaEcuadorGuatemalaMexicoNicaraguaPeruandothercountriesThisdocumentisareportofthisconferencewithspecificemphasisontheLatinAmericanandCaribbeanregion
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WaterandtheGreenEconomyexpectationsforRio+20
MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave
becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess
RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)
ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow
ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo
4
WaterintheGreenEconomyinPracticeTowardsRio+20
arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation
ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources
AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy
AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges
Josefina Maestu Coordinator
UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa
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Introduction
ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards
agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld
Thespecificobjectivesoftheeventweretwofold
Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy
Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld
TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)
Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-
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WaterintheGreenEconomyinPracticeTowardsRio+20
siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere
Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected
Watertechnologyandinnovationmustbefocalpointsofdevelopment
Economicinstrumentsareakeyaspectofthegreeneconomyplatform
Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy
Politicalcommitmentandenablingpoliciesarefundamental
ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy
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I Mainstreamingwaterintoagreeneconomy1
ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin
whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety
TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment
TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision
1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20
8
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
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WaterintheGreenEconomyinPracticeTowardsRio+20
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
WaterintheGreenEconomyinPracticeTowardsRio+20
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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18
WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
WaterandaGreenEconomy
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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WaterandaGreenEconomyinLACWaterandaGreenEconomy
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
WaterandaGreenEconomy
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5 FromSolanesandJouravlev(2006)
21
WaterandaGreenEconomyinLAC
Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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WaterandaGreenEconomyinLACWaterandaGreenEconomy
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
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andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
ThisdocumenthasbeenpreparedbyCaridadCanalesandAndreiJouravlevEconomicAf-fairsOfficersoftheNaturalResourcesandEnergyUnitDivisionofNaturalResourcesandInfrastructureEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)TheauthorswouldliketothankfortheircontributionsandcooperationAdrianCashmanCERMES-UniversityoftheWestIndiesElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemalaThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgramme(UNEP)TimJonesDJEnvironmen-talCarlosLloretFundfortheProtectionofWater(FONAG)andRubenAvendantildeoEm-presasPuacuteblicasdeMedellinTheviewsexpressedinthisdocumentwhichhasbeenreproducedwithoutformaleditingarethoseoftheauthorsanddonotnecessarilyre-flecttheviewsoftheOrganization
WaterandaGreenEconomy
UnitedNationsPublicationcopyUnitedNationsJune2012Allrightsreserved
MemberStatesandtheirgovernmentalinstitutionsmayreproducethisworkwithoutpriorauthorizationbutarerequestedtomentionthesourceandinformtheUnitedNationsofsuchreproduction
1
WaterandaGreenEconomyinLACWaterandaGreenEconomy
Con
tent
Abstract 3
ForewordWaterandtheGreenEconomyexpectationsforRio+20 4
Introduction 6
I Mainstreamingwaterintoagreeneconomy 8
A Agriculture 10
B Industry 11
C Cities 12
D Watersheds 13
II WaterandagreeneconomyinLatinAmericaandtheCaribbean 14
A Challenges 18
B Approaches 20
C Lessonslearnt 21
Bibliography 25
III CasestudiesfromtheregionSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala 27
Pro-poorfinancingandtariffsinMedellinColombia 28
TheFundfortheProtectionofWater(FONAG)Ecuador 36
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados 40
IV Theexpertrsquosperspective 42
Annexes 49
Annex1Toolsforchange 49
Annex2IssuespresentedfordiscussionattheZaragozaConference 51
2
Abstract
TheInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquotookplaceinZaragozaSpain3-5October2011Theeventbroughttogetherpar-ticipantsfromvariousregionsoftheworldwiththeaimtosharethepracticalexperi-
encesthathaveworkedandthosethatneedtobeadjustedinordertodealwiththeworldrsquosnewandemergingproblemsVarioustoolsandapproacheswerepresentedwhileexpertsandpractitionerswereabletodiscussandexchangeperspectivesonhowtoimprovewatergovernanceandmoreimportantlytoadvancethewatersectortowardsthegreeneconomy
TheresultsofthisconferenceintheformofabestpracticesguideareacontributiontothepreparatoryprocessfortheUnitedNationsConferenceonSustainableDevelopment(UNCSD)whichistakingplaceinBrazilinJune2012(Rio+20)TheEconomicCommis-sionforLatinAmericaandtheCaribbean(ECLAC)NaturalResourcesandInfrastructureDivisioncollaboratedintheorganizationoftheconferencebycoordinatingtheregionalsessionforLatinAmericaandtheCaribbeanwiththeparticipationofexpertsfromBar-badosBrazilColombiaCostaRicaEcuadorGuatemalaMexicoNicaraguaPeruandothercountriesThisdocumentisareportofthisconferencewithspecificemphasisontheLatinAmericanandCaribbeanregion
WaterandaGreenEconomy
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WaterandtheGreenEconomyexpectationsforRio+20
MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave
becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess
RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)
ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow
ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo
4
WaterintheGreenEconomyinPracticeTowardsRio+20
arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation
ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources
AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy
AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges
Josefina Maestu Coordinator
UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa
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Introduction
ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards
agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld
Thespecificobjectivesoftheeventweretwofold
Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy
Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld
TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)
Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-
6
WaterintheGreenEconomyinPracticeTowardsRio+20
siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere
Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected
Watertechnologyandinnovationmustbefocalpointsofdevelopment
Economicinstrumentsareakeyaspectofthegreeneconomyplatform
Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy
Politicalcommitmentandenablingpoliciesarefundamental
ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy
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I Mainstreamingwaterintoagreeneconomy1
ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin
whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety
TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment
TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision
1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20
8
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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WaterandaGreenEconomyinLAC
C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
WaterandaGreenEconomy
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5 FromSolanesandJouravlev(2006)
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WaterandaGreenEconomyinLAC
Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLACWaterandaGreenEconomy
Con
tent
Abstract 3
ForewordWaterandtheGreenEconomyexpectationsforRio+20 4
Introduction 6
I Mainstreamingwaterintoagreeneconomy 8
A Agriculture 10
B Industry 11
C Cities 12
D Watersheds 13
II WaterandagreeneconomyinLatinAmericaandtheCaribbean 14
A Challenges 18
B Approaches 20
C Lessonslearnt 21
Bibliography 25
III CasestudiesfromtheregionSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala 27
Pro-poorfinancingandtariffsinMedellinColombia 28
TheFundfortheProtectionofWater(FONAG)Ecuador 36
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados 40
IV Theexpertrsquosperspective 42
Annexes 49
Annex1Toolsforchange 49
Annex2IssuespresentedfordiscussionattheZaragozaConference 51
2
Abstract
TheInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquotookplaceinZaragozaSpain3-5October2011Theeventbroughttogetherpar-ticipantsfromvariousregionsoftheworldwiththeaimtosharethepracticalexperi-
encesthathaveworkedandthosethatneedtobeadjustedinordertodealwiththeworldrsquosnewandemergingproblemsVarioustoolsandapproacheswerepresentedwhileexpertsandpractitionerswereabletodiscussandexchangeperspectivesonhowtoimprovewatergovernanceandmoreimportantlytoadvancethewatersectortowardsthegreeneconomy
TheresultsofthisconferenceintheformofabestpracticesguideareacontributiontothepreparatoryprocessfortheUnitedNationsConferenceonSustainableDevelopment(UNCSD)whichistakingplaceinBrazilinJune2012(Rio+20)TheEconomicCommis-sionforLatinAmericaandtheCaribbean(ECLAC)NaturalResourcesandInfrastructureDivisioncollaboratedintheorganizationoftheconferencebycoordinatingtheregionalsessionforLatinAmericaandtheCaribbeanwiththeparticipationofexpertsfromBar-badosBrazilColombiaCostaRicaEcuadorGuatemalaMexicoNicaraguaPeruandothercountriesThisdocumentisareportofthisconferencewithspecificemphasisontheLatinAmericanandCaribbeanregion
WaterandaGreenEconomy
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WaterandtheGreenEconomyexpectationsforRio+20
MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave
becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess
RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)
ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow
ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo
4
WaterintheGreenEconomyinPracticeTowardsRio+20
arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation
ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources
AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy
AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges
Josefina Maestu Coordinator
UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa
terandaGreenEconomy
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Introduction
ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards
agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld
Thespecificobjectivesoftheeventweretwofold
Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy
Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld
TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)
Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-
6
WaterintheGreenEconomyinPracticeTowardsRio+20
siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere
Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected
Watertechnologyandinnovationmustbefocalpointsofdevelopment
Economicinstrumentsareakeyaspectofthegreeneconomyplatform
Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy
Politicalcommitmentandenablingpoliciesarefundamental
ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy
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I Mainstreamingwaterintoagreeneconomy1
ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin
whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety
TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment
TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision
1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20
8
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
WaterandaGreenEconomy
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5 FromSolanesandJouravlev(2006)
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WaterandaGreenEconomyinLAC
Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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WaterandaGreenEconomyinLACWaterandaGreenEconomy
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
Abstract
TheInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquotookplaceinZaragozaSpain3-5October2011Theeventbroughttogetherpar-ticipantsfromvariousregionsoftheworldwiththeaimtosharethepracticalexperi-
encesthathaveworkedandthosethatneedtobeadjustedinordertodealwiththeworldrsquosnewandemergingproblemsVarioustoolsandapproacheswerepresentedwhileexpertsandpractitionerswereabletodiscussandexchangeperspectivesonhowtoimprovewatergovernanceandmoreimportantlytoadvancethewatersectortowardsthegreeneconomy
TheresultsofthisconferenceintheformofabestpracticesguideareacontributiontothepreparatoryprocessfortheUnitedNationsConferenceonSustainableDevelopment(UNCSD)whichistakingplaceinBrazilinJune2012(Rio+20)TheEconomicCommis-sionforLatinAmericaandtheCaribbean(ECLAC)NaturalResourcesandInfrastructureDivisioncollaboratedintheorganizationoftheconferencebycoordinatingtheregionalsessionforLatinAmericaandtheCaribbeanwiththeparticipationofexpertsfromBar-badosBrazilColombiaCostaRicaEcuadorGuatemalaMexicoNicaraguaPeruandothercountriesThisdocumentisareportofthisconferencewithspecificemphasisontheLatinAmericanandCaribbeanregion
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WaterandtheGreenEconomyexpectationsforRio+20
MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave
becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess
RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)
ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow
ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo
4
WaterintheGreenEconomyinPracticeTowardsRio+20
arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation
ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources
AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy
AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges
Josefina Maestu Coordinator
UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa
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Introduction
ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards
agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld
Thespecificobjectivesoftheeventweretwofold
Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy
Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld
TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)
Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-
6
WaterintheGreenEconomyinPracticeTowardsRio+20
siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere
Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected
Watertechnologyandinnovationmustbefocalpointsofdevelopment
Economicinstrumentsareakeyaspectofthegreeneconomyplatform
Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy
Politicalcommitmentandenablingpoliciesarefundamental
ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy
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I Mainstreamingwaterintoagreeneconomy1
ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin
whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety
TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment
TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision
1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20
8
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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WaterandaGreenEconomyinLAC
C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
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WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomy
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WaterandtheGreenEconomyexpectationsforRio+20
MomentumhasbeenbuildingonwaterasapriorityissueforRio+20Intheprepara-toryprocessBrazilsupportedtheideaofwaterbeingakeyemergingissuetobeaddressedattheconferenceMemberStatesmajorgroupsandcivilsocietyhave
becomeincreasinglyengagedinmakingproposalsonwaterasacentralthemeinRioTheUNagenciestheSecretariatandUN-Waterhaveprovidedsupportandsubstantivein-putstotheprocess
RioisprovidinganopportunityforassessingprogressoninternationalcommitmentsinwaterTherearethreeglobalreportsthatprovidethebasistodosothe2012JointMon-itoringProgrammeReportonaccesstosafedrinkingwaterandsanitationservicestheWaterResourcesManagementReportthatwillbelaunchedatRioandtheMarch2012UNWorldWaterDevelopmentReport4Internationallygoalsinaccesstowaterandsanita-tionservicesandinwaterresourcesmanagementhavebeenagreedinAgenda21(1992)MDGs(2000)JPOI(2002)andtheDushanbeWaterAppeal(2003)
ThereisgoodnewsinrelationtotheachievementoftheMillenniumDevelopmentGoalsonaccesstobasicsafedrinkingwaterservicesFrom1990to20102000millionpeoplehaveobtainedaccesstoimprovedbasicdrinkingwaterservicesInsanitationthesitua-tionisamajorconcernsincealthough1800millionhaveobtainedaccesstoimprovedsanitationtherearestill2500millionpeoplewithoutimprovedbasicsanitationservicesTheUN-Waterglobalsurveyof133countriesonthestatusinthelsquoapplicationoninte-gratedapproachestothedevelopmentmanagementanduseofwaterresourcesrsquowillbedeliveredtoRio+20Preliminaryfindingsfromthesurveyindicatethatmostgovernmentshavemadeprogresswithwatersectorreformsbutthattheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesandplansisslow
ThepovertyagendaandtheconcernwithequityandplanetaryboundariesareverymuchatthecenterofRiopreparatorydiscussionsIfthereisanissueinwhichinequitiesldquointheaccesstowaterandsanitationservicesrdquoandtheplanetarylimitsldquoofwaterresourcesrdquo
4
WaterintheGreenEconomyinPracticeTowardsRio+20
arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation
ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources
AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy
AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges
Josefina Maestu Coordinator
UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa
terandaGreenEconomy
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WaterandaGreenEconomy
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Introduction
ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards
agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld
Thespecificobjectivesoftheeventweretwofold
Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy
Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld
TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)
Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-
6
WaterintheGreenEconomyinPracticeTowardsRio+20
siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere
Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected
Watertechnologyandinnovationmustbefocalpointsofdevelopment
Economicinstrumentsareakeyaspectofthegreeneconomyplatform
Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy
Politicalcommitmentandenablingpoliciesarefundamental
ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy
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I Mainstreamingwaterintoagreeneconomy1
ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin
whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety
TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment
TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision
1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20
8
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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inL
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
WaterandaGreenEconomy
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5 FromSolanesandJouravlev(2006)
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WaterandaGreenEconomyinLAC
Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
arecompelling this iswaterRiorepresentsauniqueopportunitynotonly toassessprogressbutalsotoboostcommitmentfromgovernmentsandstakeholderstoimple-mentactionstoaddresstheseActionsthatmanyconsiderneedtofocusonhowtopro-videbasicservicestothebottombillionandonenvironmentaldegradation
ThepreparatoryprocessforwaterinRiohasbeenlongwithmanyproposalsrangingfromconcretetargetsforimprovingefficiencyofwateruseandreducingpollutiontoimprovingco-operationcoordinationandpolicycoherenceandimprovingwaterresourcesallocationandmanagementNotalloftheseproposalshavebeenincorporatedinthenegotiatedoutcomedocumentandtheremaybestilladisconnectioninthediscussiononwaterandthegreeneconomyTheexpectationisthattherewillbeadvancesinthewateragendaonaccesstobasicwaterandsanitationservicesIntegratedWaterResourcesManagementandCooper-ationThisincludesacallforimprovingefficiencyandreducepollutionimprovewastewatertreatmentanduseoftreatedwastewaterandothernon-conventionalwaterresources
AnimportantlandmarkinthepreparatoryprocesshasbeentheUN-WaterconferenceldquoWaterandtheGreenEconomyinPracticeTowardsRio+20rdquoon3-5October2011inZaragozaSpainfocusedontoolsforthetransitiontoagreeneconomyItidentifiedfourprioritywater-relatedlociwherechangeneedstotakeplaceinthetransitiontoagreeneconomyagriculturein-dustrycitiesandwatershedsSixtoolswereproposedwhichcanbeusedtofacilitatechangeandsupportthetransitiontowardsagreeneconomy(1)economicinstruments(2)greenjobs(3)costrecoveryandfinancing(4)investmentsinbiodiversity(5)technologyand(6)waterplanningThesetoolscanenableustolsquodomorewithlessrsquoovercomebarriersharnessopportunitiesandchangebehavioursinordertoachieveagreeneconomy
AsstatedbytheEconomicCommissionforLatinAmericaandtheCaribbean(seesectionII)theMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasalreadybeenmetwithfewexceptions(HaitiDominicanRepublicandJamaica)Regardingsanitationtheregionwillbeclosetomeetingthegoalwithalsofewcountriespotentiallymissingthetarget(HaitiBoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howevermorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationInfactservicequality(intermittencywaterqualitycontroletc)ismediocreandinfra-structureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcom-mercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofso-cietyMoreoverovertwothirdsofsewageisdischargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
TheresultsofthecontributionstothesessiononwaterinagreeneconomyintheLACRe-gionpresentedinthispublicationprovidekeyinsightsandexamplesonhowimplement-ingwaterinagreeneconomydependsoncontextandhowtoovercomeimplementationchallenges
Josefina Maestu Coordinator
UN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC) Wa
terandaGreenEconomy
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Introduction
ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards
agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld
Thespecificobjectivesoftheeventweretwofold
Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy
Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld
TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)
Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-
6
WaterintheGreenEconomyinPracticeTowardsRio+20
siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere
Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected
Watertechnologyandinnovationmustbefocalpointsofdevelopment
Economicinstrumentsareakeyaspectofthegreeneconomyplatform
Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy
Politicalcommitmentandenablingpoliciesarefundamental
ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy
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I Mainstreamingwaterintoagreeneconomy1
ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin
whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety
TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment
TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision
1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20
8
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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inL
AC
2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
14
WaterintheGreenEconomyinPracticeTowardsRio+20
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
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between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
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WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
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WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomy
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Introduction
ThemainobjectiveoftheZaragozaConferencewastoreflectonthelessonslearntfrompracticalimplementationexperiencesandhighlighttheimportanceoftheso-cialeconomicandpoliticalcontextofeachregiontofacilitatethetransitiontowards
agreeneconomyTheformatoftheeventemphasizedtheexperiencesandconcretepro-posalsbothintheLatinAmericanandCaribbeancountriesaswellasinotherregionsoftheworld
Thespecificobjectivesoftheeventweretwofold
Topositionthewateragendaasakeyelementforadvancingtowardsagreeneconomy
Todemonstratehowdifferentpublicpolicytoolscanpromotethischangetowardsagreeneconomyandtoillustratetheirpracticalapplicationthroughspecificexamplesinthedifferentregionsoftheworld
TheconferencewasorganizedbytheUN-WaterDecadeProgrammeonAdvocacyandCommunication(UNW-DPAC)incollaborationwiththeOrganizationforEconomicCoop-erationandDevelopment(OECD)theInternationalLabourOrganization(ILO)theWorldBanktheUnitedNationsEnvironmentProgramme(UNEP)theUN-WaterDecadePro-grammeonCapacityDevelopment(UNW-DPC)theUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA)theUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)andtheEbroRiverBasinAuthority(CHE)
Thecasespresentedattheconferencedemonstratedhowappropriateregulationin-vestmentsandfinancingmodelsforprovidingdrinkingwatersupplyandsanitationserv-ices equitably efficiently and sustainably and for managing water resources in anintegratedwaycancontributetoreducepovertyprotecttheenvironmentandfosterso-cioeconomicdevelopmentTheconferencealsohighlightedtheimportanceofinstitutionalstrengtheningpoliticalcommitmenttechnicalcapacitydevelopmentandlong-termvi-
6
WaterintheGreenEconomyinPracticeTowardsRio+20
siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere
Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected
Watertechnologyandinnovationmustbefocalpointsofdevelopment
Economicinstrumentsareakeyaspectofthegreeneconomyplatform
Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy
Politicalcommitmentandenablingpoliciesarefundamental
ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy
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I Mainstreamingwaterintoagreeneconomy1
ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin
whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety
TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment
TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision
1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20
8
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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10
WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
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between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
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EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
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andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterintheGreenEconomyinPracticeTowardsRio+20
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
siontoaddressthechallengesofthegreeneconomyOtherconclusionsthatcameoutofthediscussionsheldduringtheeventwere
Wateristheengineforthegreeneconomyitisimportanttoensurethattheystaycon-nected
Watertechnologyandinnovationmustbefocalpointsofdevelopment
Economicinstrumentsareakeyaspectofthegreeneconomyplatform
Constantlyincreasingeconomicsocialandenvironmentalefficiencymustbecomeabasicpremisethataccompaniesthegreeneconomy
Politicalcommitmentandenablingpoliciesarefundamental
ThisdocumentcompilesthecasestudiesandsystematizesdiscussionsthatwereheldattheconferenceandwhichfocusedonLatinAmericaandtheCaribbeanThefirstchapterdescribeshowthegreeneconomyconcepthasevolvedanditsrelevancefortheRio+20processItalsofocusesonfourwater-relatedissues(agricultureindustrycitiesandwatersheds)wheresignificantchangesareneededinordertomovetowardsagreeneconomyChaptertwosetstheregionalcontextandexploressomeofthechallengesthatthecountriesoftheregionfaceandneedtosolveinordertoachieveamoresustainableandefficientuseoftheirwaterresourcesandfacilitateatransitiontowardsagreenecon-omyItalsodescribessomeofthelessonsthathavebeenlearntintheregionChapterthreeisabriefcompilationofcasestudiesthatwerepresentedduringtheconferenceThesehighlightsomeofthelessonslearntandtheeconomicenvironmentalandsocialimpactstheyhavehadasaresultoftheirimplementationThelastchapterisacompila-tionofinterviewsthatwerepreparedspeciallyforthisreportunderthethematicframeofwaterinthegreeneconomy
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ene
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my
I Mainstreamingwaterintoagreeneconomy1
ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin
whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety
TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment
TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision
1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20
8
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
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WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
Bib
liogr
aphy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
WaterandaGreenEconomy
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
WaterandaGreenEconomy
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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The
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IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
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I Mainstreamingwaterintoagreeneconomy1
ThefirstUnitedNationsConferenceonSustainableDevelopment(UNCSD)(RiodeJaneiro1992)intendedtocreateasharedvisionforreconcilingeconomicgrowthwithenvironmentalprotectionandbuildingamoreequitableworldItwasthenin
whatwascalledtheEarthSummitwhensustainabledevelopmentwasofficiallylaunchedintothemainstreamTwentyyearslaterthegovernmentsoftheworldaremeetingagaininRiodeJaneirofortheinternationalconferenceknownasRio+20Howevertheworldisnowfacingmajorandoverlappingglobalcrisesmdashtheeconomicandfinancialcrisisac-celeratingenvironmentaldegradationwaterscarcityandpollutionandtheemergingim-pactsofclimatechangeAllthesechallengesnotonlyhindersocioeconomicdevelopmentbutalsoimpedeeffortstoeradicatepovertyandachieveamoreequitablesociety
TheobjectivesoftheRio+20conferencearethree-foldFirsttheeventaimstosecurere-newedpoliticalcommitmentforsustainabledevelopmentSecondtheconferencewillbeanopportunity tostakestockof theprogressmadetowardsprevious internationallyagreedcommitmentsLastlytherewillbeaspecialfocusonnewandemergingchal-lengesRio+20willalsofocusontwothemesi)howtobuildagreeneconomywhichde-liverssustainabledevelopmentandliftspeopleoutofpovertyandii)howtoimprovetheinstitutionalframeworkandinternationalcoordinationforsustainabledevelopment
TheemergingconceptofthegreeneconomyhasshapedmuchofthediscussionsinthepreparationforRio+20andsimplyputitisthepracticalandoperationalframeworkthatwillservetoimplementthethreepillarsofsustainabledevelopment(environmentaleco-nomicandsocial)Theconcepthasalreadyservedanimportantpurposeactingasacat-alystandrallyingindividualnationalandinternationalactorstoworktogethertowardsacommonvision
1 BasedontheConferenceBookWaterintheGreenEconomyinPracticeTowardsRio+20
8
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
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WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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liogr
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
Whileitisevidentthatldquobusiness-as-usualrdquoisfraughtwiththedisastrousconsequencesalongtheroadarticulatingthedetailsofagreeneconomyandidentifyingpossiblepath-waystogettherewillbeamajortaskfortheRio+20summitFurthermoreofcriticalimportancetothesuccessoftheconferencewillbethewayinwhichtheneedsandcon-cernsofdevelopingcountriesareaddressedAreoccurringandlegitimateconcernre-latestotheprovisionofsupporttoenablethesecountriestoadvancetowardsagreeneconomyandavoidthemistakesthedevelopedworldhasmadeThecapacityofnationalgovernmentstodealwiththeadverseimpactsofgreeneconomyadjustments(suchasthelossofjobsinsomesectors)varygreatlyThereisaneedforastrongsocialcomponenttoaccompanythetransitiontoagreeneconomywhichconsiderstheimpactsofsuchchangesonbroadersocialoutcomessuchasaccesstoeducationhealthandbasicserv-icesparticularlydrinkingwatersupplyandsanitationTherearealsoconcernsabouttheintroductionofnewconditionalitiesthatmightrestricttradefinancinginternationalin-vestmentandofficialdevelopmentassistance
Waterisfundamentaltothegreeneconomybecauseitisinterwovenwithsomanysus-tainabledevelopmentissuessuchashealthenergyfoodsecurityandpovertyIndevel-opingcountriesaccesstodrinkingwatersupplyandsanitationservicesisafundamentalpreconditionforpovertyreductioneconomicprogressandenvironmentalprotectionThemultiplebenefitsofprovidingaccesstotheseservicesintermsofpublichealthlifeex-pectancyperspectivesforeconomicdevelopmentandthefreeingoftimeforeducationand economic activities are well known as illustrated in recent ECLAC studies ofGuatemalaandPeruthatidentifytheimpactsofprovidingandimprovingtheseservicesinordertogenerateargumentsinfavourofthegovernmentprioritizingthesectorbothintermsofpublicpolicyandbudgetallocations(Lentini2010andOblitasdeRuiz2010)
Wateristhecommonthreadthatconnectsthethreecriticalissuesoffoodenergyandcli-matechangeSustainingeconomicgrowthisonlypossibleifwerecognisethelimitedandfragilecapacityofecosystemstosupplythewaterneededforagricultureindustryenergygenerationhumanwatersupplyandtheproductionofthemanygoodsandservicesde-mandedbysocietyThegreeneconomyimpliesmanagingwaterinawaythatcatalysessocialandeconomicdevelopmentwhilealsosafeguardingfreshwaterecosystemsandtheservicestheyprovideWatermanagementmustbeimprovedinordertoachievefoodsecurityconserveecosystemsandreducetherisksfromwaterscarcityandpollutionnaturaldisasterssuchasfloodsanddroughtsandfromclimatechange
Addressingthewaterchallengerequiresthecreationandstrengtheningofinstitutionalmechanismstofacilitateintegratedwaterresourcesmanagementaswellasthetrans-ferandadoptionofnewtechnologywithemphasisonwaterconservationimprovedirri-gationmethodswaterreuseandefficiencyimprovementsManycountrieshavemadeprogressinwatersectorreformsbuttheimplementationprocesswhichseesprinciplesturnedintopolicylawsstrategiesplansinstitutionalcapacityandconcreteresultsisveryslowSomecountrieshavedifficultymovingbeyondthefirstpoliticalorlegislativestepsandadditionalsupportisneededtohelpcountriesenhancewatergovernanceandachieveuniversalcoverageofdrinkingwatersupplyandsanitationservices
Makingtheshifttothegreeneconomyrequiresthatalleconomicsectorsworktowardsacceleratingsocioeconomicgrowthreducingpovertyandinequitieswhileatthesame WaterandaGreenEconomy
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timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
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WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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AC
2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
14
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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WaterandaGreenEconomyinLACWaterandaGreenEconomy
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
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aphy
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WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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Cas
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udie
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omth
ere
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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41
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
timealigningtheseadvanceswithenvironmentalimprovementWithregardtowatersustainedeffortsareneededtoaddressthechallengesandharnessopportunitiesinfourpriorityissuesthatwereidentifiedfortheZaragozaConferenceagricultureindustrycitiesandwatersheds
A Agriculture
Agricultureaccountsforabout70ofglobalwaterwithdrawalsandfouroutoftenpeo-plearoundtheplanetworkintheagriculturesectorThechallengeisnotjustaboutin-creasingagriculturalproductiontomeettheaspirationsofagrowingpopulationandglobaleconomyWhiletheworldcurrentlyproducesenoughfoodtofeedeveryonemorethan900millionpeoplegohungrybecausetheycannotaffordtopayforitParadoxicallyeconomicprogressandadvancesinalternativeenergythreatentoworsenthesituationforthepoorestThesedevelopmentsifnotproperlymanagedrisktodriveupbasicfoodpricesdivertresourcestowardsproducingmorevaluablegoodssuchasbiofuelsandeventuallyunderminefoodsecurityandeffortstoeradicatepovertyinleastdevelopedcountriesSmall-scalefarmersoftenoccupymarginallandanddependmainlyonrain-fallforproductionThismakesthemhighlysensitivetoclimatevariabilityandchangeandextremeeventssuchasdroughtsandfloods
Agreeneconomyrequirestheachievementoffoodsecuritybutbyusinglessnaturalre-sourcesinamoreefficientwayThiscouldbeachievedthroughimprovedresourceeffi-ciencysubstantialinvestmentsandinnovationsItimpliesincreasingcropsthatensureahigherefficiencyintermsofnutritionperdropofwaterThefollowingaresomeoftheapproacheswithintheagriculturalsectorhighlightedintheZaragozaConferencefortransitioningtothegreeneconomy
Efficiencyofsmallholderscanbeachievedbybothpush(accesstotechnologies)andpullmechanisms(accesstomarkets)
AttentiontotheinterdependenciesbetweenwaterfoodenergyandclimateThereisaneedtoalignplansstrategiesandprogramsdealingwithelementsofthatnexusandrecognisepotentialtradeoffsbetweenlandandwaterusebiodiversitygreenhousegasemissionreductionetc
Ensurethatwell-functioningmarketsprovidetherightsignals
Pricesthatreflectthescarcityvalueofnaturalresourcesaswellasthepositiveandnegativeenvironmentalexternalitiesofthefoodandagriculturesystemwillcon-tributetoresourceuseefficiency
Provisionofincentivesforthesupplyofenvironmentalgoodsandservices
Improvementofirrigationefficiencyinagriculture
Promotionofwastewatertreatment
WaterandaGreenEconomy
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my
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WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
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WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
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liogr
aphy
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WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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liogr
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
B Industry
Althoughtheindustrialsectoronlyusesabout20ofglobalfreshwaterindustrialwateruseisrisingandindustrywillincreasinglybecompetingforlimitedwaterresourceswithgrowingurbanandagriculturalwaterdemandsOneofthemajorchallengesforindus-trytodayistoeffectivelyaddresstheunsustainableexploitationandcontaminationoffreshwaterresourcesaroundtheworldManyindustriesusemoreresourcesthantheirproductionprocessesrequireduetothecontinuedrelianceonoutdatedandinefficienttechnologiesandfailuretoadoptpropermanagementsystemsInmanycountriesin-dustrialdevelopmentgoeshandinhandwithenvironmentaldegradationandresourcedepletionwhichthreatenopportunitiesforsustainableeconomicgrowthButthetech-nologiesandexpertisedoexisttoavoidtheindustrialpollutionandenvironmentaldete-riorationIndustryastheprimemanufacturerofthegoodsandservicesthatsocietiesconsumehasacriticalroletoplayincreatingmoresustainableproductionandcon-sumptionpatternsInthetransitiontoagreeneconomytheenvironmentalservicessec-toroffersopportunitiesforindustriesasitcanassisttheminassessingmeasuringandmanagingtheirenvironmentalimpactsaswellasinthemanagementandsafedisposalofpollutionandwaste
ThecurrenteconomicandfinancialcrisescanalsoprovideanopportunityforindustriestobecomemoresustainableThelargepublicspendingprogramsbeingproposedandimplementedasameanstoreviveeconomiesareanopportunitytoplaceourindustrialdevelopmentonmoresustainablepathwaysofgrowthThefollowingaresomeexamplesofhowindustrycanbecomemoresustainable
Improvementsinwateruseandenergyefficiencyalongthevaluechainofindustrialprocesses(productiontransformationmarketingconsumptionrecycling)viagov-ernmentandmarketincentivesandregulationsstandardsandconsumercampaigns
Industriesshouldworktoconvertwastewaterstreamsintousefulinputsforotherprocessesindustriesandindustrialclusters
Adifferentpricestructureforindustrialwaterusewhichrequiresindustrytopaymoreperunitofwaterwouldpromoteincreasedwateruseefficiency
Supportforthedevelopmentofsmallandmediumcompaniesandlocalgreenindus-tryinthetransitiontoawater-friendlyeconomyaccompaniedbypromotionofgoodpracticesofcorporatesocialresponsibilityaroundwater
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C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
14
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
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aphy
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WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
WaterandaGreenEconomy
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterintheGreenEconomyinPracticeTowardsRio+20
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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WaterandaGreenEconomyinLAC
ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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The
expe
rtrsquos
per
spec
tive
IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
C Cities
Halfofhumanitynowlivesincitiesandwithintwodecadesnearly60oftheworldspopulationwillbeurbandwellersCitiescannotbesustainablewithoutensuringreliableaccesstodrinkingwatersupplysewerageandwastewatertreatmentHoweverexistinginstitutionshaveshownalimitedabilitytoanticipateandsupporttheexpansionofcitieswiththeprovisionofwaterservicesAlthoughworldwidetheproportionofpeoplewithaccess to water and sanitation gradually increases in 2010 there were more urbandwellerswithoutaccesstoimprovedwatersources(morethan100million)andbasicsanitation(morethan130million)thanintheyear2000
SlumsorinformalsettlementsareoftenbuiltonunstableslopesorinotherareasofhighriskNaturaldisasterssuchasfloodsanddroughtsformamajorchallengeforcitiesespeciallyforslumareasThefrequencyofnaturaldisastersisexpectedtoin-creaseinthefutureasaresultofclimatechangePollutionposesanothermajorprob-lemforcitiesUrbansettlementsarethemainsourceofpoint-sourcewaterpollutionInmanycitieswastewaterinfrastructureisalmostnonexistentinadequateoroutdatedWaterstoragetreatmentanddistributionsystemsareoftenpoorlymaintainedresultinginelevatedwaterlossesbothtechnicalandcommercialoftenexceeding40-60
Withthemajorityoftheworldrsquoseconomicactivityandnowover50ofitspopulationcon-centratedinurbanareascitieshaveacentralroletoplayinthetransitiontowardsagreeneconomyHowcitiesdevelophasfar-reachingeffectsoneconomiesenergywaterandlanduseandclimatechangeThetransitionofcitiestoagreeneconomyrequiresacom-binationofsustainableurbandevelopmentprotectionofurbanecosystemseffectivemanagementofwastewaterandpollutioncontrolefficientwateruseandimprovedgov-ernanceThefollowingapproachescancontributetoasustainableurbandevelopment
Expansionofnetworkinfrastructurefordrinkingwatersupplysewerageandstormwa-terdrainagewhilegettingthemostoutofexistingnetworks
Integratedurbanwatermanagementincludingmanagingthecompleteurbanwatercycletofacilitatethemulti-functionalnatureofurbanwaterservicesinordertoopti-misetheoutcomesofthesystemasawholeThis involvesmanagingfreshwaterhuman water supply sewerage wastewater treatment wastewater reuse andstormwaterlinkedwithintheresourcemanagementstructureusinganurbanareaasthegeographicalunitofmanagement
Integrationoflandandwatermanagement
Wastewaterreuse
Effectiveregulationforwatersuppliersandwastewatermanagersthatpromotessus-tainablewateruse
Practicaltariffsystemsforconsumerswhoseincomeislowaswellasvariable
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D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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AC
2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
14
WaterintheGreenEconomyinPracticeTowardsRio+20
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
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between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
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WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
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EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
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andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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aphy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
D Watersheds
Humanwell-beingdependscriticallyonthehealthoffreshwaterecosystemsThisispar-ticularlythecasefortheworldrsquospoorastheyoftendependdirectlyonwaterandotherecosystemservicesprovidedbyriverslakesandwetlandsfortheirlivelihoodsCurrentunsustainablepatternsofdevelopmentandproductionareleadingtooverexploitationofaquifersandwatershedsenvironmentaldegradationandthelossofinlandandcoastalwetlandsProtectingfreshwaterecosystemsrequiresrecognisingthespecialcharacter-isticsofwaterachangeinonepartofariverbasinnecessarilyhasconsequencesdown-stream
ThereisarecognisedlinkbetweenpovertyalleviationandthebenefitsthatpeoplederivefromecosystemservicesmdashespeciallythoseprovidedbyfreshwaterecosystemsThepro-tectionandsustainablemanagementoftheseecosystemscanthereforeplayacriticalroleinpovertyreductionstrategiesbysecuringthecontinuedcost-effectivedeliveryofthewaterfoodandotherservicesthatthepoorrelyonRecognisingthevaluablelessvisi-bleandnon-monetisedbenefitsofconservingecosystemsrepresentsanopportunitytorecoversustainableeconomicgrowthsocialequityandpovertyreductionpathswhileim-provingandprotectingtheenvironmentThereisalreadysolidevidencethatecosystembasedsolutionstowater-relatedproblemsarenotonlyviablebutcanbeveryattractiveintermsofsustainabilityandeconomicefficiency
OneofthekeywaysthatwatermanagersotherstakeholdersandthoseconcernedwithconservingbiodiversityhavecollaboratedisthroughtheuseofeconomicandfinancialmeasuresthatprovideincentivesforthesustainablemanagementofecosystemsOneofthemostwidelyimplementedapproachesduringthelastdecadeispaymentsforecosys-temservices
Thesearesomeoftheexamplesthatcancontributetothepreservationoffreshwaterecosystems
Shiftinfocustowardsasystemicapproachtowatermanagementwhichtakesintoac-countecologicalconsiderations
Managementofriverbasinsasintegratedsystems
Integrationoflandandwatermanagementinsteadoftreatingthemasseparateareas
Buildingresilienceadaptivenessandadaptabilityandlearningfromthepast
Duetotheinherentuncertaintyoffutureclimatechangeprojectionswatermanage-mentneedstobeflexiblesoastobeabletocopeunderarangeofpossiblefutures
Waterreuseparticularlyinperi-urbanagriculture
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
14
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
WaterandaGreenEconomyinLACWaterandaGreenEconomy
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
WaterintheGreenEconomyinPracticeTowardsRio+20
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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18
WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
WaterandaGreenEconomy
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
19
WaterandaGreenEconomyinLACWaterandaGreenEconomy
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
WaterandaGreenEconomy
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5 FromSolanesandJouravlev(2006)
21
WaterandaGreenEconomyinLAC
Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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aphy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomy
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2 BasedonECLACcontributiontoWWAP(2012)soonavailableasLee(2012)
II WaterandagreeneconomyinLatinAmericaandtheCaribbean2
TheLatinAmericaandtheCaribbeanregionisendowedwitharoundone-thirdoftheworldrsquoswaterresourcesHowevertheseresourcesareunevenlydistributedamongandwithincountriesThepatternofwateruseintheregiongivenitsoverallsizecan
onlybedescribedasspatiallysporadicandhighlyconcentratedinrelativelyfewareasManylargeurbancentresandimportanteconomicactivitiesaresettledinaridorsemi-aridareasandwateravailabilityisincreasinglyreducedbyintensivewateruseandgrow-ingpollutionLatinAmericaandtheCaribbeanisalreadytheworldrsquosmosturbanizeddevelopingregionwithmorethan80ofthepopulationlivingintownsandcities(UN2012)inmanycasesinprecariousconditionsasthe100millionpeoplestilllivinginslums(ECLAC2010)
WatermanagementinLatinAmericaandtheCaribbeanhasevolvedovertimeAttentionhasshiftedfromtheconstructionoflargeinfrastructureprojectsforirrigationandhy-droelectricitygenerationinthe1950sand60stotheprovisionofdrinkingwatersupplyandsanitationservicesinthe1970sand80stoincreasingemphasisonnon-structuralmeas-ureswaterconservationenvironmentalprotectionandpollutioncontrolinthe1990sand2000sastheregionstartsfacingchallengesofincreasingwaterscarcitypollutionandclimatechangeThegovernmentsoftheregionhavealsorecognizedtheimportancethewatersectorcanhaveincreatingconditionsforeconomicgrowthandinthealleviationofpovertyThefocusofthegovernmentsofthecountriesoftheregionisnowprimarilyonfulfillingtheMillennium
DevelopmentGoals(MDGs)forthereductionofpovertywhichforwatermanagementtranslatesintoaconcentrationonimprovementsintheprovisionofdrinkingwatersup-plyandsanitationservicesasillustratedforexamplebytheWaterforEveryonePro-grammeinPeru(seeBox1)
14
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
WaterandaGreenEconomyinLACWaterandaGreenEconomy
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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18
WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
19
WaterandaGreenEconomyinLACWaterandaGreenEconomy
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
Bib
liogr
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
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BOX1ldquoWATERFORALLrdquoPROGRAMMEINPERU
InPerutheWaterforAllProgrammewasdesignedandlaunchedasapoliticalinitiativeduringthe2006presidentialcampaignAlthoughitisstilltooearlytoassesstheimpactoftheprogrammeanECLACstudyanalyzesitsdesignandimplementationidentifiessomeofitsproblemareasandtakingintoaccounttheexperiencegainedfromitsexecutionsofarproposessomepublic-policyguidelinesforthedrinkingwaterandsanitationsectorinPeruforthecomingyears(Garrido-Lecca2010)
Thestudypresentstheprogrammenotonlyasamechanismforexpandingthecoverageofdrinkingwatersupplyandsanitationservicesbutalsoasanexampleofwhatitreferstoasaldquocost-basedapproachrdquotothealleviationofextremepovertyorindigenceAfteriden-tifyingindigenceasanexclusionproblemseparatedfromthechallengeposedbypoverty(inthesensethatextremepovertyfallsoutsidethemarketsystem)StateinterventionispresentedastheonlywayoftacklingitInadditiontoconditionalcashtransfers(ldquodemand-drivenapproachrdquo)one-offinterventionsarebeingproposedtoreducewhatthestudyreferstoasunavoidableexpensesinordertofreeupfamilycashflowandincreasetheincomeavailableforsatisfyingbasicneedsandultimatelytogenerateasmallamountofsavingsandallowthefamilytotransitiontowardspovertylevelsthatatleastinvolveinclusioninthemarket
WhatistherationalefortheWaterforAllProgrammeFamilieslivinginextremepovertyinLimaandCallaotheseareasconsumeabout3cubicmetresofwaterpermonth(whichtheybuyindrumsfor37USDpercubicmetre)Eachfamilyrsquoswaterbillthereforetotals11USDpermonthIn2006familiesconnectedtothepublicwaternetworkpaid04USDpercubicmetreofwaterThereforeifthefamilieslivinginextremepovertywerecon-nectedtothenetworkandconsumedthesameamountofwaterasbeforetheywerecon-nectedeachfamilyrsquosmonthlywaterbillwouldintheoryfallto12USD
Ofthehouseholds(whichaveraged53persons)involvedintheprogramme70hadanincomeofbetween74USDand220USDConnectingtothepublicnetworkledtoaveragesavingsof58USDfor56ofthosehouseholdswith21ofhouseholdssavingover74USDOfthosewhowerenotconnected63saidtheywouldbuymorefoodwiththesav-ingsmadebyconnectingtothewaternetworkthusconfirmingthetheorythatthiswouldincreasedisposableincomeThemainbenefitofconnectionwasbetterhygieneandfewerdiseasesaccordingto89ofthosesurveyed(thatistosaythatmostofwhomwerenotawareofpotentialsavings)whileonly12pointedtothesavingstobemade(higherdis-posableincome)asabenefitLastlythehouseholdsthatwerenotconnectedconsumedanaverageof32cubicmetresofwaterpermonth
Theempiricalevidenceshowshoweverthatonceconnectedtothenetworkfamiliesliv-inginextremepovertywentfromconsuming3cubicmetrespermonthto10cubicmetresper monthmdashmore than tripling their water consumption Despite this their monthlyspendingonwaterstillwentdownfrom11USDpermonthtoonly4USDpermonthrep-resentingamonthlysavingofapproximately74USD
Ifafamilyrsquosmonthlynominalincomeis148USDanadditional74USDpermonthasare-sultoftheconnectiontothepublicwaterandsanitationnetworkrepresentsa5increaseinincomeHoweverifweconsiderthat50ofnominalincomeisspentonunavoidableexpensestheincreaseindisposableincomewouldbe10
Unliketraditionalprogrammesthataredemand-driventheWaterforAllProgrammebeingacost-basedapproachentailsaone-offinvestmentcostofconnectingtothepublicwaterandsanitationnetwork(notarecurringcost)sincethefamiliesthemselvesthenpay
15
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
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between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
19
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
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EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
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liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
Bib
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aphy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLACWaterandaGreenEconomy
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fortheservicewithonlyasmallpre-existingcrosssubsidythatcoversaninitialcon-sumptionblockThereforeintermsofsustainabilityandfromafiscalpointofviewtheprogrammerequiresonlyaone-offeffortwhichdoesnotjeopardizeitscontinuityorthebeneficiarieschancesofescapingfromextremepoverty
TheWaterforAllProgrammehelpsreducegastrointestinaldiseasescausedbyalackofbasicservicesandinadequatesanitaryconditionswhichleadstosavingsinmedicalcostsmedicationandlostworkingdaysaswellaslowercostsandahighernominalincomeandthereforeanadditionalincreaseindisposableincomewhichcanbeusedtosatisfy(inpart)theneedsoffamilieslivinginextremepoverty
Thehouseholdsinthelowestquintileofthepopulationareestimatedtoexperienceanav-erageoffourepisodesofacutediarrhoealdiseasesperyearatatotalcostof28USDperepisode(9USDdirectcosttothefamilyand19USDcosttotheState)Thereforeacutedi-arrhoealdiseasesinhouseholdslivinginextremepovertyresultinalossofdisposablefamilyincomeof34USD(85USDx4)Inadditiontothedirectincreaseindisposablein-comegeneratedbytheWaterforAllProgrammetheestimatedmonthlysavingfromlowerhealthcostswillalsoleadtoanindirectincreaseindisposableincomemdashtakingaccountonlyoftheeliminationoftheepisodesofacutediarrhoealdiseasesmdashofabout4permonth(resultinginatotalincreaseindisposablefamilyincomeof14permonth)ThisisthetrueimpactoftheWaterforAllProgramme
SourceGarrido-LeccaHernaacuten(2010)y(2011)
ThemainissuesfacingthecountriesoftheregioninwaterresourcesmanagementhavenotchangedsignificantlyinrecentyearsTherehasbeenawidespreadinabilitytoestab-lishformalinstitutionsthatareabletodealwithwaterallocationissuesandcontrolofex-tremeeventsandexternalities(waterpollutionaquiferdepletionetc)underconditionsofscarcityandconflictThewatersectorstillexhibitsmanyexamplesofpoormanage-mentwhenformalnormsexisttheyareofteninadequatetodealwiththeproblemsathandandtheoperationalcapacitytoimplementthemtendstobeextremelylimitedthereisageneralabsenceofself-financingandaconsequentdependenceonfluctuatingpo-liticalsupportIngeneralthereisaninabilitytorespondtocrises
DespitemuchimprovementreliableinformationisoftennotavailableincludingontheresourceitselfitsavailabilityusesandusersontheinfrastructureandonfutureneedsPoorwatermanagementintheregionmeansconflictsovertheresourcearestillper-sistent and widespread Issues over water allocation and pollution and competitionamongstsectorsmdashirrigatedagricultureindustryminingurbanwatersupplywaterforenvironmentalprotectionandindigenousgroupsmdashwillincreasesignificantlyaseconomicdevelopmentcontinuestoaugmentIn2011theregiongrewby43andalthoughin2012itsgrowthratedecreaseditstillhadapositivetrendreachingalmost4(ECLAC2011a)AtthesametimeLatinAmericaandtheCaribbeanhavethemostinequitableincomedistributionintheworld(ECLAC2011b)Achievementsofuniversalservicecoveragemanagementofwaterconflictsandresolutionofenvironmentalproblemsarehamperedbytheseinequalities(Box2)
16
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
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between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
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EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
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liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
Bib
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aphy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
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BOX2SOCIALINEQUALITIESANDECONOMICINEFFICIENCYINTIMESOFCRISIS
TheoutlookfortheglobaleconomyremainsbleakwithrecessionsplaguingthedevelopedcountriesandstrongindicationsofaslowdowninLatinAmericaandtheCaribbeanfol-lowingseveralyearsofvigorousgrowthHowevertheoutlookisnotuniformthroughouttheregionassomecountriesarebetterpositionedthanotherstodealwiththecrisisRegard-ingthosethatareill-preparedmakingbudgetcutsintimesofcrisismayseemtheonlyfea-sibleoptionHoweverthiscanhavedreadfulmediumandlong-termconsequencesforbotheconomicefficiencyandsocialequity
Theimmediateconsequencesincludeanapparentfiscalreliefacontractionofeffectivede-mand(leadingtolowertaxrevenueandthusfeedingintothebudgetarydownwardspiral)likelylitigationwithcontractors(whichcreatesnewimplicitpublicdebt)andcostincreasesstemmingfromworkdelaysThecancellationofprojectsdirectlytranslatesintolowerem-ploymentforless-skilledworkers(althoughthismightallowpublicsectorpensionsandemploymenttobepreservedusuallytothebenefitofthemiddleclass)ExistingcapitalisconsumedandthequalityofservicesdeclinesascapitaldepreciatesCoveragegoalsaresuspendedordelayedThenumberofpoorcontinuestoincreasebecauseofbothnaturalgrowthandtheverydynamicsofthecrisisRegardingimmediateconsequenceseffortstoseethatlargersegmentsofsocietybenefitfrominfrastructurearesetasideuntilthenexteconomicboomSocialintegrationbecomesatbestaprocyclicalpolicyintensifyingthechallengetoreducesocialinequalitiesandeconomicinefficiency
SourceFerroandLentini(2009)
Importanteffortshavebeenmadetoimprovedrinkingwatersupplyandsanitationcov-erageAttheregionalleveltheMDGtoreducebyhalftheproportionofpeoplewithoutaccesstoimprovedwatersupplyhasbeenalreadymetwithfewexceptions(HaitiDo-minicanRepublicandJamaica)regardingsanitationtheregionwillbeclosetomeet-ing the goal with also few countries potentially missing the target (Haiti BoliviaNicaraguaSaintLuciaJamaicaColombiaPeruandBrazil)(JMP2011)Howeverserv-icequality(intermittencywaterqualitycontroletc)ismediocreandinfrastructureisofteninpoorconditionwhichisillustratedbyhighwaterlossesmdashbothcommercialandphysicalmdashthatreachabout40inthelargecitiesintheregionanduptoalmost75insomeextremecasesCoverageinruralareasismuchlowerandthosewithoutdrinkingwaterandsanitationservicesarethemostimpoverishedsegmentsofsocietyMorethan30millionpeoplestilllackaccesstosafedrinkingwaterwhilemorethan120millionpeopledonothaveaccesstosanitationMoreoverovertwothirdsofsewageisdis-chargedintothenearestwaterbodieswithoutanytreatmentcausingwidespreadwaterpollutionproblems
Currentlytheregionproduces31oftheglobalsupplyofbio-fuelsand48ofsoybean(Baacutercena2011)TendenciesshowthatagriculturalproductionwillkeepongrowinginmostofthecountriesinLatinAmericaresumingtheexpansionachievedbetween2000and2007(ECLACFAOandIICA2010)Irrigationcanplayanimportantroleinincreasingagriculturalyieldshoweverinmanycountriesthelevelsofirrigationefficiencyrange
17
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between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
19
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
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timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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liogr
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
between30and40(SanMartin2002)Expansionoftheareaunderirrigationhasshiftedovertimeandanincreasingurbanpopulationwilladdpressuretorelocatewaterfromtheagriculturalsectortourbandrinkingwatersupplyincities
ManypartsoftheregionarehighlyvulnerabletotheadverseconsequencesofclimatechangeandthiscouldpotentiallythreatentheprogressmadetowardsachievingtheMDGsTheexpectedeffectsofclimatechangewillgenerateriskschallengesandop-portunitiestowatermanagementSomeofthesecanbeseenintheAndeancountrieswhichexperienceElNintildeo-SouthernOscillation(ENSO)andinthoseresultingfromthesuccessionoflongdroughtsinthenortheastofBrazil(Samaniego2009)MoreoverthecountriesestimatedtobeinareasofhighandextremeriskfromclimatechangeareoftenthepoorestcountriesoftheregioninCentralAmericatheCaribbeanandtheAndesThemostseriouschallengesarisingfromclimatechangeforwaterresourcesmanagementinLatinAmericaandtheCaribbeancanbeexpectedtolieinthefollowingareas
Asignificantdeteriorationinthequalityquantityandavailabilityofwaterforallusesinmanyriverbasins
Damagetocoastalareasduetoapotentialriseinsealevelswhichinturnwillaffectriverregimesandcontributetosalinewaterintrusionintofreshwateraquifers
Increasedeconomicdamagefromthegreaterintensityandfrequencyofhurricanesandtropicalstormsduetohigheroceansurfaceandairtemperatures
A Challenges
TheissuesthatwatermanagementinLatinAmericaandtheCaribbeanhastoconfrontdonotallcomefromwithinthewaterldquoboxrdquoTherehavealwaysbeenstrongexternaldriv-ersorforcesaffectingbothwatermanagementandthewaterresourceThemoresignif-icantofthesecomefromgeneralsocialchangebutalsoincludemacroeconomicpoliciesoftenanegativeinfluencestemmingfromabruptchangesindomesticpoliciesandfromoutsidesuchastheratherrecenteconomiccrisisbutsometimespositiveasmacroeco-nomicadministrationhasimproveddomesticallyandgloballyaswiththeexpansionofworldmarketsinrecentyears
WaterresourcesmanagementoftenpresentsproblemsrequiringaholisticapproachAmongthesethefollowingaresignificantcoordinationofsupplyanddemandpoliciespolicies for thequalityandquantityofwaterresources the jointuseofsurfaceandgroundwaterthemultipleuseofresourcesandmulti-purposeprojectscoordinatedman-agementof landusevegetationcoverandwatermanagementofexternalities im-provements in data collection and information management and environmentalconservation policies The Specific Water Cabinet created by the Government ofGuatemalaisanexampleofhowcoordinatedworkamongstvarioussectorsandgovern-mentalagenciescanimprovewatergovernanceandhelpovercomesomeoftheabovementionedmanagementissuesWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
19
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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WaterandaGreenEconomyinLACWaterandaGreenEconomy
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
InLatinAmericaandtheCaribbeaninstitutionsareoftenweaktheylackoperationalca-pacityandrulesareinsufficientornotenforcedFragileinstitutionalframeworkscor-ruptionandcapturenotonlyinthewatersectorbutingeneralnegativelyaffectwatermanagementTheabsenceofappropriatewatermanagementinstitutionscausesun-certaintydeepensconflictsoverwaterandhamperssocioeconomicdevelopmentWaterresourcesmanagementneedsclearrulesobjectivecriteriastrongandefficientgov-ernmentinstitutionstransparencyandaholisticapproachwhichinmostofthecountriesoftheregionaremissingTherehasbeenanefforttotransittowardsintegratedwaterresourcemanagementasaframeworkthatcanhelpovercomethesechallengeshow-everitoftenremainsasatheoreticalconceptdifficulttotranslateintoreality
Advanceshavebeenachievedbothatthenationallevelthroughtheimplementationofnewwatermanagementsystemsbasedonnewlegislation(Hantke-Domas2011)andattheriverbasinlevelwithwatershedorriverbasinorganizationsHowevertheseeffortshavebeenisolatedandhadlimitedsuccessOverthelasttwodecadesthewatersupplyandsanitationsectorhasbeensubjecttoextensivereformsinthemajorityofthecoun-triesoftheregiontherehavebeenfewsuccessstoriesasinmanycasesreformsen-countereddifficultiesorwentastrayduetothelackofconsensuscapturebyspecialinterestgroupsandespeciallyfailuretoconsiderthestructurallimitationsofnationaleconomiesandsoundprinciplesofwaterresourcesmanagementandeconomicsofserv-iceprovisionLackofintegratedplanningandfailuretorecognizethatwatermanage-ment is a complex issue that requires adequate regulatory capacity has hinderedadvancesinmanycountriesPublicawarenessandstakeholderparticipationarekeytosolvingconflictsNotinvolvingcommunitiesindecisionmakingprocesshasprovedtohaveexplosiveeffectsasseeninthecaseofCochabamba3BoliviaAlthoughthesitua-tioninthisrespecthasimprovedovertheyearsitisingeneralstillaffectingthepropermanagementofwaterresourcesintheLatinAmericaandtheCaribbeanregion
Agingwaterinfrastructureinsufficientinvestmentsandinadequateregulatoryframe-worksareattheheartofthechallengesfortheprovisionofdrinkingwatersupplyandsanitationservicesTariffsshouldserveasapropersignaltowaterusershowevertheyoftendonotreflectevenoperationalandmaintenancecostsSomecountriessuchasChilehaveimplementedfullcostrecoverytariffssupportedbysubsidysystemsforthepoorhoweverthisisnotthecaseformostcountriesofLatinAmericaandtheCaribbeanProvidersofwaterandsanitationservicesfindfinancialsustainabilitydifficulttoattainduetohighlevelsofpovertyandthefactthatdecisionsoftentakenoutsidetheeconomicrealmsettariffsthataretoolowThereisaneedtobringtariffstocostrecoverylevelsbutaccompaniedbysignificantpublicinvestment(politicalprioritiesareveryimportant)andcreationofeffectivesubsidysystemsforthepoor
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3In1999amultinationalconsortiumnamedAguasdelTunaritooktheleadinprivatizingthewatersupplyandsanitationservicesinCochabambaoneofthebiggestcitiesinBoliviaHowevertherewaslimitedpublicparticipationintheleaduptoawardingtheconcessioncontractandthewaterlegislationwasout-dated(LawNo2029)Thesecoupledwithotherirregularitiesgeneratedastrongreactionamongthepub-licintheformofprotestsagainstexcessiveratehikesIn2000theprotestsbecameviolentthecontractsignedwithAguasdelTunariwasterminatedandanewwaterlegislationwasapproved(LawNo2066)
19
WaterandaGreenEconomyinLACWaterandaGreenEconomy
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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5 FromSolanesandJouravlev(2006)
21
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
Bib
liogr
aphy
26
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterintheGreenEconomyinPracticeTowardsRio+20
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
WaterandaGreenEconomy
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLACWaterandaGreenEconomy
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B Approaches
SomecountrieshaveimplementedsignificantreformsForexampleBrazilhasadoptedanewwaterlegislationandanationalwatermanagementpolicynewwaterlawshavealsobeenrecentlyadoptedinHondurasNicaraguaPeruVenezuelaamongothercasesChilehasreformeditswaterlawandthewatersupplyandsanitationsectorandpriva-tizedallwater-relatedutilitiesMexicoreformeditswaterlegislationandcreatedriverbasincouncils
EconomicinstrumentssuchassubsidiestariffsandchargeshavebeenimplementedintheregionwithmixedresultsInthecountriesoftheregionmdashwhichdonothavethehumanandfinancialresourcesofdevelopedcountriesnoraStateorprivateapparatuswiththeequivalentorganizationandmanagementcapacitymdashinterestintryingtoapplytheseisnotalwayscompatiblewiththebasicconditionstheyrequireEconomicinstru-mentshavehadarelativelylimitedimpactintheregionthusfarlargelyduetothefactthatcountrieslacktheadequateinstitutionalstructureandregulatorycapacitytomakefulluseofthem
Furthermoregoodresultsaregenerallyvetoedbytheprevailingconditionsofuserin-formalitylackofinformationperversenessorignoranceaboutgoodpracticesconcern-ingtheuse(orratherabuse)ofwaterincombinationwithanalmostabsoluteinabilitytoenforcethelawevenwhereformallegalconditionsexistAmongotherbasicconditionsthatarelackingmostofthecountriesoftheregiondonothaveefficientlyinstitutional-izedsystemsofwatermanagementWithoutthisverylittlecanbedonebearinginmindtheenormousfragmentationofinstitutionsandresponsibilitiesinvolvedinwaterman-agementinmostcasesWidespreadpovertylackoftrainedpersonnelinsufficientcon-trolandmonitoringsystemstheconcentrationofeconomicandsocialpowertheeasewithwhichregulatorsormanagers(wheretheyexist)canfallunderundueinfluenceorbecapturedbyspecialinterestsallconstituteimpedimentstotheuseofeconomicoranyotherinstrumentsAllthisisnottosaythateconomicinstrumentsarenotusefulforim-provingtheuseandmanagementofwaterresourcesparticularlyatsectorallevelForex-amplemanysystemschargeforthecostofadministeringwaterresourcesTherearealsoexamplesofchargesintendedtorecovercostsofwaterworkspayforwater-relatedservicesandwastewatertreatmentcoveradministrativeexpensesandinducewatercon-servationandenvironmentallysoundbehaviour4Manycountriesoftheregionhaveal-readyimplementedorareimplementingsystemsofchargesforwaterasaresourceorforwastewaterdischargestotheenvironment
ImprovingefficiencyhelpsachievingequityByprovidingservicesefficientlycostscanbereducedallowingtheallocationofresourcesintomaintenanceandexpansionAtthesame
4ForexampletheRegulatoryAuthorityActinCostaRicastatesthatenvironmentalsustainabilitymustbeconsideredwhensettingpublicutilityratesItalsoestablishestheobligationforserviceproviderstopro-tectconserverestoreandmakerationaluseofnaturalresourcesutilizedInNovember1999forthefirsttimetheHerediaPublicServicesCompanysoughtapprovalforarateamountthatwouldcovertheenvi-ronmentalservicesprovidedbytheforesttothewaterresourcewithaviewtoprotectingthecapacityoffor-estecosystemstocatchwaterandmaintainthewatersupplyandsurfaceflowNowtheresourcesobtainedareusedfortheenvironmentalserviceofprotectionofwaterresourcesingroundwaterrechargeareas
20
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
WaterandaGreenEconomy
Wat
era
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ene
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my
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5 FromSolanesandJouravlev(2006)
21
WaterandaGreenEconomyinLAC
Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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liogr
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
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WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
timetotransitiontowardsagreeneconomyLatinAmericanandtheCaribbeancoun-trieswillalsoneedtofocusonelementssuchas
Wateruseefficiencylossreductionandmetering
Energyefficiencyintheprovisionofdrinkingwatersupplyandsanitationservices
Drinkingwatersupplyandsanitationinthefightagainstpovertyforsocialcohesionandintegrationandgreenemployment
Generationandmanagementofnewandunconventionalwatersources(suchassea-waterandbrackishwaterdesalinationwastewaterreusemarketreallocationwa-tershedmanagementandpaymentsforenvironmentalservices)forhumansupplyandothercompetinguses(especiallyminingandinsomecaseexport-orientedagricul-ture)
Domesticwastewatertreatmentandrecyclingfullwatercyclemanagement
Climatechangeadaptationandmitigation(asforexamplemethanerecoveryinwaste-watertreatment)
C Lessonslearnt5
Aswaterissocloselylinkedtosocietyeconomyandtheenvironmenttherearenosim-pleoreasyanswersthatguaranteegovernanceTheonlypossiblesuggestionisthatal-thoughgovernancemaybeexpressedindifferentorganizationalsystemsanditsformalcontentarrangeddifferently(suchaslawsandinstitutionalarrangements)everysocietyhasnaturalconditionspowergroupspowerstructuresandrequirementsthatmustbeconsideredspecificallyintheprocessofdesigningthesystemOtherwisethereisariskofignoringfactorsnecessarytoensureviability
Notwithstandingthemanagementofaresourceoritsassociatedpublicservicescon-sistentlyshowcertaincharacteristicsThisisclearfromthetypicalcharacteristicsofthelegislationgoverningwateranditsassociatedpublicservicesInthisrespectsomecon-siderationsaretentativelypresentedthatinthelightofpracticalexperiencesacrosstheregionmaybeconsideredtobegenerallyvalid
Waterlegislation
WaterlawsmustclearlystatethatwaterbelongstothepublicdomainoftheState
Waterlawsmustdeterminespecificallythatwateruserightswhengrantedunderconditionsoforwhichaimateffectiveandbeneficialuseandthatdonotcauseenvi-ronmentaldamageareprotectedbyprivatepropertyclausesintheconstitution
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Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
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aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
Bib
liogr
aphy
26
WaterandaGreenEconomy
Cas
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterintheGreenEconomyinPracticeTowardsRio+20
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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WaterandaGreenEconomyinLAC
ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
WaterandaGreenEconomy
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
WaterandaGreenEconomy
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
Inthecaseofwaterrightsandusesthatwereinexistencepriortothelegislativechangeincludingtraditionalandindigenoususestheyshouldberecognizedinac-cordancewiththeireffectiveandbeneficialhistoricalandcurrentusewithoutthisaf-fectingthepossibilityofimposingappropriateregulations
Fortheregulationofdrinkingwatersupplyandsanitationservices
ReasonabletariffsandprofitsItisimportanttobearinmindthatprivatizationdoesnotmiraculouslymakeunprofitableoperationsprofitable
Asubsidysystemthatavoidsasfaraspracticablecross-subsidiesandthatguaranteesthelow-incomegroupsabasicminimumsupply
Therighttoadequateandopportuneinformationbothfortheregulatorsandforcus-tomers
Obligatoryuniformregulatoryaccountingandcontroloftransferpricesholdingsandintra-holdingtransactions
Regardingcentralizationanddecentralization
Dependingontheactivitiesinvolveddeterminetheappropriatelevelfordecentraliza-tionorcentralizationinaccordancewithtechnicalconsiderationsandeconomiesofscaleandscope
Preservearesidualcapacityatthecentralleveltopromoteorimplementtheneces-saryactivitiesormeasuresintheeventofdecentralizedbodiesbeingnegligentorun-abletocarryouttheirfunctions
Nationallegislationshouldrecognizethetwobasicprinciplesthatgoverndisputesbe-tweendecentralizedauthorities(i)equityandreasonablenessand(ii)notcausingsig-nificantharm
Regardingwatermanagementinstitutions
Theauthorityresponsibleforwaterallocationandmanagementshouldbeindepend-entfromsectorinfluenceswithauthorityandresourcesinlinewithitsresponsibility
Insertingwatermanagementwithinenvironmentalagenciesmayresultinminimiz-ingitseffectasasocioeconomicdevelopmentfactor
Thereforeitseemsappropriatethatthewaterresourceshavetheirownstableandindependentinstitutionsevenwhenthesearecloselylinkedtoinstitutionsresponsi-bleforthestrategicvisionofnationaldevelopment
Water-relateddecision-makinghaseconomiccontentandspecialinterestgrouppres-surescanpromoteordissuadesuchdecisionsAccordinglywaterauthoritiesshouldWa
terandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
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ene
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
haveindependentbudgetsandchiefexecutivesappointedforfixedtermsandprotectedfromarbitraryremoval
RiverbasinlevelorganizationsarevalidoptionsforwatermanagementCriticalre-quirementsfortheircreationincludeaprecisedefinitionoftheirspecificexclusivefunctionsfocusedonwaterresourcesandadequateauthorityandfunding
Regardingregulatoryagenciesfordrinkingwatersupplyandsanitationservices
Clearinstitutionalseparationbetweenthefunctionsofsectorpolicyformulationreg-ulationandprovisionofservices
Theregulatormusthaveindependenceandstabilityandbesubjecttorulesofgoodconductandethics
Theregulatormusthavethenecessarypowersandresources
Theregulatormusthaveappropriatelegalcapacities
Regardingfuturechallengessuchasclimatechange
Improvinginformationonwateravailabilityitsusesandusersandtheexpectedim-pactsofclimatechangebothonthewatercycleaswellasonwateruseandusersanddefiningclearchannelsfortakingthisinformationintoaccountinwatermanagementdecision-makingprocesses
Studiesarerequiredonthesensitivityofwatersystemstopossiblefuturevariationsinclimaticconditions
Establishingclearcriteriatodeterminethescopeofwaterrights(andwastewaterdis-chargepermits)duringshortagesandimprovingpossibilitiesforimposingcondition-alitiesfavouringenvironmentalsustainabilityandresiliencyobjectives
Moreprecisedefinitionofpreferencesandprioritiesinwaterallocationespeciallydur-ingshortages
Achievingbetterintegrationbetweenthemanagementofsurfaceandgroundwaterbetweenwaterallocationandpollutioncontrolbetweenmanagingwaterdemandandsupplyandbetweenthemanagementofwaterresourceslandandrelatedecosys-tems
InTable2thekeylessonshighlightedinthecasestudiespresentedintheregionalses-sionaresummarizedTheyexemplifyapproachesandconcreteactionsthathavebeenundertakentoimprovewaterresourcemanagementmakewatersupplyandsanitationservicesfinanciallyandenvironmentallysustainableandimprovewatergovernance
WaterandaGreenEconomy
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
Bib
liogr
aphy
26
WaterandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
WaterandaGreenEconomy
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
WaterandaGreenEconomy
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
30
WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
WaterandaGreenEconomy
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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WaterandaGreenEconomyinLAC
InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLACWaterandaGreenEconomy
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TABLE2LessonsLearntfromtheregionalCasespresentedattheconference
Case LessonsLearnt
Greeningofpublicwater Costrecoverytariffscoupledwithclearandtransparentsubsidiesforlowincomefamiliesisanutilityregulationlessons efficientwaytorationalizewateruseandincreasecoverageofwaterandsanitationservicesfromtheNational HoweveranimportantpreconditionispublicinvestmentintheuniversalizationofservicecoverageSuperintendencyof ProvidingaccesstothedrinkingwaterandsanitationservicescanbeusedasawaytoalleviateSanitationServices extremepovertyandexclusion(SUNASS)Peru Projectsdesignedwiththeconsiderationof theenvironmentaldimensionpresentreduced
maintenanceandoperativecostsfutureexpendituresonnewsupplyinfrastructureareavoidedCommunitiesacceptsubsidizingthosewhocannotaffordtopayforwaterserviceshowevertheyarenotwillingtopayonbehalfofldquofreeridersrdquoItisnecessarytoacknowledgetheculturalandenvironmentalcontextonacasebycasebasisthereisnosolutionthatcanfitallTransparencyinthewaterbillenhancestheenduserunderstandingofhisorherswaterconsumption
Designandapprovalofthe PolicycoherenceandcoordinationisnecessarytoimprovewatermanagementMulti-annualSectoral ConsensusbuildingatthenationalandlocallevelamongrelevantstakeholdersiskeyforsuccessPlanforWaterandtheEnvironmentandthecreationoftheSpecific
Theroleofinstitutionsandorganizationsoutsideofthewatersectorcanbecriticaltothesuccessofwatergovernancewithinthesector
WaterCabinetGuatemala Politicalcommitmentandinnovativeapproachescangeneratepositivechanges
Publicmanagementof ColombiahasalegalinstitutionalandfinancialframeworkthatallowstoimplementmeasuresforwaterinColombia theregulationofwateruseandtoensureasustainabledevelopmentofproductionandconsumption
WhenpricesignalsareappliedproperlyandwithappropriateinstitutionalenforcementthepositiveeffectsontherationalizationoftheuseofwaterareclearandeffectiveAfinancialstrategyofenvironmentalinvestmentiquestassociatedwitheconomicgrowthandtheuseofnaturalresourcesismoreeffectivethanexclusivedependenceonthepoliticalwillofnationalauthoritiesFinancialsustainabilityofthewaterauthoritiesisnecessarybutnotsufficienttoensuretheeffectivenessofwatermanagementWhilesupervisionandcontrolofwaterusersisnecessaryappropriatemonitoringofwaterauthoritiesbythecontrolentitiesandthecitizenshipisalsoessential
Communitywater CommunitybasedmanagementcanbealowcostefficientinitiativeespeciallyforlowincomegroupsmanagementinCentral ThislevelofinvolvementgeneratesshouldmakeuseofeconomiesofscalethatenhancetheAmericaasan provisionofservicesenvironmentaleconomicalandsociallyfeasiblechoice
TheapproachusedbythecommunitiesinvolvesnotonlywatermanagementbutalsotheprotectionofforestsrechargeareasintegratedwatershedmanagementandsustainableagriculturalpracticesWater has become a valuable resource for agricultural purposes and for small scalehydroelectricgenerationThe development of networks has allowed knowledge sharing and the adoption of bestpracticesindifferentcommunities
Pricesthatreflectthe Costrecoveryandfinancialandeconomicinstrumentshelpreducewaterconsumptioncostsandbenefitstothe Financial sustainability of water utilities can be attained reducing their dependence onpoorinBogotaacuteand governmentbudgetallocationsMedelliacutenColombia Communicationstrategiesemphasizingthevalueofwaterandthebenefitsofpayingitscostand
thesupportfromthelocalmayorwerenecessaryforthesuccessfulimplementationofthetariffs
24
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
Bib
liogr
aphy
25
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
Bib
liogr
aphy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
WaterandaGreenEconomy
Cas
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sfr
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
WaterandaGreenEconomy
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est
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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The
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IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
BibliographyBaacutercenaAlicia(2011)OpeningstatementbyAliciaBaacutercenaExecutiveSecretaryofthe
EconomicCommission forLatinAmericaand theCaribbean (ECLAC)at theLatinAmericanandCaribbeanRegionalMeetingPreparatorytotheUnitedNationsConfer-enceonSustainableDevelopmentSantiago7September2011
CashmanAdrian(2011)WaterrsquospotentialroleinsupportingagreeneconomyinBarba-dosInternationalConferenceldquoWaterintheGreenEconomyinPracticeTowardsRio+20rdquo(ZaragozaSpain3-5October2011)
ECLAC(EconomicCommissionforLatinAmericaandtheCaribbean)(2011a)BalancepreliminardelaseconomiacuteasdeAmeacutericaLatinayelCaribeSantiagodeChile
mdash(2011b)PanoramasocialdeAmeacutericaLatina2011SantiagodeChile
mdash(2011c)CircularoftheNetworkforCooperationinIntegratedWaterResourceMan-agementforSustainableDevelopmentinLatinAmericaandtheCaribbeanNo35Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChile
mdash(2010)ElprogresodeAmeacutericaLatinayelCaribehacialosObjetivosdeDesarrollodelMilenioDesafiacuteosparalograrlosconigualdadLCG2460SantiagodeChile
EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)theFoodandAgri-cultureOrganizationoftheUnitedNations(FAO)andtheInter-AmericanInstituteforCooperationonAgriculture(IICA)(2010)TheOutlookforAgricultureandRuralDevel-opmentintheAmericasAPerspectiveonLatinAmericaandtheCaribbean2010San-tiagodeChile
FerroGustavoandLentiniEmilio(2009)CircularoftheNetworkforCooperationinInte-gratedWaterResourceManagementforSustainableDevelopmentinLatinAmerica WaterandaGreenEconomy
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liogr
aphy
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WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
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liogr
aphy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterintheGreenEconomyinPracticeTowardsRio+20
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
andtheCaribbeanNo33EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)SantiagoChilehttpwwwcepalorgdrninoticiascirculares136321Carta30inpdf
Garrido-LeccaHernaacuten(2011)ldquoDesignandimplementationofandlessonslearnedfromtheWaterforAllProgrammerdquoCircularoftheNetworkforCooperationinIntegratedWaterResourceManagementforSustainableDevelopmentinLatinAmericaandtheCaribbean No 33 Economic Commission for Latin America and the Caribbean(ECLAC)SantiagoChile(httpwwwcepalorgdrninoticiascirculares242122Carta33inpdf)
mdash(2010)InversioacutenenaguaysaneamientocomorespuestaalaexclusioacutenenelPeruacutegestacioacutenpuestaenmarchayleccionesdelProgramaAguaparaTodos(PAPT)Eco-nomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW313SantiagoChile(httpwwwcepalorgpublicacionesxml441044lcw313epdf)
HantkendashDomasMichael(2011)Avanceslegislativosengestioacutensostenibleydescentral-izadadelaguaenAmericaLatinaEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW446SantiagodeChile
Hantke-DomasMichaelandAndreiJouravlev(2011)LineamientodepoliacuteticapuacuteblicaparaelsectordeaguapotableysaneamientoEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCW400SantiagodeChile
JMP(JointMonitoringProgrammeforWaterSupplyandSanitation)(2011)JMPwebsiteWorldHealthOrganization(WHO)andtheUnitedNationsChildrensFund(UNICEF)(availableonInternethttpwwwwssinfoorg)
SamaniegoJoseLuis(2009)ClimateChangeandDevelopmentinLatinAmericaandtheCaribbeanOverview2009EconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)LCL3140SantiagodeChile
SanMartiacutenOrlando(2002)WaterResourcesinLatinAmericaandtheCaribbeanIssuesandOptionsInter-AmericanDevelopmentBankWashington
SolanesMiguelandAndreiJouravlev(2006)Watergovernancefordevelopmentandsus-tainability Economic Commission for Latin America and the Caribbean (ECLAC)LCL2556-PSantiagodeChile
UnitedNations(2012)WorldUrbanizationProspectsThe2011RevisionUnitedNationsDepartmentofEconomicandSocialAffairsPopulationDivisionNewYork
WRI(WorldResourceInstitute)(2011)WaterresourcesandfreshwaterecosystemsEarthTrends2005(httpearthtrendswriorg)
WWAP(WorldWaterAssessmentProgramme)(2012)TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCOWa
terandaGreenEconomy
Bib
liogr
aphy
26
WaterandaGreenEconomy
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IIICasestudiesfromtheregion
SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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41
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomy
Cas
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SpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala6
InresponsetotheneedforcoordinatingthemanagementandgovernanceofwaterwithnationaldevelopmenttheGovernmentofGuatemalacreatedtheSpecificWaterCab-inet(GEA)asthecoordinatingagencyforpolicyplanningandbudgetThemostsig-
nificantchangesresultingfromimplementationofGEAare
Makingtheprocessofdefiningandmonitoringpublicpolicyrelatedtothemanage-mentandgovernanceofwateroneoftheprioritiesofnationalpublicpolicy
Establishingacoordinatingagencyatthehighestpoliticallevel
Linkingthenationalwaterpolicytoparticularlysocialpoliciesandruraldevelop-mentenvironmentalandclimatechangepolicies
Settingcommongoalsobjectivesandstrategiclinesofactionforallgovernmentalagenciesthusestablishingapointofreferenceforlocalinstitutions
Contributingtoimproveinstitutionalperformanceattheministerialleveladdingvaluetoactionstakenasameansofachievingbothsectorgoalsaswellasobjectivesofanationalnature
InstitutionallyGEArsquoscoordinatingworkhasallowedforseparatingthemanagementandgovernanceofwaterfromthemanagementandpreservationoftheenvironmenthasidentifiedtherelationshipsofinterferenceandinterdependenciesbetweenwaterand
6 ElisaColomdeMoraacutenSpecificWaterCabinetofthePresidencyoftheRepublicofGuatemala
27
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
ecosystemsandhashighlightedtheneedforadministeringtheenvironmentalgoodsandservicesprovidedbywaterinaspecificandspecializedmannerdistinguishingthemfromthoseprovidedbyforestsandbiodiversityIthasalsoclearlydemonstratedthatthelead-ershiproleoftheMinistryoftheEnvironmentandNaturalResources(MARN)ofprotect-ingimprovingandrecoveringwaterresourcesmustbestrengthenedpreciselysothatitcanperformthefunctionofdirectingregulatingandsupervisingasregardsqualityquan-tityandconductandatthesametimeitmustsetitselfapartfromactivitiescorrespon-dingtoothergoverningbodiessuchasmeasuringtheresourceandadministeringuserightsandthoseactivitieswherejointhorizontalactionisindispensablesuchasriskmanagement
GEArsquosgreatestinstitutionalchallengehasbeentogeneratefavourableconditionstocre-ateincentivesforandimplementanationalstrategicwatermanagementprocessthatpromotestheuseofwaterresourcestofurthernationaldevelopmentgoalsandobjec-tivesWiththeestablishmentoftheNationalWaterPolicy(2011)commonobjectivesprinciplesdirectionsandstrategiclineshavebeendefinedsuchthatsectoractionsandbudgetsatthenationallevelareinlinewithbothsectorandthematicgoalsandobjectivesaswellasnationalandpublicinterestonesandmunicipalgovernmentsandthesystemofdevelopmentcouncilshaveanationalpointofreferenceIntermsofwatergovernanceGEAhashelpedtobringaboutatransitionfrompublicsectoralmanagementvoidofanyinteragencyplanningorcoordinationtocoordinatedmanagementestablishingpolicyplanningandbudgettoolsbasedonacommonpolicyandstrategyprogresswasmadeindefiningaMultiyearSectoralPlanfortheEnvironmentalandWaterandwhereriskmanagementisconcernedthefocushasshiftedfromrespondingtoemergenciescausedbynaturaleventstoaddressingthecausesofwater-relatedrisksSinceitscreationGEAhasmanagedtoestablishtheNationalWaterPolicyanditsrespectivestrategypartici-pateinconstructingandapplyingtheMultiyearSectoralPlanfortheEnvironmentalandWateraswellaselaboratingandapplyingthePlanforRecoveryandReconstructionwithTransformationIthasalsobroughtaboutinstitutionalchangesintheMinistryofPublicHealthandSocialWelfare(MSPAS)intermsofleadershipindrinkingwatersupplyandsanitationservicesandregardingthedefinitionandimplementationofapolicyfortrans-boundarywatersAninstitutionalmechanismforcoordinatingwaterpoliciesatthehigh-estlevellikeGEAcouldbeusedasamodelincaseswherecountriesarelackingsolidinstitutionalstructuresornationalwaterpoliciesthatguaranteethefulfilmentofpublicinterestobjectives
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ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
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WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterintheGreenEconomyinPracticeTowardsRio+20
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
ProshypoorfinancingandtariffsinMedellinColombia7
Colombiaasisthecaseofmanycountriesoftheregionhasimplementeddiffer-enteconomicreformstoimprovethelivingstandardsofitspopulationInthepub-licutilitiesarenameasureshavebeen taken in termsof tariffstructureand
changesintheinstitutionalframeworkHowevertherearestilleconomicsocialandlegalbarriersthathavehinderedtheachievementofuniversalcoverageofdrinkingwatersupplyandsanitationservicesespeciallyforthepoorestsegmentsofthepopu-lation
PeoplelivinginpovertyfaceinnumerableaccessproblemsrelatedtothelackoffinancialcapacitytoaffordaminimumwaterserviceallowanceandtheinabilitytosaveenoughmoneytopayfortheirconsumptionThishasbeenacrucialissueinthewatersectorinthedevelopingworldformanydecadesInadditionexperienceshowsthatlowornoin-comeisnottheonlybarrierinhibitingaccesstowaterservicesOtherconditionsassoci-atedwithpovertyintheseareassuchassocialunrestviolenceunemploymentandunderemploymenturbandisplacementandotherrelatedfactorsthreatentoundermineeconomiceffortstoguaranteeaccesstoservices
InmanycitiesinthedevelopingworldasinMedelliacutenthepoorperi-urbanpopulationnotonlylivesunderldquoborderrdquoeconomicconditionsenteringandexitingtheformalworldbutalsoinextremesociallegalandinstitutionalsituationThisinterceptionofmultiplege-ographicaleconomicandsocialstressfactorsconstitutesamajorchallengetoextend-ingwaterservicescoveragetotheseareasMoreoverthispopulationismorevulnerabletoexternalsocialandeconomicshocks(unemploymentsicknessordeathofmembersofclosesocialnetworksetc)
GovernmentsinassociationwithutilitiesinthedevelopingworldhavearesponsibilitytoaddressthesechallengesinservicesprovisionTheexperienceofEmpresasPuacuteblicasdeMedelliacuten(EPM)waterservicesproviderforMedelliacutenandtheAburraacuteValley8 inColombiaistocombineformalpublicpoliciesatthelocalandnationallevelwithitsowncorporatesocialresponsibilitypoliciestocreatesharedvaluesinthebenefitoftheweakestseg-mentofthepopulationAportfolioofinitiativeshasbeenspecificallydesignedwiththeaimofguaranteeinguniversalaccesstopublicservicesandtopreventthisvulnerablepopulationfromfallingintoapovertytrapthatimpedesthepossibilityofconnectionandconsumptionoftheseessentialandvitalservices
AboutEPM
EPMisaColombiancompanyownedbytheMunicipalityofMedellinEPMisapublicutil-itiesprovidingwaterelectricitygasandtelecommunicationsservicesanditsmainmar-ketisthemetropolitanareaofMedellinandtheDepartmentofAntioquiawithpopulation
WaterandaGreenEconomy
Cas
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7 RubeacutenDAvendantildeoEmpresasPuacuteblicasdeMedelliacuten
8TheAburraacuteValleyisthebasinoftheMedelliacutenRiverandoneofthemostpopulousvalleysoftheAndeanRe-gionofColombiawithmorethan3millioninhabitantsItishometotencitiesMedelliacutenBarbosaBelloCal-dasCopacabanaEnvigadoGirardotaItaguumliacuteLaEstrellaandSabaneta
29
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
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WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
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WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterintheGreenEconomyinPracticeTowardsRio+20
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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WaterandaGreenEconomyinLAC
ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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The
expe
rtrsquos
per
spec
tive
IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
of52millionpeopleItisthesecondlargestwaterandsanitationutilityinColombiaandcurrentlyitsprofitstransferredtothemunicipalityrepresentaroundathirdofthelatterrsquosannualbudget
EPMisrecognisednationallyandinternationallyforitsefficiencyandqualityoperationsItdemonstratesgoodfinancialresultshighservicequalitystandardshighcreditratingsbynationalandforeignfinancialagenciesandthesocialacknowledgment9ofitsperform-anceandcommitmenttoimprovethequalityoflifeofitscustomersespeciallythepoor
EPMprojectsaredevelopedinaccordancewithstrictfinancialtechnicalandlegalprin-ciplesandallitsproceduresandcontrolsfortheacquisitionofgoodsandservicesguar-antee transparency in all contractual processes Its management and directors areindependentofanypoliticalinfluenceInadditionEPMrsquoscorporategovernancemodelanditscorporatesocialresponsibilitypolicyhavebecomeimportantdriversforthegrowthandsustainabilityofthecompany
Theapproachcostrecoveryandfinancingmechanisms
UnderstandingthattheaccessproblemiscriticalinMedellinEPMhasdesignedandim-plementedavarietyofsolutionstailoredtotargetpeoplewithdifferentneeds
Akeyissueregardinghowtoovercomethebarrierstothepooristheinstitutionalca-pacitytounderstandtheproblemandtodesignandimplementeffectivesolutionsEPMhastheinstitutionalcapacityformanagingtheentireprocessfromproblemidentifica-tiontotheimplementationandevaluationoftheprogramsThisprocessrequiresfirstofallaclearunderstandingoftheinitialsituationtoenabletheformulationofappropriateandcomprehensivestrategiesAconceptualframeworkisfirstdevelopedbasedonin-terdisciplinarystudiesandanin-depthanalysisoftheuserrsquoseconomicandsocialbehav-iourthatisaffectedbyrulesregulationsandorganizationsThenextstepistheplanningoftheinterventionidentifyingtherolesandresponsibilitiesoftheactorsinvolved(na-tionalgovernmentlocalgovernmentnongovernmentalorganizationsthirdpartiesandtheEPMitself)followedbythedesignofmechanismsthatbetterrespondtothemainob-jectivemdashserviceuniversalisationFinallyduringandafterimplementationthedevelop-mentandapplicationofpermanentmonitoringandevaluationtechniquesisessential
InthepursuitofitsgoalsaspublicservicesproviderandinresponsetothechallengesfacedinitsserviceareaEPMhasdesignedthefollowingstrategiestoincreaseaccesstodrinkingwatersupplyandsanitationservicespreventservicesdisconnectionandtoim-provethequalityoflifeofitscustomers
NetworkConnectionFinancingProgram(NCFP)
TheNCFPisanEPMinitiativedesignedtoprovideaccesstowaterservicestolow-incomehouseholdsintheperi-urbanareasoftheAburraacuteValleyTheprogramofferslong-term
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9AsdemontratedinthesurveyldquoMedelliacutencoacutemovamosrdquoacivilinitiativecreatedin2006toevaluatethequal-ityoflifeinthecityofMedellin(httpwwwmedellincomovamosorg)
30
WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
creditfacilitiesatlowratestopeoplewhocurrentlyhavenoaccesstocreditBeneficiar-iesoftheprogramarethenabletofinancetheconstructionorimprovementofin-houseandexternalwaterandsanitationinfrastructureinordertogainaccesstopublicutilityservicesEPMoffersthisservicebasedonhouseholddemandandcreditispayableovertenyearsattheaveragemarketinterestratefordeposits(DTFrate)Thecreditcomponentoftheprogramisaccompaniedbyinfrastructurecontractsthatareawardedtoformallyor-ganisedcommunityentitieshelpingtostrengthenlocaltechnicalandbusinesscapacity
FinancingandReshyfinancingConsumption(RFWC)
ThepurposeofthisEPMinitiativeistohelphouseholdswithlowcapacitytopay(strata12and310)anddebtsintheirwatersanitationandenergybillstohaveaccesstolowcostfinancingwithminimumguaranteestopreventdelinquentaccountsandservicediscon-nectionBeforeservicesuspensionclientshaveoptionofpaying80oftheirdebtwithintheircurrentbillandtheremaining20thefollowingmonthwithoutchargesDiscon-nectedclientswithovertwomonthsofbilldebtsareofferedreconnectionagreementsandthefinancingofthedebtforuptofiveyearsatDTFrateInthecaseofclientsthathavebeenaffectedbydisplacementornaturaldisastersthedebtcanberefinancedforuptotenyearswithnointerest
PrepaidProgram(PP)
PPisanEPMinitiativetargetedatcustomerswithdelinquentaccountsorthatareatriskofhavinganillegalconnectionTheprogramallowsreconnectionofservices(whichareprepaid)anddebtpaymentover120monthschargedatDTFrateThecustomerpurchasesaPINnumberfromalocalstoreandintroducesitintheirmeterathometousetheen-ergyservicespurchasedOfthepaymentmadethroughthePIN90isforthepurchaseofenergyandtheremaining10contributestorepaymentofthedebtwithEPMThusfarEPMhasonlyimplementedthisprogramforenergyservicesbutofferingaprepaidoptionforwaterservicesisbeingpiloted
SocialFinancingProgram(SPF)
TheSFPEPMGroupcardoffershouseholdscreditatcompetitiveratesthatvaryaccordingtothetypeofproductoractivityfinancedPriorityisgiventostrata1to4householdswhichconstitute96ofcardholdersThecreditisintendedforuseinfinancinghomeimprovementsandenergyandwaterapplianceswiththeobjectiveofimprovingefficienciesandthequalityoflifeofcustomersThecreditisbilledinmonthlyinstalmentswiththeutilityservices
CommunityOrganisationContracts
Theobjectiveofthissocialprogramistocontractcommunity-basedorganisationsandas-sociationslocatedinareaswhereEPMhaswaterandsanitationnetworkexpansionop-eration and maintenance projects EPM hires these organisations to build local
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10Colombianlegislationhasestablishedahouseholdclassificationsystemwithsixsocio-economiccategories(strata1to6)accordingtolocationincomelevelandpublicservicesprovisionThisclassificationdeterminespeo-plersquostaxespublicservicestariffsmodalitiesofaccesstohealthserviceamongothersStrata12and3havepreferentialtreatmenttoreceivegovernmentalsubsidiesandbenefitsduetotheirlowsocioeconomicconditions
31
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
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UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
infrastructureandtheprocurementrequirementsarespecificallydesignedtoenablethemtoobtaincontracts
Waterservicesprovisioninperishyurbanareas
ThisinitiativeisimplementedbyEPMinconjunctionwiththeMunicipalityofMedellinandseekstolegaliseandallowaccesstowaterservicesforpeopleinperi-urbanareasinMedellinThechargeisappliedaccordingtotheaverageuserrsquossocioeconomiclevelwith-outusingindividualmeters
MinimumDrinkingWaterConsumptionAmountforLife
Theaveragequantityofdrinkingwaterneededperpersontomeetbasichumanneedsis25cubicmeterspermonthldquoMinimumDrinkingWaterConsumptionAmountforLiferdquoisaMu-nicipalityofMedellininitiativelaunchedin2009providingsubsidiestocoverthecostof25cubicmeterspermonthperpersonHouseholdstargetedbytheprogramarethoseintheruralorurbanareasthathavebeenpreviouslyidentifiedaspotentialbeneficiariesofsocialprogramsduetounmetbasicneedsEPMappliestherespectivediscountinthecustomersrsquobillsTheprogramalsoincludesinformationcampaignstopromotetherationaluseofwater
Nationaldemandshysideandsupplyshysidesubsidies
Thenationaldemand-sidesubsidiesschemeoffersuserswithlowpaymentcapacity(strata12and3)subsidiesfinancedbyasurchargeinthebillofuserswiththehighpay-mentcapacity(strata5and6)andindustrialandcommercialusersandbymunicipalityfundsThelevelofsubsidydependsonthestratastrata1receivesa50-60subsidystrata2a30-40subsidyandstrata3a10-13subsidy
Thenationalgovernmentalsoprovidessupply-sidesubsidiesinvestinginpublicserv-icesinfrastructuresothatpublicserviceproviderscanimproveservicedeliverywithoutpassingontheadditionalcosttousers
Economicenvironmentalandsocialbenefits
InitiativesofferedbyEPMhaveresultedinsignificantimprovementsinthelifeconditionsofthepopulationitservesSomeofitsimpactsarelistedbelow
NetworkConnectionFinancingProgram(NCFP)
EconomicimpactsDuring1999-201145milliondollarswereinvestedinwaterandsan-itationservicesthroughtheNCFPTheprogramhasresultedinatotalof5millioninin-terestratesavingsforconsumerscomparedtoconventionalfinancingIndirectbenefitsoftheprogramincludethecreationofalmost11thousandjobsinthewaterandsanita-tionservicessector
EnvironmentalimpactsEPMhaswastewatertreatmentplantsthatcleanresidualwaterbeforeitisdischargedintotheMedellinRiverAstherivergoesthroughtheentireAburraacuteValleytheNCFPreduceswaterpollutionbyconnectinguserstotheseweragesystemWaterandaGreenEconomy
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SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
37
WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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12 AdrianCashmanCERMES-UniversityoftheWestIndies
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WaterandaGreenEconomyinLAC
ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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The
expe
rtrsquos
per
spec
tive
IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
SocialimpactsDirectimpactsonwaterandsanitationprovisionduring1998-2010in-cludeover10thousandhouseholdconnectionstowaterservicesandalmost14thou-sandsewerageconnectionsbenefittingsome56thousandpeopleDuring2008-2010thewaternetworkwasexpandedbyover50kilometresandthesewerageoneby55kilome-tresTheprogramhasalsoinvolvedmorethan23thousandhoursofcommunitytrainingandhascontributedtopovertyalleviationthroughjobcreation
FinancingandReshyfinancingConsumption(RFWC)
EconomicimpactsTheRFWCfinancedalmost330thousandcustomersatatotalcostof95milliondollarduringthe2008-2010period
SocialimpactsOfthebeneficiariesoftheprogram92arelow-incomehouseholds(strata12and3)Theschemehasthereforeaddressedinequitiesandcontributestotheimprovementofqualityoflifeofitsbeneficiaries
PrepaidProgram(PP)
AsthePPinitiativeiscurrentlybeingtrialledforwaterservicesonlytheenergyprogramhasbeenfullyevaluatedwiththefollowingresults
EconomicimpactsDuringthe2008-2010periodtheprogramsawinvestmentsof93milliondollarsImportantlyPPallowscustomerstoconsumepublicservicesaccordingtotheireconomiccapacitywithoutfacinganypaymentriskandpreventingdisconnection
EnvironmentalimpactsTheprogramincludeseducationinrationalenergyusewhichhasresultedinareductioninconsumptionof60kilowatthourperfamily
SocialimpactsAtotalofalmost71thousandnetworkconnectionshavebeenmadeinthelastthreeyearsbenefittingsome202thousandpeople(with7fromstrata12and3)Theprogramwillenable88thousanddisconnectedclientstoregainaccesstoenergyservicesby2014Itcontributestotheimprovementofqualityoflifeandprovidesamech-anismtoavoidillegalconnectiontopublicservices
SocialFinancingProgram(SPF)
EconomicimpactsOverathreeyearperiodSPFfinanced28milliondollarsTheprogrampromotescreditchannelsforpeoplewhootherwisewouldnotbeeligibleforfinancialserviceswithlowinterestratesandrepaymentflexibilityItstimulateslocalregionalandnationaleconomies
EnvironmentimpactsTheSFPhasfacilitatedtheadoptionofanewgenerationofeffi-cientappliancescontributingtosignificantenergywaterandgassavingswithcorre-spondingenvironmentalbenefitsfromreducedresourceuse
SocialimpactsAsofAugust2011theEPMGroupCardhasfinanced63thousandhouse-holdsin17municipalitiesTheschemehasissuedalmost40thousandcardsinthreeyearsParticipantsbenefitfromreductionsinbillsduetotheuseofmoreefficientappli-ances WaterandaGreenEconomy
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CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
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UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
CommunityOrganisationContracts
Economic impacts During the 2008-2010 period 31 contracts with organisations inAburraacuteValleyweremadetotalling10milliondollarsTheinitiativehasgeneratingal-most400jobsinthewaterandsanitationsectorThishasenhancedtheincomeofcom-munitiesandcontributedtothedistributionofwealthstimulatinglocalregionalandnationaleconomies
EnvironmentalimpactsThecommunityorganisationcontractsincludeenvironmentalprotectionclausescomplementedwithauditorprocedurestoverifycompliance
SocialimpactsTheinitiativehascontributedtopovertyreductionasaresultofjobcre-ationstrengthenedskillsinmanagementoperationandprocurementandsuccessfullypromotedcommunity-basedschemes
Waterservicesprovisioninperishyurbanareas
EconomicimpactsDuringthe2008-2010period126thousanddollarswasinvestedinwaterservicesprovisionforperi-urbanareas
SocialimpactsThisprogrammecontributestotheuniversalisationofpublicservicesriskreductionandlifequalityimprovementforperi-urbanpopulationsduringthe2008-2010periodover6thousandpeoplebenefitedCustomereducationprogramshavebeenimplementedtoencouragesustainableandrationalwateruse
MinimumDrinkingWaterConsumptionAmountforLife
EconomicimpactsTheMunicipalityofMedellinhasinvestedatotalof12milliondollarsin2010Inthatyearthetotalsavingsachievedwere270thousanddollarsequivalenttoa12(about5dollars)inmonthlysavingsperfamilymdashresourcesthatvulnerablefami-liescaninvestinmeetingotherneeds
Environmental impacts 92ofbeneficiaryhouseholdspracticerationalwatercon-sumptionwithcorrespondingenvironmentalbenefits
SocialimpactsTheprogramprovidesaspecificquantityofdrinkingwateratnocosttovulnerablefamiliesinMedelliacutenIthasbroughtpositiveresultsandimprovementsinso-cialconditionsIn2010some26thousandhouseholdsbenefittedfromtheprogramandfor2011theyareexpectedtoriseby72(45thousandhouseholds)ByguaranteeingvulnerablefamiliesaccesstowaterthemunicipalityisimprovingeconomicsocialandhealthconditionsofitspopulationTheincidenceofillnessisreducedasaresultoftheincreasedavailabilityofdrinkingwatersupply
Nationaldemandshysideandsupplyshysidesubsidies
EconomicimpactsDuringthe2008-2010periodover140milliondollarsinwaterandsanitationsubsidieswereprovidedtothelowerincomepopulation(strata123)of17municipalitiesreducingthecostofwaterandsanitationservicesforusersOnthesup-WaterandaGreenEconomy
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plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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12 AdrianCashmanCERMES-UniversityoftheWestIndies
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
plysideEPMhasreceivedalmost20milliondollarsinpublicinvestmentforwaterserv-iceprovision
SocialimpactsTheinitiativehasbenefittedsome700thousandusersandaddressedso-cialinequitiesintheregion
Scalingupandrelevancefordevelopingcountries
Toaddresstheaccessproblemmostdevelopingcountrieshavecopiedmodelsfromelse-whereinthepursuitofhigherstandardsoflivingButexperienceshowsthatduetodif-ferentsocialeconomiclegalandculturalconditionsbetweencountriesmodelscannotsimplybetransplantedwithsuccessguaranteedItisthereforenecessarytoidentifycom-monfactorsfromwhichthetransferabilityofanapproachcanbeinferred
Opportunitiesforthefuture
EPMhasrecentlyhiredaconsultingservicetoassessdelinquentaccountsandeffec-tivenessofEPMtoolsinreachingpublicservicesuniversalisationThemainconclusionofthestudywasthatcurrentinitiativesofferedbyEPMtovulnerableusersareachiev-inggoodresultsbutinordertohelppeoplelivingundervulnerableconditions(lessthan5ofEPMtargetpopulation)moveupinthesocialscalethefollowingchangeswereneeded
restructuringexistinginitiativesandcreatingnewandcomplementarytools(suchasin-surancemechanismsagainstshockslikedeathillnessoraccident)
focalizingstrategiesleadingtothedevelopmentofdifferentiatedoptionsaccordingtousersrsquovulnerabilitylevels(measuredbypovertylevelanddelinquentaccountrisk)and
collaborationineffortswithotheractorsconcernedwiththesituationofvulnerablepopulation
Inadditiontolocalandnationalgovernmentsthereareinternationalagenciesnon-governmentalorganisationandprivateentitiesthatallocateresourcesandareinterestedinimplementingprogramstoimprovesocialwelfareFurthermoremoreeffortsmustbemadetolinkEPMactionstolocalandnationalpoliciesforpovertyreductioninordertoconcentratefocalisationstrategiesinthesamepopulationandimprovetheireffective-ness
Lessonslearntfromimplementation
KnowyourtargetpopulationwellProgramstargetingthepoormustbedesignedonthebasisofathoroughanalysisofthebeneficiariesrsquoconditionsandtheirlocalpar-ticularities inordertostructureflexibleandcustom-madeoptionsforsocial im-provementThisrequiresinterdisciplinarystudyofeconomicsocialandpsychology WaterandaGreenEconomy
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behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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37
WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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tive
IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
behaviouraswellasoftherulesregulationsandinstitutionsthataffectsocialcon-ducts
AsuccessfulprograminoneparticularcontextdoesnotnecessarilyguaranteesucshycesswhenthepracticeistransferredeventoasimilarcontextAsinitiativesarede-signedtosolveaspecificsituationwhatcanbetransferredisnotthepracticeitselfbutthebuildingprocessesorprinciplesinvolvedinitsdesignandinitiation
DonotthinkthetargethasbeenalreadyreachedConstantmonitoringandevalua-tionisessentialtoidentifydeviationsfromtheexpectedoutcomesortointroduceim-provementsleadingtoincreasedefficiencyandeffectivenessofmeasures
Investmentinsocialcapitalofthecommunitycontributestosocioeconomicdevelop-mentandgeneratespositiveexternalities
CreditisnotthesolutionwhenitdoesnotcontributetoincomegenerationorsavingsforconsumersThuscreditoptionsfordelinquentaccountsmustbeconsideredjustastemporarymeasuressoastoavoidconsumersrsquodependencyorpovertytraps
JointeffortsgeneratehighimpactCollaborationandcooperationbetweengovern-ments(bothmunicipalandnational)andbetweenprivateandpublicentitiesisthebestwaytosupporttheexpansionofwatersupplyandsanitationservicesandinvestinso-cialwelfarethroughjointcommitmenttotheachievementofacommontargetThere-sponsibilitiesandrolesofeachactorshouldbeclearlyidentified
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TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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11ThomasChirambaSilasMogoiandIsabelMartinezUnitedNationsEnvironmentProgrammeTimJonesDJEnvironmentalandPabloLloretFONAG
37
WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
TheFundfortheProtectionofWater(FONAG)Ecuador11
TheFundfortheProtectionofWater(FONAG)isaprivatetrustfundestablishedin2000foraperiodof80yearsandregulatedunderEcuadorrsquosstockmarketlawEs-sentiallytheFundisanexampleofpaymentfortheenvironmentalservicespro-
videdbyecosystems(commonlyreferredtoasPaymentforEcosystemServicesorPES)
FONAGworkstoensuretheprovisionofasufficientquantityofwaterofgoodqualitybysupportingactionsdirectedatprotectingwaterresourcesbasedontheprinciplesoflong-termnaturalsustainability
FONAGfocusesontheUpperGuayallabambaOyacachiandthePapallactariverbasinswhicharecrucialformaintainingthewatersupplytotheMetropolitanDistrictofQuitoanditssurroundingareaFONAGrsquosareaofoperationcoversover5thousandsquarekilome-tresandishometoabout2millioninhabitants
InordertoavoidthedegradationoftheseriverbasinsFONAGissupportingactionsdi-rectedatmakingtheactivitiesoflocalcommunitiesmoresustainablebutalsomorepro-ductive
ActivitiesintheAntisanariverbasinaredirectedtowardsprotectingthequalityofwaterenteringtheMicaQuitoSurreservoirpartofthesystemthatprovidesdrinkingwatertothecityofQuitoThemainprobleminthisriverbasinisrelatedtopoorlivestockman-agementpracticesinnearbyareaswhichcausewaterpollutionsoilerosionandad-versely impact nature conservation in the Antisana Ecological Reserve Preparatorystudiesatanestimatedcostof22thousanddollarsarecurrentlyunderwaywithequalcontributionsbyFONAGandthenongovernmentalorganisationTheNatureConservancy(TNC)andadditionalcounterpartfundingfromtheimplementinginstitution
AboutFONAG
Theinter-AndeanareaofPichinchaProvince(intheQuitobasin)isoneofEcuadorrsquosmostdenselypopulatedareaandfacesoneoftheworstproblemsofwatershortagecompetitionandpollutionThewaterneedsofthepopulationofthisareaaresuppliedbysurfacewaterfromtheupperEsmeraldasriverbasingroundwaterandsometransfersTheaquiferssurroundingQuitousedtobeanimportantsourceofdrinkingwatersupplyHoweverthedeteriorationofwellsandtheeconomicandoperationaladvantagesofsurfacewatersup-plysystemshaveledtotheprogressiveclosureofwellsInordertosupplytheneedsofthepopulationwaterhastobetransferredfromriverbasinsintheAmazonianregiondrink-ingwaterforQuitoisextractedfromtheAntisanaOyacachiandPapallactariverswaterfortheTabacundoirrigationprojectfromtheBoqueroacutenMonterasandSanJeroacutenimorivers
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andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
andirrigationwaterforCangaguafromtheRiverOyacachiThesituationhasbeenworsenedbyadeepcrisisinnationalwaterresourcesmanagementowingtoirregularitiesanddefi-cienciesinwaterallocationandpooradministrationofwater-relatedconflicts
Theapproachpaymentforenvironmentalservices(PES)
TheproposaltocreateFONAGwasheadedbyTNConthebasisofanalyticalstudiesandtheprogrammeofcommunicationandeducationonwater-relatedissuesinQuitowhichwerebothdevelopedwiththeassistanceoftheUnitedStatesAgencyforInternationalDe-velopment (USAID) The Metropolitan Drinking Water and Sewer Company of Quito(EMAAP-Q)andTNCsignedthecontractcreatingthefundon25January2000ItwassetupasaprivatetrustfundundernationalstockmarketlawTheNationalElectricCompanyjoinedtheventureinMay2001AndeanBreweryinMarch2003theSwissAgencyforDe-velopmentandCooperation(COSUDE)inJanuary2005andTesaliaSpringsacompanysellingbottledspringwaterandrelatedproductsinApril2007Membersrsquocontributionsvarybetweenafixedrateof125(in2008)onthedrinkingwaterandseweragesalesofEMAAP-QtoafixedannualamountpaidbyotherparticipantsThefundcurrentlyholdscloseto6milliondollarsandinvestmentswereestimatedatsome08millioninfinancialreturnsand29millionincounterpartfunds
Apilotprojectwassetupin1998paymentstoFONAGbeganinJanuary2000andfi-nancingofwatershedprotectionprojectswasinitiatedinJanuary2002Thetrustfundprovidesastablelong-termfinancialmechanismusingrevenuesderivedfromitsequitytoco-financeactivitiesaimedatmaintainingtheriverbasinsthatsupplythewaterneedsofQuitoMetropolitanDistrictanditssurroundingarea
FONAGimplementsprogrammesandprojectsthatmeettheinstitutionalchallengesofbuildinganewldquowaterculturerdquo(wheretheactiveandresponsibleparticipationofallstake-holdersandactorscreatesamorejustsharedandsustainableuseofwaterresourceswith improvedhealthanddevelopmentoutcomes)andadvancingtowards integratedwaterresourcemanagementTodothisitdevelopedaclearmission
FONAGrehabilitatescaresforandprotectsriverbasinsandwatershedsthatsupplywatertotheMetropolitanDistrictofQuitoandsurroundingareas
Itsmissionistobethemobilisingagentthatinvolvesallactorsinexercisingtheirciti-zenshipresponsiblyonbehalfofnatureespeciallywaterresources
CommunitiesparticularlytargetedbyFONAGprogrammesandprojectsincludethoselo-catedin
theCayambe-CocaEcologicalReserve(Oyacachiriverbasin)
theAntisanaEcologicalReserve(PapallactariverbasinandLaMicaLagoon)
theCotopaxiNationalPark(Pitasub-basinoftheUpperGuayallabamba)
theLosIlinizasEcologicalReserve(SanPedrosub-basinoftheGuayallabamba)WaterandaGreenEconomy
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The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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WaterandaGreenEconomyinLAC
ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
The activities implemented by FONAG are the result of various consensus-basedprocessescarriedoutamongtheparticipatinginstitutions
ThroughtheEcuadorianCentreforAgriculturalServices(CESA)FONAGisseekingtoconserve water resources improve animal husbandry and agricultural practicesstrengthenlocalcapacitiesandprovideaccesstofinancialservicesAllthesecomponentsweredevelopedduringaninitialimplementationphaselastingfifteenmonthsatanes-timatedcostofabout80thousanddollarswithpart-fundingprovidedbyFONAGandco-financingfromTNCandCESA
AmongotherpracticalactionsworkisbeingdonetoimprovelivestockmanagementaroundtheOyacachiriverbasinthroughacampaigntovaccinateidentifyandexecuteaprogrammetoprovidetheseherdswithvitaminsandridthemofparasites
Theseprogrammesandprojectsarecarriedoutwiththeparticipationofvariouscom-munityactorslocalauthoritiesgovernmentalbodiesnon-governmentalorganisationsandeducationalinstitutions
FONAG implements its programmes directly conceiving them as a way of buildingprocessesthatarecapableofchangingpeoplersquosattitudestowardnatureandencourag-ingresponsiblewaterresourcesuseandmanagement
Theprogrammeshaveaminimumtimescaleof20yearsandcoverallsixkeyareasofFONAGrsquosactivities
Watermanagement
Sitesurveillanceandmonitoring
Restorationofvegetationcover
Environmentaleducation
Traininginintegratedwaterresourcesmanagement
Communication
Theprojectsareinterventionsundertakenbysupportinginstitutionscommunitiesedu-cationalorganisationsandlocalgovernmentsTheyareshort-termwithamaximumdu-rationoftwoyearsTherearecurrently20suchprojectscoveringallofthesub-basinswithinFONAGrsquosareaofoperationOftheinstitutionalbudget20isassignedtotheseprojects
Financialapproach
ThecapitalassetsoftheFONAGarecomposedofcontributionsfromlocalbusinessespri-vateandinternationalinstitutionsSpecificprojectsareanintegralpartofFONAGrsquossix WaterandaGreenEconomy
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programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
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Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
programmeswhichareledbylike-mindedinstitutionswithco-financingprovidedbyFONAGItssuccessisbasedinlargeparton
Aphilosophyofmodestbutsteadygrowth
Limitingitsfinancialsupportforprogrammesprojectstotherevenuederivedfromitsequitycapital
Attractionofincreasinglysignificantcounterpartfunding
By2009FONAGwasmakingfinancialcontributionsofalmostonemilliondollarsperyearandleveragingcounterpartfundingtofundprogrammesandprojectswithtotalexpendi-tureofnearlyfourtimesthisamount
Economicsocialandenvironmentalbenefits
Throughthefundmorethan65000hectaresofwatershedsarenowunderimprovedmanagementUpstreamfarmersreceivesupportforwatershedprotectionprogrammesasopposedtocashpaymentsAlmosttwothousandpeopleareestimatedtohavereceivedincreasedeconomicbenefitsassociatedwithwatershedmanagementandconservation
Scalingupandlessonslearntfromimplementation
Lessonslearnt
Governmentsnongovernmentalorganizationsbothnationalandinternationaldevel-opmentassistanceagenciesthecorporatesectorandlocalcommunitiescanworkef-fectivelytogetheronPESschemesifthebenefitsforallstakeholdersareclear
Relativelymodestexpenditurecanleveragemuchbiggeroverallinvestmentthroughcounterpartcontributions
Restrictinguseof thefundtoyields frominterestand investmentsmdashnotcapitalmdashmeansthatthefundgrowsslowlybutsustainably
Strongcapacitybuildingandcommunicationsandawareness-raisingcomponentshavebeenvitaltoFONAGrsquossuccess
Astablelong-termfinancialmechanismprovidesthesecuritystabilityandsustain-abilityneededforpartnerstofeelconfidenceinparticipatinginFONAGandfacilitatesitsoperation
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WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
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41
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ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
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During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
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outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
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AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
WaterrsquospotentialroleinsupportingagreeneconomyinBarbados12
Barbadosisawaterscarceanddenselypopulatedsmallislanddevelopingstatewithanopeneconomydependentontourismanditsuseofitstropicalislandattributestheimportationoffossilfuelsandasubstantialpartofmanyofitsnutritionalneeds
Thechallengefacingthecountryishowtorespondinawaythatissustainableprovidesincreasedemploymentopportunitiesinawaythatdoesnotcompromisethecountryrsquosenvironmentalresourceswhileatthesametimeoptimisingtheiruseandcontributestothewell-beingofcitizensIn2009thethenPrimeMinisterannouncedhisvisionforBar-badostobecomeldquothemostenvironmentallyadvancedgreencountryinLatinAmericaandtheCaribbeanrdquoFollowingthisdecisiontheGovernmentofBarbadosinitiatedascop-ingstudytomapouthowthisvisioncouldbeachieved
ThecommitmenthasbeenreiteratedbythecurrentGovernmentthroughthePrimeMin-isterandtheMinisterforEnvironmentandDrainageBarbadoshasatrackrecordofchampioningenvironmentalissuesandconcernsontheinternationalstageanddomes-ticallysuccessiveBarbadiangovernmentshavesoughttopromoteenvironmentallyre-sponsibledevelopmentthroughnationaldevelopmentplanspoliciesandprojectsThechallengesfacedinmakingthechangewere
Theneedforbetterinstitutionalcoordinationandtheuptakeandmainstreamingofldquogreenrdquopolicies
Limitedeconomicresourcesforimplementation
Aneedforbetterpublicawarenessandchangeofmindsetaswellasgreaterprivatesectorinvolvement
Whatconstitutesagreeneconomyisnotuniformlywellunderstoodandthereforetheabilitytotranslateunderstandingintoactionislimited
ItisclearfromthescopingstudythatthelegalandespeciallytheregulatoryinstitutionshavetobeadaptedtobesupportiveofgreeninitiativesandthatahigherpriorityneedstobeassignedtosuchchangestoenablethemtobecomepartofanengineforgrowthAtthesametimethereisaneedtobemoreinclusiveoftheprivatesectorinareasthathavepreviouslybeenthepreserveofgovernmentinserviceprovisionandthiswillneedachangeinmindsetonthepartofbothgovernmentandprivatesectorAkeychallengeisthecreationofasupportivesetoffinancialinstrumentsthatlowersthecostofadoptionandimplementationforallparties
Whilethereisacommitmentonthepartofseniordecision-makersatthesametimethestudysuggestionsthatwherethereisaperceptiononthepartofmiddlemanagersthatadoptionofgreenorientatedpoliciesmightincreasecostsFurthermoretheneedforgreaterenvironmentalprotectionisontheonehandnotalwaysproperlyappreciatedand
WaterandaGreenEconomy
Cas
est
udie
sfr
omth
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gion
12 AdrianCashmanCERMES-UniversityoftheWestIndies
41
WaterandaGreenEconomyinLAC
ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
WaterandaGreenEconomy
Cas
est
udie
sfr
omth
ere
gion
42
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
WaterandaGreenEconomy
The
expe
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InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
WaterandaGreenEconomy
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expe
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WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
WaterandaGreenEconomy
The
expe
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tive
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WaterandaGreenEconomyinLAC
InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
WaterandaGreenEconomy
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expe
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WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
WaterandaGreenEconomy
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Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
Ann
exes
51
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Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
ontheotherthereisatendencyinsomesectorstobeconservativelyprescriptivePolicycoherenceandcoordinationemergedasanareawheremoreattentionisrequired
Itisanticipatedthatsomeoftheoutcomeswithrespecttohowwaterplanningandman-agementcanbepromotedwillbeofrelevancetootherdevelopingandtransitioncoun-triesItiscurrentlytooearlytotellwhattheimpactmightbeonthecreationofnewemploymentandbusinessopportunitiesthoughitisexpectedthatthepromotionofagreeneconomywillleadtonewemploymentopportunitiesAlreadyacentreforthepro-motionandsupportfortransitioningexistingbusinessestogreeneconomicpracticesisbeingdiscussedThepotentialbenefitstotheenvironmenthavebeenidentifiedandthisisespeciallyimportantgiventheexistingstressthatexistingeconomicactivityisrespon-sibleforthelimitedendowmentofcertainkeynaturalresourcesandtheirvulnerability
WaterandaGreenEconomy
Cas
est
udie
sfr
omth
ere
gion
42
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
WaterandaGreenEconomy
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WaterintheGreenEconomyinPracticeTowardsRio+20
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
WaterandaGreenEconomy
The
expe
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tive
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WaterandaGreenEconomyinLAC
InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
WaterandaGreenEconomy
The
expe
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tive
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WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
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InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
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Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomy
The
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IVTheexpertrsquosperspective
During2012severalleadingexpertsonwaterissueswereaskedtoansweraseriesofquestionsrelatedtowaterinthegreeneconomyandthemostrelevantissuesandtoolsrelatedtoitsimplementation(Annex1and2)inLatinAmericaandthe
Caribbean
Theseinterviewsaimtoshedlightonsomeoftheexperiencesthathaveworkedinthere-gionandthethinkingofthosecloselyinvolvedinthedevelopmentofpoliciesprogrammesandstrategiesthatcanhelptheregiononitspathoftransitiontowardsagreeneconomy
InterviewwithColinHerronGrisellMedinaandFrederikPischkefromtheNationalWaterCommissionofMexico(CONAGUA)
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AgreeneconomydependsonthesustainableandintegratedmanagementofwaterresourcesWaterneedstobemanagedmorerationallytofacethechallengesofgrow-ingpopulationsincreasingpercapitaconsumptionandthemanifestationofclimatechangeandvariabilityLetrsquosnotforgetthatwaterisembeddedintheproductswecon-sumeandthattheprovisionofwaterconsumesenergyjustastheprovisionofmanysourcesofenergyrequireswaterresourcesCleanwateristhusaresourcethatweneedtoprotectsoastomakethetransitiontoagreeneconomypossible
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
Despiteabundantwaterresourcesandarelativelystrongeconomytheregionfacesachallengetodistributeitswealthmoreequitablyenablingeconomiestodevelopwith-
43
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
WaterandaGreenEconomy
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expe
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WaterintheGreenEconomyinPracticeTowardsRio+20
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
45
WaterandaGreenEconomyinLAC
InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
WaterandaGreenEconomy
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expe
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46
WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
WaterandaGreenEconomy
The
expe
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WaterandaGreenEconomyinLAC
InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
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WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
WaterandaGreenEconomy
The
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WaterandaGreenEconomy
Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
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Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
outdepletingnaturalresourcesAconcreteexampleisreducingthewastagealongfoodsupplychainsthussavingwaterandenergywhilelimitingthelandneededtoprovideadditionalnutritionManyissue-specificsolutionsimplyunintendednegativeimpactsThusthereisaneedforconscientioustrade-offstobemadebetweenwaterenergyandfoodwithprogressevaluatedagainstthethreepillarsofsustainablede-velopment
3 Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutilizashytiontomovetowardsagreeneconomy
AgricultureandenergyarethemainprioritiesforwaterresourcesmanagementTheresearchthatprovidedinputintoformulatingMexicorsquos2030WaterAgendaestimatedthatthegapbetweensupplyanddemandinMexicoby2030wouldbe23billioncubicmetersThecostofclosingthisgapwouldbemorethanUSD416billionannuallyMoneyisnottheonlyobstaclenorisitthemostcomplexThemajorityoftheinitia-tivesthatmakeupthisAgendaarerelatedtothereassignmentoflegalfunctionsca-pacitydevelopmentandtheimplementationofeconomicincentivesforamorerationaluseofwater
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Politicalwillissometimeslackingtoprovideadequateincentivesfortheequitableandrationaluseandreuseofwaterresourcesandtoestablishanenablingenviron-mentthroughinvestmentsinstrongwaterinstitutionsandhumancapacityaswellasnaturalandbuiltinfrastructureThepriceofwaterinmostcountriesofLACdoesnotreflectitsrealvalueasshownbytariffsthatdonotcoveroperatingandmainte-nancecostsThebusinesscommunityneedstoembracewaterasastrategicassetthathastobeprotectedthroughoutitssupplychainInthissensethewholeofsoci-etycanhaveabigimpactbymakingwaterissuesoneofthetopprioritiesthroughdailyactionsinresponsibleconsumptionofgoodsandtheprotectionofwaterre-sources
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
TogiveaconcreteexampletheGovernmentofMexicohasestablishedthroughapar-ticipatoryprocessits2030WaterAgendawhichlaysoutaseriesofobjectivesandre-latedactionsaswellasatimeframeandreportingprocesstoachievethebalancedsupplyanddemandforwaterresourcescleanwaterbodiesuniversalaccesstowaterservicesaswellassettlementssafefromcatastrophicfloodsTheAgendaisnotjustagovernmentcommitmentbutisaninitiativebythewholeofMexicansocietythusen-suringthatwaterissuesareatoppriorityforallinterestedstakeholdersnotjustwatermanagers
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WaterintheGreenEconomyinPracticeTowardsRio+20
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
WaterandaGreenEconomy
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WaterandaGreenEconomyinLAC
InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
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WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
WaterandaGreenEconomy
The
expe
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47
WaterandaGreenEconomyinLAC
InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
WaterandaGreenEconomy
The
expe
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per
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tive
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WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
49
WaterandaGreenEconomy
Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
Ann
exes
51
WaterandaGreenEconomy
Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
AgreeneconomyneedstoplaycloseattentiontothethreedimensionsofsustainabledevelopmentitisintendedtoachieveTheequityaspectrequiresustoensurethateverypersonhasaccesstosafeandcleandrinkingwaterandadequatesanitationwhichprovidethebasisforleadingaproductivelifeAlthoughahugeachievementinitselfwecannotstopthereWhatisalsoneededisanintegratedapproachtowaterre-sourcesmanagementthatensuresthatthevoicesofallwaterusershaveapositionatthenegotiationtableaswaterresourcesaremanagedforaneconomicdevelopmentthatbenefitsall
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
WaterisavitalresourceforsustainabledevelopmentandshouldbeconsideredacrosscuttingelementforanyissuerelatedtotheenvironmentsocialwellbeingandeconomicdevelopmentSolvingwatermanagementchallengeswillhelpusadvancesignificantlyineradicatingpovertyachievingfoodsecurityadaptingtoandmitigatingclimatechangeimprovingpublichealthenhancingenergygenerationandusebal-ancingsustainableruralandurbandevelopmentandmaintainingecosystemservicesLetrsquosfocusonworkingacrossdisciplinaryboundariesandadvancingpracticalsolu-tionsthatcanallowagrowingpopulationtoliveharmoniouslyandsustainablyinachangingclimate
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
45
WaterandaGreenEconomyinLAC
InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
46
WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
47
WaterandaGreenEconomyinLAC
InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
48
WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
49
WaterandaGreenEconomy
Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
Ann
exes
51
WaterandaGreenEconomy
Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
InterviewwithVictorPochatindependentconsultant
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
AlthoughIamstilltryingtounderstandbettertheactualmeaningofthisapproachmyfirstreactiontotheworkingdefinitiondevelopedbyUNEPforagreeneconomy-ldquoasonethatresultsinimprovedhumanwell-beingandsocialequitywhilesignifi-cantlyreducingenvironmentalrisksandecologicalscarcitiesrdquo-istowonderifitisenoughtogivetoeconomytogetherwiththecomprehensiveadjectiveldquogreenrdquo-whichseemstoinvolvethesocialandenvironmentalissues-analmostuniquerolefortheso-lutionofthemainworldwideproblemsNeverthelesswhateveristhescopeofthatdefinitiontheroleofwaterresourcesmanagementandutilizationwillbealwayssub-stantivegiventhecloserelationshipbetweenwaterandallthesocialenvironmentalandeconomicsectors
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
GiventhemagnitudeandparticularimportanceofLatinAmericaandtheCaribbeannaturalresourcesandthevarietyofimpactsofglobalchangesonitsextensiveterri-torywatershouldbepresentinalleconomicdecisionsandthecorrespondingcon-siderationoftheirsocialandenvironmentalconsequences
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
bull Developmentofmoreefficienttechnologiesforreductionofwaterconsumptioninagricultureindustriesandurbanareasandforwastewatertreatment
bull DevelopmentofnewproductsinordertoreplacethecurrentpollutantfertilizersandpesticidesDevelopmentofnewtechnologiesforreducingcontaminantsfromin-dustrialprocesses
bull Carefulconsiderationofsocialandenvironmentalimpactsinordertomakepossi-bletheconstructionofmultipurposedamsofdifferentmagnitudeinordertosatisfywaterandcleanenergydemands
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Iconsiderthatthemainbarrieristhelackofunderstandingandconsequentcommit-mentofthemaindecision-makerswhogenerallyarethoseauthoritiesrelatedtothepoliticalandeconomicfieldsandnottothewaterresourcesfieldThishappensevenwhentheglobalagendaandpublicdeclarationsshowwaterasapriorityOtherim-portantbarrieristhelackofinvolvementinwaterresourcesdecisionsofrepresenta-tivesofhealthsocialandproductivesectorssuchasagricultureenergyandindustryandevenofenvironmentalfieldsrelatedtoothernaturalresourcessuchassoilsforestsandfisheries
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
46
WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
47
WaterandaGreenEconomyinLAC
InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
48
WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
49
WaterandaGreenEconomy
Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
Ann
exes
51
WaterandaGreenEconomy
Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
Toensureprogressinthisareaitwouldbenecessarythestrengtheningofthegov-ernmentalareasresponsibleofwaterresourcesmanagementbythemselvesandbytheircloserelationshipwiththeothergovernmentalareasaswellasbyalong-termplanningwithinthedifferentareasofwatermanagementInterestingexamplesistheorganizationoftheNationalWaterResourcesManagementSystemofBrazilandtheplanneddevelopmentoftheWaterSupplyandSanitationservicesofChile
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
Giventhattheestablishmentofagreeneconomyimpliesprocessesofcapacitybuild-ingforthedevelopmentofnewtechnologiesparticulareffortsshouldbemadetoin-corporatethenecessarytoolsinthebasiceducationprogramsfortrainingofchildrenandtheupdatingplansforadultsinordertoreducethecurrentgapsinknowledgeoneofthemaincausesofsocialinequalities
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
Iwouldlikethatwaterissuesdeserveamoreimportantconsiderationthanin1992RioConferencebyrecognizingthevitalroleofwaterforothernaturalresourcesandtheenvironmentingeneralanditskeyroleinalltheproductiveprocessesandtheirso-cialimplicationsOntheotherhanditwouldbenecessarythatalltheactorsrelatedtoenvironmentalissuesunderstandthenecessityofgettingoutoftheldquoenvironmentboxrdquoandmakeespecialeffortstostronglycommittothemanyimportantdecision-makersactinginthepoliticalandeconomicfieldsinordertoworktogethertowardsasustainabledevelopment
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
47
WaterandaGreenEconomyinLAC
InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
48
WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
49
WaterandaGreenEconomy
Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
Ann
exes
51
WaterandaGreenEconomy
Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomyinLAC
InterviewwithMaureenBallesterosVargasPresidentofGlobalWaterPartnership(GWP)CostaRica
1 Whatisyourvisionofthegreeneconomyandoftheroleofwaterresourcesmanshyagementandutilizationinitscontext
Myapproachofaldquogreeneconomyrdquoisbasedontheneedofamoresustainablegrowthofcountriesinwhichthevalueofthenaturalresourcesandhumancapitalisrecog-nizedthisgrowthshouldgraduallycreateagreaterwelfareforallWaterisalinkerelementofdevelopmentandthereforeitisessentialforasustainedgrowthofacoun-tryThroughwaterasignificantincreaseinlevelsofinclusionofthepoorestintheeconomycanbeachievedAlsoanintegratedwaterresourcemanagementissup-portedbyanadjacentecosystemmanagement
2 WhatistheroleofwaterinthetransitiontoagreeneconomyinLatinAmericaandtheCaribbean
TheIWRMisavitalelementforeffectivegrowthhealthimprovementofthepopulationequitableaccesstowaterandsanitationandresourcesustainabilityforthefuturethroughtheprotectionofecosystems
3Whatarethemainprioritiesinimprovingwaterresourcesmanagementandutishylizationtomovetowardsagreeneconomy
ThereshouldbeprofoundinstitutionalreformsinLatinAmericathatwouldallowwatermanagementinstitutionstohaveabalancebetweendevelopmentandconservationandwheretheconceptofldquogreeneconomyrdquoistransversetotheworkandtasksoftheseinstitutions(GreenInstitutionalCulture)
InordertomakethesereformsinsomecasesitwillberequiredlegalchangeswhichweknowisoftendifficultinLatinAmericancountriesAlsotheissueoffundingisquiteimportantAllthesechangesmentionedrequireinvestmentresourcesthatcoun-triesarenotalwayswillingtoassign
4 Whatarethemainbarriersthatinhibitthisprocesstowardsintegratedwaterreshysourcesmanagementefficientequitableandsustainablewaterutilizationtotranshysitionintoagreeneconomy
Onebarrierwouldbethelackofpoliticalvisionofdecisionmakersonwheretodirectactions
AsecondissueisrelatedtopressuregroupsofcertaineconomicsectorswhichdonotallowchangestobemadeAlsoinmanyofourcountriesuntilafewyearsagotherewasnrsquotanypressureoverallocationandaccesstowaterasitexistsnowThusthereisanewjunctureinwhichcountriesdonotknowhowtorespondinaquickwayAndfinallythefourthissuedealswiththeallocatedfinancialresourcesinnationalbudg-etsWatermanagementusuallyhasaverylowpriorityandallthesechangesmen-tionedbeforerequireanimportantinvestmentindevelopingcountrieswheretherearealwaysotherurgentprioritiesThissituationdelaysinvestmentaimedatreform
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
48
WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
49
WaterandaGreenEconomy
Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
Ann
exes
51
WaterandaGreenEconomy
Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
5 WhichtoolsormeasuresdoyouthinkwouldbemosteffectivetoensureprogressinthisareaWhatarethemostinterestingorpromisingexamplesinthecountriesoftheregion
InitiallylegalreformsthatpromotestrongandresourcefulinstitutionsshouldbeseenaspriorityInordertoaccomplishthesereformswemustworkdirectlywithlegisla-torsAlsoaculturalchangemusttakeplacethroughgreatercitizenparticipationprocessestoraiseawarenessabouttheimportanceofwaterresourcesThebenefitsofappropriatewatermanagementshouldalsobeincludedonnationalaccountsIwouldmentionBrazilasasuccessfulexamplesinceitslegalreformsin1997thecre-ationoftheANAandthemanagementimprovementsmadesincethen
6TakingintoaccounttheseveresocialinequalitiesinLatinAmericaandtheCaribbeanandtherelativelylowlevelofeconomicdevelopmenthowcanwemakesurethatthetransitiontowardsagreeneconomyisldquoinclusiverdquocontributingtopovertyalleviationinsteadofaggravatinginequalities
WatermanagementprocessesarecompletelylinkedtonationalpolicyprocessesthereforedemocraticschemesstrengthenparticipationprocessesThusitwouldbeessentialthatcountriesrespondtomoreparticipatorydemocraciesAlsotheapproachofldquogreeneconomyrdquoandrelatedIWRMshouldnotbediscussedonlyonatechnicallevelitshouldalsotranscendtoapoliticallevelotherwiserequiredchangeswillnotbemade
7 WhatmessageswouldyouliketodelivertotheUnitedNationsConferenceonSusshytainableDevelopment(Rio+20)
a Wecannotcontinuetovisualizethegrowthofacountryorregionwithouttakingintoaccountthebalancethatmustexistbetweenthevarioussocialgroupseco-nomicsectorsandtheuseofnaturalresources
b Anefficientwatermanagementallowsthemaintenanceofhealthyecosystemsthereductionofpovertyandthegenerationofwealth
c Watersecurityunderstoodaseaseofaccessqualityandavailabilityfacilitatesde-velopmentmodels
dInordertomakethenecessarychangestowardsaldquogreeneconomyrdquoitisessentialtheparticipationofalldecisionmakers
WaterandaGreenEconomy
The
expe
rtrsquos
per
spec
tive
49
WaterandaGreenEconomy
Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
Ann
exes
51
WaterandaGreenEconomy
Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomy
Ann
exes
AnnexesAnnex1Toolsforchange
ThesetoolshavebeenidentifiedbytheUnitedNationsEnvironmentProgramme(UNEP)tosupportthechangetowardsagreenereconomyandwerecentralinthediscussionsandpresentationsheldintheZaragozaConference
Economicincentives
Thisreferstointroducingmarket-basedinstrumentssuchaspaymentofecosystemserv-icesconsumerdrivenaccreditationandcertificationschemesarrangementstosendeconomicsignals(includingtradingofwaterandoffsetschemes)reducinginputsubsi-diesincludingelectricityensuringthatincentivesandsubsidiesdonotconflictwithordamageothersectorsintroducingfinancialincentivesforsavingwaterpromotingtheuseofldquobestavailabletechnologyrdquostandardsinindustryreviewingwaterallocationmech-anismstomaximizethecontributionofwatertoeconomicgrowthprovidingeffectivepricesignalsandmoralandfinancialmotivationforchangesininfrastructureandtech-nologystandardssocialhabitsandattitudesandstandardbusinesspractices
Greenjobs
Inthegreeneconomyscenariothereareanumberofgovernanceandpolicyreformsnec-essaryaswellasnewinvestmentsAlloftheseaffectthetypesofjobsgeneratedaswelltheirquantityandqualityThereisanoverallneedtoimproveskillsandtraininginclud-ingthroughclosercoordinationbetweenthepublicsectorandprivatepartnerstoiden-tifyeducationandtrainingneedsLabourmarketandtrainingpoliciescanplayakeyroleinfacilitatingthestructuraladjustmentsassociatedwiththegreeneconomywhilemini-mizingtheassociatedsocialcosts
50
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
Ann
exes
51
WaterandaGreenEconomy
Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterintheGreenEconomyinPracticeTowardsRio+20
Watercostrecoveryandfinancing
ThisrelatestoimprovingwaterchargingandfinancearrangementsThisneedstoin-cludeimprovingaccesstofinancingforthepoorCrosssubsidizingofwaterusemaybeconsideredtofacilitateaccesstowaterservicesforthelow-incomegroupsEstablishingfinancingthatcreatesincentivesforeco-efficienttechnologieswouldsupporttechnologydevelopmentadaptationandadoptionFinancingisimportantfortheinvestmentsaimedatimprovingtheeffectivenessefficiencyandresilienceofwatersupplyandofwateruseThisincludesfinancingforobtainingmorevalueandcropperdropandreplacingwater-intensivecropsinvestinginreplacingandmaintainingoldinfrastructureimprovingirri-gation systems and decreasing wastage investing in sustainable agriculture andfreshwatersystemsFordevelopingcountriesinparticularfinancemaybeneededtoin-creaseagriculturalinvestmentininfrastructureforvalueadditionandtoreducewatertransmissionlossesinirrigationcanalsandotherwatersystemsFinanceisalsoneededtoimprovestorageandwaterqualityandforinvestinginhardinfrastructuresuchasdamstoprotectcurrentassetsatriskwheneconomicallyefficienttodosoanddeviseretrenchmentstrategiesforothercasesInfrastructuredevelopmentmusttakeintoac-counttheimpactsonwaterquantityandwaterqualitybiodiversityenergyandresourceefficiencyFinanceisalsoessentialforwaterresourcesmanagementinparticularforinvestingintheinstitutionsandmechanismsneededtoallocatewateramongcompetingdemandsinanequitableandsustainablemanner
Investmentsinprotectionandimprovementofbiodiversity
Investmentsinprotectionandimprovementofbiodiversitysuchasupperbasinmanage-mentprotectionandwetlandandforestrestorationwhenitiscost-effectiveforachievingwaterpolicytargetsGovernmentsareencouragedtoconsiderecologicalinfrastructureasoneofthetopprioritiesforpublicspendingbothintheirimmediateresponsestothecur-rentglobalfinancialcrisisandintheirregularnationalbudgetsInvestinginecologicalin-frastructureisimportantforallcountriesDevelopingeconomiesinparticulararehometohundredsofmillionsofpoorpeoplewhoselivelihoodsdependoncriticalecosystemservices
Promotionofwatertechnologies
GreentechnologieshavethepotentialtocreatenewbusinessopportunitiesandmarketscontributingtojobcreationThisincludescoolingmethodsforenergyplantsdesalinationwithwindenergyandchangestodripirrigationInnovationisakeydriverofproductiv-ityItrelatestobothtechnologicalandnon-technologicalapproachessuchasintegratedenvironmentalstrategiesresponsiblemanagementpracticeandnewbusinessmodels(suchaseco-efficiency)
WaterandaGreenEconomy
Ann
exes
51
WaterandaGreenEconomy
Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
WaterandaGreenEconomy
Ann
exes
WaterandaGreenEconomyinLAC
Annex2IssuespresentedfordiscussionattheZaragozaConference
Issues
Agriculture
Relevantissuesforthegreeneconomy
Waterandfoodsecurity
Improveefficiencyandnutritionperdrop
Improveefficienciesthroughthefoodvaluechain
Challengesforsmallfarmsinleastdevelopedcountries
Cities NoexcuseMDGsndashbasicwatersupplyandsanitationservices
Changesinwaterconsumptionpatternsincities(directandindirect)
Improveeffectivenessandqualityofurbanwatersupplyservices
Reduceexternalitiesofcitiestothewaterenvironment
Industry Changeproductionpatterns
Improveefficiencyandreducepollution
Promoteinnovation
Challengesforsmallandmediumcompaniesinleastdevelopedcountries
Watershedsandaquifers Scarcitymanagement
Climatechangeandextremeevents
Transboundarywaterresources
Protectionofbiodiversity
52
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries
UN-Water Decade Programmeon Advocacy and Communication(UNW-DPAC)Casa SolansAvenida Cataluntildea 6050014 Zaragoza SpainTel + 34 976 478 346Tel + 34 976 478 347Fax + 34 976 478 349water-decadeunorgwwwunorgwaterforlifedecade
ECLACAv Dag Hammarskjoumlld 34777630412 Vitacura Santiago ChilePostal Address Casilla 179-D Santiago de ChileTel (56-2) 210-2000 (56-2) 471-2000
International Decade for Action lsquoWater for Lifersquo 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 Na-tions 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
Economic Commission for Latin America and the Caribbean (ECLAC)ECLAC which is headquartered in Santiago Chile is one of the five regional commissions of the United Nations Its pur-pose 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 activi-ties 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 lsquoWater in the Green Economy in Practice Towards Rio+20rsquo and do not necessarily reflect the views of the United Nations Secretariat the United Nations Office to support the In-ternational Decade for Action (UNO-IDfA) lsquoWater for Lifersquo 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 lsquoWater for Lifersquo 2005-2015 or ECLAC concerning the legal status of any country territory city or area or of its authorities or concerning the delimitation of its frontiers or boundaries