Publication:
The Institutional Economics of Water : A Cross-Country Analysis of Institutions and Performance

Loading...
Thumbnail Image
Files in English
English PDF (2.44 MB)
3,214 downloads
English Text (1.17 MB)
888 downloads
Date
2004
ISSN
Published
2004
Editor(s)
Abstract
This book provides a detailed and comprehensive evaluation of water reform and water sector performance from the perspectives of institutional economics and political economy. It integrates institutional theory with resource economics, and set against an exhaustive review of the theoretical and empirical literature, the authors develop an alternative methodology to quantitatively assess the performance of institutions in the context of water. This methodology is built on the principle of 'institutional ecology', the 'institutional decomposition and analysis' framework, and the 'subjective theory' of institutional change. Using this new methodology, plus information collected through an international survey of 127 water experts, the authors present a detailed empirical analysis of the process of institution-performance interaction in the water sector. Relying on the institutional transaction cost approach and an extensive cross-country review of recent water sector reforms, they also provide evidence on the relative role of various factors that influence the extent and depth of water institutional reforms in 43 countries and regions around the world. The book concludes with far reaching implications for the theory and policy of water sector reform in particular and institutional reform in general.
Link to Data Set
Citation
Saleth, R. Maria; Dinar, Ariel. 2004. The Institutional Economics of Water : A Cross-Country Analysis of Institutions and Performance. © World Bank. http://hdl.handle.net/10986/14884 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Towards a Strategic Analysis of Water Resources Investments in Kenya : Hydrological, Economic, and Institutional Assessment for Storage Development
    (Washington, DC, 2011-06-30) World Bank
    The objective of this study was to advance the process of prioritizing water storage investments that could reduce water stress in economically important areas. The specific objectives of the study were to (i) outline a comprehensive framework for screening of potential storage sites; (ii) identify important water stressed areas through an updated water balance; (iii) assess alternative multipurpose water storage projects through physical, hydrological and economic criteria; and (iv) analyze institutional and financing aspects of water resources development in Kenya to identify capacity and knowledge inadequacies. The study focused on identifying viable surface water storage projects to increase water supply reliability and mitigate the effects of common multi-year droughts. No new estimates of groundwater resources were made, though they were considered in quantifying overall water availability. The scope of the study was limited to an initial screening of infrastructure options that will increase the reliability of water supply. The state of water service delivery was not assessed as it was outside the scope of this study.
  • Publication
    Making the Most of Scarcity : Accountability for Better Water Management Results in the Middle East and North Africa
    (Washington, DC, 2007) World Bank
    Water -- the resource itself as well as the irrigation and water supply services derived from it is important for every country. It is fundamental to human health, wellbeing, productivity, and livelihoods. It is also essential for the long-term sustainability of ecosystems. Here, in the Middle East and North Africa (MENA) region, the most water-scarce region of the world, good water management matters even more than it does elsewhere. The report suggests that MENA can meet its water management challenge. People have a very real need for water for drinking and for household uses. This domestic use, however, accounts for less than ten percent of a typical country's water consumption. Every country in the region has enough water resources to meet domestic needs, even accounting for the larger populations expected in the future. And policy decisions can help improve the way drinking water and sanitation services are delivered so that people get the services they need. The bulk of a typical country's water consumption goes to agriculture. This demand depends on such factors as the structure of the economy, people's consumption preferences, agriculture and trade policies, and how efficiently water is used. These factors can be influenced by policy choices. Similarly, countries can protect their environmental quality with policy and institutional choices. The necessary policy changes are far from easy. Yet they are essential, and, when coupled with improvements in accountability to the public, water resources and services will support communities and promote economic development and bring benefits to the entire population.
  • Publication
    A Water Sector Assessment Report on the Countries of the Cooperation Council of the Arab States of the Gulf
    (Washington, DC, 2005-03) World Bank
    The main objective of the Water Sector Review in the member countries the Cooperation Council of the Arab States of the Gulf (GCC) is to (1) conduct a diagnosis of the current situation of the water sector, identify issues in the GCC region, evaluate the GCC governments' current water policies, and propose recommendations for improved Integrated Water Resources Management (IWRM) in Phase I of the study; (2) present key findings and recommendations at the GCC Water Conference in Bahrain, September 19-20, 2005, where Government officials, academic specialists and technical experts from the region would provide inputs to this study; and (3) if amenable to the GCC governments, conduct Phase II of the study to develop specific policies and action plans for more sustainable water resources management in individual GCC states.
  • Publication
    The Hashemite Kingdom of Jordan : Water Sector Review Update, Main Report
    (Washington, DC, 2001-02-15) World Bank
    The Ministry of Water and Irrigation, Hashemite Kingdom of Jordan, invited the Bank to assist in updating the Water Sector Review of 1997 as an input into the formulation of a five-year action plan for the water sector. Jordan faces three critical challenges: a) the resource challenge, b) the financing challenge, and c) the institutional challenge. In terms of resource challenge, the challenge of water deficits is compounded by the need to ensure water quality and environmental protection. A systematic action plan for reuse of treated wastewater needs to be formulated in view of the projected increase in the quantity of treated wastewater available for use in the Jordan Valley. In terms of financial challenge, Jordan will have to redouble its efforts at generating significant additional operating income from drinking water supply and irrigation services. Urban water and irrigation tariffs have not increased since 1997. Urgent action is needed on tariffs to ensure full recovery of operating costs and periodic adjustments for inflation. Self-financing of water supply and irrigation services must be a high priority. In terms of institutional challenge, reforming the Water Authority of Jordan and Jordan Valley Authority to focus on essential strategic and bulk water management tasks while divesting retail water services to user or private sector entities is a high priority.
  • Publication
    Institutional and Policy Analysis of River Basin Management : The Gudalquivir River Basin, Spain
    (World Bank, Washington, DC, 2005-02) Blomquist, William; Giansante, Consuelo; Bhat, Anjali; Kemper, Karin
    The authors describe and analyze river basin management in the Guadalquivir River Basin in Spain. The Guadalquivir river flows westerly across southern Spain, with nearly all of its 57,017 k

Users also downloaded

Showing related downloaded files

  • Publication
    Reforming Agricultural Trade for Developing Countries : Volume 2. Quantifyng the Impact of Multilateral Trade Reform
    (Washington, DC: World Bank, 2007) McCalla, Alex F.; Nash, John; McCalla, Alex F.; Nash, John
    Reforming agricultural trade for developing countries is a two-volume set. The first volume is subtitled Key issues for a pro- development outcome of the Doha Round, and it is focused on specific concerns that are being encountered in the agricultural negotiations, and on strategies for dealing with them to arrive at a final agreement that will significantly spur growth and reduce poverty in developing countries. The companion volume is subtitled Quantifying the impact of multilateral trade reform. It comprises chapters that take different approaches to modeling trade reform and quantifying the resulting benefits and costs to various players in the negotiations. The study explains the differences in results that come out of these different approaches, and compares them to some other recent estimates of the gains from global trade reform.
  • Publication
    Analyzing Food Security Using Household Survey Data : Streamlined Analysis with ADePT Software
    (Washington, DC: World Bank, 2014-04-22) Moltedo, Ana; Troubat, Nathalie; Lokshin, Michael; Sajaia, Zurab; Moltedo, Ana; Troubat, Nathalie; Lokshin, Michael; Sajaia, Zurab
    Since the end of the Second World War, the international community has been focusing on reducing the number and the proportion of people who suffer from hunger. Over time it became clear that no single indicator would provide a comprehensive picture of the food security situation. Rather, a suite of indicators is necessary to describe food insecurity in all its dimensions. The demand for evidence-based policies, which brings together providers such as statistical offices and users of food security indicators including policy makers and researchers, has also been increasing. The stand-alone software, ADePT-Food Security Module (available for free downloading), was developed to produce food security indicators from food consumption data collected in household surveys. These indicators, derived at the national and subnational levels, include the consumption of calories and macronutrients, the availability of micronutrients and amino acids, the distribution of calories and the proportion of people undernourished. The book focuses on the theory, methodology, and analysis of these indicators. It has five chapters beginning with a brief overview on concepts of food security. The theory and methodology are further described in the following chapter. To help users with the interpretation of the results some examples are given in chapter 3. Chapter 4 of the book provides guidelines for the preparation of the input datasets. Finally, chapter 5 explains how to use the software. Both the software and this book are products of decades of experience in analyzing food security. This project was made possible through collaboration between FAO and the World Bank, with financial support from the European Union.
  • Publication
    Agribusiness and Innovation Systems in Africa
    (World Bank, 2009) Kim, Ronald; Larsen, Kurt; Theus, Florian
    The role of agriculture in sustainable development and poverty reduction for the vast majority of developing countries cannot be overemphasized. Forty-five percent of the developing world's population lives in households involved in agriculture, and twenty-seven percent in smallholder households, and most depend on agriculture for their livelihoods. The agricultural sector generates on average twenty-nine percent of gross domestic product (GDP), employs sixty-five percent of the labor force in agriculture-based countries, and is a key to generating overall growth. This book attempts to address these questions and challenges, by examining how agricultural innovation arises in four African countries, Ghana, Kenya, Tanzania, and Uganda, through agribusiness, public policies, and specific value chains for food staples, high value products, and livestock. Determinants of innovation are not viewed individually but within the context of a complex agricultural innovation system (AIS) involving many actors and interactions. The country reports are based on qualitative interviews with agribusiness representatives about their experiences in this area. The synthesis chapter preceding the country reports presents the main findings of the country reports, links common themes, and distills lessons learned.
  • Publication
    Managing the Marine and Coastal Environment of Sub-Saharan Africa : Strategic Directions for Sustainable Development
    (Washington, DC: World Bank, 2002-07) Hewawasam, Indu
    The trends toward ecosystem degradation and social change are affecting coastal areas around the world, not least in Sub-Saharan Africa. The crisis affecting this region's coastal and marine areas requires an urgent and resolute response from the global community. This report details the challenges facing coastal and marine environments in Sub-Saharan Africa. It describes the World Bank's strategy for supporting sustainable development in the sector, while stressing an integrated approach to coastal management in Sub-Saharan Africa, which will be strategic in design, with both traditional investments in fisheries, or coastal biodiversity, and creative interventions for making large-scale investments in infrastructure, or water "coastal friendly", to avert impacts, while bringing tangible benefits to coastal populations, and ecosystems.
  • Publication
    Gender and Governance in Rural Services : Insights from India, Ghana, and Ethiopia
    (World Bank, 2010) World Bank
    As the first output from the gender and governance in rural services project, this report presents descriptive findings and qualitative analysis of accountability mechanisms in agricultural extension and rural water supply in India, Ghana, and Ethiopia, paying specific attention to gender responsiveness. The gender and governance in rural services project seeks to generate policy-relevant knowledge on strategies to improve agricultural and rural service delivery, with a focus on providing more equitable access to these services, especially for women. The project focuses on agricultural extension, as an example of an agricultural service, and drinking water, as an example of rural service that is not directly related to agriculture but is of high relevance for rural women. A main goal of this project was to generate empirical micro level evidence about the ways various accountability mechanisms for agricultural and rural service provision work in practice and to identify factors that influence the suitability of different governance reform strategies that aim to make service provision more gender responsive. Three out of four poor people in the developing world live in rural areas, and most of them depend directly or indirectly on agriculture for their livelihoods. Providing economic services, such as agricultural extension, is essential to using agriculture for development. At the same time, the rural poor need a range of basic services, such as drinking water, education, and health services. Such services are difficult to provide in rural areas because they are subject to the "triple challenge" of market, state, and community failure. As a result of market failure, the private sector does not provide these services to the rural poor to the extent that is desirable from society's point of view. The state is not very effective in providing these services either, because these services have to be provided every day throughout the country, even in remote areas, and because they require discretion and cannot easily be standardized, especially if they are demand driven. Nongovernmental organizations (NGOs) and communities themselves are interesting alternative providers of these services, but they too can fail, because of capacity constraints and local elite capture. This triple challenge of market, state, and community failure results in the poor provision of agricultural and rural services, a major obstacle to agricultural and rural development.