Publication: The Economics of Water Scarcity in the Middle East and North Africa: Institutional Solutions
Loading...
Files
7,382 downloads
2,655 downloads
1,191 downloads
1,727 downloads
Published
2023-04-26
ISSN
Date
2023-03-27
Editor(s)
Abstract
Despite massive infrastructure investments, countries in the Middle East and North Africa (MENA) region continue to face unprecedented water scarcity due to climate change, population growth, and socioeconomic development. Current policy regimes for managing water across competing needs are primarily determined by state control of large infrastructure. Policy makers across the region understand the unsustainability of water allocations and that increasing investments in new infrastructure and technologies to increase water supply place a growing financial burden on governments. However, standard solutions for demand management—reallocating water to higher value uses, reducing waste, and increasing tariffs—pose difficult political dilemmas that, more often than not, are left unresolved. Without institutional reform, the region will likely remain in water distress even with increased financing for water sector infrastructure.The Economics of Water Scarcity in the Middle East and North Africa: Institutional Solutions confronts the persistence and severity of water scarcity in MENA. The report draws on the tools of public economics to address two crucial challenges facing states in MENA: lack of legitimacy and trust. Evidence from the World Values Survey shows that people in the region believe that a key role of government is to keep prices down and that governments are reluctant to raise tariffs because of the risk of widespread protests. Instead of avoiding the “politically sensitive” issue of water scarcity, this report argues that reform leaders and their external partners can reform national water institutions and draw on local political contestation to establish a new social contract. The crisis and emotive power of water in the region can be used to bolster legitimacy and trust and build a sustainable, inclusive, thriving economy that is resilient to climate change.
Link to Data Set
Citation
“de Waal, Dominick; Khemani, Stuti; Barone, Andrea; Borgomeo, Edoardo. 2023. The Economics of Water Scarcity in the Middle East and North Africa: Institutional Solutions. © World Bank. http://hdl.handle.net/10986/39594 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Making the Most of Scarcity : Accountability for Better Water Management Results in the Middle East and North Africa(Washington, DC, 2007)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 Making the Most of Scarcity : Accountability for Better Water Management in the Middle East and North Africa(World Bank, Washington, DC, 2009-06)Most of the Middle East and North Africa (MENA) cannot meet current water demand. Many countries face full-blown crises, and the situation is likely to get even worse. Estimates show that per capita water availability will be cut in half by 2050, with serious consequences for aquifers and natural hydrological systems. Demand for water supplies and irrigation services will change as economies grow and populations increase, with an attendant need to address industrial and urban pollution. Some 60 percent of the region's water flows across international borders, further complicating the resource management challenge. Rainfall patterns are predicted to shift as a result of climate change. The social, economic, and budgetary consequences of these challenges are enormous. The supply of drinking water could become more erratic, necessitating greater reliance on expensive desalination technologies, and increasing drought would require emergency supplies brought by tanker or barge. Service outages would put stress on expensive network and distribution infrastructure. Unreliable sources of irrigation water would depress farmer incomes, economic and physical dislocation would increase with the depletion of aquifers and unreliability of supplies, and local conflicts could intensify. All of this would have short- and long-term effects on economic growth and poverty, exacerbate social tensions within and between communities, and put increasing pressure on public budgets.Publication Turbulent Waters(World Bank, Washington, DC, 2017-03-14)Water insecurity—ranging from chronic water scarcity to lack of access to safe drinking water and sanitation services, to hydrological uncertainty and extremes (floods and droughts)—can cause severe disruptions and compound fragilities in social, economic, and environmental systems. Untangling the role of water insecurity in contributing to fragility is difficult, yet it is becoming a fundamental question for water policy worldwide given the scale of the fragility challenge. This report explores the dynamics between water insecurity and fragility. It suggests that water security is more difficult to achieve in fragile contexts because of a range of factors, including weak institutions and information systems, strained human and financial resources, and degraded infrastructure. This report focuses on three main mechanisms by which water insecurity and fragility interact: (1) failure to provide citizens with basic water services; (2) failure to protect citizens from water-related disasters; and (3) failure to preserve surface, ground and transboundary water resources.Publication The Water-Energy-Food Nexus in the Middle East and North Africa(World Bank, Washington, DC, 2018-06)Water, energy, and agriculture have been conventionally dealt with separately in investment planning. For each of these sectors, regulatory frameworks, organizations, and infrastructures have been put in place to address sector-specific challenges and demands. As the Middle East and North Africa works towards building a more sustainable future, a nexus approach that considers the risks and synergies among these sectors is needed. To demonstrate the added value of a nexus approach, this report applies scenario analysis and integrated assessment modelling of the water-energy-food nexus to the Middle East and North Africa. The analysis finds that water scarcity increases in all countries in the region over the coming decades, mostly due to growing demands. More importantly, the analysis finds that many countries in the region could run out of fossil groundwater by 2050 unless measures to curb unsustainable abstraction are implemented. The impacts of growing scarcity on agriculture are significant, with production projected to drop by 60 by 2050 in some countries. On the upside, reducing the dependence of the agricultural and energy sectors on water and transitioning to renewable energies can reduce water scarcity, at the same time reducing greenhouse gas emissions. This report is targeted to policy makers, the academic community, and a wider global audience interested in exploring the interactions between water, agriculture, and energy.Publication The Cost of Environmental Degradation : Case Studies from the Middle East and North Africa(World Bank, 2010-08-01)Environmental degradation is costly, to individuals, to societies, and to the environment. This book, edited by Lelia Croitoru and Maria Sarraf, makes these costs clear by examining a number of studies carried out over the past few years by the World Bank's Middle East and North Africa region. Even more important than estimating the monetary cost of environmental degradation (COED), however, are the clear guidance and policy implications derived from these findings. This volume presents a new approach to estimating the impacts of environmental degradation. In the past, when government officials asked researchers the simple question how large are the impacts of environmental degradation? The response was often an emphatic 'large!' a rather imprecise number. The strength of this work is that it actually quantifies in economic terms how large is 'large' and thereby gains the attention of decision makers and offers specific insights for improved policy making. Finally, this book demonstrates the benefits of doing a coordinated, regional COED analysis that builds on the country-level studies. This two-tiered approach produces important synergies, in terms of both the methodologies used and the lessons learned.
Users also downloaded
Showing related downloaded files
Publication Repurposing Agricultural Policies and Support(The World Bank and IFPRI , 2022-01-24)The report finds that repurposing a portion of government spending on agriculture each year to develop and disseminate more emission-efficient technologies for crops and livestock could reduce overall emissions from agriculture by more than 40 percent. Meanwhile, millions of hectares of land could be restored to natural habitats. The economic payoffs to this type of repurposing would be large. Redirecting about $70 billion a year, equivalent to one percent of global agricultural output, would yield a net benefit of over $2 trillion in 20 years.Publication Western Balkans 6 Country Climate and Development Report(Washington, DC: World Bank Group, 2024-07-16)This Regional Western Balkans Countries Climate and Development Report (CCDR) stands out in several ways. In a region that often lacks cohesive regional alliances, this report emphasizes how the challenges faced across countries are often common and interconnected, and, importantly, that climate action requires coordination on multiple fronts. Simultaneously, it illustrates the differences across countries, places, and people that require targeted strategies and interventions. This report demonstrates how shocks and stressors re intensifying and how investments in adaptation could bring significant benefits in the form of avoided losses, accelerated economic potential, and amplified social and economic spillovers. Given the region’s high emission and energy intensity and the limitations of its current fossil fuel-based development model, the report articulates a path to greener and more resilient growth, a path that is more consistent with the aspiration of accession to the EU. The report finds that the net zero transition can be undertaken without compromising the economic potential of the Western Balkans and that it could lead to higher growth than under the Reference Scenario (RS) with appropriate structural reforms.Publication The Economic Case for Nature(World Bank, Washington, DC, 2021-06-29)The Economic Case for Nature is part of a series of papers by the World Bank that lays out the economic rationale for investing in nature and recognizes how economies rely on nature for services that are largely underpriced. This report presents a first-of-its-kind global integrated ecosystem-economy modelling exercise to assess economic policy responses to the global biodiversity crisis. Modeling the interaction between nature’s services and the global economy to 2030, the report points to a range and combination of policy scenarios available to reduce the impact of nature’s loss on economies. This modeling framework represents an important steppingstone towards ‘nature-smart’ decision-making, as it seeks to support policymakers who face complex tradeoffs involving the management of natural capital, and hence achieving growth that is resilient and inclusive.