Based on the country studies and as a result of discussions, the Consultation concluded that although there are many similarities among the policy issues and challenges faced by the countries of the Region, it was also evident that there are differences in country-specific requirements. The meeting nevertheless identified several factors common to most of the participating countries, relating to increasing water scarcity, and to national and regional water and food security as a priority requirement for socio-economic stability in the region as the consequence of increasing awareness of the need to preserve the water resource base.
The meeting discussed and acknowledged the linkages between water policy and macro-economic policy reform (e.g., fiscal policy, exchange rates, taxation, investment and institutions) and micro-economic linkages with the impact of distortions on water use efficiencies and management at the farm and household level. Inadequate macro-economic and sectoral policy creates failures and distortions in market signals that have adverse effects and lead to overuse and degradation of water resources. The reforms needed included privatization and the inclusion of water costs in the pricing of the products. The importance of equity and the need for support to targeted poor groups to mitigate the social impact of the reform was emphasized. Based on these aspects, and on the issues related to national water security and its linkages with national water policy, the cost of water and its allocation to different demands was becoming an important objective of the countries in the region.
There remained a general interest in maintaining agricultural production to preserve the environment, traditional cultural rural systems, and societies in rural areas. In general, the countries in the region had also taken steps to establish and streamline their water administrations as part of adjustments of government structures; organize water users; and enhance awareness of water conservation and use efficiency. With the priority need to address overuse and degradation of groundwater resources - initially through regulation and enhanced awareness and education - the countries envisaged gradual introduction of water pricing or water service costing, which would also address the issue of water scarcity. Responsibilities for investments and operation of water resources infrastructure and provision of water services were increasingly being transferred to the users and the private sector, with decentralized decision making at district and community level and with government assuming responsibility for policy development, legislation, monitoring and control.
Water pricing for water conservation was considered to be becoming an increasingly important instrument, with options for block tariffs and shifting of water subsidies to well targeted, direct support and output price support. An integrated approach including regulation was often more effective. The importance of adequate land and water tenure systems was emphasized.
With changing objectives, there was a priority need for methodologies in adjusting government and private sector structures. It was noted that, in some countries, assessment of available water supplies had remained unchanged for more than 20 years and there was an urgent need to provide more up-to-date information on which to base plans. In particular, there was the need to agree on how to assess renewable and non-renewable groundwater resources for assessment of the supply-demand balance of the countries in the region. Some countries had adopted policies of ‘safe mining limits’ for utilization of important, fossil, non-renewable groundwater that would secure the supplies over a long period - 50-100 years.
Conjunctive use of soil moisture, surface water, including water harvesting practices, and groundwater was being adopted in several countries as an effective approach to water conservation and efficient utilization.
Regional cooperation should be promoted drawing upon the resources of the different countries for sustainable development in the region. The options for regional cooperation included joint agricultural investment for water resources development based on natural resources availability and comparative advantages. There was, however, a general agreement that regional and bilateral cooperation need to be based on specific, well assessed programmes, with clear indications of the losses and the gains of the participants and appropriate compensation criteria to be used.
To strengthen regional cooperation, it should initially be focused on areas such as information exchange, policy harmonization, capacity building and human resources development. It was also noted that, in relation to abandoning subsidies and treating water as an economic commodity, there was room for local approaches in different countries.
