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Water Supply and Management:
An APEC-wide Foresight Project

The Issues Paper for the APEC Center for Technology Foresight Research Study on Water Supply and Management was prepared by:

Professor Ron Johnston
Executive Director
Australian Center for Innovation and International Competitiveness
University of Sydney
New South Wales 2006
Australia

Table of Contents (Click here to download Issues Paper)

Section 1

Introduction

Section 2

Key Issues and Policy Options in Water Supply and Management

 

1. Key Issues

 

2. Some Policy Options

Section 3

THE SUPPLY, MANAGEMENT AND USE OF THE WORLD’S  WATER RESOURCES

 

1. Water Availability

 

2. Water Issues

 

3. Water Scarcity

 

4. Human Induced Stresses

 

5. Human Health Risks Due to Water Problems

 

6. Stress on Land Resources

 

7.  Water Challenges  A Look to the Future

Section 4

PROSPECTS FOR DESALINATION TECHNOLOGY

 

Some Useful Key Web Sites



KEY ISSUES AND POLICY OPTIONS IN WATER SUPPLY AND MANAGEMENT

 1.KEY ISSUES
The Water Resources Section of ESCAP has identified 13 emerging issues in water resources in the Asia-Pacific Region:

  • Water resources assessment
  • Integration of water resources development into national policy, plans and programs for economic and social development
  • Integrated water resources development and management
  • Protection of water resources, water quality and aquatic ecosystems
  • River basin development and management
  • Water for sustainable urban development
  • Water for sustainable rural development
  • Promotion of infrastructure development and investment for drinking water supply and sanitation
  • Water pricing and promotion of private investment in the water sector
  • Water demand management, water saving and economic use of water
  • Promotion of women’s role in water supply and sanitation
  • Mitigation of water-related natural disasters, particularly flood loss reduction
  • Improvement in land-use planning and practices for disaster reduction and watershed management.

These, together with further analysis, provide the basis for twelve key issues identified in Water Supply and Management in the APEC region for the purposes of the APEC Technology Foresight Expert’s Workshop.

1.Water Quantity
The supply of freshwater in a region is limited by the dynamics of the hydrological cycle. The renewable supply of water is determined by the surface runoff from local precipitation, the inflow from other regions, and the groundwater recharge that replenishes aquifers. As water can, in principle, be re-used many times, the availability of water for human use depends as much on how it is used and how water resources are managed, as on any absolute limits. Apart from human use, water is also needed to sustain the natural ecosystems found in wetlands, rivers, and the coastal waters into which they flow.

Based on the data that about 42,700 cubic kilometres of water that falls on the Earth flows through river systems, it is estimated that about 9,000 cubic kilometres per year are readily accessible for human use, plus a further 3,500 cubic kilometres that is captured and stored by dams and reservoirs.

However fresh water resources are very unevenly distributed, and subject to substantial cyclic variation. Thus, within the APEC region, the countries in tropical regions are normally subject to very high rainfall, and availability is largely determined by capture. However, the most recent El Nino cycle has demonstrated that even these countries can be subject to severe limitations of rainfall. At the other extreme, countries such as the USA (western region), China (northwest) and Australia (all except southeast), have normally very low rainfall, and hence have to concentrate on the effective use of the limited available resource.

What are the prospects for increasing the total water available for human and environmental use by improved capture, storage and usage?

2. Water Demand
Despite recent improvements in the efficiency of water use in many developed countries, the demand for water has continued to rise as the world’s population and economic activity has increased. From 1940 to 1990, withdrawals of freshwater have increased by more than a factor of four, more than double the rate of population growth. Current total human usage is about half of the total available water identified above. With a 50% increase of the total world population forecast for the next twenty-five years, this alone unchanged would approach the limit of water availability.

One important consequence of the growing demand is the increasing reliance on essentially non-renewable water resources in the form of groundwater.

The uneven distribution of water resources has already led to this stage of scarcity in a number of regions. There is an accepted benchmark of 1000 cubic metres per capita per year to avoid chronic water scarcity on a scale sufficient to impede economic development and harm human health. Twenty countries have already fallen below this level, mostly in Africa and Western Asia. However it is worth noting that Israel supports its population, its growing industrial base and extensive irrigation with less than 500 cubic metres per person per year.

Irrigated agriculture takes about 70% of water withdrawals, rising to 90% in the dry tropics. In total, agriculture consumes 87% of total water. Industry is also a growing user of water. Traditional manufacturing industries such as textiles, food production, and chemicals, as well as power production and mining, consume large quantities of water, but largely in localised operations. The newer industries, such as electronics, much of the production of which has been established in developing and emerging economies, are also critically dependent on a reliable water supply.

What are the prospects for limiting the growth in the demand on water resources through demand management of general water consumption, and significantly increased efficiencies in agricultural and industrial use?

3.Water Quality
Contamination by pollutants has seriously degraded water quality in many rivers, lakes and groundwater sources, effectively reducing the supply of freshwater for human use. While the increase in population alone has increased the challenges to water management, particularly in the area of sanitation, the greatest threats are from a wide variety of industrial, municipal and agricultural sources. While there has been significant progress in developed nations over the past 30 years in controlling water pollution, it has continued to rise in most developing nations and in transition economies.

One important factor is the rapidly growing and industrialising cities of the developing world, where pollution control is still in its infancy and domestic sewage and industrial effluence have left many urban rivers and groundwater sources heavily contaminated. This widening penumbra of pollution around the ‘mega-cities’ exacerbates the problem of extending minimal freshwater and sanitation services to the residents, many of whom live in considerable poverty.

The nature of pollution problems vary by region, but include bacterial pollution, largely through inadequate sanitation (it is estimated that 90% of wastewater is discharged without treatment in the developing countries), algal blooms fertilised by the phosphorus and nitrogen contained in human and animal wastes, detergents and fertilisers, chemicals, heavy metals, salinity caused by widespread and inefficient irrigation, and high sediment loads resulting from upstream erosion resulting from deforestation.

What range of measures, technologies, and management regimes are in prospect to improve water quality?

4. Current Water Technologies
A range of technologies is currently available for water supply and management. They include:

  • detection and access - largely drilling supply bores into groundwater
  • capture and storage - dams, etc.; loss reduction, quality management of stored  water
  • distribution infrastructure - pipeline construction and maintenance, leakage detection and control
  • wastewater treatment - biological, chemical, recycling
  • irrigation - supply, application, monitoring
  • sanitation - variety of filtration and purification techniques and processes, centralised and decentralised

What are the potential and likely incremental and radical innovations in these technologies?

5. Water and Economic Development
Water is an essential input or infrastructure resource to much agriculture, energy production, industrial manufacture, mining, water transport, and water recreation industries. The increasing pressures of international competition, and the emergence of newly industrialising economies, are producing ever increasing demands for the supply and management of this commodity. The availability of this commodity is a very real limit-to-growth upon economies.

This is leading to conflict over usage priorities for human direct consumption and sanitation needs, agricultural (particularly irrigation) and industrial demands, and the environmental requirements of a healthy functioning of water-reliant ecosystems. It is now recognised that this is not important only for ethical or ‘visual amenity’ reasons, but also because ecosystem health underpins the production of food, the reduction of flood risk, and ‘natural’ filtration of contaminants.

In addition, inappropriate or inefficient use and management of water is having directly deleterious effects upon these systems of production. Thus excessive or inappropriate irrigation is a primary cause of salination, leading to enormous degradation of land resources. Polluted runoff can have a very damaging effect on marine resources, including fishing, both directly and through producing the conditions for algal blooms and ‘red tide’. Contaminants can render water unusable for manufacturing use, as in for example the food industry, and in extreme circumstances, even for cooling purposes.

What advances are in prospect to substantially improve the efficiency, effectiveness, and output quality and recycling of water in economic usage?

6. Water and Economic Policy
Water is often wasted because it is under-priced. There is a need for a widespread understanding of water as an economic as well as a social good. The cost of using or miss-using water is paid either by the user, by the community at large, or, commonly, by a depletion of the existing ‘natural capital’. As water demand continues to increase, it becomes ever more important to see that it is directed to high-valued economic or social uses.

Thus, a removal of the direct and indirect subsidies, especially for agricultural use, currently operating in many countries, would provide an incentive for more effective use, for conservation, and for the investment in and diffusion of more effective technologies and systems. Allocation of water rights not on a historical basis, but amore transparent market or administrative system based on full cost accounting and benefit analyses, can substantially reduce distortions and inefficiencies.

This points the way for governments at national, provincial and municipal levels to shift progressively away from being a provider of water services to being the creator and regulator of an environment that allows communities, the private sector, and non-governmental organisations to engage in the supply of water and sanitation services. The introduction of water pricing and market mechanisms can encourage the private sector to apply financial and management resources towards more effective water supply and management service delivery.

What are the most appropriate economic mechanisms to encourage more effective and efficient water supply and management?

7. Water and Environment
As indicated in the section on water quality, there is an increasing need, demand, and drive to develop policies and mechanisms to improve both the availability and quality of water supply through control of pollution, and the harmful effects of water mis-use and -management on land resources.

The importance of maintaining an adequate supply of water to maintain the health of rivers has already been mentioned. In addition, there is a growing concern about the negative consequences and economic balance of dam construction and river impedance as a mechanism to increase water supply. Strong opposition, largely on environmental and, to some extent, wilderness protection grounds, have emerged in a number of, particularly industrialised, countries.

Wastewater disposal is another major environmental issue, with different considerations being applied to urban, rural, industrial and mining outputs. The problem is at its greatest, and most visible, in the environment, where the consequences of inadequate treatment and disposal systems have become increasingly obvious. However, some more far-reaching and ultimately more damaging consequences may be associated with a long history of inattention to rural waste disposal.

Substantial progress has been made in recent years in dramatically improving best practice in waste disposal levels in both manufacturing industry and mining, particularly through the concept of ‘total containment’. These have been achieved by a mix of regulation and market competition. However there is enormous scope for the diffusion and further development of these waste-reducing practices.

What are the technologies, practices and procedures that can be developed and applied to most effectively improve the environmental quality of water supply and use?

8. Water and Human Health
Water represents an enormous potential threat to human health. It was only about 150 years ago that the crucial role of the provision of clean water and effective sanitation was recognised as the basis for effective public health. Since then there have been great advances, and the industrialised countries have largely enjoyed a century of freedom from the threat of water-borne diseases.

However that situation is changing, with population growth, and the decline of public investment in infrastructure. It was never the case in the economically less-developed countries. WHO estimates (see Section 3 for more detail) that more than five million people die each year from diseases caused by unsafe drinking water and a lack of sanitation, and water for hygiene. An estimated one-half of the population of developing countries suffers from water-associated diseases caused either directly by infection through the consumption of contaminated water, or indirectly, by water dependent disease carrying organisms. Improved water and sanitation can reduce morbidity and mortality rates of some of the most serious of these diseases by 20-80%.

Global progress has been poor since 1990. Approximately one billion people lack safe water and more than two billion do not have adequate sanitation. Rapid population growth and lagging investment have left more people without access to basic sanitation today than in 1990. It is estimated that to achieve the objective of ‘universal coverage’ by the year 2000 would require an investment of US$50 billion per year, five times the current level.

What are the prospects for, and the most appropriate mechanisms to achieve dramatic improvements in water-dependent aspects of human health?

9. Water Resource Assessment
A critical element in more effective water supply and management is more effective policy and planning, based on accurate information on the state (quantity and quality, stocks and flows, usage patterns, hydrological and demographic data, information on forestry and land management, etc.) of water resources.

 The capability to provide accurate water quantity and quality data, and to interpret it, is lacking in many countries. Few, if any developing countries have a significant capability in water quality monitoring, which would provide important health-related information. Data on water resource management, irrigation, land degradation, and environmental quality are generally sparse and poor.

Moreover, there is evidence that this capability is in decline. In many industrialised nations, the pressures of competitiveness policies, privatisation, and shrinking public sector budgets, have seen a cutback in what are perceived ‘public good’ activities such as hydrological measurement, observing networks, and consequently in expert staffing. In the developing countries, the pressures of economic development have reduced such long-term approaches to the lowest priority.

What range of measures and techniques might be developed and put in place to maintain and improve water resource assessment?

10. Integrated Water Resource Management
A crucial component of an effective approach to addressing the challenges identified above, and to improve water supply and management is through an approach based on integrated water resource management. Such an approach rests on integrating, and effectively coordination, policies, programs and practices addressing the issues identified above.

Such an approach will need to include issues such as the efficiency of water use, long-term resource protection, the economic effects of deterioration in water quality, national, or where appropriate, river basin-based management of groundwater and wastewater, and data collection and model development.

In addition, it needs to be recognised that it is no longer adequate to treat water problems as, essentially, a local issue. Even when comprehensive water management plans have been devised, many developing countries lack the financial, managerial and political capacity to implement them. In developed countries, it is not uncommon that interest-based opposition to ending subsidies or implementing a regime, which includes wider considerations, undermines the political will for change.

What are, and will be, the essential elements in the development and implementation of integrated water resource management?

11. Geopolitics and International Law of Water
About 300 major river basins, and many groundwater aquifers cross national boundaries. The potential for conflict, as scarcity, and the economic value of water grows, is considerable. While regional and international legal mechanisms can reduce water-related tensions these mechanisms have never received much support. Indeed existing international water law may be unable to handle the strain of future problems.

Under conditions of conflict water resources may become economic or military goals in the same way that oil has been in the past. Water resource systems could be military targets; in addition water resources can in fact be used as military means given the ability to control the flow of water to another nation.

Riparian countries will need to develop mechanisms for cooperation over the development and management of trans-boundary water sources. It would seem appropriate to develop processes for negotiation and non-violent resolution of these differences.

 What are possible scenarios for water based conflict and how might they best be avoided or resolved?

12. New Technologies
There is a considerable range of new technologies either presently under development, or that could emerge over the next ten years, which could make a substantial contribution to the many challenges to effective water supply and management. While a comprehensive list would be impossible to generate, prominent candidates might include:

  • greater use and re-use of waste water for appropriate domestic, rural and industrial applications more efficient delivery and application of irrigation water
  • lower water requirement crops
  • reduced evaporation
  • non-water based sanitation disposal
  • desalination
  • technologies of demand management
  • new plant nutrition systems
  • new cropping patterns
  • water harvesting
  • inland valley swamp development
  • low-lift pump schemes
  • peri-urban irrigation with treated urban wastewater
  • bio-solid management and disposal
  • application of smart technologies and intelligent systems to urban and domestic water use
  • closed cycle industrial water usage systems.

What is the potential for the development, refinement and enhancement of new and improved technologies to address the major issues of water supply and management?



 2.SOME POLICY OPTIONS

A useful approach to distinguish the different needs and policy options of different countries is offered by this analysis according to the following four broad categories:

1. High-income countries with low water stress
The main problem of these countries is water pollution rather than supply, although some large countries contain water-poor regions. They have the financial resources to deal with regional water supply problems, often using water diversions.
Pollution reduction and control are the major water-related challenge facing most countries in this category. Many of them also need to look at the issue of water pricing, because the fact that water might be plentiful does not mean that it should be free. Development and distribution costs need to be covered by either public or private utilities. Some countries in this group, with favourable land and climate conditions, may have a significant potential for increased food production from irrigation and rain-fed agriculture, and could play a significant role in providing food to world markets.

2. High-income countries with high water stress
This category includes a number of countries that have fairly large amounts of water, but are facing stress conditions as a result of continuing overuse and pollution of their water resources which will be causing problems, such as groundwater depletion, in the near future. Other countries, however, have already used most of their accessible water resources. They have little if any scope for increasing the amount of water supplied to human uses through conventional means without inflicting damage on aquatic ecosystems, or seriously depleting groundwater aquifers.

For those countries with low per capita water availability, the allocation of water to the highest-value uses is a necessity. Demand management and water allocation policies designed to maximise the socio-economic value of water are of paramount importance, as is pollution control. Water markets with tradeable water rights and permits are already beginning to play an important role in the allocation of water, and will need to continue to play an increasingly important role. With increased allocation efficiency, it is likely that irrigated agriculture will decrease in importance, and it appears that more countries in this category will become increasingly dependent on the world market for agricultural products.

3. Low-income countries with low water stress
There are several different types of countries within this grouping - low-income countries that have low water stress because of abundant water resources (primarily tropically humid countries) and large countries that have a tropical region. Most of these countries or their humid regions suffer from too much water in the form of floods that occur during a short rainy or monsoon season, causing damage to buildings, structures and agriculture. Since these countries are poor, they often suffer from inadequate drinking water supply and sanitation.

Overall, this grouping of countries suffers from inadequate access to its water resources owing to insufficient financial resources, technical expertise and institutional support. Because of these constraints, there is a lack of adequate water supply, sanitation and wastewater treatment. In cases where there is high population growth or economic development, there is likely to be an increase in water demand. If that demand is not well managed, it could drive the country into a high vulnerability situation.

Countries in this group that are well endowed with land and water resources may have the opportunity to increase agricultural production and exports into the world market from either irrigated or rain-fed agriculture. For those countries with relative water scarcity, and high levels of evaporation, agricultural production is probably best directed into high-value, low-water-intensive products. Some poor countries lack adequate access to what little water they have, and development assistance could help them in using that water wisely.

 Both water-rich and water-poor countries with low incomes generally suffer from a lack of sanitation and wastewater treatment. Water pollution from human or animal wastes is often already a problem, and steps are now needed to improve pollution control and treatment so as to protect human and ecosystem health. The acceptance of highly polluting industries with little or no control on their discharges may be tempting on the basis of short-term economic growth considerations. However, the overall long-term costs to redress environmental damages resulting from such decisions have often been shown to be more expensive than the creating of low-polluting industries in the first place.

4. Low-income countries with high water stress
This category is made up of low-income countries that are using their water resources heavily now, often for farm irrigation. They also suffer from a lack of pollution controls. A number of countries in the arid or semi-arid regions of Africa and Asia fall within this category. These countries are the most constrained with respect to future development because they have neither the extra water nor the financial resources to shift development away from intensive irrigation and into other sectors that would create employment and generate the income with which to buy food from water-rich countries.

Given the high ratio of water use to availability, population growth and future economic development will require shifts in the utilisation of water towards the production of high-value products.

Countries in this category are urged to give the highest priority to the formulation of economic and regulatory measures designed to increase irrigation efficiency and optimise water allocation among various uses. In particular, they need to pay attention to the generation of foreign exchange that might be needed for food imports. These countries should increase wastewater treatment and reuse, and should control pollution from agricultural chemicals through land management and integrated pest management measures.



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