ADDRESSING WATER 

CHALLENGES IN THE 

DEVELOPING WORLD:

A FRAMEWORK FOR ACTION
Bureau of Economic Growth, Agriculture, and Trade

U.S. Agency for International Development

Bureau of Oceans, Environment, and Science

U.S. Department of State

Printed March 2009

Cover: Collecting water for household use from a river near Lac Aloatra in Madagascar. 

By Andrew Watson, DAI 
ADDRESSING WATER 

CHALLENGES IN THE 

DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

An Annex of the 2008 Report to Congress for the 

Senator Paul Simon Water for the Poor Act

ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

iii

Contents

Preface v

Introduction 1

Improving Access to Water Supply 

and Sanitation, and Promoting 

Better Hygiene 3

Improving Water Resources 

Management 8

Improving Water Productivity 13

Water Sector Programming in 

Country Development Plans 16

Monitoring and Evaluation 20

Conclusion 21

ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

v

Preface 

Global water resources are coming under increasing pressure. Demand is beginning to outpace 

supply, and supply itself is being impacted in 

terms of both quantity and quality by a range of 

factors, including hydrologic variability, climate 

change, and environmental degradation. For 

poor and marginalized populations, who often 

live on marginalized lands, reliable access to water is tenuous and ensuring adequate water quality is becoming increasingly difficult. As water 

resources become scarce and as pressures on these 

resources increase, tensions are likely to grow.

The U.S. Government brings extensive domestic 

and international experience, resources, and a 

willingness to enter into diverse and innovative partnerships to address this water crisis. 

This Framework is the expression of the overall 

U.S. Government approach to the world’s water 

challenges, embracing the government’s broad 

and interrelated portfolio of water expertise and 

approaches. 

The U.S. Department of State and the U.S. 

Agency for International Development are committed to investing in the water sector in ways 

that achieve maximum positive impact through 

strategic, integrated, catalytic, and innovative action taken in close coordination with host-country 

partner governments, civil society, and other donors. This Framework lays out guiding principles 

for U.S. foreign assistance in the water sector. 

Therefore, this document should be viewed as the 

overarching strategic structure through which all 

of the diverse threads of U.S. Government water 

sector efforts can be woven together. 

The 2005 Paul Simon Water for the Poor Act 

and 2003–2007 congressional appropriations 

have highlighted the importance of increasing 

access to affordable and safe drinking water and 

sanitation within the context of sound water resources management. These priorities and guiding initiatives of Congress are fully embraced 

within this Framework. 

At the same time, these priorities do not define 

the full scope of needed interventions to ensure 

that water resources are available to meet the 

entire range of human development needs, today 

and into the future. Water supply and sanitation 

service delivery are intimately connected to the 

sustainable management of upstream hydrologic 

resources that, if not appropriately managed, 

affect the health of humans and ecosystems 

downstream. The ability of a society to develop is 

critically dependent on sustainable and sufficient 

supplies of high-quality water, and the reliable 

maintenance and sufficient capital investment 

for water and sanitation infrastructure require 

healthy economic development. 

The Framework also underscores numerous other 

linkages between water and health, economic 

growth, humanitarian objectives, democracy, and 

security goals of the larger U.S. foreign assistance 

strategy, making a compelling case for supporting a broad-reaching and integrated approach to 

managing limited water resources. These interventions focus primarily on enabling environments, technology, and human capacity rather 

than on the construction of large infrastructure 

and other direct capital improvements.

ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

1

Introduction 

As the first decade of the new millennium comes 

to an end, there remains no doubt about either 

the critical importance of water resources to 

every aspect of life on Earth or the enormity 

of the water challenges facing human society 

and increasing human populations. In spite of 

notable progress, improving water resources 

management, access to improved water supplies 

and sanitation, and water productivity remains 

an immense challenge.

Meeting the growing demands on water resources for people, economies, and nature requires 

bold action by governments, water users, donors, 

and the private sector working in partnership to 

transform water management in fundamental 

ways. Several international leaders have called 

for a “blue revolution”—similar to the green 

revolution—to stimulate concerted action by 

governments and citizens and avert a looming 

widespread water crisis emerging in many parts 

of the globe. 

The U.S. Government is committed to using its 

foreign assistance resources in support of a blue 

revolution that will help achieve a water-secure 

world where people and countries have reliable 

and sustainable access to an acceptable quantity 

and quality of water to meet human, livelihood, 

production, and ecosystem needs1

 while reducing 

the risks associated with hydrologic variability 

and the projected impacts of climate change.

1 Adapted from David Grey and Claudia W. Sadoff, 2007. “Sink or Swim? Water Security for Growth and Development.” Water Policy Vol. 9, No. 

6, pp. 545–71.

The Global Water Challenge

l More than 2.8 billion people will be living in 

either water-scarce or water-stressed regions of 

the world by 2025. 

l More than 1 billion people lack access to improved water supply services and more than 2 

billion people lack access to improved sanitation, 

undermining efforts to protect public health.

l Freshwater ecosystems and environmental 

services from water resources and watersheds 

are increasingly at risk from human pressures 

such as water withdrawals, dam diversions, and 

industrial development. 

l Wetland ecosystems, which serve as buffers 

against natural disasters, are being lost around 

the world at alarming rates. 

l	 Ninety-five percent of wastewater around the

world is discharged into the environment without treatment.

l Nearly 2 million people—the vast majority 

children under five—die from diarrhea each year,

and nearly 90 percent of diarrhea is attributed 

to unsafe drinking water, inadequate sanitation, 

and poor hygiene.

l Ninety percent of all disaster-related deaths are 

water-related. 

l More than 260 watersheds, containing more 

than 40 percent of the world’s population, are 

shared by two or more countries. 
This Framework for Action outlines many of the 

key challenges in reaching this goal and provides 

guidelines for strategic actions that will support 

individual, organizational, and governmental 

efforts to achieve a water-secure world. Three 

interrelated dimensions of water management 

must be addressed to reach this vision for a 

water-secure world: 

•	 Improving	access	to	water	supply	and	

sanitation, and promoting better hygiene;

•	Improving water resources management, 

including allocation among competing 

needs; and

•	Improving water productivity in agriculture 

and industry.

Guidelines incorporated in the Framework draw 

upon the growing body of internationally endorsed principles and good practices. Among 

these, the U.S. Government understands that 

water issues are fundamentally interconnected 

and that specific activities are best developed 

within the context of the broader water sector.

The following three sections define U.S. Government objectives within each component of the 

water sector identified above and provide embassies and U.S. Agency for International Development (USAID) missions with guidelines for 

programming resources and developing activities with their host country counterpart agencies. This document is also intended to inform 

country-level counterparts and other members 

of the international water community about the 

U.S. Government’s strategic direction within the 

water sector to facilitate improved collaboration, 

communication, and shared learning. 

ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

2

The U.S. Government recognizes that all water 

issues are ultimately grounded in unique and 

diverse local political, social, cultural, and ecological contexts, and, therefore, that the portfolio 

of water sector interventions will be diverse. 

Guidance, developed for each geographic region, 

will outline specific goals and priority countries 

based on regional circumstances and U.S. foreign 

policy priorities. The elaboration of specific 

country-level activities will be informed by this 

regional guidance, in combination with more 

in-depth analysis and consultation at the local 

level to determine the most strategic blend of 

interventions in each place.

Water 

Resources 

Management

Safe Water 

and Basic 

Sanitation

Water 

Productivity

Water 

Security
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

3

Improving Access to Water Supply 

and Sanitation, and Promoting 

Better Hygiene 

The Scope of the Problem

The health, economic, and social consequences 

of limited access to clean water and improved 

sanitation services are enormous, and success 

in this area is linked to many U.S. Government foreign assistance priorities in tangible and 

substantive ways. Over the past several years, the 

international community has agreed to a number 

of water- and sanitation-related goals, including halving, by 2015, the proportion of people 

unable to reach or afford safe drinking water 

and the proportion of people without access to 

basic sanitation. While, globally, the world is 

on track to meet the target on drinking water, 

specific regions lag significantly behind, chiefly 

Monitoring Access to Safe Water

Internationally accepted measures of access to safe 

drinking water do not take into account water quality and reliability. For example, the World Health 

Organization (WHO) and the United Nations Children’s Fund (UNICEF) estimate that access to piped 

water in Georgia is 87 percent. However, water quality in many of Georgia’s mid-sized cities is so poor 

that water-borne diseases are often contracted even 

by those receiving public water supplies. In Armenia, 

access is estimated by the WHO and UNICEF at 97 

percent, but in cities outside the capital, water is usually available less than half of the day, and as little as 

two to four hours each day in problem areas. 

Sub-Saharan Africa, and especially in rural areas. 

Progress on the sanitation goal is much further 

behind; little progress has been made almost anywhere in the developing world. At current rates 

of progress, Sub-Saharan Africa will not meet 

the Millennium Development Goals sanitation 

target until 2076.

The internationally agreed goals tell only part 

of the story about water supply and sanitation 

service delivery. In many parts of the world, 

populations that have nominally “improved service” suffer problems of both water quality and 

service reliability. Sanitation is likewise deficient, 

with shortfalls in both household standards and, 

where available, service provision. For example, 

tesy of DAI Cour

Children gather water in Afghanistan. Access to clean 

water poses a daily challenge for families throughout 

the developing world.
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

4

wastewater service is limited by a focus only on 

collection of domestic waste, with next to no 

investment made in treatment of waste before 

discharge into water courses. The poor suffer 

disproportionately from low quality of service. 

For both water supply and sanitation, a singular 

focus on the “numbers served” only focuses on 

immediate service delivery, without attention 

either to the long-term sustainability of the service 

or to the deeper, structural changes required to 

overcome the huge gaps in service coverage that 

still remain. These problems will only increase in 

the future—the global population is expected to 

reach more than 8 billion by 2025, with the major 

proportion of that growth in developing countries. 

The U.S. Strategic Response

A U.S. Government strategic response to addressing the needs for expanding access to improved 

water supply and sanitation services and promoting 

better hygiene practices begins with an understanding that the gap in achieving the internationally 

agreed goals is immense—from the financial, 

technical capacity, and governance perspectives—

and cannot be addressed by any single actor alone. 

Donor funds combined represent a relatively small 

proportion of the overall resources and effort 

needed to meet the internationally agreed goals, 

improve service quality, and promote better hygiene. The U.S. Government will focus on investments that yield significant long-term impact per 

dollar spent and create impact at scale. Efforts will 

be especially centered on tapping into consumers’ 

willingness and ability to pay, wherever possible, in 

order to increase access, ensure sustainability, and 

improve the economic feasibility of service delivery.

USAID’s comprehensive water supply, sanitation, and hygiene activities will support the three 

pillars required for sustainable access and use of 

improved water supplies and sanitation:

•	Access to appropriate hardware – municipal

and community water supply systems and sewers, household sanitation facilities, and other 

household-level technologies and products.

USAID’s ECO-Asia Program

The ECO-Asia Program demonstrates innovative policies and practices for expanding water and sanitation services to support internationally agreed goals. The four program areas for Asia are: (1) Enabling water services 

delivery to the urban poor; (2) Demonstrating sustainable sanitation solutions; (3) Improving performance of 

water services utilities; and (4) Enabling access to finance for water services.Accomplishments include:

Surabaya and Bandung, Indonesia. The program is helping the Surabaya Water Supply Enterprise expand 

access to safe drinking services for nearly 15,000 low-income households over the next three years. 

Negombo, Sri Lanka. The National Water Supply & Drainage Board of Sri Lanka and the Negombo Municipal Council piloted an innovative water distribution system to supply piped water to a poor urban community 

of 400 residents in Negombo. 

Marikina, Philippines. ECO-Asia facilitated a partnership between Manila Water and the city of Marikina to 

design a city-wide septage management program that will empty more than 92,000 septic tanks in Marikina 

every five years.
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

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•	Behavior change and hygiene promotion –

community mobilization for sustained management of water supply and sanitation infrastructure, social marketing of products and 

behaviors, and school and health clinic hygiene 

promotion programs.

•	Enabling environment – improved policies,

institutional support, community organization, 

finance and cost recovery, and public-private 

partnerships for improved water supply, sanitation, and hygiene.

Based on experience and best practices, such

investments should focus on five programming 

areas: 

•	Strengthening the capacity and sustainability

of small-scale service providers that operate in 

rural and peri-urban areas;

•	 Improving the operating environment, operations and financial sustainability of utilities 

that serve cities and towns that are undergoing 

the most rapid population growth;

•	Mobilizing capital from domestic markets for

infrastructure development on a permanent 

and sustainable basis;

•	 Improving household- and community-level

hygiene and sanitation; and

•	 Integrating water supply and sanitation with

humanitarian assistance/disaster risk reduction 

and response programs.

For all aspects of water supply and sanitation 

access and improved quality of services, there 

are very different challenges and opportunities 

presented in the urban, peri-urban, and rural 

contexts. The U.S. Government strategic approach will customize its interventions accordingly, while also promoting shared learning to 

adapt/modify successful interventions.

USAID’s Approach to WASH at Scale 

in Ethiopia

In Ethiopia, the USAID Hygiene Improvement Project 

(HIP), together with the World Bank Water and 

Sanitation Program, is supporting the Government 

of Ethiopia’s efforts to achieve universal sanitation 

coverage by 2012 in the Amhara region of 20 million. 

Ethiopia offers key lessons for an integrated scale 

approach with a national hygiene and sanitation 

strategy, multisectoral collaboration facilitated by the 

signing of a memorandum of understanding by three 

line ministries (health, water, and education), multiple 

implementation partners, and a comprehensive and 

strategic approach with training and tools for working in households and communities. A regional water, 

sanitation, and hygiene (WASH) movement has been 

created to mobilize stakeholders, build district- and 

village-level capacity, and support implementation at 

the district level using a “total sanitation” approach. 

The program will launch activities in a minimum of 

10 districts to achieve “open defecation-free communities.” Hygiene and sanitation behavior change 

is also reinforced using “MIKIKIR,” an approach for 

negotiating improved behaviors that uses existing 

health extension workers; a school WASH program, 

building knowledge and practice and encouraging 

school-to-community action; and a pilot program 

with President’s Emergency Plan for AIDS Relief partners and home-based care organizations helping to 

develop programming guidance on integrating WASH 

for people living with HIV/AIDS.

Strengthening the capacity of small-scale 

service providers. In rural areas or small 

towns with smaller infrastructure needs, the 

United States continues to support direct service delivery within a model of ongoing cost 

recovery and sustainable management at the 
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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local level. U.S. Government efforts also will test 

the use of innovative approaches to link small 

town and village water services into networks 

that can provide technical and financial support 

when systems break down and serve as avenues 

for building the capacity of these small-scale 

providers to achieve cost recovery and expand 

services. 

Improving operations and financial sustainability of drinking water and sanitation 

services utilities. In larger towns and cities, 

it makes strategic sense for the U.S. Government to strengthen the capacity, operations, 

and financial sustainability of the institutions 

that provide drinking water and sanitation 

services. By restructuring operations, instituting

operating and financing reforms, building their 

capacity to operate as independent businesses, 

improving performance, and implementing 

full cost recovery, these utilities will be more 

capable of expanding services to poor slums 

and peri-urban neighborhoods. U.S. Government efforts will also center on strengthening 

the operating environment and regulation of 

these institutions to deliver new access to those 

who currently are unserved and to improve 

the quality and reliability of service in targeted 

locations, particularly those with vulnerable and 

poor populations. 

Mobilizing capital for expanding and rehabilitating infrastructure. Ultimately, achieving the 

internationally agreed goals requires expanding 

the pool of capital available to utilities, communities, and households to expand coverage, 

improve services, and upgrade household sanitation. In conjunction with efforts to improve 

the creditworthiness of water and sanitation 

utilities, the U.S. Government is increasingly 

focused on mobilizing private sector capital from 

domestic markets for investments in water and 

sanitation system expansions and upgrades. In 

many cases, this involves helping governments 

put in place favorable policies and regulations 

and establishing financing mechanisms such as 

pooled financing facilities, revolving funds, and 

urban infrastructure funds that serve as financial 

intermediaries for a broader number of creditworthy utilities. Combining these mechanisms 

with credit enhancements such as USAID’s 

Development Credit Authority (DCA) lowers 

risks to private sector investors and encourages 

their investment in the sector. DCA guarantees 

are also being used to leverage financing through 

microfinance institutions for small-scale systems 

and to fund household connection fees and sanitation upgrades.

A common solution for household sanitation in 

rural Jamaica – a dry-pit latrine. Latrine pits in 

this limestone coastline often penetrate fissures,

contaminating ground and coastal water.

Courtesy of ARD
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

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Improving household- and community-level 

hygiene and sanitation. To reduce water-related disease and achieve desired health impacts, 

the U.S. Government strongly endorses that 

all water supply and sanitation service delivery 

must be accompanied by strategic investments 

that promote good hygiene and sanitation 

practices at the household level that translate 

into measurable improvements in public health, 

especially the reduced morbidity and mortality of children under five. These will include 

investments in ensuring and protecting water 

quality, hand washing at critical times, and the 

effective removal and proper treatment/disposal 

of wastes from the proximity of people’s living 

and working environment. 

Integrating sustainable water and sanitation 

services with humanitarian assistance/disaster 

risk reduction and response programs. In order 

to better capitalize on investments in humanitarian assistance for drinking water, basic sanitation, 

and hygiene promotion, program designs will 

better integrate disaster risk reduction, disaster 

response, and development activities to build the 

capacity of governmental, nongovernmental, and 

international partners. Specific activities could 

include establishing financing mechanisms that 

bridge the short-term humanitarian timeframe 

with the longer-term development one, designing emergency interventions that provide a foundation for development activities, and integrating risk analysis and risk reduction components 

into long-term development planning. 
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

8

Improving Water Resources 

Management 

The Scope of the Problem

Every country and community depends on sustainable fresh water of sufficient quantities and 

quality to provide for society’s needs, sustain economic growth, and maintain ecosystems upon 

which all life depends. Surface and groundwater 

resources have come under enormous pressure 

everywhere from withdrawals, diversions, and 

pollution. Most countries share water resources 

with others, further complicating the management of this essential resource. Shared river 

basins cover 50 percent of the globe, are home to 

40 percent of the world’s people, and contribute 

60 percent of total freshwater flows.2

Population growth, environmental degradation, 

hydrological variability, and climate change are 

stressing water resources and hydrologic systems. 

Clearing forest lands for agricultural production 

and mineral and timber resources has degraded 

many watersheds and impacted downstream 

ecosystems—including estuarine and coastal 

ecosystems—through more rapid runoff, increased erosion, reduced groundwater recharge, 

and greater potential for floods and droughts. 

Large areas of Africa and Asia experience significant water stress because of extreme hydrologic 

variability. Climate change may exacerbate these 

impacts—potentially forcing shifts in human settlements and agricultural practices and dramatic 

changes in livelihoods. Growing demands for 

energy and water to meet agricultural, industrial, 

and urban needs have renewed momentum to 

develop dams and water diversion infrastructure 

by both major lending institutions and emerging 

economies. Unilateral decisions by countries to 

build new infrastructure may affect shared water 

resources and undermine the legitimacy of efforts 

to establish or carry out regional governance of 

shared river systems.

The challenge facing countries and communities is how to best use their finite but renewable 

water resources for meeting human, economic, 

and environmental needs while protecting the 

quality of this precious resource. Achieving these 

2 Atlas of International Freshwater Agreements, 2002.

The Limbe watershed, Haiti. Watersheds serve as 

the life source for most human development and 

are some of the final preserves for biodiversity.

Courtesy of DAI
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

9

objectives requires governance and management 

approaches that guide the effective and sustainable use of limited water resources. As competing demands increase, the potential for tensions 

will heighten, placing current cooperative relationships at risk and raising the possibility of 

conflicts over water rights, allocations, and use. 

Avoiding conflicts over water is vital. Conflicts 

are expensive and disruptive and interfere with 

efforts to relieve human suffering, reduce environmental degradation, reduce vulnerability to 

future disasters, and achieve economic growth. 

The U.S. Strategic Response

U.S. strategic programming recognizes that 

shared resources are not just a source of potential 

tension, but an important opportunity to expand 

cooperation and transparent and democratic 

governance models across boundaries. Successes 

can have a positive influence that extends far 

beyond water resources management. The U.S. 

Government has actively supported cooperative 

and integrated approaches to water resources 

management around the world, at transboundary, national, and subnational basin scales. It will 

continue to promote interventions that optimize 

regional benefits, mitigate water-related disasters, 

and minimize tensions in shared waters, while 

also helping to maintain shared ecosystems and 

improve overall water productivity and security. 

Improving water resources management requires 

satisfying immediate needs while protecting 

water quality and building the foundation for 

meeting future demands on water resources. We 

have learned over the past several decades that 

investments in policy and legal reforms, building 

local capacity, and strengthening water resources 

planning, management, and governance yield 

more lasting change than investments in infrastructure. By focusing on these types of investments, the U.S. Government can help create and 

support the underlying conditions for sustained 

improvements in water resources management.

Most U.S. Government investments will address 

issues of water quantity and quality through 

crosscutting programs that focus on other 

specific development objectives. Within these 

programs, the U.S. Government will incorporate 

the principles of integrated water resources management that include: 

•	 Policy, regulatory, and institutional frameworks

that address planning and permitting at the 

appropriate scale and across all relevant sectors;

•	 Supply optimization, including assessments of

surface and groundwater supplies, water balance, 

wastewater reuse, and environmental impacts;

•	Demand management, including cost-recovery

policies, water use efficiency technologies, 

and decentralized water resource management 

authority;

Washing near Menongue, Angola, in the Cuebe River, 

in the upper Okavango River Basin. Rivers and other 

water sources are under increasing pressure to meet 

household, agricultural, and industrial development 

demands.

Courtesy of ARD
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

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•	Equitable access to water resources through

participatory and transparent governance;

•	 Financing to sustain investments in water

resources management and protection; and

•	Attention to hydrologic variability and climate

change and actions to mitigate and minimize 

impacts of droughts and floods.

Effective water resources management at the 

appropriate scale and across all sectors. The 

U.S. Government will make strategic investments in basin-scale or watershed-scale management, especially in locations where such activities 

support other foreign assistance priorities. The 

U.S. Government will also pursue opportunities to engage in national water resources planning and policy setting in targeted countries 

of strategic importance. Technical approaches 

will draw upon sound information and science 

and use spatial planning tools and participatory approaches to improve the capacities of 

national and local governments to monitor water 

resources, assess watershed threats, and support 

integrated management to address sources of 

degradation, surface and subsurface flows, and 

community and environmental impacts. By promoting the adoption of best practices by all water users, the U.S. Government can help ensure 

that hydrologic systems as a whole are managed 

in a sustainable fashion. 

Supply optimization. Most countries face either 

current or future constraints on water resource 

availability. Constraints stem from either the 

physical scarcity of water or the lack of financial 

resources to meet capital improvement needs, 

known as “economic scarcity” of water. An integrated water resource management process facilitates stakeholder dialogue on a set of objectives 

for water resource development that is compatible with and supportive of the country’s broader, 

long-term development goals, including social, 

economic, and environmental goals. Moreover, 

water and energy linkages are an important part 

of that dialogue. With growing energy costs, it 

is crucial that water and energy investments be 

assessed in tandem and consideration given to 

the impacts that pricing, subsidies, and other 

factors of one sector can have on the other. The 

U.S. Government will assist those countries and 

communities wishing to optimize their water 

investments while ensuring that efforts to balance supply and demand are based on science 

and agreed-upon goals across all sectors.

Demand management. It is often more costefficient to balance supply and demand by 

reducing society’s overall demand for or use of 

water. This can be accomplished in many ways, 

but most notably by eliminating leakages or 

other loss (non-revenue water) or by increasing 

A Zimbabwean small-scale farmer. Most food 

produced in developing countries is by smallscale farmers. Improving water use efficiency and

increasing food production by these farmers pose 

significant challenges.

Courtesy of DAI
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

A FRAMEWORK FOR ACTION

11

the efficiency with which water is used in production, especially in agriculture and industry. 

Demand can be further reduced through conservation, pricing structures, and other water-saving 

practices and technologies. With the potential 

of greater water stress and scarcity as a result of 

climate variability, these and other measures, 

such as drought contingency plans, will play 

an important role in a country’s overall water 

strategy. The U.S. Government will continue to 

promote measures to reduce water demand as an 

alternative to costly and not always appropriate 

efforts to augment supply.

Addressing water quantity and quality 

challenges. While some U.S. Government 

programs will explicitly focus on addressing 

water quantity and quality challenges, this approach also recognizes that water is a “means” to 

numerous development ”ends,” and embraces 

programming that draws upon the best practices 

of integrated water management to address both 

water quality and quantity challenges within the 

context of other development assistance objectives (see textbox). In some countries, U.S. Government programming will support one aspect of 

water resources management in close coordination with other actors, making complementary 

investments that seek to address gaps and collectively achieve a more holistic approach. 

Equitable access through participatory and 

transparent governance. There is a growing 

awareness by governments around the world 

that water management must be better integrated geographically and across sectors. However, water governance in most countries is very 

fragmented and rarely involves stakeholders fairly 

and democratically in making decisions about 

USAID Mission in Indonesia: 

Environmental Services Program

The USAID/Indonesia Environmental Services Program (ESP) covers six of the most densely populated provinces in Indonesia. ESP is a $47 million 

program that works with water as an integrating 

theme to address the linkages among environmental health, water resource protection, biodiversity 

conservation, and critical land rehabilitation. Public 

health issues of diarrhea prevention and increased 

access to clean water and sanitation services are 

key focal areas.

ESP’s work is making a difference. In three years:

l 26 local policies supporting land tenure and 

community access rights passed;

l 13,092 hectares of critical land were rehabilitated;

l 64,261 hectares of high conservation value forest are under local management;

l 152 community groups practice improved natural resources management;

l 61,479 households, or 249,660 individuals, have 

increased access to clean water;

l 25,231 people have been trained in effective 

hand washing with soap;

l $15,318,000 of financial resources have been

leveraged to expand and sustain ESP’s work;

l 25 water companies have improved operations 

and efficiency indicators; and

l Indonesian cities finally take wastewater collection and treatment seriously and budget for 

improved infrastructure.
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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how much water goes where, to whom, and for 

what purpose. While experts and organizations 

encourage integration and governance around 

hydrologic boundaries such as river basins and 

aquifers, political and operational realities argue 

for flexible governance arrangements based on 

participatory and democratic governance models 

at a variety of scales. The U.S. Government will 

emphasize improving governance and building 

capacity to support long-term improvements 

in water management. U.S. Government interventions could focus on building trust and 

facilitating dialogue, improving the information 

foundation for management decision making, 

and strengthening institutional and organizational capacity to effectively engage in cooperative management of water resources. Building

transparent, effective, and equitable governance 

systems will help balance tradeoffs in the allocation and use of water, ensuring that human, 

economic, and environmental needs will be met 

in the most optimal manner possible. 

Mobilization of financing. Lessons from the 

past 25 years highlight the critical need for 

financing to sustain improvements and investments in water resources management. With the 

exception of a few countries where infrastructure 

links to broader foreign policy objectives, such 

as Iraq, Afghanistan, and Sudan, the U.S. Government does not invest directly in large water 

infrastructure projects. The U.S. Government 

supports efforts to develop and test innovative 

financing mechanisms such as payments for environmental services and carbon credits that can 

generate sustained flows of financing to support 

continued and expanded efforts to improve land 

and water resources management. 

Managing hydrologic variability and 

adapting to climate change. Hydrologic variability and climate change pose serious threats 

to many regions of the world. The U.S. Government can help countries to reduce vulnerability 

to droughts and floods by implementing disaster 

risk reduction activities, including integrated 

water resources management. The U.S. Government can also develop country capacity to 

monitor and assess the impacts of hydrologic 

variability and climate change on economic and 

human development, increase resilience through 

disaster preparedness and mitigation, and prioritize investments and actions to increase resilience 

to climate variability and change. 

The aftermath of the 2004 tsunami, Aceh, Indonesia. 

Severe storms and flooding can contaminate surface

and groundwater supplies used by households, farms, 

and businesses.

Courtesy of DAI
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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13

Improving Water Productivity

Water is literally the lifeblood of human productive activity. Today, the competition for scarce 

water resources in many places is intense. Many 

river basins currently have insufficient water to 

meet all the demands—or even for their rivers to 

reach the sea and nourish critical fish nurseries, 

an important source of food protein. The critical 

importance of improving water productivity for 

essential economic development and ecosystem 

services will only increase in the coming decades 

as the world’s population grows and economies 

industrialize. The world’s population faces two 

great challenges with respect to water—improving 

the efficiency of water use in agricultural and industrial production and in growing urban centers, 

and protecting and maintaining water quality. 

The Scope of the Problem

Seventy-five percent of the additional food needed

for the next 50 years can be met by bringing the 

production levels of the world’s low-yield farmers 

up to 80 percent of what high-yield farmers get 

from comparable land. Better water management 

plays a key role in bridging this gap. 

The great majority of fresh water used by humans is for food production—roughly 70 

percent worldwide and 82 percent in developing countries. The current food security crisis 

underscores, among other challenges, the need 

to expand production of basic grains. Scientists 

estimate that the amount of water required 

to meet global food requirements will almost 

double by 2050 unless farmers adopt technologies and practices that yield more crop per drop. 

Many countries already face extreme hydrologic 

variability. Climate change will exacerbate these 

challenges and will affect water use in agricultural production as some regions become drier—

especially in the subtropics, where most poor 

countries are situated. For example, the current 

rapid increase in food prices affecting countries 

around the world is caused in part by several 

years of bad weather in Australia, China, and 

parts of Eastern Europe, which have reduced 

grain harvests, especially wheat. 

The food crisis has many dimensions, however, and it would be short-sighted to focus 

solely on increased agricultural production. In 

fact, ecosystem goods and services contribute 

Water user association members checking control 

gates in an irrigation system in Kyrgyzstan. Water user 

associations have often proven effective managers of 

irrigation infrastructure and scarce water resources.

Courtesy of DAI
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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14

immensely—both directly and indirectly—to 

global food security, and water resources play 

a central role in keeping these healthy. More 

than 1 billion people in the developing world, 

for example, rely on fish as their principal 

source of animal protein. Abundant supply of 

good-quality fresh water is of course essential 

to inland freshwater fisheries, but the same is 

true for as much as 75 percent of commercially 

important marine fisheries. This is because these 

species are dependent, for at least part of their 

lifecycles, on estuaries, and nothing is more 

fundamental to the health of an estuary than 

the inflow of fresh water. Clearly, water resource 

planners and those responsible for global food 

security must work together closely to ensure 

understanding of a common agenda.

Industrial and commercial water consumption is 

also increasing as economies grow and develop. 

As river basins come under increasing pressure, 

the tradeoffs between water allocations for domestic use, agriculture, industry, and ecosystem 

services will only intensify. 

The effects of agriculture, industry, and commerce on water quality are enormous, largely 

unquantified, and nearly unchecked in most 

developing countries. Water quality is being 

degraded rapidly by widespread use of fertilizers 

and pesticides in agriculture, by industrial effluents, and through the uncontrolled dumping 

of untreated human wastes in rivers, lakes, and 

oceans. The effects of uncontrolled water pollution show up in the increasing number of reports 

of pollution-related health problems, contaminated foods, wildlife morbidity and mortality, 

and biologically dead and dying rivers, lakes, and 

ocean areas. All countries face increasing costs 

and challenges in reducing pollution threats to 

human health, future livelihoods, and overall 

ecosystem viability.

The U.S. Strategic Response

The U.S. Government will focus predominantly 

on approaches that:

•	 Improve water use efficiency in agriculture;

•	Help countries manage hydrologic variability

and adapt to climate change;

•	Reduce water pollution by industry; and

•	 Improve water use efficiency in cities.

These are the most cost-effective and efficient 

ways to intervene and tend to be those that are 

most sustainable and market-friendly, and for 

which sound business cases can be made. 

Improve water use efficiency in agriculture. Improving water use in agriculture involves addressing issues of water pricing and water rights, while 

strengthening the role of institutions that enforce 

water pricing and rights. The U.S. Government 

will continue supporting efforts to improve 

agricultural productivity by emphasizing irrigaA fish farm in Lake Sebu, Philippines. Fish farming

offers one way to meet growing demand for food. 

However, it also can lead to the eutrophication of 

lakes and bays.

Courtesy of DAI
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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15

tion system efficiency, working with public and 

private extension services to increase the adoption 

of improved production technologies and systems 

and appropriate crops for specific environments 

by farmers, and, where appropriate, promoting 

the reuse of treated wastewater for agriculture. 

With the growing expansion of aquaculture, the 

U.S. Government can work with research institutions to develop improved aquaculture production 

technologies and systems that increase yields while 

reducing water demand and promoting the use 

of aquaculture species and systems that improve 

water quality. 

Help countries adapt to hydrologic variability 

and climate change. In countries facing greater 

risks of drought or long-term drier climates, 

the U.S. Government will promote adaptation 

to drier climates by expanding efforts in water 

harvesting and small-holder water capture and 

distribution systems. The U.S. Government will 

build on its experience in designing and financing small and medium-scale water capture and 

distribution infrastructure to improve water 

security for rain-fed agriculture. 

Reduce water pollution by industry. To reduce 

water pollution by industry, key areas of engagement include:

•	Supporting policy improvements that include

“polluter pays” principles, and improving 

regulations and policies that establish clear and 

appropriate rules for private sector productive 

water use;

•	Strengthening the role of institutions tasked

with enforcing regulations and protecting water quality; and

•	 Promoting the adoption by industries of

cleaner production processes that reduce overall effluents and the treatment of wastes before 

discharge.

Improve water use efficiency in cities. In growing urban areas, the U.S. Government can help 

water utilities reduce physical leaks, institute and 

carry out demand-side management programs, 

craft regulations and ordinances, and design 

communications/outreach programs to promote 

water use efficiency by households and businesses.

The U.S. Government will also promote alliances 

with key private sector actors in order to couple 

development objectives with private companies’ 

own commitment to responsible water management. These investments will be done with an 

eye toward shared private sector financing and 

piloting lower-cost or innovative technologies.
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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16

Water Sector Programming in 

Country Development Plans 

In the end, all of the strategic water intervention areas outlined above must take shape in real 

places, within the real constraints and opportunities presented in each country. Programming 

decisions about the proper mix of interventions 

will take place at the country level as part of 

regular country-level operational planning. There 

are critically important water sector needs in virtually every country where the U.S. Government 

engages in development assistance. Resources are

limited, however, and competing development 

needs are often compelling. 

In strategic development programming at the 

country level, the U.S. Government will seek the 

right balance that optimizes the impact of water 

sector investments—especially for underserved 

and poor populations—while maintaining coherence of the assistance portfolio as a whole. In 

reaching this balance, the U.S. Government will 

take into account numerous factors (see textbox). 

The prior three sections have focused on factors 

specific to countries and regions. U.S. Government programming decisions also will be influenced by factors external to the country. These 

are briefly discussed below. In all cases, the “big 

picture” of U.S. foreign assistance priorities will 

serve as the starting point. 

U.S. Government comparative advantage. 

With limited resources, missions are encouraged 

to target areas of U.S. Government comparative 

strength in water resources programming. For 

example, USAID has gained considerable experiPlanning Considerations for 

U.S. Government Water Sector 

Programming

Country-Specific Planning Factors

l Level and type of need in each water subsector 

(water supply, sanitation/hygiene, water resources 

management, water productivity) 

l Country enabling environment related to the 

water sector 

External (U.S. Government) Planning Factors

l U.S. Government comparative advantage 

l Opportunities to integrate water investments 

within USAID’s overall country portfolio 

l Opportunities to build on parallel and complementary activities of other donors and international nongovernmental organizations (NGOs).

l Partnership opportunities (Global Development 

Alliances and others) with significant matching

resources or other value-added contributions

l Consistency with U.S. foreign policy priorities

l Compliance with statutory requirements, directives, and funding accounts 

ence in technical capacity building, institutional 

strengthening, legal and policy reform, participatory governance support, financing and resource 

mobilization, and fostering of innovation in 

all aspects of water management. Other U.S. 

agencies, such as the U.S. Environmental Protection Agency, are recognized worldwide for their 

specialized expertise in wastewater management 
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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17

and technologies. Finally, the U.S. Government 

has demonstrated leadership within the donor 

community in supporting creative alliances and 

partnerships that engage private companies, 

international NGOs, and other donors in achieving common objectives in the water sector.

Opportunities to integrate water investments 

within USAID’s portfolio. The interconnectedness of water throughout all aspects of development is undeniable. The health, economic, and 

social consequences of water deficits in both 

quantity and quality for all users and for the 

environment are enormous and linked to many 

U.S. foreign assistance priorities in tangible and 

substantive ways. In fact, every development goal 

is linked to at least one dimension of water management. While this Framework describes specific approaches within various water subsectors, 

the U.S. Government will also seek opportunities to achieve water sector objectives throughout 

the development agenda. Following are just a 

few examples—both across the four highlighted 

dimensions of the water sector, and among water 

and other development sectors. 

Potential linkages within water sector 

activities:

•	Water supply services and water resources management: Poor land management and uncontrolled pollution degrade water quality. A more 

integrated approach to watershed resource 

management can improve the safety of drinking water supplies and benefit downstream users of water as well as the environment.

•	Sanitation services and water resources management: Most urban and rural sanitation solutions focus on removing fecal waste from the 

immediate human environment with little 

attention to the treatment and safe disposal of 

these wastes. This often results in severe consequences for communities living downstream 

who rely on surface water for their water supply. Moreover, insufficient waste treatment can 

negatively affect economic productivity, biodiversity, and ecosystem services. A more integrated watershed perspective would ensure that 

waste treatment and disposal are incorporated 

into ongoing efforts to improve sanitation services and household hygiene practices.

•	Water productivity and water supply services: The 

development and maintenance of water supply 

systems is one of the greatest challenges facing 

low-income communities. Beyond drinking

water, the livelihood of rural residents depends 

on reliable water sources for sustaining agricultural and livestock production, aquaculture, and enterprise development. Promoting 

approaches such as multiple use services will 

simultaneously address the full spectrum of 

community water supply needs—both potable 

and productive.

Children line up to wash hands on Global Hand 

Washing Day in Madagascar. School-based programs 

contribute to improved community hygiene behaviors.

Courtesy of AED
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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Potential linkages between water activities and 

other sectors:

•	Water and HIV/AIDS: Access to water in sufficient quantities and of high quality is essential 

for mitigating the diarrheal disease that afflicts 

more than 90 percent of people who live with 

HIV/AIDS. The U.S. Government has developed a Preventive Care Package for these populations and their families that includes information on safe drinking water, washing hands 

with soap, and safe disposal of feces. The U.S. 

Government encourages the incorporation of 

such activities into all HIV/AIDS programs.

•	Water and governance: There is a close relationship between water resources management and good governance practices. The 

sustainability of water resources depends on 

getting the governance right. Interventions 

that strengthen the capacity of water authorities and related institutions have positive 

repercussions, including building the capacity 

of local governments, strengthening decentralized institutions, and empowering women 

to take leadership roles in community life. 

•	Water and education: Evidence clearly links 

school attendance to the availability of water supply and sanitation facilities in school 

compounds, especially for girls. The presence 

of adequate sanitation facilities ensures sustained attendance, particularly when girls reach 

adolescence. School-based water/sanitation/

hygiene programs also serve as platforms to improve hygiene behaviors throughout communities as a whole.

•	Water and humanitarian response: The U.S. 

Government makes significant investments 

in water supply and sanitation services in 

response to humanitarian crises caused by 

natural and manmade disasters. The incidence 

of disasters is projected to increase with greater 

climate change, impacting humans and ecosystems around the world. Sound water resources 

management, increased cooperation at the 

basin-scale, and capacity building to support 

institutions and communities will strengthen 

self-resiliency and can help break the cycle of 

chronic vulnerability while laying the foundation for more sustainable development.

Leveraging opportunities with other donors. 

Multilateral donors such as the World Bank

(including the Water and Sanitation Program) 

and the regional development banks and bilateral 

donors such as Australia, Germany, Japan, Denmark, the Netherlands, the United Kingdom, and 

Sweden have significant water sector programs. 

The World Bank’s Water and Sanitation Program,

in particular, is at the forefront of many efforts to 

improve access to safe water and basic sanitation 

in Africa and Asia. Opportunities exist for the 

Drip irrigation kits enable Ethiopian families with 

members suffering from HIV/AIDS to establish 

gardens that improve household nutrition and 

provide sources of income.

Courtesy of DAI
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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19

U.S. Government to leverage its efforts for greater 

impact by coordinating with ongoing or new 

programs funded by these donors.

Partnership opportunities. USAID has pioneered alliances and partnerships with private 

companies, foundations, and international 

NGOs to solve water supply and sanitation 

challenges. Using the Global Development Alliance model, these partnerships have helped 

mobilize significant resources to improve access 

to safe water and basic sanitation. Examples of 

these alliances include the Community Water 

and Sanitation Facility that works in partnership 

with different organizations in many countries, 

the West Africa Water Initiative, and the Safe 

Water Partnership. 

Consistency with U.S. foreign policy priorities. U.S. water sector investments are not made 

in a vacuum, but are always targeted within the 

context of broader U.S. foreign assistance priorities identified for each country in the areas of 

economic growth, health, democracy and governance, humanitarian assistance, or peace and 

security. The United States also supports activities 

in a broad range of country types, ranging from 

fragile states to strategic partner countries, so that 

a “one size fits all” model does not apply. Specific 

water programming will always be guided by this 

macro-strategic foreign policy context. 

Rice farmers in Vietnam. Increasing food production 

depends upon reliable sources of fresh water in addition to improved seed varieties, fertilizers, and farm 

management technologies.

Courtesy of DAI
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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20

Monitoring and Evaluation

All strategic actors in the international water 

sector require access to good information for 

multiple purposes, including strategic planning 

to prioritize interventions; advocacy to influence 

decision makers and mobilize resources; programming of specific project activities; accountability to clients/beneficiaries, governments, and/

or donors; and advancement of overall water 

sector learning. Solid and credible metrics and 

monitoring systems that produce sound information are used to track specific progress of U.S.-

funded programs and assess national and international water sector trends.

To track program performance in the water 

sector against specific program objectives and 

support for broader worldwide goals, the U.S. 

Government has developed standardized common indicators and reporting systems that 

document how resources are being invested and 

the impact that they have. Moving forward, the 

U.S. Government will continue to refine and 

improve these information and reporting systems 

and provide guidance and training for field staff 

to improve project and program monitoring and 

evaluation in a manner consistent with international best practices. 

Beyond the domain of U.S.-funded activities,

there is recognition of the need to improve 

information about water resources management, 

use, and progress toward achieving the internationally agreed goals. As both a producer and 

consumer of sector-level data and information, 

the U.S. Government is committed to sharing 

information and experiences to improve data collection, analysis, and reporting on water sector 

metrics. The U.S. Government will participate, 

as appropriate, in international technical efforts to improve global data collection related 

to water supply, sanitation and hygiene, water 

resources management, and water productivity. 

To the extent that the U.S. Government invests 

in data collection in the water sector, it will work 

with the international community to enhance 

the depth and quality of water-related measures 

included in these efforts. 

Monitoring water quality in Indonesia. Linking water 

quality monitoring with public outreach has improved 

support for investments in wastewater collection and 

treatment infrastructure. 

Courtesy of DAI
ADDRESSING WATER CHALLENGES IN THE DEVELOPING WORLD:

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21

Conclusion

Water resource problems are mounting and 

have the potential to constrain human wellbeing, including that related to economic development, food security, and healthy ecosystems. 

In many parts of the world today, current practices in the management, or mismanagement, 

of water resources have led to severe challenges 

in meeting future human, economic, and environmental water requirements. To achieve water 

security, individuals and countries must have 

reliable and sustainable access to an acceptable 

quantity and quality of water to meet human, 

livelihood, ecosystem, and production needs 

while reducing the risks of extreme hydrological 

events that can be devastating to people, the environment, and economies. To achieve this goal, 

USAID and the Department of State will focus 

their efforts in three areas: (1) increasing access 

to, and effective use of, safe drinking water and 

sanitation to improve human health; (2) improving water resources management; and (3) 

increasing the productivity of water resources. 

Within each of these areas, U.S. Government 

investments will support activities and actions 

that lead to lasting changes in the underlying 

conditions for sustained improvements in water 

resources management. 

The U.S. Government offers its experience and 

resources in support of efforts by committed 

countries to help achieve a water-secure world 

with sustainable quantities and quality of water 

to meet human domestic use, food production, 

economic development, and ecosystem needs.

 The Guaporé River, Brazil. Preserving water quality 

and flows is essential to long-term sustainable

development.

Courtesy of DAI


Bureau of Economic Growth, Agriculture, and Trade

U.S. Agency for International Development

Bureau of Oceans, Environment, and Science

U.S. Department of State