Communication from the Commission to the Council and the European Parliament Water Management in developing countries Policy and Priorities for EU development cooperation {SEC(2002)288}
Date: 2002-03-12
Institutions: European Commission
Subjects: action programme, cooperation policy, developing countries, water management

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 12.03.2002
COM(2002) 132 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE
EUROPEAN PARLIAMENT

WATER MANAGEMENT IN DEVELOPING COUNTRIES POLICY AND
PRIORITIES FOR EU DEVELOPMENT COOPERATION

{SEC(2002)288}

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE
EUROPEAN PARLIAMENT

WATER MANAGEMENT IN DEVELOPING COUNTRIES POLICY AND
PRIORITIES FOR EU DEVELOPMENT COOPERATION

TABLE OF CONTENTS

1.

1.1.

1.2.

1.3.

2.

2.1.

2.2.

3.

3.1.

3.2.

3.3.

3.4.

4.

4.1.

4.2.

4.3.

4.4.

4.5.

5.

Challenges for water and development ..................................................................... 4

The freshwater situation in developing countries ...................................................... 4

The international debate ........................................................................................... 5

International targets.................................................................................................. 6

European Community Development Cooperation in Water Resources ...................... 7

Current water-related strategies and activities ........................................................... 7

Water as a component of EC development priorities................................................. 9

Water in the Development Policies of EU Member States and other Actors............ 12

EU Member States ................................................................................................. 12

Coordination and complementarity......................................................................... 13

International organisations and partnerships ........................................................... 13

Role of the EC : political dialogue, development cooperation and trade.................. 14

The Way Forward................................................................................................... 14

Raising the policy profile........................................................................................ 14

Putting Integrated Water Resources Management into practice............................... 15

Water related action for its different uses................................................................ 18

Key global challenges............................................................................................. 20

Strategic Partnership for Water............................................................................... 22

Conclusions............................................................................................................ 23

ANNEX: SEC(2002)288

2

Executive summary:

This Communication guides the European Community's support
resources
management in developing countries for achieving the main development goals laid down in
the Treaty establishing the European Community – poverty reduction, sustainable economic
and social development, integration of developing countries into the global economy.

to water

Providing water and sanitation for all in developing countries, now and in the future, is a
demanding challenge. It has to be addressed in the broader context of a sustainable integrated
water resource management (including e.g. natural aspects of water resources systems, water
uses in all sectors of the economy and for all purposes,
institutional framework for
management of a finite resource, spatial variation of resources and demands, water pollution).
One objective of this Communication is to highlight where and how policies surrounding
water and development are integrated into EC's development priorities. It emphasises the need
to see water resource management as a cross-sectoral issue to be mainstreamed within most
development policies of the Community, in the fight against poverty.

This paper is set in the context of the higher profile gained by water on the international
agenda, resulting in growing international recognition of the pressing need to achieve global
water security and of the need to address water in a holistic manner, as a key issue for
sustainable development. Thus, this communication builds on the recent recommendations for
action of the Bonn International Freshwater Conference and promotes the development of an
EU initiative as a key agenda point for the World Summit on Sustainable Development.

The Communication outlines a comprehensive and integrated approach that is valid for all
aspects of water resources management and for all users of water. The key message on policy
orientation is to build strategies based on the overarching principles of Integrated Water
Resource Management. Besides, the highlighted key actions on the way forward focus on
water supply and sanitation,
transboundary water management and cross-sectoral co-
ordination and integration.

The strategic approach for sustainable access to and management of water resources
integrates sectoral and cross-cutting issues and encompasses all aspect of sustainability.
Economic, social and environmental sustainability require implementation of a management
by demand, which involves valuing of water for all its uses. Management at river basin level,
participation by all stakeholders (and especially women) at every step of the decision-making
process, knowledge and information exchange will promote institutional sustainability and
conflict prevention.

The way forward to sustainable access to and management of water in developing countries
relies on political commitment and stakeholder ownership in developing countries. This is
essential to the co-management of Community development co-operation. Furthermore, this
Communication recommends a number of lines of action on global challenges related to water
(mitigation of climate change effects, impact of trade globalisation, regional co-operation).
The long-term co-operation with developing countries on these water-related aspects will
have profitable impacts on global sustainable development and poverty reduction.

3

1.

CHALLENGES FOR WATER AND DEVELOPMENT

1.1.

The freshwater situation in developing countries

Freshwater is a finite and precious resource essential for sustaining life, for undertaking
economically productive activity, and for the environment itself. Of critical importance to any
analysis of contemporary water challenges in developing countries is the fact that no strategy
for the reduction of poverty can ignore people’s vital requirements for water, and the need for
equitable and sustainable management of this critical resource in the interests of society as a
whole. Sound environmental sanitation, which interacts with water provision,
is equally
essential for human health, dignity and productive work.

At the beginning of the new millennium, a large backlog of unmet needs exists. In 2000, 1.1
billion people (17% of world population) were without access to a safe water supply and 2.4
billion people (40%) lacked adequate sanitation. The majority of these people live in Africa
and Asia. Rapid urbanisation is leading to growing demand. In peri-urban settlements,
household water and sewer connections are available only to 18% and 8% of residents
respectively1. Sadly, the poorest inhabitants often have to pay higher prices for water from
vendors than better-off residents who obtain piped supplies at subsidised rates. The urban
poor are also at the greatest risk of ill-health from inadequate environmental sanitation.

A stronger attention on water management
is thus needed throughout any development
planning and programming process intended to contribute to the poverty reduction objective,
which is a central concern of EC Development Policy, and of cooperation agreements with
developing countries.

Population growth, changing lifestyles and economic development are behind the increasing
pressure on water resources everywhere but especially in developing countries, where water
use tends to grow at an even higher rate than population increase. The situation in many
countries of Africa and Asia is complicated by the fact that water availability is subject to
large seasonal fluctuations, as well as by periodic cycles of drought and flood2. By 2025, two
thirds of the world’s population could be living in countries subject to water stress.

Climate change is and will continue to be part of the cause of additional pressure, most
severely in the developing world, and particularly affecting the poor in these regions. For
many developing countries and communities, the capacity to cope with and adapt to climate
variability and change will be a key issue in poverty reduction strategies and in overall
development prospects.

Water security is most critical at household level, but reliable supplies are needed for
agriculture, industry and energy production, etc. Agriculture is the largest user of water; in
some developing countries irrigation accounts for 80% of water use. Even though its share
may decline with improved water productivity, the use of large amounts of water for food
provision is crucial in a world with a still rapidly expanding population.

Allocation of water between different users will thus become increasingly contentious.
Mismanagement of water (e.g. through unsustainable irrigation practices) can lead to drought
and desertification. Under such circumstances, the fact that many major rivers, lakes and

1

2

Global water supply and sanitation assessment - 2000 Report , WHO-UNICEF-WSS Collaborative
Council
UN/SEI: Comprehensive Assessment of the Freshwater Resources of the World.

4

underground aquifers cross national boundaries is a growing source of potential conflict.3 The
resources up- and downstream, between countries with different
sharing of water
development goals and institutional capacities,
is a question of conflict prevention,
demanding an increasing amount of policy attention.

Waters are also under potential severe threats resulting from human activities. Industrial and
agricultural activities imply the use of chemicals, which often end up in surface and ground
waters, following their immediate release or after a long storage in inappropriate conditions.
In the developing world most of the wastes is discharged directly into rivers, lakes and coastal
waters without any kind of treatment. The ongoing decrease of water quality has severe
implications not only for resource availability and human health but also for vital eco-
systems.

1.2.

The international debate

In recent years, water and its management has had an increasingly high profile on the
in addition to traditional
international agenda. New concerns on water
preoccupations with water supply and sanitation provision have joined the agenda. A number
of major international events have contributed to this new visibility of water, reflecting the
increasing level and range of concerns outlined above.

resources

During the International Drinking Water Supply and Sanitation Decade 1980-90, meeting
basic needs for water supplies and sanitation were the twin key targets. These remain, but
other issues have since come to the fore. The economic value of water was highlighted at the
Dublin Conference of 1992, as well as the need for participatory approaches and to recognise
women's role in water management4. The Earth Summit at Rio de Janeiro in 19925, further
recognised the importance of water in environmental sustainability in the immediate as well
as distant future, and the need to safeguard ecosystems by treating water as a precious
resource, without compromising provision of basic human needs for water and sanitation.
With a wider range of issues entering the water-related frame, the need to develop an
integrated approach to water resources management was gradually emerging.

Efficient and equitable use of water depends on discontinuing policies treating it as an
unlimited and ‘free’ resource. How to value water economically is still debated, especially in
developing countries where attaching a price to water may be politically, economically or
culturally unpopular. Where the principle is now accepted, there are ongoing debates around
how to adjudicate competing uses between sectors, and how to price water services for basic
human needs.

These issues and the need to address them holistically were further reinforced at the 2nd
World Water Forum at The Hague in March 2000. By this time, the theme of water scarcity
and increasing pressures on a vital and vulnerable resource had attracted a stronger attention.
Achieving water security6 was recognised as the overarching global objective. Based on an
extensive consultative process, a Vision for ‘Water life and the environment’, and a
‘Framework for Action’ were presented at the Forum and formed the basis for a Ministerial

3

4

5

6

Altogether, 261 river basins which cover 45% of the earth’s surface, harbour 40% of its population and
collect 80% of river run-off, cross the political boundaries of two or more countries (Aaron T Wolf:
Criteria for equitable allocations: the hearth of international water conflict).
International Conference on Water and the Environment, Dublin, January 1992.
Agenda 21, chapter 18
See Annex 1 - Glossary

5

Declaration. The Framework for Action, developed by the Global Water Partnership,
highlighted the need for action to mobilise political will, to make water governance effective,
to generate water wisdom and to increase investment for a secure water future.

The Water Supply and Sanitation Collaborative Council has been responsible since 1991 for
continuously reinforcing the water supply and sanitation agenda. The Council is emphasising
the importance of advocacy and communication, and placing a strong focus on hygiene
education and environmental sanitation7. Several Multilateral Environmental Agreements
address directly or indirectly the water management issue. Examples are RAMSAR, UN
Convention to combat desertification and on climate change, UN Forum on forests.

The Bonn International Conference on Freshwater (December 2001), which is part of the
preparatory process for the World Summit on Sustainable Development in Johannesburg,
September 2002, made 27 recommendations covering the priority themes of governance,
financial resources and capacity building. Five key messages were highlighted: - 1) to meet
the security needs of the poor; 2) decentralisation of decision making and action to the
appropriate level; 3) the development of new partnerships and coalitions; 4) co-operative
arrangements at river basin level and 5) better performing governance arrangements.

A purpose of this Communication is to serve as a basis for developing a Community
contribution for the water component of the World Summit, integrated in the targets and
objectives of the Communication on the external dimension of sustainable development.

1.3.

International targets

A general objective is to ensure that adequate supplies of safe water be accessible to everyone
in the world today, while preserving the quantity and quality of the resource to sustain
essential ecosystem functions and ensure supplies for future generations. The overarching
international development target underlying development co-operation is the need to reduce
by at least one half those living in extreme poverty by 2015. Three targets specific to water
are essential if this overarching target is to be achieved, namely:

Water resources management : The Millennium Declaration promoted the concept of
reducing unsustainable exploitation of water resources by developing water management
strategies at regional, national and local levels. A specific target is to have comprehensive
policies and strategies for
in the process of
implementation in all countries by 2005.

resources management

integrated water

Water supply : In its Millennium Declaration, the UN General Assembly pledged that the
proportion of people not having sustainable access to adequate quantities of safe and
affordable water would be reduced by half by 2015. Following on the 2nd World Water
Forum, the Bonn Conference has recommended that 'the target on drinking water should be
complemented by a corresponding target to halve the proportion of people lacking access to
improved sanitation by 2015.’

7

Action Programme agreed at the Fifth Global Forum of the Water Supply and Sanitation Collaborative
Council, Iguacu, Brazil, November 2000.

6

2.

EUROPEAN COMMUNITY DEVELOPMENT COOPERATION IN WATER RESOURCES

The European Community Development Policy is grounded on the principle of sustainable,
equitable and participatory human and social development8. Its principal aim is to reduce
poverty, and it is recognised in particular that 'access to and sustainable management of water
is an important component of social sector policies9. One objective of this
resources'
Communication is to demonstrate how water relates to the priorities defined by the EC
Development Policy.

2.1.

Current water-related strategies and activities

In 1998, the Commission published the 'Guidelines for water resources development co-
operation'10, whose centrepiece is a ‘strategic approach for the equitable, efficient and
sustainable management of water resources’. They set out the EC's approach to water-related
development activities, and constitute therefore a key contribution to the policy orientations
of this Communication. The focus of EC support to water in developing countries has
progressively evolved from a project approach concentrating on water supply, addressing
mainly technical
social and
into a programme approach including stronger
environmental concerns, and support for improved management of the resource.

issues,

Guiding Principles for water resources and water services management were defined in six
categories : Institutional and management; Social; Economic and financial; Environmental;
Information, education and communication; and Technological. These 19 principles (the full
list is provided in Annex 2), and the tools for their application at the programming and project
level, are already guiding water-related development activities supported by the EC. In
applying the principles, certain areas of integrated management need to receive special
emphasis, such as integration between land and water uses, between upstream and
downstream areas within river basins, between water quantity and quality aspects, and
between social and environmental aspects. Recommendations from the study commissioned
by the European Parliament in 2000 are also taken into account in this Communication11.

Inherent

the legitimate uses and demands,

Water resources are subject to a variety of demands/pressures which affect availability and
quality.
tensions exist between these different demands. Over-abstraction or
contamination of water by one user or in one part of a river basin will limit the options
available to others. Water resources must be managed in an integrated manner taking account
of all
including environmental objectives. Integrated
management requires that water resources within a given river basin or lake catchment area
are managed in an holistic manner balancing the water needs of the aquatic environment and
the different water uses. An integrated approach also requires that all waters including
groundwater and coastal waters are taken into account. This applies particularly to rivers
which cross national boundaries and to lakes bordered by several different countries.
Integrated Water Resource Management and River Basin Management12 are central
principles of EU policy.

8

9

10

11

12

EC's Development Policy - Statement by the Council and the Commission, November 2000
Communication on EC's Development Policy, page 18
EC Development
sustainable water resources management - A strategic approach.
European Parliament. DG for Research (2000): Water and Development in Developing Countries.
See definitions in Annex 1 - Glossary

(1998): Guidelines for water

resources development co-operation. Towards

7

EC Cooperation has historically been organised on a regional basis. Resources are allocated
from the European Development Fund (ACP countries) and from the EC budget (Southern
Mediterranean and Middle East, Asia and Latin America, Eastern Europe and Central Asia);
loans are also funded by the European Investment Bank. Within the various regional
programmes, there are some commonalties between water-related policies and activities - in
most cases a focus on poverty reduction - but there are also differences, depending on
regional conditions and legal agreements. More detailed description is given in Annex 3.

–

Lessons from experience

The majority of water projects are in rural and urban water supply and sanitation, with an
increasing number addressing the wider context of water resources management. Evaluations
the criteria of relevance, efficiency,
are regularly carried out,
effectiveness, impact and sustainability.

to assess results against

The use of Project Cycle Management as a framework for development co-operation projects
has increased project consistency from programming to evaluation. If applied correctly, this
approach allows the achievement of specific objectives (e.g. increased supply, improved
water quality, cost-effectiveness, environmental impact) to be measured against verifiable
indicators. In the sensitive political and economic context in which development projects are
undertaken, it aims to ensure that project design takes accounts of assumptions and risks.
Finally, addressing water needs in terms of problems and solutions may encourage the
development of more cost-effective methods; in many cases, improving the use of existing
infrastructure (e.g. by reducing water losses) should always be fully explored before
designing new schemes.

construction,

including water

training, management,

Evaluation findings13 have pointed to the need for certain key elements to be considered, if
water-related projects and programmes are to succeed: An integrated approach (conception,
design,
quality monitoring,
environmental issues); Stakeholder involvement, at all levels of responsibility and at all stages
of project conception and implementation (to allow project design to take account of local
practices and experience, and preferences for different types of solutions; it also includes
women's participation and attention to gender aspects in design, management and
monitoring); Capacity building, in particular for sustainable management of resources and
services, operation and maintenance of systems; Awareness of social and environmental
needs, impacts and costs. This might include the encouragement and development of a
consumer culture amongst water users. On the environmental side, water projects can be more
effective in the context of a pollution reduction or biodiversity recovery strategy.

These findings highlight in particular the needs to clearly identify the beneficiaries and their
problems; to design systems meeting the real needs of users, taking account of different
lifestyles and consumption patterns, building on their knowledge and experience, and
matching their capacities, including financial, to maintain and manage the systems. Consumer
surveys should be undertaken so that the optimum extension programme can be planned, in
particular to reach the poorest sections of the peri-urban population.

Evaluations of rural and urban water supply projects in Africa have shown in particular that,
while most of these projects have a health improvement objective, sanitation and water

13

e.g. 'Evaluation globale des projets d'hydraulique villageoise en Afrique de l'Ouest' (1997); Evaluation
of Kampala water supply expansion project (2000).

8

quality aspects are often not given enough consideration; sensitisation and capacity building
must therefore include these aspects, in collaboration with health actors. Evaluations of the
environmental component of the TACIS Regional Programme, concerning in particular the
Black, Caspian and Aral seas, have confirmed the important impact of water quality on
agriculture, fisheries and tourism, and how much actions to improve water quality in
inflowing rivers, benefit to the coastal economies.

Despite the value of existing reports, a wider spectrum of evaluations is needed to provide a
sound base for future action (e.g. on activities directed towards pollution abatement, on
experiences relating to transboundary waters, conflict prevention). Donor coordination is not
only about improved communication in programming, project design, and funding, but also in
the sharing of lessons which can improve the impact of future interventions.

2.2.

Water as a component of EC development priorities

As already stated in the opening of chapter 2, the principal aim of the EC development policy
is to reduce poverty. Poverty is defined not simply by the absence of income and financial
resources, but also as 'encompassing the notion of vulnerability and such factors as access to
adequate food supplies, education and health, natural resources and drinking water, land,
employment and credit, information and political involvement, services and infrastructure'.
All of these are needed to enable disadvantaged people to exert control over their means of
livelihood and development, enjoy equality of opportunity, and live in a safe and healthy
environment. Thus access to the common resource and the expansion of service delivery to
the underserved are at the heart of poverty reduction strategies. Among the critical resources
to which many rural farming families need access are land and water, and among the critical
services to which all people, rural and urban, need access are a safe and reliable water supply
and adequate means of waste disposal.

Poverty-related problems in developing countries are complex and multidimensional. Since
water is a social, economic and environmental good fundamental to human activity, sound
management of the resource base and of services dependent on it will interact with the pursuit
of these objectives, directly or indirectly. Water management is a cross-sectoral issue to be
mainstreamed within development policies associated with poverty reduction. There are many
ways in which water management is relevant to the thematic priorities and cross-cutting
issues of the EC Development Policy14. The following analysis addresses the question of
where and how policies surrounding water and development should be integrated into these
priorities.

–

Regional integration and co-operation

Regional
integration and cooperation should take transboundary economic, social and
environmental problems fully into account. The shared resource base frequently includes river
systems, lakes and groundwater aquifers. Transboundary cooperation over water resources is
becoming increasingly important in many developing regions, where growing population and
changing consumption patterns create tensions on both water availability and quality among
upstream and downstream users. The challenge in sharing waters is to avoid conflict and
promote peaceful co-operation between different interests, both within countries and between
them. The Communication on conflict prevention recommends EC support ‘where a clear

14

Communication on European Community's Development Policy, COM(2000)212, 26.4.2000

9

commitment to regional collaboration exists, to regional actions aiming at a fair management
of shared water resources’15.

–

Support to macro-economic policies, in particular sector programmes in social
areas

The EC Development Policy recognises that ‘the development of social policies such as
health, food security, education and training as well as access to and sustainable management
of water resources, are of the utmost importance’16. Meeting basic needs is an essential factor
to achieve ‘water security’17. Access to safe water supply and sanitation, and hygiene
education are closely inter-related with health, as well as being a factor - and a subject - in
improved educational provision. Key factors associated with poverty are determinants of ill
health and malnutrition, such as lack of access to clean water and sanitation, food insecurity
and poor household caring practices, all of them linked to water management. In pursuing
poverty eradication linked to improved access to safe water and sanitation services in both
rural and urban areas - where a growing number of inhabitants live in absolute poverty and
lack basic services -, the EC can make a substantial contribution to improvements in health,
hygiene and nutritional standards.

–

Food security and sustainable rural development

In most developing countries rural economic growth is a critical precondition for overall
economic growth, and food production remains the main economic activity of much of the
rural population. Expanded economic yield mainly comes from natural resource-based goods,
such as agricultural, animal husbandry or fishery products, all of which require sustainable
management of water resources. Integrating the management of land and water resources is
key to both water and food security, particularly in areas with competition over water
resources, and calls for improved water use efficiency in agriculture which is the largest user
of freshwater, to reduce the pressure on the resources. The poorest and most vulnerable rural
dwellers are most threatened by volatility in both the natural and the economic climate. A
dramatic downturn in their situation, caused for example by prolonged drought, can leave
them at risk of serious food deficit. They are therefore particularly sensitive to lack of water
and of water of acceptable quality18.

The EC Development Policy19 recognises that food security often needs to be ensured through
a regional rather than a national framework for production and distribution, which can be seen
as a transition from food self-reliance to a regional food security. This may entail importing
'virtual water' in the form of crops requiring larger quantities of water20.

–

Institutional capacity building

Sectors which require institutional support and capacity building include those involved in
developing and applying an integrated water resources management approach, particularly
over the longer term. The same needs arise in the context of water as in many other areas:

15

16

17

18

19

20

Communication on conflict prevention, COM(2001)211, 11.4.2001
Communication on EC's Development Policy, page 18
see Annex 1 - Glossary
European Policy to Support Rural Development. Policy Orientation Paper. DG Development , February
2000.
Communication on EC's Development Policy, p 27.
Definition in Annex 1 - Glossary

10

coherent approaches at all levels – local, national, and regional – to overcome fragmentation;
requires political
transparent and accountable institutions. Sound water management
responsibility and good governance. Strategies for ensuring poverty reduction need to be fully
‘owned’ by governments and civil society; equitable water allocation and anti-pollution
measures to safeguard public health need to be based on good governance principles.

At local level, particularly in low-income areas, support to water users’ associations or
community-based organisations involved in managing water and sanitation services can
contribute to water security and poverty reduction. At the regional level, support to River
Basin Organisations can strengthen the integrated management of water, and prevent conflict.

–

Trade and Development

The EC promotes the sustainability of trade policy, especially in poor countries, in order to
contribute to non-inflationary growth while preserving environmental
resources and
promoting social equity. Therefore, the EC is prepared to support countries in adopting trade
policies which fully take account of scarce water resources.

In water-scarce environments, it is necessary to give a special attention to water management
in relation with production and trade of agricultural and industrial goods. The relationship
between trade and water security is relevant where the interests of the poor are concerned, in
particular for subsistence farmers. Concerns about
this key global challenge are further
developed in chapter 4.4.

–

Transport

Transport is a key sector for EC support, with a major focus on road transport. In some
regions, however, investments may be directed towards river (and maritime) transport. In
deltaic areas, coastal zones, or riverine forested areas, waterborne transport systems may be
the best or only solution, but the absence as well as the superabundance of water can threaten
water-borne transport. The large use of rivers for transport in Europe has proven that such
activity can bring great benefits, but also poses severe threats to the environment. The EU has
thus experienced that the use of waterways for transport needs to be incorporated into an
integrated water resources management approach where applicable, and the EC promotes
sustainable transport policies which integrate land and water use planning.

–

Horizontal and other aspects

Gender balance. ‘Gender inequality hinders growth, poverty reduction and progress in health
and education’21. One way in which gender inequality contributes to poverty is the heavy
burden imposed on women in terms of their time and energy in collecting domestic water
supplies. Not only is their role in household water provision and use frequently ignored in the
water planning and management process, but the need to release them from water-related
drudgery is insufficiently appreciated by those hoping to engage them in income-generation
and poverty reduction programmes. Thus mainstreaming gender equity should give special
attention to water-related policies and programmes.

Environment and sustainable development: As highlighted before, the importance of water
in environmental sustainability has attracted an increasing attention in the international
debate. When putting poverty alleviation and human development at the centre of policy it is

21

COM(2000)212

11

essential to recognise that these objectives can only be achieved if we protect the integrity and
function of the natural ecosystems, which sustain our existence. Environmental investments,
such as improved land and water management, investments in sanitation, waste management
and clean air, often yield high rates of economic and social return as well as promoting the
sustainable use of resources. Neglect of environmental threats may not only undermine the
efforts to reduce poverty but even lead to increased poverty.22 A joint EC/UNDP initiative
looking at
the impact of involving the poor in improved environmental management,
addresses in particular the water resources context23.

A sustainable development perspective integrates also water uses such as energy, industry,
and recreation. Access to a reliable source of energy is of high economic importance in
developing countries, relying on power supply for pumping water, irrigation or household
use, and managing waste, with implications for water quantity and quality. Hydropower
installations often require the impounding of water by dams, raising increasing concerns for
socio-environmental impacts. Water use by industry needs also to be part of integrated water
management, and specific pollution prevention policies need to be developed. Other
important water-related concerns such as the management of floods and coastal areas, and the
implications of climate change on water management are reviewed in chapter 4.

Research: A number of areas relating to the interactions between effective water
management and poverty reduction need in-depth inquiry. Research (and capacity building)
play a key role in developing the critical knowledge needed for policy formulation, and to
operationalise policies and principles. The management and quality of water has been
identified as a key action in the 5th Framework Programme, within the Environment and
Sustainable Development programme, as well as under the INCO (International Cooperation)
programme. More details on these research programmes are given in Annex 3.

3.

WATER IN THE DEVELOPMENT POLICIES OF EU MEMBER STATES AND OTHER
ACTORS

3.1.

EU Member States

Most EU Member States have a specific emphasis on water-related development cooperation.
These include Austria, Denmark, France, Germany, Ireland, The Netherlands, Sweden and
the United Kingdom. For some water may be an integral part of individual country
cooperation, such as Portuguese development cooperation with Mozambique; for Finland,
water is included under the sector budget for health or education assistance. Although there
are differences between the importance attached to water as a development cooperation
component, and in water-related policies and priorities, there is an important similarity in
their policy frameworks.

Meeting basic needs for water supply and sanitation remains an important priority especially
within programmes for poverty reduction - poverty being generally defined as a lack of means
for a sustainable livelihood -, but this activity is now placed within an integrated water
resources management perspective. There has also been a shift from individual technical
projects towards a holistic programme approach, addressing issues such as capacity building,
local-level management, full stakeholder participation including particularly of women,

22

23

Communication: Integrating the Environment into EC Economic and Development Co-operation
UNDP/EC Poverty and Environment Initiative : Attacking poverty while improving the environment -
towards win-win policy options.

12

hygiene education, awareness-raising, establishment of public-private partnerships – all of
which include a built-in concern for long-term sustainability of both the resource and services
based upon it. Most Member States are also moving towards sector support programmes
instead of individual projects. Some countries are favouring new and alternative technologies
such as rain-water harvesting and ecological sanitation, and are placing a stronger focus on
water quality aspects, by favouring prevention of pollution instead of end-of-pipe solutions
such as water treatment.

Summaries of the Member States water policies are found in Annexe 4, and the list of
documents in Annex 5 includes references of the individual policy documents.

3.2.

Coordination and complementarity

In accordance with the EC Treaty, coordination and complementarity of EC and EU Member
States’ development cooperation policies and activities aim to make the contribution of EU
cooperation to partner countries more effective. Overall coordination of cooperation within
country programmes is the primary task and responsibility of partner governments. However,
the European Community can also assist partner countries' donor coordination. This is
particularly relevant when the primary source of aid is the EU Member States and the
Community. Clear strategies elaborated by partner countries are the ideal framework for
reaching complementarity, which aims at a more sustainable use of limited resources by
sharing lessons, avoiding unnecessary duplication and making use of a synergistic effect in
different areas of expertise.

Regular Expert Group meetings are held with Member States, to share policy, practice and
operational guidelines, and to determine a coordinated European approach,
linked to
achievement of the international development goals. Coordination takes also place at country
level, between the Commission and EU Member States, as well as other donors.

3.3.

International organisations and partnerships

As detailed in Annex 4, several UN agencies are working on water-related fields (UNDP,
UNICEF and WHO, FAO, UNCHS, WMO, UNESCO and UNEP); some have a broad
mandate, many have a more specialised focus. The UN Commission on Sustainable
Development, the follow-up body for the Agenda 21 process, is also concerned with water
issues, mainly from an environmental perspective. The Commission is now moving towards a
closer collaboration with the UN system in the field of development24, with a view to
maximising complementarity and synergistic effects.

The World Bank has redirected its focus towards poverty eradication, which includes
provision of water and sanitation basic services. The World Bank is also active in dealing
with transboundary waters from the perspective of conflict prevention. The Global
Environment Facility has International Waters as one of its focal areas.

The Water Supply and Sanitation Collaborative Council is the main international forum
addressing issues of water, sanitation and hygiene. The Global Water Partnership was
established to respond to the need for coordination in applying an integrated approach to
water resources management. The EC also fosters collaboration with NGOs, the private

24

Communication from the Commission on "Building an effective partnership with the United Nations in
the field of Development and Humanitarian Affairs" (2 May 2001).

13

sector, professional associations, and research institutes. Several Conventions include
obligations relevant for water management.

3.4.

Role of the EC : political dialogue, development cooperation and trade

The Community has three principle means of action to pursue its objectives in the field of
development: political dialogue, development cooperation and trade. These avenues are
mutually reinforcing and should be used to pursue the water-related policies of the
Commission. Considering the mix of policies with a water dimension, the Commission can
take account of the possible impact of the whole range of its relevant programmes when
formulating and implementing targeted measures.

Within the EC's policy mandate for poverty eradication, improved water and food security
plays a key role. The EC being the major single donor in grant financing, it has both the remit
and resources to make a significant contribution to the global effort to achieve water security
at household, community, national and international levels. Carrying this work in close
collaboration with EU Member States increases coherence and complementarity of policies
and priorities, as well as coordination of activities.

Regional cooperation is a main focus of EC development aid. Taking account of relevant
expertise in water management policies within the EU (such as the establishment and
implementation of the Water Framework Directive, a legally binding instrument
that
promotes in the EU the same principles put forward in this Communication for developing
countries), the Commission can make a significant impact in supporting Integrated Water
Resources Management at the regional level, including in cases where water-related conflict
prevention may be needed. Collaboration between the EU and other international actors can
lead to enhanced confidence building between riparian stakeholders in projects on
transboundary rivers, lakes or aquifers.

4.

THE WAY FORWARD

4.1.

Raising the policy profile

The case presented in this Communication highlights the need for more attention to be paid to
the fragility of the global supply of freshwater and its equitable distribution to assure a
reasonable quality of life for all the world’s inhabitants, especially the poorest. All aspects of
the resource and its different uses, as well as allied areas such as environmental sustainability,
pollution, sanitation, should be encompassed by a heightened political concern for water on
the planet. It suggests that a higher policy profile for water is required on the European
Community's development
considerable
international concern is now being devoted to this area, on its own merits and within poverty
eradication initiatives, and EC institutions have their own role to play within the debates and
practical actions devoted to this end. The established sectoral principles are endorsed in this
Communication as a foundation for policy development. Priority themes, including at the
regional and global levels, are revisited in this chapter, whose purpose is to articulate and
highlight key messages on the way forward.

cooperation agenda. As

already described,

The six development priorities of the European Community are the overarching framework to
reach these objectives, under which three critical areas have been identified to apply
Integrated Water Resources Management, for sound water-related interventions:

14

(1)
Ensuring a supply to every human being, especially the poorest, of sufficient drinking
water of good quality and an adequate means of waste disposal, with the general objective of
reducing poverty and improving people's health and quality of life;

Sustainable and equitable transboundary water resources management taking into
(2)
account all relevant interests and integrating the competing needs of the various users, in
particular those of riparian communities and states sharing the same resource base;

Cross-sectoral coordination to ensure fair and appropriate distribution of water
(3)
between users of different kinds, requires mainstreaming water management principles into
related policies : water for food security, for the environment, energy, industry, etc.

As described above, the main purpose of an integrated approach is to reconcile competing
needs and uses, bearing in mind the crosscutting principle of gender equity. Within this
overall purpose, a special attention is required for several aspects of ‘integration’: between
sectors and among partners, to overcome fragmentation of responsibilities; between land and
water uses within the basin or catchment; between protection of water quality (with an
emphasis on pollution prevention) and maximisation of quantity; between the uses of surface
water and groundwater; between supply- and demand-based measures, requiring attention to
pricing of water services; between short-term water demand for human development and the
long-term requirements to protect habitats and biodiversity, especially wetlands.

The primary responsibility for ensuring equitable and sustainable water
resources
management rests with governments25. Supporting developing countries and regions to
develop their own water management policies and strategies, and strengthen their public
funding capabilities, will thus foster possibilities to reach water security.

To apply the integrated approach to best effect, the level of catchment, river basin or sub-
basin should be considered, where appropriate. A key message is, therefore, to promote the
development of river basin management plans. Water projects should be consistent with
these plans, or include assistance for their establishment if they do not exist.

4.2.

Putting Integrated Water Resources Management into practice

–

Awareness and participation

Awareness raising of all stakeholders is needed to ensure that they recognise the value of
water in all its dimensions – economic, social, cultural, for health and the environment. Better
understanding of the pressures on water resources and the consequences of irresponsible and
unsafe water behaviour will improve motivation to manage water more effectively and help in
defining societal norms to adapt to a changing situation. Users need to understand that a right
to use water implies responsibilities for
In
environments where water and water-related services have traditionally been seen as 'free', the
message that water has an economic value and that services have to be paid for needs to be
convincingly conveyed. Policy makers need to understand that demand management is to be
preferred to supply-driven service provision which tends to enhance inequity and lead to
exclusion of the poor while subsidising services for the better-off. Awareness raising of all
stakeholders is also a prerequisite for transboundary collaboration. Activities to be promoted
include public education campaigns directed at adults and youth, through the media, schools
and training institutions, women's organisations, professional associations and political fora.

its sustainable use as well as its reuse.

25

Recommendations for action (n° 1) International Freshwater Conference, Bonn, December 2001

15

Participation of all stakeholders is required, in a spirit of balanced partnership at all levels
and in all contexts, and including a gender balance. It refers not only to managers,
technicians, professionals and administrators, but all segments of society including economic
and social actors, representatives of civil society such as NGOs and user associations, and the
private sector. Ownership is a key to success of policies and activities, especially where
poverty reduction is concerned. Effective policy elaboration and implementation requires also
partnership between donor and partner countries.

–

Institutional strengthening and management

The success of policies, programmes, projects and services depends heavily on the capacity,
resources and expertise of the responsible institutions, whether these are formal national or
international bodies such as River Basin Organisations, or more informal bodies, such as
water users' associations. The latter are particularly important in the light of the principle that
water-related services should be managed at the lowest appropriate administrative level, with
people involved in management and governance decisions concerning water resources.
Innovative forms of service delivery involve users,
informal service providers, private
enterprises. Attention needs to be given to the legislative and regulatory framework,
administrative capacity, and transparency so as to assure good 'water governance'. There may
also need to be specific mechanisms for safeguarding the poor and gender equity.

One of the most important areas for cooperation is therefore capacity building by means of
human resources development, training and networking, to make water institutions more
effective and water services more attractive for private investment, necessary to bridge the
gap between current and required levels of expenditures. Partner countries need to be able to
streamline their water-related policies, to develop and apply appropriate strategies, involving
local, national, regional and international levels.

One action which would improve the effectiveness of integrated river basin planning, is the
strengthening of exchanges of knowledge and experiences, and links between European and
developing country actors. EU experience could be drawn upon to promote regional support-
groups and centres of excellence, allowing countries to benefit from – for example – success
stories in the improvement of water governance or in the introduction of an integrated water
resources management approach (such as the EU Water Framework Directive as an example
of water management within river basins), which applies also in a transboundary context.

–

Management by demand

As a result of improvements in living conditions and social aspirations, the demand for water
is on the increase practically all over the world. Many countries in the developing world are in
the process of moving from supply- toward demand-management scenario. This can be
described as a 'water management ladder': when the demand and competition is low, i.e. when
access is comparatively easy, the cost is low and the technical and institutional system is
comparatively simple. Higher demand (more people per flow unit) will initially result in
technical arrangements to augment supply, i.e. a supply management stage. Further increases
in demand would lead to inter-sectoral competition and environmental concerns. These
management challenges cannot be handled only through technical supply oriented means, and
demand management strategies need to be applied. Gradually a ‘best possible use’ of water
becomes inevitable, requiring the design of appropriate institutional arrangements.

16

Integrating supply-based and demand-based measures requires support for capacity building.
Expertise needs to be developed in a number of areas – for example, on the factors
influencing demand, and the environmental implications on different rungs of the ladder.

In a situation of increasing demand, the challenge is to reduce the demand while increasing
output (per unit of water). This involves attaching a value to water for all its uses, and moving
towards the pricing of water services and the imposition of fines or tariffs for water
degradation. Efficient demand management will include protection of water sources and water
reuse. Decisions on pricing should not be confined to cost recovery for services, but should
build in the necessary costs of environmental protection from waste and pollution,
the
'polluter pays principle'. However, while it is necessary to recover the costs in order to sustain
water provision and treatment, it is also important to meet the basic needs of poor and
vulnerable groups by designing tariff structures and collection systems in an appropriate way.
Because pricing issues are sensitive it is necessary to develop pricing mechanisms in a
transparent way with the participation of users, build in appropriate incentives, and introduce
new pricing regimes in a phased manner.

–

Expanding the knowledge base

The knowledge base concerning water and waste and their efficient, equitable, and sustainable
management, in developing country contexts, has to be expanded in a number of areas,
including policy issues, management systems and technology. It can build on the successful
experience of international cooperation in science and technology. A prime concern is
the development of concepts that can help operationalise the principles of
directed at
sustainable development of water resources, with natural attention to societal and equity
concerns. A focus is also required on innovative approaches (e.g. in demand management,
ecological sanitation). Greater efforts towards using research results, knowledge and
innovation, through capacity building and up-take, hold great promise for tangible results.

New priorities for collaborative research programmes (such as INCO - see Annex 3), that
firmly address the transition towards sustainability, will be determined through
must
continued dialogue and interaction with partner institutions as well as taking into account the
outcomes of
integrated and
the international debate. Given the challenges ahead,
interdisciplinary policy and systems research will warrant highest priority. In this context, it
will be crucial to develop and disseminate, jointly with partners in developing countries, the
knowledge required to respond to evolving aspirations of societies, particularly the most
disadvantaged and vulnerable groups. The knowledge generated by research must help
provide options and enable choices of sustainable lifestyles and water resource uses as well as
promotion of appropriate incentive and regulatory policies.

–

Coordination

Collaboration between bi-lateral and multilateral donors and international organisations on
water programmes needs to be strengthened, at both regional and international levels. In this
context, the informal EC/EU Member States Water Expert Group can continue to guide the
evolution of policy and its application in a co-ordinated fashion. A major concern is
complementarity : The European Community invites donors to intensify co-ordination in
order to ensure increased complementarity and improve the effectiveness of aid. Other actions
include working with the World Bank and developing country partners in the framework of
Poverty Reduction, country and sector strategies and programmes to ensure that water is
given its due priority, and is addressed in an integrated manner.

17

Enhanced collaboration is recommended with the Global Water Partnership, particularly in its
networking activities in developing regions, as well as with the Water Supply and Sanitation
Collaborative Council, with UN agencies, such as FAO on water for food, with Convention
programmes, with civil society and NGOs for the promotion of community-managed services,
and with the private sector. Coordination between donors is particularly essential in the
context of management of transboundary waters.

The EC should play an active role, in close coordination with EU Member States (not only the
national administrations but also the private sector and civil society) in the work towards the
World Summit on Sustainable Development in 2002, and the 3d World Water Forum in 2003.

4.3.

Water related action for its different uses

The critical areas identified in 4.1, to which political attention should be primarily devoted,
and for which all sources of funding (public and private) need to be mobilised26, cover all the
different water uses under an integrated water resources management framework. The way
forward is highlighted for these different areas, in a local and national perspective. The
regional cooperation context (transboundary waters), and relations between water and the
critical global issues of climate change and trade will be addressed under the next heading.

–

Water supply and sanitation

The target of 'water and sanitation for all' set for the International Water Decade is still far
from being reached. As stated in the opening of this chapter, the expansion of safe water and
sanitation services to meet the needs of the poorest and under-served parts of the populations
is one area regarded as critical for support.

In order to reach this objective, some ancillary messages should be emphasised, including the
following needs to improve capacity for operation and maintenance, with increased user's
participation; minimise unaccounted-for water and reduce water profligacy; introduce water
saving devices, and reuse water where practicable; price water services appropriately so as to
safeguard the interests of the poor; introduce incentives for safeguarding water quality at
community level, such as the protection of wells and careful water storage.

In this context, two urgent water priorities27 must be highlighted:

Extending sanitation coverage and hygiene education

Sanitation is a neglected area, which tremendous consequences on health need to be
emphasised and addressed. Improving hygienic behaviour and environmental sanitation
alongside water supply must be defined as critical ingredient of public health programmes, for
example by creating a wider understanding among low-income communities of the links
between lack of hygiene and disease.

Besides, a careful examination of the technical options, regarding health risks, prevailing
attitudes and customs, acceptability, existing knowledge and practices, costs, ownership of
facilities, and the regulatory framework is needed. New promising approaches do exist and

26

27

Recommendations for action in the field of mobilising financial resources, International Freshwater
Conference, Bonn, December 2001
Framework for action, Global Water Partnership

18

need to be better known, like ecological sanitation28. The small re-circulation systems can be
adjusted upon affordability conditions and management capacity (whereas sophisticated piped
systems cannot) and bring large benefits (improved environment and water savings).

Meeting the challenge of urbanisation

Rapid urbanisation throughout all parts of the developing world is placing increasing strain on
municipal water supplies, drainage systems and sanitation, including sewerage services. The
key message in this context is that the provision of safe water by mains connection and of
piped sewerage are unaffordable for the majority of the urban population, and that any
strategy for reaching the urban poor needs to offer lower-cost solutions, building on users
capabilities. Another important message is that increased hazards to urban health are posed by
the failure to protect water quality in its catchment area.

–

Water for food: Achieving water-food security

Ensuring food security at household, community, and national levels is a vital component of
poverty reduction. Food security cannot be divorced from water availability, with a high
proportion of the world's freshwater resource devoted to irrigated agriculture; this question
relates also to livestock and fishery/aquaculture needs. Advocating sound water use and
management for food means placing an emphasis on small-scale water-efficient approaches
and the application of water-efficient technologies (rain-water harvesting, small-scale drip
irrigation). Crop vulnerability to drought and floods is also an important issue in water
policies. Besides, promotion of environmentally sound agricultural practices, minimising the
use of chemicals, is needed to avoid contamination of waters by their unsafe use and storage.

While the impact of urban (and peri-urban) food production on the urban poor needs to be
recognised, actions to promote food security in poor rural areas should include livelihood
diversification, together with water saving methodologies (e.g. rainfed agricultural systems,
which have spill over effects on environmental sustainability, through reduction of methane
irrigation which maximise
emission) and more sustainable management systems (e.g.
productivity per unit of water, specific agriculture practices in arid areas that reduce
salinisation, etc.). This would ensure alternative income generating opportunities for the
poorest people, and also decrease the pressure on scarce water resources.

–

Protecting and restoring water resources and ecosystems

Overexploitation of water for human needs may have disastrous consequences on the natural
habitat. In the case of water management this means that proper consideration must be given
to the water needs and the protection of aquatic ecosystems. Water bodies and in particular
wetland areas are extremely rich in biodiversity and often of crucial importance to the
poorest; management strategies should recognise the importance of
these resources.
Moreover, the self purification capacity of healthy aquatic ecosystems and wetlands is an
important element of long-term sustainability in water uses. Experience in Europe shows that
all partners in a River Basin benefit from healthy aquatic ecosystems because they can reduce
their treatment measures for drinking water and other human water uses.

It is essential to find a proper balance between human needs and the intrinsic value of
ecosystems at all levels of water management. Specific actions are required to support the
maintenance of the ecosystem so that over-exploitation or pollution does not compromise

28

definition in Annex 1 - Glossary

19

freshwater supplies. Actions need to ensure that key ecological systems are kept operational,
and that loss of species, habitat and bio-diversity do not deplete other resource bases such as
fish stock.

Declining surface and groundwater quality exacerbates the need in urban as well as rural areas
to address the causes, not just mitigate the effects of increasing water pollution, thus support
should be directed more towards pollution abatement29 than towards curing measures.

–

Sustainable water use for energy and industry

In the energy context, hydropower development must be integrated in water resources
management plans, firstly to guarantee a rational use of water for energy, because the absence
of water can threaten power generation. The interest from donors in projects requiring large
dams is declining, except
for uniquely competitive low-cost sites, and sites where
environmental and social impacts are acceptable; small and medium hydropower plants often
offer a sustainable solution to energy needs, for instance in mountainous areas with few other
energy resources30. There is also a need to invest in renewable energy for water pumping,
wastewater treatment and desalination, where feasible.

Industry is not only a significant user of water, but it is also a major polluter, most waste
being discharged untreated into waterways. Large-scale and small-scale industries are
contributing to the pollution of surface as well as groundwater. The need for cost-effective
and ecologically suitable technologies for all kinds of liquid and solid waste disposal is a key
issue. There is also a need to invest in pollution management systems.

–

Management of water-related hazards and of coastal areas

Another important emphasis within water resources planning is the reduction of water related
hazards from floods and drought, and the mitigation of their effects. Management of floods
depends on action within the whole river basin, including upstream and downstream areas,
and in the coastal zone and adjacent marine areas. Preparedness and mitigation of flood
effects should include warning systems, measures such as building of flood protection
structures and creation of storage capacity, and non-structural measures such as land-use
planning. Measures for the mitigation of the effects of droughts include early warning and
response capacity systems; efficiently managed emergency relief, including drinking water
supply and food aid;
improved water and food storage systems, and the promotion of
alternative livelihoods for drought prone areas.

Mismanagement, excessive withdrawal or pollution of water resources has an impact in the
discharging area, a delta, a coastal zone and associated marine ecosystem. Integrated water
resources management within river basins should encompass management of the coastal zone.

4.4.

Key global challenges

Some global and long term issues have become increasingly critical as water resources
become scarce: the management of shared waters to build regional cooperation and avoid
conflict; the impacts of climate change leading to higher risks of extreme events and resource

29

30

definition in Annex 1 - Glossary
World Commission on Dams: Final Report, November 2000.

20

depletion; and the globalisation of world trade, including products that may impact on water
management.

–

Transboundary water management and conflict prevention

Prevention of conflicts over water need to build on cooperation and on the sharing of
economic and environmental benefits as much as on the sharing of the resource. When the
action of one state results in a declining supply for any other there is heightened potential for
an intra-basin clash over the distribution of water. Further, state legitimacy is threatened if
there is a failure to provide the basic necessities of human life. In response the political
leadership may attempt either to stifle internal dissent or to divert discontent
toward
neighbouring countries.

Cooperation over transboundary water resources call for an increasing openness within
upstream/downstream relationships and the development of new partnerships. In this context
also, the principles of sustainable management of water resources are gaining increasing
recognition, such as the need for new institutional arrangements, increased decentralisation
and respect for the environmental demand for water. In line with the recommendation of its
Communication on conflict prevention and the focus on regional cooperation in its
the EC should therefore participate in supporting an improved
Development Policy,
governance structure to secure best possible use of water and enhance cooperation in
management of shared transboundary water systems. Assistance is needed to develop
effective cooperative arrangements and for coordination in such areas as water quality and
quantity, and related socio- economic and political relationships. As underlined before, such
support can build on the EU's own experience in water management.

Support for water security is particularly vital in situations where those suffering are the
poorest. It includes provisions aiming at the reduction of threats to the sustainability of river
basin agreements, and the promotion of a dialogue on basin-wide cooperation in such areas as
information-sharing, capacity building and technology transfers; cooperation should focus on
achievable goals and benefits instead of focusing exclusively on contentious issues of rights
and allocations. Cooperation between riparians on flood preparedness or mitigating the effects
of hazardous floods should also be promoted.

–

Implications of climate change on access to water for the poor

Among the issues related to water which need to be addressed at the global level is that of
climate change. An expected intensification of the hydrological cycle, with changes in
patterns of precipitation and evapotranspiration, will have an impact on the living conditions
of human beings and for the environment. According to model predictions, periodic and
chronic shortfalls of water and flooding will be exacerbated, resulting in problems of water
significant. Land degradation, drought and
access and the migration potential
desertification are associated with lower water levels in rivers, lakes and aquifers, affecting
the quantity and quality of freshwater supplies. According to a report by the IPCC31 most
important changes will occur at the lower latitudes i.e. where population density is most
acute. Where the climate is already arid it may become more so, which will make life even
more difficult for some of the world's poorest inhabitants. Similarly, those most vulnerable to
flood often live in marginal terrain. The effects of floods and inundation are particularly
severe in low-lying areas, including within several of the Small Island Developing States.

is

31

The latest report from the Intergovernmental Panel of Climate Change, IPCC, 2001.

21

The need for equitable access to water will be reinforced in areas where water will become
more scarce. Improved water management, in particular in irrigated areas, swamps and
wetlands, will contribute to the mitigation of the effects of climate change. Partner countries
will need assistance, through research and capacity building, to increase their capability to
adapt to the adverse effects, which requires long-term planning. The regional context is likely
to be the most appropriate to build this capacity to integrate climate variability and change
issues into other aspects of water management.

–

Impacts of trade on water management

The liberalisation of the world economy – often termed globalisation – has implications for
imports and exports of agricultural products. The interconnections between international trade
and food and water security, especially where the interests of the poor are concerned, has only
recently begun to receive some attention. Many countries have traditionally perceived food
self-sufficiency as an important strategic concern, and have used valuable water resources in
pursuing this objective. Others, in trying to promote agricultural and industrial exports for
economic growth, have grown water-intensive crops and over-drawn their water resources, or
polluted them with industrial effluent. Remedying these environmental impacts can be costly.
In water-scarce environments, it is necessary to pay more attention to water consumption and
the protection of the environment in both agricultural and industrial policy discussions.

For some countries, importing ‘virtual water’, in the form of their requirements for water-
intensive food crops, may be a more practical and cost-effective approach to national food
security than growing them. However, all policies which support a country’s food and water
security objectives should take into account the needs of the poor, especially of subsistence
farmers who cannot afford to buy foodstuffs and may be negatively affected by a food
security policy which alters the economic framework within which they meet their livelihood
needs. More open markets can permit greater flow of grains and better returns to certain
farmers and thus have a positive impact on their livelihoods, but can also increase stresses on
water and land use and negatively affect the livelihoods of others, as well as a country’s long-
term prospects of overall food security. This issue needs to be studied more carefully and the
EC could offer its expertise to better understand the implications of different approaches to
food and water security, taking trade policies into account.

4.5.

Strategic Partnership for Water

The Commission wishes to build upon the results from the Bonn International Freshwater
Conference (December 2001) and to support the development of an EU initiative to address
some of the priority issues related to water and development.

In Bonn, Ministers from 22 African countries made a joint declaration in which they
identified water as a key natural resource for the continent. They also announced the setting
up of the African Regional Ministerial Forum on Water and the holding of an inaugural
African Ministerial Conference on Water to take place in Spring 2002. One of the stated aims
of the forum is to improve the integrated management of transboundary water resources and
to use co-operation on water (including river basin management) as a basis for bringing
nations together. The Ministers called upon their international partners to support this process,
in the framework of the New Partnership for Africa's Development.

Special attention will be given to transboundary water management issues and the necessary
river basins. Twinning
agreements of

the riparian states in the main international

22

arrangements between European and African rivers can also be envisaged to exchange
expertise and to canalise the support to specific pilot basins.

The process would be driven by the recipient countries. The response from the EU could
involve co-ordinated actions from the EC development programme together with bi-lateral
funding initiatives from the Member States, following normal funding mechanisms and
existing procedures. The EU action should be undertaken in co-ordination with the actions of
UN agencies, multi- and bi-lateral donors, and international partnerships. With regard to the
African Ministerial Forum for Water, the initial partner would be UNEP.

Relevant stakeholders would be invited to actively participate in the design and eventual
delivery of this initiative, such as the water industry to develop new approaches to financing,
ownership and operation of water infrastructure projects, as well as representatives of the civil
society and NGOs with experience in dealing with issues of water and development.

5.

CONCLUSIONS

The challenge that the world is facing in dealing with the growing scarcity and decreasing
quality of its water resources is particularly acute in developing countries,
to ensure
sustainable and equitable access to safe water for all its uses, with special attention to the
basic needs of the poor.

The whole donor community has to join efforts to assist partner countries in finding solutions
to face this challenge. This requires a stronger commitment to develop and implement water
policies in order to improve equity, efficiency and effectiveness in water management.
Raising the political profile of water on the development agenda should be coordinated in
particular at the EU level, building on an existing strong collaboration. As presented under
4.5, the World Summit on Sustainable Development gives the opportunity to promote a water
initiative, building on the results of the Bonn Freshwater Conference.

For partner countries and regions, this means raising water on the political agenda as an
essential component of poverty reduction strategies, and ensuring that water and sanitation
services are adequately integrated with health and education, within the basic services to be
provided to all. Good governance, political and sectoral reforms are necessary to address the
challenges. Awareness raising, institutional strengthening and capacity building activities are
essential
to support planning and decision-making, while ensuring participation of all
stakeholders and ownership of policies and strategies.

At the level of the European Community, such policy development has to be based on the
mainstreaming of water management into the priorities described in this Communication, with
the application of an "Integrated water resources management" framework.

To achieve these goals, a shift in thinking is necessary : to recognise that all water users have
a responsibility; to apply a real integrated approach in which all actors cooperate as partners,
in preventing water pollution. Moving
like in integrating land and water management,
towards a sustainable water behaviour requires the establishment of new societal norms; to
introduce the need for valuing water by increasing the perception of its preciousness in all its
uses; to look for innovative solutions, sustainable in the long-term, while recognising that
there is no "blue-print" solution for all problems.

23

Action, and in most cases new approaches, are needed to tackle urgent and long-term
priorities in providing water services, expanding sanitation coverage and hygiene education,
meeting the urban challenge, achieving water-food security, protecting water eco-systems,
managing floods. Conflict prevention and peace building, which are political priorities for the
EU, include sustainable and equitable management of shared natural resources, such as water.

In all these activities, the EU, with its experience and resources, has an important role to play.
Good practices have to be developed and promoted, in close coordination with EU Member
States and international organisations, partnerships and networks, to ensure a maximal level
of complementarity and value added of the Community's efforts. Such practices can build on
the experience of water management within EU river basins and in the diversity of European
approaches to management of water services, and on EC-supported research.

This Communication intends to provide a framework for the thinking and the action needed to
achieve water security, in quantity and quality, for everyone on earth, today and for future
generations.

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