1. Economic and Financial
Instruments for IWRM
Introduction to IWRM
Part 1: Discovering IWRM

2. Goal and objectives of the session
 To introduce the importance of water
 To give an indication of the water crisis
 To present the challenge in resolving the
crisis
 To define IWRM
 To introduce the importance of a water
management framework

3. Outline presentation
 Overview of the importance of water
 Water crisis: Facts
 Challenges in addressing crisis
 What is IWRM
 Water management framework and core
elements
 Benefits of the framework

4. Introduction
The Importance of Water
 Water is essential to human survival (20-40 litres
per person daily)
 Effective primary health care
 Fight poverty, hunger, child mortality, gender
inequality and environmental damage.
 Millennium Development Goals

5. Facts on Water Crisis
 More than 2 billion people suffer from water
shortages in over 40 countries;
 1.1 billion people do not have access to safe
drinking water;
 4 out of 10 people in the world do not have
access to improved sanitation (very basic
facilities);
 2 million tonnes per day of human waste is
discharged into water courses;
 Every year 1.6 million children below 5 years old
die because of unsafe water and lack of basic
sanitation.

6. Reasons for Water Crisis
 Water resources under pressure from population
growth, economic activity, growing competition
from many water users;
 Withdrawals increased more than twice the rate of
population growth;
 Development and pollution are exacerbating water
scarcity;
 Uncoordinated development and management of
water resources;
 Climate change will impact on water resources.

7. Challenges
Improving access to water (all users) and
sanitation
What is needed?
 Government making this a priority;
 Appropriate long-term financing;
 Resolving competition among users and
environmental challenges;
 Advocacy on-behalf of poor;
 Improved capacity of governments to
deliver services to all users;
 Government accountability in meeting
the needs of all users.

8. What is IWRM?
 A systematic process for sustainable
development, allocation and monitoring of
water resource use in the context of social,
economic and environmental goals and
objectives.

9. IWRM is a paradigm shift.
Departs from traditional approaches in three ways:
 Cross-cutting and departs from traditional sectoral
approach.
 Spatial focus is the river basin;
 Departure from narrow professional and political boundaries
and perspectives and broadened to incorporate participatory
decision-making of all stakeholders (Inclusion versus
exclusion).

10. Interdependency
 The basis of IWRM is that there are a variety of
uses of water resources which are interdependent.
The need
to consider
the
different
uses of
water
together

11. Examples of Competing but Interdependent Uses

12. The Water Balancing Act
Demand
• Increasing in all sectors
• Inefficient use
Supply
• Quantity (Natural Scarcity,
Groundwater Depletion)
• Quality Degradation
• Cost of Options
IWRM

13. IWRM Dimensions
Integrated Water Resources Management
Water supply
& sanitation
Irrigation &
drainage
Energy Environ-
mental
services
Infrastructure forInfrastructure for
management ofmanagement of
floods andfloods and
droughts,droughts,
multipurposemultipurpose
storage, waterstorage, water
quality and sourcequality and source
protectionprotection
Policy/Policy/
InstitutionalInstitutional
frameworkframework
ManagementManagement
instrumentsinstruments
Political economyPolitical economy
of waterof water
managementmanagement
Other uses
including
industry and
navigation
Water Uses

14. Governance
Health
WaterQuality
WaterSupply
Floods/Droughts
Energy
Agriculture
Industry
PollutionPrev
CoastalMgt.
EcosystemMgt.
Activity
Sectors
(water uses)
Social
Development
Economic
Development
Env.
Protection
Objectives
Policy/Inst.
Framework
Management
Institutions
The IWRM Process
Feedback
Prosperity
IWRM Water and waterrelated policies review and revision
IWRM Resource development, management, monitoring, and evaluation
IWRM Resource availability/use analysis and allocation

15. Water Management Framework
At the core of the water management
framework is:
 Treatment of water as an economic and
social good;
 Decentralised management and delivery
structures;
 Greater reliance on economic instruments;
 Broader participation of stakeholders.

16. What will a Water Management Framework do?
1) Provide framework for analysing policies and
options that will guide decisions in relation to:
 Water scarcity;
 Service efficiency;
 Water allocation; and
 Environmental protection.
2) Facilitate consideration of relationships between
the ecosystem and socio-economic activities in
river basins.

17. Think about it
 Could you give examples from your own country
where interdependency of water uses exists?

18. End
 The next presentation deals with the
principles of water management