African Water Development Report 2006 - United Nations Economic ...

African Water Development Report 2006(c) To bring the selling price of water at or nearthe marginal cost; and(d) To facilitate access of the low income sectionsof the population to safe drinking water(ibid).Valuing Water Through Demand ManagementA wider concept than water pricing and costrecovery is “demand management.” DemandManagement is the use of economic and legalincentives, awareness raising and education toimprove consumption patterns for water distributedbetween sectors and water consumed whileimproving reliability of supply. Although economicincentives are important instruments fordemand management, they are by no means theonly ones. In fact, in demand management emphasisshould lie on educational, administrative,legal and political actions to influence demandwhile safeguarding equity principles. The use ofeconomic instruments to enhance efficiency ofwater use and to promote financial sustainabilityshould remain subordinate to these considerations.The major issues confronting developingcountries are, as Borgoyary M. (2002), notes:(a) Large numbers of poor people who do nothave access to clean, safe and sufficient watersupply;(b) Underestimated price of water vis-à-vis theactual value, and poor cost recovery;(c) Water policies that encourage inefficientand overuse of resources sometimes leadingto environmental problems such as salinityand clogging);(d) Government subsidies not being targetedto benefit the poor; and(e) Ineffectiveness of Public authorities responsiblefor services;.(f ) Water policy that focuses more on coveragethan on providing improved and regularsupply.Water resources accounts should be establishedat the national level to reflect the status of theresources and allow for their sustainable development.Figure 12.1: Issues involved in Water Demand ManagementWater Demand Management MeasuresUse of Treated WaterUse of AlternativeWater SourcesTariffWater SavingDevicesGrey Water UseMakes CustomersCost ConsciousMinim izes UnnecessaryWasted WaterMinimizes Use ofTreated WaterSource: Lisanework A. A: Water Demand Management Perspectives: Concepts and Applicability to the City of AddisAbaba, Case Study, WARREDOC, Perugia, 2003290