Water for people.pdf - WHO Thailand Digital Repository

3 4 2 / M A N A G E M E N T C H A L L E N G E S : S T E W A R D S H I P A N D G O V E R N A N C ERecognizing and Valuing the Many Faces of Wateravoided, replacement cost, substitute cost, contingent valuationand contingent choice in advancing the context of valuation.■ The development of valuation techniques has been greatlysupported by the development in computing capabilities (seechapter 14 on ensuring the knowledge base for details).■ The quality of and access to databases have greatly improved,thus enabling the undertaking of water valuation studies.ConclusionsThe formulation of national policies that include an economicapproach is the first step towards proper valuation of water. In thiscontext, due consideration needs to be given to the opportunitycosts of water as well as to environmental externalities to achievewater-related and internationally accepted goals, such as meetingbasic needs and food security. In combination or independently,valuing water will require policies that can help realize normativereforms and well-prepared introduction of participatory and marketbasedinstruments to meet the broad objective of sustainable waterresources management.The water sector interacts with almost all other sectors of theeconomy, and could potentially become a binding constraint oneconomic expansion and growth. This is especially true becausewhile the amount of renewable water resources is practically fixed,water demands will continue to grow in the years ahead due topopulation growth, increased food demand and expansion andmodernization of the industrial sector. Thus, the economic challengeis to maximize social and economic benefits from available waterresources while ensuring that basic human needs are met and theenvironment is protected. This means implementing IWRM principlesand mechanisms leading to the efficient allocation and use of waterresources, rehabilitating and improving the performance of existingwater supply systems and making future investments sustainable.Identifying and mobilizing additional resources remains animportant challenge. New exploitations of water resources –conventional or not – and minor adjustments in resource allocationpatterns can have a significant impact in terms of extending thecoverage. Establishment of an enabling environment that facilitatespublic-private partnerships could also contribute in meeting thesechallenges.Allocation mechanisms should balance competing demands bothwithin and between different water-using sectors as well asbetween countries and should incorporate the social, economic andenvironmental values of water. There is no magic formula becauseof the wide variability of country-specific conditions. Currently,water remains highly undervalued. The problem of crosssubsidizationacross sectors and different user groups makes it evenmore important to allocate water optimally, based on its value fordifferent uses.Progress since Rio at a glanceAgreed actionProgress since RioTo manage water in a way that reflects its economic, social, environmental and cultural values for all its usesMove towards pricing water services to reflect cost of their provisionTaking account of need for equity and the basic needs of the poor and vulnerableUnsatisfactory Moderate Satisfactory