OECD Publishes Policy Paper on Water Governance in Asia-Pacific

The following article provides highlights from the OECD Policy Paper on Water Governance in Asia-Pacific. The full version is available here.

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Water security is expected to be a major challenge for the Asia-Pacific region due to increased water demand tied to irrigation, economic growth, urbanisation, and rising per capita domestic use. Water governance can greatly contribute to the design and implementation of robust public policies addressing water-related risks. This means shared responsibility across levels of government, targeting measurable objectives at the appropriate scale, relying on a clear allocation of duties among responsible authorities and subject to regular monitoring and evaluation. The OECD Policy Paper on Water Governance in Asia-Pacific uses the 12 OECD Principles on Water Governance to provide an overview of the main characteristics of water governance in the Asia-Pacific region (Figure 1). The survey carried out across 48 countries in the context of the Asian Development Bank’s Asian Water Development Outlook 2020 provides an assessment of the main water governance challenges. These include fragmentation of roles and responsibilities, scale mismatch, policy coherence, capacity, data and information, funding gaps, regulatory frameworks as well as stakeholder engagement, integrity and transparency, and monitoring and evaluation bottlenecks.

Figure 1. Dimensions of water governance.

 

 

 

 

 

 

 

Overarching water policy framework and coordination mechanisms in place in most countries

The OECD survey (Figure 2) illustrates that in all 48 countries of the Asia-Pacific region an environmental law is in place, while in three out of four countries a water law also exists. With regard to standards for access to water and sanitation, national overarching frameworks commonly mention the human right to water and sanitation. On the contrary, a guaranteed minimum amount of water (40% of the countries surveyed) or principles to protect indigenous/traditional rights (20% of the countries surveyed) are less commonly stated in related legal overarching frameworks. The governance survey also shows that 80% of the countries in the Asia-Pacific have set up river basin organizations, thus potentially providing a useful vertical and horizontal coordination instrument for water policy. When there is a transboundary catchment, a transboundary agreement is in place between in most of the riparian countries or territories. Moreover, 79% of the countries have set up horizontal coordination mechanisms at national and/or sub-national levels in the form of cross-sectoral groups, meetings, reviews, research programmes, etc.

Figure 2. Regional Results Survey on Water Governance Principles of the OECD.

      Photo: OECD

Key water governance gaps in the Asia – Pacific region

Limited implementation of water-related policies due to human resources and funding gaps

A majority of countries in Asia-Pacific have adopted dedicated water policies that tend to clearly indicate goals to reach and duties of the involved water institutions. However, in the large majority of countries, these policies do not clearly indicate the resources needed to achieve these goals, thus generating unfunded mandates and hampering their implementation. In many countries, the lack of financial resources is compounded by a lack of human resources that prevents the timely and efficient implementation of investment projects and dedicated water policies due to an absence of skilled staff and expertise.

Limited uptake of water policy instruments to manage trade-offs

The governance survey shows that in 79% of the Asia-Pacific countries there are no policy instruments to allocate or monitor groundwater extractions. The survey also indicates that two-thirds of the countries have not set up a prioritization of water allocation among users in case of scarcity or emergency. The absence of an allocation regime is most observed in Central and West Asia, the Pacific, East Asia and Southeast Asia, where the risk of “too little water” is most vivid, thus further jeopardising water security. However, it should be noted that half of the countries have set up mechanisms to solve water-related conflicts. Hence if an ex-ante water regime policy is not commonly in place in the region, an ex-post mechanism has been adopted in the majority of countries.

Limited use of economic instruments to manage water resources

The governance survey shows that abstraction and pollution charges are collected in one-third of the countries in the Asia-Pacific. The absence of robust economic instruments to manage water resources can represent a threat for water security in the region as many countries are thus deprived from tools to force water users and polluters to internalise the negative externalities of their water abstraction/pollution. These instruments are key to encourage behavioural change and fund the costs of managing water resources and regulating activities that impact upon water availability and quality.

Insufficient data and monitoring mechanisms

The governance survey reveals the widespread absence of water-related data and information across a vast majority of countries. This affects water and sanitation services, water resource management and water-related disaster information systems. Furthermore, in two-thirds of the Asia-Pacific countries, there are no formal requirements for evaluation and monitoring, meaning that water policy implementation is hardly ever monitored. This prevents countries from assessing the effectiveness of their policies and potentially implementing remedial actions when policies do not deliver intended outcomes.

Significant capacity gaps

In many countries, a lack of capacity is observed. This refers not only to the technical knowledge and expertise, but also to the lack of staff or obsolete water infrastructure. The capacity gap observed is not restricted to the sub-national level as only one-third of the countries in Asia-Pacific have adopted guidelines or standards for capacity building across authorities at all levels.

Limited uptake of integrity practices and tools

Less than 20% of countries in Asia-Pacific have implemented relevant international conventions, institutional anti-corruption plans, or tools to track budget transparency. The low level of adoption of integrity tools can be a major threat to water security, as investments can be discouraged by widespread corruption practices, despite considerable needs. Mainstreaming integrity and transparency practices across sector policies, water institutions and water governance frameworks is key for greater accountability and trust in decision-making, and for effective policy implementation.

Limited stakeholder engagement

Less than one percent of the countries (mainly the so-called advanced economies) have carried out a stakeholder mapping which can be considered a first step to guide and build stakeholder engagement processes. Furthermore, only one-third of the surveyed countries implement formal or informal mechanisms to engage on water-related topics with stakeholders. In addition, only 27% of the surveyed countries have set up peer-to-peer dialogue platforms or network across river basin organisations. As such, countries are not reaping the full benefits of having set up river basin organizations which could be used to promote further stakeholder engagement.

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About the Authors

Maria Salvetti (F) has worked as a Water Economist and Policy Analyst for the OECD Water Governance Programme since 2019. That year, she took part in a Water Policy Dialogue in Argentina focusing her work on the governance of water and sanitation services. She also produced a regional survey on water governance in Asia and the Pacific as part of the Asian Water Development Outlook 2020 in partnership with the Asian Development Bank. In 2020, she worked on the OECD Programme on Water Security for Sustainable Development in Africa, and produced two reports: Water governance in Cape Town and Water governance in African cities.

 

Aziza Akhmouch is the Head of the Cities, Urban Policies and Sustainable Development division within the Centre for Entrepreneurship, SMEs, Regions and Cities of the OECD. She oversees a team of 30+ experts providing governments with new data, evidence, analysis and guidance in a wide range of urban policies to foster smart, inclusive, competitive and sustainable cities. She oversees the OECD metropolitan and National Urban Policy Reviews, and a broad range of thematic work related to housing, transport, cities and inclusive growth, cities and environment, metropolitan productivity and governance, and localising the Sustainable Development Goals. Aziza Akhmouch spearheaded the OECD Principles on Urban Policy and the OECD Water Governance Initiative. She also manages the OECD Champion Mayors Initiative for Inclusive Growth, the OECD Roundtable of Mayors and Ministers, and the OECD-UN Habitat-Cities Alliance National Urban Policy Platform.