WATER INSTITUTIONS, MARKETS AND DECENTRALISED RESOURCE MANAGEMENT: PROSPECTS FOR INNOVATIVE POLICY REFORMS IN IRRIGATED AGRICULTURE / WATERINSTITUSIES, MARKTE EN GEDENSENTRALISEERDE HULPBRON-BESTUUR: VOORUITSIGTE VIR INNOVERENDE BELEIDSHERVORMING IN BESPROEIINGSLANDBOU

Abstract

Increasing scarcity and competition for water resources has led to international recognition that public policies must change to manage water as an economic commodity. An analysis of natural resources and markets shows that limited potential exists in a regional context for trade in ‘virtual water’ through food imports. Policy options for intra- and intersectoral water reallocation must therefore receive priority attention. Based on experiences in other countries, emphasis is placed on successful innovations of markets in tradable water rights, local management, user-based performance assessment and water saving technologies in irrigated agriculture. The recently published National Water Policy for South Africa and draft National Water Bill that has been released for discussion are accordingly evaluated. With application of the theory of New Institutional Economics, a number of deficiencies in the accepted principles and policy measures become apparent. It is clear that the proposed water licences are insecure; this will not induce efficient market al locations nor will it enable effective participation of water users in water management. Further economic contributions in policy making are required for the design of unattenuated water entitlements in order to achieve correct pricing incentives.

Toenemende skaarsheid en mededinging vir waterhulpbronne het gelei tot internasionale aanvaarding dat openbare beleide moet verander om water as 'n ekonomiese kommoditeit te bestuur. 'n Ontleding van natuurlike hulpbronne en markte toon dat binne 'n streek konteks beperkte potensiaal bestaan vir handel in ‘virtuele water’ deur middel van voedselinvoere. Beleidsopsies vir intra- en intersektorale water herallokasies moet derhalwe prioriteit aandag ontvang. Gebaseer op ondervinding in ander lande, moet suksesvolle innovasies van markte in verhandelbare waterregte, plaaslike bestuur, verbruikergedrewe prestasie beoordeling en waterbesparende tegnologie in besproeiingslandbou beklemtoon word. Die onlangs gepubliseerde Nasionale Waterbeleid vir Suid-Afrika en die konsep Nasionale Waterwetgewing wat vir bespreking vrygestel is, word dienooreenstemmend geëvalueer. Deur toepassing van die teorie van Nuwe Institusionele Ekonomie, word 'n aantal tekortkominge in die aanvaarde beginsels en beleidmaatreëls opvallend. Dit is duidelik dat die voorgestelde waterlisensies geen sekuriteit meebring nie; dit sal nie doeltreffende mark allokasies bevorder nie en ook nie effektiewe deelname deur watergebruikers in waterbestuur bewerkstellig nie. Verdere ekonomiese bydraes vir beleidmaking word vereis vir die ontwerp van onverswakte waterregte ten einde korrekte insentiewe vir prysbepaling te verkry.