Co-operation regarding water and other resources will enhance economic development in Egypt, Sudan, Ethiopia and Eritrea

Abstract

Competition for water will increase in the northern portion of the Nile River basin, with increases in population and with new and continuing efforts to stimulate economic development, improve income levels and achieve food security. Water scarcity and the inefficient allocation of water can limit the pace of economic development in arid regions, particularly when nations are unable to implement agreements that enhance the sum of net benefits generated with water resources. Much of the discussion regarding water in the northern Nile basin involves the volumetric allocation of water among countries. That focus may limit appreciation of the benefits that might be generated by co-operation involving a larger set of activities, such as international trade and transborder investments. The authors present a conceptual framework that describes how co-operation and international agreements may contribute to achieving the development goals of individual countries, while also enhancing regional net benefits. The authors propose several types of transborder investments that might be helpful in achieving those goals.