Institutional questions and Social Challenges

1. Introduction

Irrigated agriculture can be environmentally sustained provided the basic principles of good water management, water conservation, salinity, and erosion control are recognized. This has been practiced in certain regions of the world for over 5,000 years. In addition to the technical side, however, for irrigation to be sustainable, it must be viable socially and economically, as well as environmentally. Institutions must evolve to be compatible with concepts of sustainability if irrigated agriculture is to be successfully practiced in the future.

This paper focuses on institutional questions in relation to the sustainability of irrigation.

2. Irrigation Development Overview

The twentieth century will be characterized as an age of irrigation. Between 1900 and 1950, the world irrigated acreage doubled. The development of new irrigation projects has proceeded, however, at a diminishing rate since that time. The per annum rate of increase since 1980 is estimated at 1.2% (Pallas 1993). The development is no longer keeping pace with the increases in food production necessary to meet the needs of an expanding population. The slow down in irrigation development has occurred for several reasons. Poor commodity prices, higher energy costs, and generally poor economic conditions have discouraged agricultural investment. In addition, the cost of building irrigation capacity i.e. dams, reservoirs, etc., has risen rapidly making it difficult to justify the investment on economic grounds (Postel 1990). Many of the best less expensive projects have been developed leaving the more complex and expensive ones to be done. Also, rapid population increase in both developed and developing countries have resulted in increased pressure on our natural resources. This competition is particularly true for water which is slowly reducing the water available for irrigation. Currently, there is approximately 250 million hectares of agricultural land irrigated. This includes 185 million ha (73%) in developing countries with the remaining 65 million ha (27%) in developed countries (Shady 1991).

Environmental and social issues have also played a role in limiting expansion. Irrigation development produces ecosystem changes. It benefits human populations but, when not properly planned, implemented or managed, threatens the long term productivity of the system (Pallas 1993). Closer attention to environmental and social issues have slowed the development process. It is now recognized that appropriate attention must be paid to economic, social and environmental objectives to achieve balanced and sustainable rural development.

Understanding how competition for water will affect irrigation requires an indepth understanding of our institutional setting, i.e. the laws and regulations which apply to it. There is no uniform system in the world in regard to water (Ives 1993). In some countries, it is well documented, while in others, non-existent. Methods for organizing institutions and managing water are well established in some countries. The applicability of these methods in countries lacking formal institutions, however, may be limited by cultural or social factors.

In Canada and many other countries, government has historically covered the capital cost of developing the water supply. Viewed as a key to economic growth, water use has continually expanded as additional supplies and increasing infrastructure were developed to satisfy increasing demands. Governments were satisfied in promoting development and capturing spin-offs to the economy (Ward 1993). The barriers to irrigation development in Canada are primarily economic rather than physical. Irrigation development within the prairie region is estimated by the Prairie Farm Rehabilitation Administration (PFRA) at 543 thousand hectares of which 80% is in Alberta, 18% in Saskatchewan, and the remainder in Manitoba. Approximately 70% has a firm water supply with the remainder relying on runoff and local storage (Hill 1985). An important economic dimension in Western Canada is the fact that irrigation focuses primarily on low valued cereals and forages. The most recent statistics show the percentage of cereals and oilseeds as follows: Saskatchewan (72%), Alberta (83%) and Manitoba (26%). The historical struggle has been to increase the proportion of irrigated cropland to higher valued specialty crops. This has been slow due to many reasons including competition from the dryland regions (Veeman 1985). Irrigation is at an early stage in Canada and it will take time to develop the financial infrastructure and knowledge of crops, markets, etc., required to make it successful. A major institutional challenge is to assist in making irrigation projects sustainable through the diversification and increased intensity of associated crop production along with the development of value added industry.

The new global economy and prolonged recession have realigned government wealth. Many governments understand that deficit financing has reached its limit. In short, public dollars are not available to finance new projects. These realities will make institutions change their approach. In the future, more emphasis will be placed on improving existing projects rather than developing new ones. Institutions will be forced to carefully examine such questions as cost recovery and privatization.

For irrigation projects to be economically sustainable in the long run, they must create enough wealth to operate and rebuild the systems. In turn, the water users must receive enough income from the sale of their products to be able to pay sufficient water charges. However, the price of products is often determined in the international market place or by government food policy, or both. In this way, government food policy becomes part of the institutional framework under which irrigation projects operate. This linkage is fundamental in the sustainability equation.

The relationship between irrigation institutions and other related organizations continue to evolve in many countries. Many of the major irrigation projects developed are part of multipurpose water supply schemes, and as such, the benefits may accrue to many different sectors and take generations to be realized. In addition, irrigation benefits accrue to others as well as irrigators. In Alberta and Saskatchewan, Canada, it has been estimated that 15-20% of the total benefits of irrigation go directly to the farmer with the remainder to society (Hill, 1985). These benefits come from economic activity and employment beyond the farmgate that is derived from irrigation activity. Farm benefits are often a small part of the total benefits, and many projects become feasible only when other beneficiaries contribute to the cost. There has been criticism of the economics of past irrigation development. There is a continuing need to address this issue in a practical, consistent and integrated manner. In turn, the related institutional policies and funding arrangements for construction, rehabilitation and operation are dependent upon this relationship.

However, no matter what this relationship is eventually determined to be by economists, relying on governments for significant funding to help construct, rehabilitate and operate projects may not be sustainable in the long run. Projects would be more sustainable and efficient and contribute more to society if the wealth created directly by the projects was transparent and beneficiaries paid directly for the project. In many cases, this is not now possible because of the low prices typically paid to farmers for their product. However, this situation may change. If methods are found to access the wealth created by indirect beneficiaries, projects would become more viable. Also, as food shortages increase because of increasing populations, the value of food will likely increase and consequently enable water users to pay more for water. There is likely to be a continued search for institutional arrangements that will allow irrigation projects to become self sufficient. This is an area that has received little attention in the irrigation literature.

The institutional arrangements for developing and managing water resources are the transmission gears between policy objectives and field activity (Guggenheim 1992). Institutional arrangements are really an interrelated set of organizations and rules to enable coordinating activities to achieve social goals. Radosevich (1987) states that a good institutional arrangement recognizes that, to have a plan, there must be a policy and to have a policy, there must be a reason. In addition, he states that in many countries, water policies and laws either do not exist, are inadequate or antiquated. The law must be an essential ingredient of effective management.

Institutional factors refer to policies of a local entity, region, state or federal government (Mjelde et al 1990). These factors encompass local water district's rules, bank's lending policies, state and federal policies, and other laws and regulations. These factors have an enormous impact on water-use decisions.

Institutional framework is established by legislation which provides the operative norm. Legislation is often incomplete, however, and the formal institutions established by law are often supplemented by informal institutions (water users associations) that can either complement the function of the institution or compete with them (Guggenheim 1992).

3. Institutional Questions

3.1. COMPETITION FOR WATER

Competition for water develops when there is not enough to satisfy all demands. This competition occurs between farmers for irrigation water, between farmers and non-agricultural users of water (cities, industry, power plants) and environmental uses (Bouwer 1993).

Social view points are changing. Agriculture was once a major factor in most local economies but as areas diversify, competition between uses for water increase. In addition, there has been a rise of the environmental ethic in the society whereby people now stress the value of preserving biological diversity and aesthetic value for future generations (Bucks et al 1990).

The relative demands for domestic, industrial and agricultural supplies show that for developing countries, agriculture (80%) dominates. Demands will likely increase significantly in all sectors over the next years. All sectors will have to target to improve efficiency, however, inevitably, the main efficiency benefits must come from the dominant user - irrigation (Hennessy 1993).

Pressures are forcing agriculture to compete for water which will have a major impact on food production (Jensen 1993). The cost of storing and delivering water is already extremely high based on the current prices for most crops. As competition forces price increases, growers will discontinue the production of low value crops until commodity prices rise to meet the cost of irrigation. Subsidizing water for agriculture in many countries is a subsidy for food to consumers. Allocating less water for agriculture will reduce crop production and increase the importation of food.

Conflicts and competition among water uses will affect irrigated agriculture in many ways. These pressures will increase as water supplies become better utilized. Conflicts will increase which will require revisions to water laws and allocations. In the future, water use charges will likely be more closely related to its economic cost.

3.2. WATER PRICING

Irrigation systems have traditionally been built, operated and maintained by public agencies which charge little for their services. It is estimated that in the third world, average government revenues from irrigation are 10-20% of the full cost of delivery (Postel 1990), leaving little for operation and maintenance. The same is true in the developed world where water is often allocated to irrigation districts at costs which do not reflect market value (Ives 1993). This results in a reluctance to adopt efficiency measures. When prices reflect water's scarcity, when costs of obtaining water increase or when government regulates its use, then farmers will use it more efficiently.

Changes in water pricing policies aimed at water conservation and facilitating water allocations are under consideration in some countries and being made in others. Urban and industrial water users have a greater payment capacity than agricultural water users (ICID Newsletter 1993).

Various scenarios have been seen as potential solutions to the scarcity situation. Water transfer is a possible solution and involves the sale or leasing of water (Ives 1993). Voluntary transfers enhance the flexibility of water use. Water banking is a means of facilitating this transfer and has been used successfully in California (Bouwer 1993). Here, entities with critical water needs can purchase water from the bank with the proceeds directed to the seller.

It must be remembered that a water pricing scheme requires an institutional structure with well established rules. A market process cannot function without defining the rights and duties, and ensuring one receives what one has paid for. Canadian institutions have been challenged to restructure and reform the system of water rights to facilitate this transfer of water to higher valued areas, in the course of economic development, whether that be within or outside the agricultural sector (Veeman 1985).

3.3. WATER CONSERVATION

Water conservation is recognized by many institutions as a mechanism to solve problems and concerns in irrigation. Policy debates about agricultural water conservation are often confused by the fact there is little agreement on what constitutes water conservation and who benefits from it (Bucks et al 1990). Water savings almost always occur due to an increase in the price of water.

Many technologies exist for improved water management. In Canada and other countries, water management for irrigated agriculture must turn from sole reliance on supply management (increased quantity) to greater emphasis on demand (Ward 1993). This change is due to the fact that the cost of developing new water supplies has increased and demand management is being recognized as a lower cost societal solution. In addition, it seeks to reduce water consumption through promotion of efficient use and elimination of waste.

3.4. IRRIGATION DEVELOPMENT VS. REHABILITATION

It is clear that the development of new irrigation schemes has been increasing at a diminishing rate since the 1950s. Poor commodity prices, increased government debt, reduced spending and limited land and water resources have all played a role in this reduction. Continued development will occur in the arid and semi-arid region, however, economic conditions are projected to keep it at a minimal rate. These conditions will cause increasing attention to be paid to the rehabilitation of water distribution and control (Jensen 1987).

Irrigation development does cause major changes to social and institutional processes. Walsh (1986) noted that in a program to develop the Senegal River Valley, that farmers had at one time used flood recession technology to supplement rainfall. With the improvements, better agricultural technology was necessary, marketing was required to cope with excess production and better technology transfer was needed. In addition, the social implications were large since women traditionally was looked after the small plots but with the change, men now make all the decisions for the larger land area.

Rehabilitation of existing projects is often favoured over construction of new projects since it builds on existing infrastructure, tradition and expertise (Jensen et al 1990). Here the social changes will not be as widespread. Rehabilitative measures will increase productivity and save capital dollars provided changes in the total water management system are made (Bucks et al 1990). Poor management, however, is often a major cause of the deterioration of the physical system. Major institutional changes must be made to improve management in addition to the overall physical improvement. Greater emphasis must be placed on farm water management.

During the 1980s, Canada, like most other donor countries, assisted in the financing of major infrastructure development and multi-purpose projects in the developing world. The latter part of the 1980s until present, however, have shown a major shift in emphasis toward integrated resource management, rehabilitation and strengthening of institutions (Shady 1991).

3.5. PUBLIC VS PRIVATE SECTOR

The challenge for irrigation development today is not solely the responsibility of public irrigation development agencies (Barghouti & Hayward 1988). Increased involvement of the private sector has often resulted in higher efficiency and profitability. Private sector involvement is profit motivated and leads to greater sensitivity of market opportunities. These advantages must be balanced against the need for long term environmental safeguards and socioeconomic equity. As irrigation spreads to more marginal farmers, the public sector must be involved to provide services for sociopolitical and equity reasons.

Increasing the privatization of water development places substantial demands on the public sector (Guggenheim 1992). Major institutional restructuring is often required before privatization can occur (Kinnersley 1992).

The role of both the public and private sectors must be fully exploited with the challenge to maintain a balance between profit motivation and socially acceptable and sustainable irrigation schemes. It is likely a blend of the public and private sector activity which will produce most immediate and sustainable results.

Current world economic and financial problems have resulted in a shortage of public funding. Irrigation has traditionally been funded by government. The role of the private sector must be enhanced since, in the longer term, this shortage of public funds will likely prevail (Shady 1991).

3.6. CENTRALIZATION VS DECENTRALIZATION

Planning, decision making and implementation of many irrigation agencies are centralized. These agencies are often structured top down with a result that policy and procedure governing water supply are not necessarily linked to the needs of the crop and the farmer. Centralized institutions tend to be bureaucratic and slow whereas decentralized institutions are more specialized and flexible. Decentralized institutions are often poorly coordinated and have a tendency to delegate functions to institutions before they have the mandate, skills or resources to effectively manage them (Guggenheim 1992).

Management of irrigation systems is conducted in a variety of settings. A wide variety of institutional framework exists involving various levels of government, water users and private entities (ICID Newsletter 1993). It is essential that the authority and responsibility be placed as close to the end user as possible. Specific socio-cultural characteristics and the history of each country must be accounted for along with the size of the scheme, technology and level of agricultural productivity. Most developing countries have limited money for operation and maintenance. Politically supportable water charge policies must be established for cost recovery, system management, and maintenance. All farmers who benefit must contribute to the cost of providing water. Generally, decentralization of operational and financial responsibilities are encouraged as is the involvement of water users in establishing rates (FAO 1986 b). A major challenge will be for developing countries to promote an institutional and technical framework to realize these decentralization initiatives.

3.7. FARMER PARTICIPATION

Many governments have recognized that the top down approach characteristic of traditional development strategies has failed to reach and aid the farmer. There is a high correlation between farmer participation in managing irrigation systems and sustainability (Pallas 1993). More involvement provides greater accountability, better service and increased crop productivity. This participation is also essential by need of the government to reduce expenditure as part of economic reform. An expectation exists that farmer participation would assist in the beneficiaries bearing more of the operating and maintenance costs creating considerable savings to public expenditures. An institutional challenge is to encourage farmers to initiate planning and action, and to adapt administrative procedures at all levels.

Formation of water users associations that represent the users at all levels of decision making in planning, management, and operation has been a key mechanism in involving the farmers in this process. The development of these associations has helped promote a socially cohesive behaviour in irrigation. This is essential since irrigation tends to constrain the freedom of individuals since irrigation users must follow the rules of the system (Barghouti & Hayward 1988). This involvement of farmers in the process has been found to be critical to the successful operation of a project. User managed schemes should be encouraged along with the decentralization of operational management to the district level. In addition, these farmer groups could be expanded to account for non-water factors essential to production and marketing.

3.8. EDUCATION AND TRAINING

Sound education, training, and technical assistance programs are essential to sustainable irrigation practice. Few irrigation managers are adequately trained and those that are, are often civil engineers with little experience in agricultural science.

Institutions must ensure that good information is developed and provided to the trainer and the end user (Hasan et al 1993). Priorities in each country, state and region must be set on measures best suited to improved water use and management. Government agencies along with universities and private consultants must deliver the required training.

Improved on-farm water management is an essential area requiring additional training. Inefficient water use, poor distribution of water and low farm incomes are related to inadequate education and training (Bucks et al 1990). Considerable attention must be paid to extension, farm credit and marketing. Good design, installation and equipment does not guarantee "per se" optimum yield and economic sustainability, but are essential.

3.9. WATER RESEARCH INSTITUTIONS

In order to respond to sustainable water issues, an institutional framework for research must be in place. Institutions originally evolved to meet problems that were relatively simple, acute, and localized. Today's problems are complex, global and chronic (Smith 1993).

Three implications arise from this. There is a need to develop institutions which encourage long term strategic research that is responsive to national policy needs. Research on water use is often fragmented among different departments and the cooperation is weak. An integrated cooperative approach is essential. There is a need to demonstrate that science is the foundation of good environmental policy and to effectively link the findings of research to policy development. And finally, training is necessary to ensure scientists are available to meet future problems (Smith 1993).

In many developing countries, research and demonstration to develop and improve indigenous capabilities is an area of chronic neglect (Shady 1991). Strengthening the institutions is essential to ensure continuity of improvement, adaptation to socioeconomic factors, inclusion of environmental issues and changes in technology.

3.10. IRRIGATION DELIVERY ORGANIZATIONS

Irrigation sustainability is dependent on the effective interface between crops and water, hence an integrated approach must be taken. It is impossible to divorce water delivery from crop uptake, thus the engineering and biological dimensions must be integrated.

In many countries, the institutions and organizations dealing with water management are numerous and complex (Tollefson 1993). Often, the responsibility for assessment and allocation of water resources along with the planning and construction of irrigation schemes is given to a national water resources institute staffed primarily by engineers. The on-farm management portion is handled by the ministry of agriculture. Lack of cooperation and coordination between these agencies have contributed to poor water use efficiency. It is essential to realize that the overall success of irrigation depends on the effective interface between crop and water. It is impossible to effectively divorce water delivery from crop use. The engineering and biological dimensions of the system must be integrated (Barghouti & Hayward 1988). Continuity must occur from planning through to implementation (Hasan et al 1993).

In addition, institutions today are challenged to look at economic and environmental sustainability far more critically. No longer is their role primarily construction of capital works. This has lead institutionally to a requirement for a different set of disciplines. Rural development and environmental sustainability are now major objectives of these institutions. People involved in the irrigation industry must refocus intellectually to meet these requirements.

This shift is apparent in the U.S. Bureau of Reclamation where organizational changes have changed its emphasis from a construction agency to one which emphasizes more efficient water resource management. In Canada, the Prairie Farm Rehabilitation Administration (PFRA) has also changed its emphasis from a dam building construction based agency to one intent on rural development and environmental sustainability. The institutional challenge is to refocus to meet these needs with generally reduced budget scenarios.

3.11. SOCIAL ISSUES

Irrigation has a complex impact on human and physical environments both within and outside the irrigated area. The social dimension is particularly important to irrigation sustainability (Shady 1991). Three main social themes prevail: a) participation of beneficiaries in all aspects of planning, design and implementation of irrigation systems, b) participation of women in development issues at all levels, and c) equity of distribution of benefits favouring the disadvantaged groups.

It is well recognized that in most developing countries, the status of women ranks well below that of men. In education, health, wealth, etc., women are far worse off. These issues can be resolved by raising public awareness of gender issues. Under irrigated conditions, some countries have adopted policies of women's participation, yet it has been in the hands of individual engineers and planners to ensure these broad policies are carried out. Women are frequently excluded from the planning and implementation of projects. Data from Kenya & Zimbabwe (Grid 1993) reports that 50% of the irrigated labour is provided by women but that the number of women land owners, committee members and extension advisors is far below this. It is essential that the public is informed and that institutions ensure that gender issues are addressed.

To implement these actions requires a clear understanding of the value system of the society involved. These systems cannot be imposed. Finally, it is imperative that the social dimension be an integral part of irrigation research. Sociologists must be included along with engineers, agronomists, etc., to properly assess the impacts of irrigation.

3.12. ENVIRONMENTAL IMPACT

Agriculture development and irrigation schemes produce ecosystem changes. When poorly planned and implemented, sustainability is threatened. Many projects are deteriorating due to waterlogging, salinity, pollution and the spread of vector borne diseases (Pallas 1993).

Developing background information on a project's environmental impact early in the process assists decision makers with economic and engineering criteria. Identification of environmental issues early in the process can also allow them to be handled in a timely and cost effective manner.

An essential institutional challenge is the establishment of environmental agencies with regulations and support that results in a reasonable balance between conservation of the environment and development programs (Hennessy 1993). Finally, irrigators must become environmentally friendly through a better understanding of the total ecological system and by developing mitigating practices to reduce the negative effects (Shady 1991). Education and awareness are essential.

4. Summary and Conclusions

Irrigation development has played an important role in world food production. Despite its important role, it faces serious challenges in several dimensions. These dimensions include technical concerns, but in addition, also include institutional and social challenges.

Appropriate irrigation design does not guarantee sustainable irrigated production. An institutional framework must be in place which is capable of adapting to a rapidly evolving operational environment. One of the primary factors that will affect operations in the future is the need to connect national irrigation policies with food and water management policies more effectively. Food policies continue to change as food demands increase with increasing population and as increased food demands affect international markets. Social issues are also bringing about demands for change in irrigation institutions as people see irrigation as part of the equation for balanced rural development, and as gender issues and women's roles gain prominence. The social dimension must be an integral part of any irrigated research.

The benefits derived from irrigation come from economic activity and employment often derived beyond the farmgate. Farm benefits are often a small part of the total benefit and many projects become feasible only when other beneficiaries contribute to the cost. There has often been criticism of the economics of past irrigation development. This issue must be addressed in a consistent and integrated fashion with related institutional policies and funding arrangements for construction, rehabilitation and operation being dependent upon this relationship.

Irrigation projects have a better chance of long term sustainability if the water users can afford to pay for the operation and rehabilitation of projects. This change will likely become essential because of a need of governments to reduce expenditures as part of economic reform. Water users ability to pay depends, in turn, upon the price they receive for their products, which is greatly influenced by international market prices and government policies, especially food policies. As populations increase and food shortages occur, it is likely that food prices will increase, which in turn would tend to increase the sustainability of irrigation projects. There will likely be greater attention paid to the relationship of these factors as governments seek ways to limit expenditures on projects and when food shortages create domestic problems.

Decision makers have become reluctant to invest limited resources in new irrigation projects if there are alternate ways to increase food production, such as increasing the performance of existing projects. This has caused institutions to restructure and change their emphasis to wealth creation through more valuable crops, value added processing and rural development rather than focusing on new construction. Increased emphasis will be placed on diversification, marketing and value added processing.

Irrigation development has a complex interaction on both human and physical environments within and outside the irrigated area. Development of methodology to assess the long term impacts of irrigation on future generations and on ecosystems while maintaining an economically viable agriculture will be critical. It is becoming increasingly clear that environmental sustainability depends upon economically and socially viable projects.

Institutions are likely to include changes to the private vs. public sector mix, more decentralized decision making, and more participation of farmers in all levels of decision making. Other institutional options that may increase sustainability include water pricing, water conservation, education and training.

The operational environment which is forcing these changes is becoming clear. Irrigation institutions have often been sheltered from market forces in the past which has, to various degrees, ultimately caused trends toward non sustainability. The challenge to institutions is to analyze themselves within their operating environment and make changes that will lead to sustainability. This will likely mean adopting many of the institutional trends cited herein.

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