The Economics of Water Management in Developing Countries

The Economics of Water Management in Developing Countries

Problems, Principles and Policies

Edited by Phoebe Koundouri, Panos Pashardes, Timothy M. Swanson and Anastasios Xepapadeas

The increasing scarcity of water resources (in terms of quantity and quality) is one of the most pervasive natural resource allocation issues facing development planners throughout the world. This problem is especially prevalent in less developed countries where the management of this valuable resource has become a critical policy concern. This authoritative new volume outlines the fundamental principles and difficulties that characterise this challenging task. The authors begin by detailing the significant problems of water management which are specific to developing countries. In particular, they highlight the political economy of water management in the context of both pricing and institutional reform.

Chapter 9: Water Management in Cyprus through a Decision-Support System

Hariklea Kazeli, Tasos Christofides and Elpida Keravnou

Subjects: economics and finance, environmental economics, environment, environmental economics, environmental sociology, management natural resources, water

Extract

* Hariklea Kazeli, Tasos Christofides and Elpida Keravnou 9.1 INTRODUCTION During the last two decades the scarcity of water resources has exponentially grown worldwide. According to UN estimates in 1999, more than 1.2 billion people lack access to adequate water and 2.9 billion people have inadequate sanitation. Together, these problems cause more than four million deaths of children every year and about two billion instances of diseases. As a result, there has been a serious and growing concern about the water shortage problem, resulting in substantial progress in different aspects of water resource development and management in different parts of the world. In particular, special effort has been made in taking integrated, holistic approaches to managing water by replacing use-based management water resources with integrated frameworks (Lintner, 1996). Thus the sustainable management of water resources constitutes a key challenge to be faced through research programmes and development projects in the Americas, Africa, Asia, Europe and the Middle East by organizations such as the World Bank and the European Union. The problem of water scarcity is especially severe in semi-arid countries and, in particular, in the coastal and island communities of the Mediterranean region, where the satisfaction of water demand is not possible (World Commission on Water, 1999). Cyprus, situated in the south-east part of the Mediterranean, is among the countries facing a huge watershortage problem (Hendawi, 1998). Considering the constant reduction in * The work reported here was supported by the European Union through project MEDWATER (IC18CT970138). The...

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