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Table of Contents
Front Cover
Contents
Foreword
Main Messages
Acknowledgments
About the Authors
Executive Summary
Abbreviations
Part I The Status Quo Institutions That Allocate Water
Chapter 1 An Economic View of Water Scarcity: The Inescapable Role of the State in Allocating Water
Introduction
What is the price of water?
Identifying reform directions using an economic lens
Notes
References
Chapter 2 Middle East and North Africa: Diversity of Economic and Hydrological Context
Notes
References
Chapter 3 Supply-Side Institutions That Build Large Infrastructure but Fail to Reduce Water Stress
Origins and evolution of water institutions in the Middle East and North Africa
Industrial-scale expansion of water-related infrastructure
Signs of distress in managing supply-side infrastructure
Notes
References
Chapter 4 Demand-Side Behavior That Challenges States' Ability to Raise Finance and Regulate Water
Drivers of water demand
How the two main consumptive uses of water-irrigated agriculture and cities-interact and shape long-term financing options
Notes
References
Chapter 5 Externalities: Status and Trends of Water Depletion and Pollution
Identification of externalities is a first step toward valuing water
Water depletion
Pollution of freshwater and marine resources
compound effects of water-related externalities
Hidden costs of water-related externalities
Notes
References
Part II Understanding Why Status Quo Institutions Produce Outcomes That Endanger Water Security and Well-Being
Chapter 6 Economic Framework to Understand How State Institutions Function in Allocating, Managing, and Investing in Water
Introduction
The framework
Applying the framework to understand the state's tariff and revenue-raising capacity to invest in water.
Applying the framework to understand quantity regulations to conserve water as a resource
Applying the framework to understand the performance of water utilities
Relationship between legitimacy and trust: applying the link across the three principal-agent relationships
Notes
References
Chapter 7 Why Policy Has Focused on Supply-Side Investments and Ignored Demand-Side Problems of Overusing and Polluting Water
Introduction
Resolving trade-offs: how formal institutional setups fail to resolve citizens' conflicting water demands
Demand-side interventions in agricultural water management
Notes
References
Chapter 8 Applying the Framework to Understand Why Utilities Are Distressed and Households Receive Poor Service
Introduction
Regulatory relationship between the state and WSS utilities
Problem of performance of WSS utilities
Notes
References
Part III Policy Ideas for the Leaders and People of MENA to Defuse Water Crises and Transform Their Economies
Chapter 9 The Fundamental Importance of Informal Institutions of Legitimacy and Trust
Introduction
Legitimacy of tariffs
Trust in public utilities and regulatory agencies
Role of local political contestation
Notes
References
Chapter 10 Building Trusted and Creditworthy Utilities That Deliver Services and Attract Long-Term Financing
Introduction
Relationship between "hard" infrastructure and "soft" management policies
Delegation of greater autonomy and discretion to utility managers and staff
Technical independence of regulators
Structure of water tariffs
Notes
References
Chapter 11 Approach to Institutional Reforms in Water Management and Allocation
Introduction
Tension between the science behind the water balance and the political process of setting limits.
Empowering local leaders to manage water allocation decisions and trade-offs
Notes
References
Chapter 12 Communication as a Necessary Complement to Water Policy Reforms
Introduction
Using communication to shift beliefs and expectations
The role of local political leaders in winning public acceptance and legitimacy for reducing water consumption
Using national water strategies to reshape norms of water allocation and use
Notes
References
Appendix: Institutions Involved in Developing Supply-Side Infrastructure Versus Institutions Operating and Maintaining Infrastructure
Glossary
Box
Box 6.1 Definitions of "legitimacy" and "trust" from economics and game theory research
Figures
Figure 2.1 Renewable water resources per capita per year, by economy, 2017
Figure 2.2 Renewable water resources per person per year, Middle East and North Africa, 2018
Figure 2.3 Urban population share of water withdrawals versus per capita water withdrawals, Middle East and North Africa
Figure 2.4 Share of nonconventional water in total water withdrawals, Middle East and North Africa
Figure 2.5 Rural population share versus renewable water resources per capita
Figure 2.6 Sustainability of water withdrawals in the Middle East and North Africa, by source
Figure 3.1 Total freshwater capacity and withdrawals in the Middle East and North Africa, 1960-2020
Figure 3.2 Desalination and reuse capacity in the Middle East and North Africa, 1960-2020
Figure 3.3 Global share of desalinated water capacity, 2021
Figure 3.4 Water and sewer network connections in the Middle East and North Africa, 2000-17
Figure 3.5 Change in access to piped water and sewage connections, Middle East and North Africa, 2000-17
Figure 3.6 Expansion of irrigated area across the Middle East and North Africa and area irrigated, 1997-2017.
Figure 3.7 Expansion of irrigated area, by economy, 2017
Figure 3.8 Operating cost recovery ratio for selected utilities and years across the Middle East and North Africa
Figure 3.9 Nonrevenue water of selected utilities in the Middle East and North Africa
Figure 4.1 Water withdrawals, by sector and economy
Figure 4.2 Gross agricultural output, by economy, 1961-2018
Figure 4.3 Irrigation water productivity, by economy
Figure 4.4 Irrigation water productivity and per capita agricultural water withdrawals, by economy
Figure 4.5 Domestic production and use of fruits and vegetables across the Middle East and North Africa, 1961-2013
Figure 4.6 Domestic production and use of cereals across the Middle East and North Africa, 1961-2013
Figure 4.7 Agriculture sector's share of GDP and total employment in countries with rural populations over 10 million
Figure 4.8 Proportion of total water withdrawals allocated to agriculture and relative contributions to GDP of irrigated and rainfed agriculture, 2018
Figure 4.9 Domestic water withdrawal, by country grouping and quartile of the distribution
Figure 4.10 Higher tariffs, lower water withdrawals per capita
Figure 4.11 Cost of 100 liters per capita per day relative to income consumption quintile, by economy
Figure 4.12 Primary source of drinking water, circa 2000 and circa 2015
Figure 5.1 Examples of nested sets of negative externalities in the Middle East and North Africa
Figure 5.2 Change in the extent of water-related ecosystems, 2001-05 to 2016
Figure 5.3 Water table level and annual precipitation at Tel Hadya Research Station, Aleppo, Syrian Arab Republic, 1984-2010
Figure 5.4 Safely treated wastewater flows from households
Figure 5.5 Iraq: Households' main source of drinking water, by governorate.
Figure 5.6 Economic losses from inadequate water supply and sanitation
Figure 5.7 Mortality rate attributed to exposure to unsafe water, sanitation, and hygiene services, 2016
Figure 5.8 Deaths caused by diarrhea in children younger than age five, 2017
Figure 6.1 Principal-agent relationships of government
Figure 7.1 Fundamental principal-agent relationships of the common pool resource problem
Figure 7.2 National Water Authority Board of Israel
Figure 7.3 Steps along the pathway to water conservation policies and water reallocation within economies
Figure 7.4 The unavoidable process of converting users into legal or illegal users when establishing formal water rights and setting explicit legal limits to withdrawals
Figure 7.5 The spectrum of types of water rights from public to private
Figure 7.6 Relative administrate burden of legal use regimes established in different countries
Figure 8.1 Principal-agent relationships of water supply and sanitation utilities
Figure 8.2 Public-private partnership investment projects in water and sanitation services, 1990-2020
Figure 9.1 Social unrest in Jordan, 2016-21
Figure 9.2 People in MENA say that "fighting rising prices" is among their top two priorities
Figure 9.3 Respondents saying that government performance is "very bad," the highest category of disapproval
Figure 9.4 People's responses to a question about whether cheating on taxes is justifiable
Figure 9.5 Comparing the "justifiability" of various actions, MENA and non-MENA countries
Figure 9.6 How labor market conditions feature in social unrest in the Arab Republic of Egypt and Morocco, 2016-21
Figure 9.7 Participation in local and national elections
Figure 9.8 People's views of the importance of honest elections.
Figure 9.9 Malpractice in elections: Respondents answering that bad practices occur during elections "very often" or "fairly often".
Contents
Foreword
Main Messages
Acknowledgments
About the Authors
Executive Summary
Abbreviations
Part I The Status Quo Institutions That Allocate Water
Chapter 1 An Economic View of Water Scarcity: The Inescapable Role of the State in Allocating Water
Introduction
What is the price of water?
Identifying reform directions using an economic lens
Notes
References
Chapter 2 Middle East and North Africa: Diversity of Economic and Hydrological Context
Notes
References
Chapter 3 Supply-Side Institutions That Build Large Infrastructure but Fail to Reduce Water Stress
Origins and evolution of water institutions in the Middle East and North Africa
Industrial-scale expansion of water-related infrastructure
Signs of distress in managing supply-side infrastructure
Notes
References
Chapter 4 Demand-Side Behavior That Challenges States' Ability to Raise Finance and Regulate Water
Drivers of water demand
How the two main consumptive uses of water-irrigated agriculture and cities-interact and shape long-term financing options
Notes
References
Chapter 5 Externalities: Status and Trends of Water Depletion and Pollution
Identification of externalities is a first step toward valuing water
Water depletion
Pollution of freshwater and marine resources
compound effects of water-related externalities
Hidden costs of water-related externalities
Notes
References
Part II Understanding Why Status Quo Institutions Produce Outcomes That Endanger Water Security and Well-Being
Chapter 6 Economic Framework to Understand How State Institutions Function in Allocating, Managing, and Investing in Water
Introduction
The framework
Applying the framework to understand the state's tariff and revenue-raising capacity to invest in water.
Applying the framework to understand quantity regulations to conserve water as a resource
Applying the framework to understand the performance of water utilities
Relationship between legitimacy and trust: applying the link across the three principal-agent relationships
Notes
References
Chapter 7 Why Policy Has Focused on Supply-Side Investments and Ignored Demand-Side Problems of Overusing and Polluting Water
Introduction
Resolving trade-offs: how formal institutional setups fail to resolve citizens' conflicting water demands
Demand-side interventions in agricultural water management
Notes
References
Chapter 8 Applying the Framework to Understand Why Utilities Are Distressed and Households Receive Poor Service
Introduction
Regulatory relationship between the state and WSS utilities
Problem of performance of WSS utilities
Notes
References
Part III Policy Ideas for the Leaders and People of MENA to Defuse Water Crises and Transform Their Economies
Chapter 9 The Fundamental Importance of Informal Institutions of Legitimacy and Trust
Introduction
Legitimacy of tariffs
Trust in public utilities and regulatory agencies
Role of local political contestation
Notes
References
Chapter 10 Building Trusted and Creditworthy Utilities That Deliver Services and Attract Long-Term Financing
Introduction
Relationship between "hard" infrastructure and "soft" management policies
Delegation of greater autonomy and discretion to utility managers and staff
Technical independence of regulators
Structure of water tariffs
Notes
References
Chapter 11 Approach to Institutional Reforms in Water Management and Allocation
Introduction
Tension between the science behind the water balance and the political process of setting limits.
Empowering local leaders to manage water allocation decisions and trade-offs
Notes
References
Chapter 12 Communication as a Necessary Complement to Water Policy Reforms
Introduction
Using communication to shift beliefs and expectations
The role of local political leaders in winning public acceptance and legitimacy for reducing water consumption
Using national water strategies to reshape norms of water allocation and use
Notes
References
Appendix: Institutions Involved in Developing Supply-Side Infrastructure Versus Institutions Operating and Maintaining Infrastructure
Glossary
Box
Box 6.1 Definitions of "legitimacy" and "trust" from economics and game theory research
Figures
Figure 2.1 Renewable water resources per capita per year, by economy, 2017
Figure 2.2 Renewable water resources per person per year, Middle East and North Africa, 2018
Figure 2.3 Urban population share of water withdrawals versus per capita water withdrawals, Middle East and North Africa
Figure 2.4 Share of nonconventional water in total water withdrawals, Middle East and North Africa
Figure 2.5 Rural population share versus renewable water resources per capita
Figure 2.6 Sustainability of water withdrawals in the Middle East and North Africa, by source
Figure 3.1 Total freshwater capacity and withdrawals in the Middle East and North Africa, 1960-2020
Figure 3.2 Desalination and reuse capacity in the Middle East and North Africa, 1960-2020
Figure 3.3 Global share of desalinated water capacity, 2021
Figure 3.4 Water and sewer network connections in the Middle East and North Africa, 2000-17
Figure 3.5 Change in access to piped water and sewage connections, Middle East and North Africa, 2000-17
Figure 3.6 Expansion of irrigated area across the Middle East and North Africa and area irrigated, 1997-2017.
Figure 3.7 Expansion of irrigated area, by economy, 2017
Figure 3.8 Operating cost recovery ratio for selected utilities and years across the Middle East and North Africa
Figure 3.9 Nonrevenue water of selected utilities in the Middle East and North Africa
Figure 4.1 Water withdrawals, by sector and economy
Figure 4.2 Gross agricultural output, by economy, 1961-2018
Figure 4.3 Irrigation water productivity, by economy
Figure 4.4 Irrigation water productivity and per capita agricultural water withdrawals, by economy
Figure 4.5 Domestic production and use of fruits and vegetables across the Middle East and North Africa, 1961-2013
Figure 4.6 Domestic production and use of cereals across the Middle East and North Africa, 1961-2013
Figure 4.7 Agriculture sector's share of GDP and total employment in countries with rural populations over 10 million
Figure 4.8 Proportion of total water withdrawals allocated to agriculture and relative contributions to GDP of irrigated and rainfed agriculture, 2018
Figure 4.9 Domestic water withdrawal, by country grouping and quartile of the distribution
Figure 4.10 Higher tariffs, lower water withdrawals per capita
Figure 4.11 Cost of 100 liters per capita per day relative to income consumption quintile, by economy
Figure 4.12 Primary source of drinking water, circa 2000 and circa 2015
Figure 5.1 Examples of nested sets of negative externalities in the Middle East and North Africa
Figure 5.2 Change in the extent of water-related ecosystems, 2001-05 to 2016
Figure 5.3 Water table level and annual precipitation at Tel Hadya Research Station, Aleppo, Syrian Arab Republic, 1984-2010
Figure 5.4 Safely treated wastewater flows from households
Figure 5.5 Iraq: Households' main source of drinking water, by governorate.
Figure 5.6 Economic losses from inadequate water supply and sanitation
Figure 5.7 Mortality rate attributed to exposure to unsafe water, sanitation, and hygiene services, 2016
Figure 5.8 Deaths caused by diarrhea in children younger than age five, 2017
Figure 6.1 Principal-agent relationships of government
Figure 7.1 Fundamental principal-agent relationships of the common pool resource problem
Figure 7.2 National Water Authority Board of Israel
Figure 7.3 Steps along the pathway to water conservation policies and water reallocation within economies
Figure 7.4 The unavoidable process of converting users into legal or illegal users when establishing formal water rights and setting explicit legal limits to withdrawals
Figure 7.5 The spectrum of types of water rights from public to private
Figure 7.6 Relative administrate burden of legal use regimes established in different countries
Figure 8.1 Principal-agent relationships of water supply and sanitation utilities
Figure 8.2 Public-private partnership investment projects in water and sanitation services, 1990-2020
Figure 9.1 Social unrest in Jordan, 2016-21
Figure 9.2 People in MENA say that "fighting rising prices" is among their top two priorities
Figure 9.3 Respondents saying that government performance is "very bad," the highest category of disapproval
Figure 9.4 People's responses to a question about whether cheating on taxes is justifiable
Figure 9.5 Comparing the "justifiability" of various actions, MENA and non-MENA countries
Figure 9.6 How labor market conditions feature in social unrest in the Arab Republic of Egypt and Morocco, 2016-21
Figure 9.7 Participation in local and national elections
Figure 9.8 People's views of the importance of honest elections.
Figure 9.9 Malpractice in elections: Respondents answering that bad practices occur during elections "very often" or "fairly often".