Management of water scarcity: A focus on social capacities and options

Water is a scarce resource. It is critical to social and economic development, and directly affects the behaviour of society. With close links between society and water management, the importance of social and economic approaches to management of water scarcity is increasingly being recognized. The focus is here on the adaptive capacity of societies both for policy making and for conflict resolution to address water scarcity, recognizing the limitations in these adaptive capacities. Social resource scarcity could limit not only capacity to address water scarcity but also have wider social security implications for adaptive processes. There is therefore a need to develop policy options to stimulate adaptive processes and strengthen social resource capacity. Further, the paper discusses the links between water scarcity and its driving forces, such as population increase, environmental degradation and unequal access to water, and the various categories of related conflicts. The need to consider the social resource capacity of countries and societies and the use of alternative indicators for this purpose is addressed using the UNDP Human Development Index as a proxy for the social adaptive capacity of societies. A broad programme of research and capacity building in the use of a composite biological-social index could be expected to trigger a better understanding between disciplines and re-focus technical cooperation programmes on social issues. While markets can sometimes react efficiently to mitigate water scarcity, the necessary institutional conditions are seldom met. Social, environmental and equity parameters also need to be considered in applying market approaches, and neo-classical water resources economics is losing ground to economic paradigms related to political and evolutionary processes. Macro- and sectoral issues are increasingly at the forefront of the water scarcity debate, involving a range of questions: from virtual water, high costs of O&M, to privatization of water sector operations. Macro and sector policies often have an important impact on realization of socio-economic and environmental benefits from present and future investments in the water sector. A country's overall development strategy and use of macro-economic policies, including fiscal, monetary and trade policies, affect water demand and investment. As a consequence, there is need for an integrated approach encompassing social, economic and environmental policies. The paper draws from examples on water scarcity management that were presented in a recent FAO electronic conference and in regional expert consultations on water scarcity management in the Near East. (C) 1999 Elsevier Science Ltd. All rights reserved.