Global Water Challenges: The View of the World Bank

1. Global Water Challenges: The View of the World Bank Chapel Hill March 4 2005 www.worldbank.org/water

2. What I would like to discuss with you today …. • Reflections on some changes in the water and sanitation sector in the developing world in the past decade • A view of some of the broader water resource challenges in developing countries • Some thoughts on the role a great university might play in addressing these challenges

3. Part 1: Some changes in water and sanitation in the past decade…

4. The numbers... • Water supply -- about 1 billion don’t have access to an adequate supply of drinking water

5. Sanitation and sewerage: • 2 billion people don’t have facilities....

6. Huge costs... • Economic: • Large numbers of the poor rely on vendors • They pay 10 times as much for a cubic meter of often-dirty water.....

7. Huge social costs... • Health..... 3 million children die each year from water relateddiseases

8. Huge costs for the environment...

9. How do things improve?A personal observation of a place where there was dramatic improvement in water and sanitation coverage (and health)

11. Fatepur, Bangladesh, 1976:Lives of utter misery…

12. Fatepur, 1998

13. A simple and astonishing change • Economic growth (much induced by better water management) led to • Large increase in demand for improved water and sanitation • Greatly improved coverage and (due to water and sanitation and other things) • Life expectancy of women: • From 47 years in 1976 • To 67 years in 1998

14. There have been similar successes in some other parts of the world…

15. The glass half full…

16. This has been a tremendous achievement… Every day for the last 10 years, huge numbers of people have gained access to improved services: • Drinking water: about 250,000 every day • Sanitation: about 205,000 every day But population growth is about 215,000 a day… • And thus there has been little net progress, and there are still billions without service: • over 1 billion for drinking water, and • about 2.5 billion for sanitation…

19. Economic growth critical for improving wastewater quality

20. More generally….There is a lot that can be done better by being smarter… but it is also clear that progress is happening and sustainable where there is economic growth…

21. It is economic growth which reduces poverty….

22. The news on economic growth is mixed…

23. So… • Sustained economic growth in East and South Asia is underpinning improvements in global coverage • But Africa is a big worry..

24. MAIN MESSAGE: Development of innovative, low-cost approaches helps, but it is economic growth which - in Fatepur and globally – is improving and will improve watsan coverage…

25. Part 2: Water resource challenges in developing countries • A World Bank perspective of the challenges facing developing countries • The evolving role of the World Bank

26. A new World Bank Water Resources Strategy PROCESS • The method for developing a new World Bank Strategy in a vital and contentious area

27. 1993 World Bank Policy Paper which set out the Bank’s commitment to Dublin-type principles for WRM

28. The consultation process • Extensive internal and external consultations over 3 year period • 22 external consultations

29. India Multistakeholder Consultations 1999/2000…. Int’l waters Washington Yemen Philippines Nigeria Brazil Main question: How can the World Bank be a better partner?

30. Consultations with governments on the World Commission on Dams Report…. Nepal Jordan China Laos Ethiopia Thailand Brazil A focus: What can and should the World Bank be doing on “high-risk/high reward” water infrastructure?

31. India Consultations on the Strategy Draft (2002) Donors Private Sector NGOs Yemen Philippines Nigeria Brazil The focus: Reactions and suggestions on the draft Strategy

32. The Brasilia consultation….

33. The consultation process • (Unprecedented) total of 5 meetings of the World Bank’s Board (representatives of the 180 countries who own this “financial cooperative”)

34. The Story Line PROCESS • The method for developing this Strategy SUBSTANCE • Water management and development are vital for growth and poverty reduction • Better water management is essential • Most developing countries also need investment in priority water infrastructure • Solutions need to be tailored to particular circumstances

35. Nature of intervention: poverty broad targeted resource development & management affecting water... Type 4 : Targeted service improved water delivery services How Water Interventions Affect Poverty

36. Targeted irrigation, energy and water supply and sanitation services for the poor are fundamental to poverty reduction….

37. Nature of intervention: poverty broad targeted Type 3 : Broad impacts through water service delivery reforms How Water Interventions Affect Poverty resource development & management affecting water... service delivery

38. Most water utilities in developing countries perform very poorly…

42. Fela Kuti: If I say there is no water and no electricity… That’s old news….

43. And the poor are always at the end of the line, paying 10 times what those with access pay for a gallon of water

44. What water utility reform has meant for the poor in Buenos Aires

45. Today in Argentina, lots of challenges…. But major achievements for the poor • Approximately 1.5 million additional poor people now have access to piped water and 600,000 access to sewerage

46. Nature of intervention: poverty broad targeted Type 2 : Targeted water resource interventions How Water Interventions Affect Poverty resource development & management affecting water... service delivery

47. UP Sodic Lands Project

50. A brilliant integration of women on the credit side…