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The role of World Bank: Indus River Treaty A Case Study

The role of World Bank: Indus River Treaty A Case Study. Geography. Originates in China India – upstream Pakistan – Downstream Main tributaries Ravi Jhelam Sutlej Chenab Beas. Triggering of Conflict. Status Quo– East and West Punjab sign standstill agreement in 1947.

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The role of World Bank: Indus River Treaty A Case Study

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  1. The role of World Bank: Indus River TreatyA Case Study

  2. Geography • Originates in China • India – upstream • Pakistan – Downstream • Main tributaries • Ravi • Jhelam • Sutlej • Chenab • Beas

  3. Triggering of Conflict • Status Quo– East and West Punjab sign standstill agreement in 1947. • Dispute over the worth of Pakistan’s irrigation canal network • East Punjab (Indian side)suspends water supply to West side • Partition created issues – taking things in their own hands

  4. Need for developmental infrastructure Both countries needed massive water infrastructure to support population • East Punjab had 21 million with no food supply • It needed storage devices to develop arid but fertile land • West Punjab needed to ensure water supply Undertaking of unilateral construction projects – escalating of tensions

  5. Water War? A war waged to safeguard their access to water resources in the wake of scarcity, competitive use and wider conflict Both countries stood on brink of a devastating war.

  6. Involvement of World bank • The bank is reluctant to get involved initially • World bank refuses loans to both countries even though they were economically viable • Offered an impartial third party • Offered an option taking into account both countries ‘ needs

  7. Principles of Involvement The bank offered a deal in 1954 based on 3 principles. • There was enough water for both countries in the basin. • While considering the Sutlej River the entire basin would be considered as one and all rivers would be under discussion. • The negotiations would retain a technical focus rather than political focus

  8. Features of the deal • Distribution on the basis of number of rivers • 3 major eastern tributaries – India • 3 major western tributaries – Pakistan • India pays $ 174 million over 10 years • Canal and reservoir construction financed through the Bank • Commission to resolve future disputes

  9. Reasons for success A unique mix of circumstances contributed to the success of the effort. • Leadership • Timeline • Finances • Restricted Discussion What are the measures of success?

  10. Problems with the treaty • Does not account for the increase demand in India/Pakistan. • India cannot build without consultation on 3 tributaries • Higher demand due to economic growth cannot be addressed by major rivers of the region • Delays in projects

  11. Water Rationality Vs Water War • Any action taken by a state to secure its water supply in the long-term, both in quality and quantity. • The state manages its water prudently • Maintains relationships with co-riparian countries conducive to ensuring long-term access to water.

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