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Tuesday Session Abstracts

Water Sector Reform


 

Economic Transition and Water Reform in Central Asia
by: David McCauley

Water policies and institutions in Central Asia are still being adjusted almost ten years after the break-up of the Soviet Union in response to two challenges. First, the Central Asian Republics (CARs)-Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan-were forced to sort out their market and democratic transitions, including their effects on water management. Second, they were faced with an interlinked water and energy management system that had been designed to operate within the confines of one country that was suddenly shared by five sovereign states. Moreover, the gross inefficiencies and dire ecological consequences of the Aral Sea Basin water management system are renowned and add to these countries' problems. The histories and economies of the CARs are sufficiently intertwined to have elicited some similarities in their responses to common challenges. But their differences-particularly reflecting upstream versus downstream perspectives and contrasting degrees of market-based economic transformation-can clearly be seen both within each country and at the regional level.

The extent of market-oriented transformation in a republic's economy largely is mirrored in the approaches taken to water sector reform. Kazakhstan and Kyrgyzstan are the most progressive states-both in terms of their market-based economic reforms and the degree to which they are experimenting with such innovations as water pricing and the transfer of irrigation management authority to water user associations. Tajikistan is also relatively forward thinking both in its national economic transition and its water policies-including efforts to achieve cost recovery for the provision of water services and to empower local water users. But these reforms are hampered by continued civil strife in the country. With the region's largest irrigated agriculture sector and much of this in desert areas, Uzbekistan is beginning to face up to the need to increase agricultural water use efficiency and to link this with gradual market-based reforms in this key sector. Turkmenistan remains mired in a set of social and economic structures (including those relating to water management) that have scarcely changed-with a few exceptions at the local level-since Soviet times.

Despite continuing regional challenges, there also has been some progress at this level. The level of the Aral Sea seems on track at least to be stabilized. A 1998 interstate agreement on water and hydropower management for the Syr Darya River (shared by four CARs) provides a framework for conflict resolution and negotiated annual water release schedules for irrigation and hydropower-plus a scheme whereby downstream irrigated states compensate upstream hydropower producers. Water reform at the national level cannot be separated from this regional context. The experience of this region offers some interesting lessons for other economies in transition such as the countries of the Caucasus.