Managing water as an economic resource James Winpenny Routledge, London, 1994, 133 pp
| DOI | http://doi.org/10.1002/pad.4230140408 |
| Date | 02 November 2006 |
| Author | Jamie Morrison |
| Published date | 02 November 2006 |
Book
Reviews
413
his contributors and each has adopted a different approach, though most describe the evolution
of
policy rather than assess lessons for wider debate. The numerous typographical errors
suggest that the publishers were hardly more committed to the project than the editor appears
to have been.
If the books reviewed above suggest that the academic fraternity has lost faith in the ability
of any single approach to respond with efficiency and equity to the need for more affordable
and appropriate housing then at least the door has now opened to more pragmatic approaches.
Whilst the need for structural intervention by the state in urban land and housing markets
appears as valid as ever, it is clear that policies and programmes will have to be more carefully
tailored to the specific needs
of
particular times and places than ever before. Perhaps that
is no bad thing. However, it is disappointing that
so
many books should produce such limited
assessments of, or recommendations for, practical action. Those seeking guides to good practice
may find these books disappointing, they are more likely to provide a context for action
than a basis for it.
REFERENCE
Katsura,
H.,
Hoffman,
M.
and Struyk, R. (1990).
The Market for Shelter
in
Indonesian Cities
GEOFFREY
PAYNE
University College
London
Urban Institute Press, Washington.
MANAGING WATER
AS
AN ECONOMIC RESOURCE
James Winpenny
Routledge, London, 1994, 133 pp.
Policy initiatives in the water sector generally reflect the perception that water is a plentiful
free good. While the water sector of a given economy is in an expansionary phase these
policies can to some extent be justified. However, in many regions of the world, demand
has been outpacing supply and water is becoming an increasingly scarce resource. Policy-
makers have been slow to recognize this, and supply-side approaches have continued to be
the norm in reconciling supply with varied and conflicting demands.
In this book the author describes the current problems facing the water sector. He argues
that continued reliance on investment in additional water provision prevents consumption
habits from adapting to the changing patterns of demand. This will result in the inefficient
use of the resource.
The case for increasing emphasis on demand management rests on criticisms of the supply-
side approaches. In the face of increasing water scarcity the existing resource must be allocated
according to its highest value in use. The core chapters of the book detail the various market
and non-market instruments that can be used to achieve this and develop eight criteria with
which to determine the correct policy mix for a given situation.
As the author identifies, many problems associated with the way in which the supply and
use of water are planned, managed and financed can be attributed to the fragmented nature
of the sector. This is the crux of the argument. The uses of water are increasingly diverse,
and the fact that the value of water varies widely among the different uses is an indication
of suboptimal resource allocation. For example, in irrigated agriculture, which uses 80-90
per cent of all fresh water, the resource generally has a low value in use. If the sector were
to be considered holistically, the resource could, in theory, be allocated until its marginal
value product is equal across all uses.
However, this is where the difficulties in carrying out demand management techniques lie,
and Winpenny has correctly identified an ‘enabling environment’ as a prerequisite to their
use. Existing sets
of
property rights and water laws do not lend themselves to the transfer
of water between uses. Water
is
highly politicized, with large economic rents going to those
with control over its use. In adding a final section on the art of reform mongering, the author
recognizes that institutional change is not something that is easy to bring about.
To continue reading
Request your trial