Virtual Water Trade. A realistic concept for resolving the water crisis? Studies Deutsches Institut fiir Entwicklungspolitik 25

Transcription

1 Studies Deutsches Institut fiir Entwicklungspolitik 25 Virtual Water Trade A realistic concept for resolving the water crisis? Lena Horlemann /Susanne Neubert

2 Contents Abbreviations Summary 1 Aim and focus of the study 1 2 The variants of Virtual Water Trade 2 3 Findings of the study 2 4 Conclusions 5 1 Introduction 13 2 Methodological approach 15 3 The concept of Virtual Water Trade Virtual Water Trade as an analytical instrument and a political strategy Virtual Water Trade in the debate on globalization and agricultural trade Globalization and growing Virtual Water Trade Determinants of agricultural trade and the production of agricultural products Virtual Water Trade at global, regional and national level Global Virtual Water Trade Regional Virtual Water Trade National Virtual Water Trade 26 4 Water savings through Virtual Water Trade Quantification and valuation of virtual water The virtual water content of a product Calculation options A product's specific water requirements The water footprint Water savings at global, regional and national level Water savings at global level Water savings at regional and national level 34

3 5 Expected positive effects of Virtual Water Trade More efficient and effective use of saved water Difference between "green" and "blue" water resources The value of virtual water Principles for determining the value of virtual water according to Renault Types of water values according to Agudelo Alternative use as drinking water Use of water in the production of industrial goods Use of water in the production of less water-intensive agricultural goods Other possible uses of saved water Monetary valuation of the preservation of ecosystems or man-made landscapes Prevention of geopolitical conflicts at regional, national x and local level Reducing the potential for international and regional conflict Growing demand for water resources Cross-border use of water resources Preventing local conflicts Promotion of South-South trade and regional strategies Prevention of non-sustainable water recovery proj ects Compensating for periodic or short-term shortages of staple foods or water Virtual Water Trade as a substitute for food aid 57 6 Strategic Virtual Water Trade: challenges and risks How far can development be planned? Economic requirements for Virtual Water Trade Necessary restructuring in the export sector Necessary labour market and income structures Necessary markets for alternative non-agricultural products Political will as a condition for Virtual Water Trade 63

4 6.3.1 The credo of food sovereignty Reliability of food supplies and markets Market access and generation of export proceeds Hydropolitical requirements Virtual Water Trade and security of distribution Infrastructure and institutional requirements Social absorptive capacity Consideration of the socio-cultural environment Consideration of dietary habits Ecological sustainability of Virtual Water Trade Possible synthesis of economic growth and resource consumption Ecological risks inherent in Virtual Water Trade Environmental risks posed by Virtual Water Trade Exporting countries Importing countries Repair and improvement of existing water allocation structures 79 7 Measures that should accompany Virtual Water Trade Is Virtual Water Trade compatible with IWRM? Prices and tariffs for water and its supply General abolition of subsidies Agricultural subsidies Water price subsidies Awareness-building and changing patterns of consumption 86 8 Identification of countries that qualify for Virtual Water Trade Possible indicators Indicator 1: The availability of water Indicator 2: The economy's level of development and degree of diversification Indicator 3: Social adaptive capacity 91

5 8.1.4 Indicator 4: The percentage of agricultural unemployment to total unemployment Indicator 5: Water use efficiency in agriculture Indicator 6: The relationship between the implementing authority and the agricultural sector and / or the rural population Indicator 7: The current percentage of food requirements produced domestically Indicator 8: The degree to which the implementing authority encourages / discourages stakeholder representation Indicator 9: The account taken of environmental flows through the availability of water per unit of exported product Indicator 10: The country's water storage capacity per unit of exported product Grouping candidate countries Internal Virtual Water Trade: the case of China Regional Virtual Water Trade: options for the SADC region Virtual Water Trade and the MENA countries 99 9 Need for research and debate Concept of global and local water conservation Virtual water content of an agricultural product Identification of suitable indicators Options for development cooperation and resume Options for development cooperation Resume: Potential and risks associated with Virtual Water Trade Conclusions 107 Bibliography 109 Appendix 116