Water for Food and the Environment in the Lower Mekong Region

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1 INTERNATIONAL WATER CONFERENCE Hanoi, Vietnam, October 14-16, 2002 Water for Food and the Environment in the Lower Mekong Region By: Dr. Apichart Anukularmphai

2 Water for Food and the Environment in the Lower Mekong Region Dr. Apichart Anukularmphai 1 1. Background of MRC The Mekong River Commission was formed in 1995 with the signing of an agreement by Governments of Cambodia, Laos, Thailand and Vietnam. To date, it is the only regional organization mandated from the highest political level to deal with resources management in the basin in a holistic manner. Under the 1995 Agreement, MRC s role is to coordinate and promote cooperation in all fields of sustainable development, utilization, management and conservation of water and related resources. Three permanent bodies administer the MRC. The Council is charged with policy and decision making; the Joint Committee is responsible for implementing Council policies and decisions; the Secretariat s role is to provide technical and administrative services to the Council and Joint Committee. 2. The Mekong River Basin The Mekong River Basin supports one of the most productive and diverse ecosystems in the world. But the Basin s environment is degrading at a rapid rate due to unsustainable development practices such as forest exploitation and intensification of agriculture. At the same time, the institutional capacity to deal with these types of environmental problems and cumulative impacts is generally weak throughout the region. Around 40% of the population in Cambodia, Laos and Vietnam live below the poverty line, and the Thai population living within the Mekong watershed area lag far behind the rest of the country in socio-economic status. The population growth rate in the region is high, leading to ever-increasing demand for food and jobs. Changes in the flow pattern brought about by proposed developments can have a major impact on fragile social and economic systems. Agriculture is the predominant economic sector. Ensuring food security for the rapidly growing population is a key element of the development strategy of each riparian country. Because of the long dry season, the further development and expansion of irrigation is essential for the long term growth of the agriculture sector and a key element to support intensification. The importance of inland fisheries has often been grossly under-estimated. MRC puts the market value of the lower Mekong fisheries at more than USD 1,000 million. Fish is the single most important source of animal protein for the people in the region. Together with rice, it 1 Chair, GWP SEATAC 1

3 forms the basis for food security. Wetlands that are vital for the maintenance of the fishery depend on the annual ebb and flow of the Mekong River system. In many areas, inland river transport on the Mekong River system constitutes the most important way of communication and navigation. In the delta, maritime navigation provides significant revenues from international trade. Changes in the flow regime, sedimentation and construction of reservoirs may affect river transport. Co-operation and proper agreements between the riparian countries are required to ensure safe passage, also across borders. The Basin has a considerable potential for the generation of hydro-power that could be used to meet the growing demand for power. Yet, the construction of large dams must be undertaken with care. Negative side effects on the overall flow regime on other resources, such as fisheries, biodiversity, or communities living up-stream or downstream of dams, are to be avoided or minimized. The water quality of the Mekong River is affected by factors such as industrial production, urban waste disposal and sewage, use of fertilizers and pesticides, water reservoirs, soil erosion, and salt water intrusion in the Mekong Delta. Maintaining good water quality is critical for agriculture as well as for domestic and commercial water supplies. Also of major concern for the riparian countries is flood management and mitigation. Excessive flooding during the wet season can cause great economic and human loss in the Basin, as witnessed during the floods in year But floods are also important to replenish the wealth of aquatic ecosystems. The use of water related resources in one country can have negative effects for other countries, for example in terms of adverse effects on navigation, fisheries, scarcity of irrigation water, and sea-water intrusion. Prevention and resolution of potential conflicts arising from the increasing pressure on the natural resources in the Basin is therefore a key task of the Mekong River Commission. 3. Common Water Issues with Respect to Agriculture All MRC member-countries are agriculture-based, i.e., agricultural production plays an important role for foreign exchange earning as well as for the livelihood of the population. This importance and emphasis on agriculture consequently leads to several water resources issues as discussed below: 3.1 The largest water user Agricultural production requires large volumes of water. As large areas are subjected to cultivation, the agriculture sector is increasingly becoming the largest water user in the basin. In Thailand, water requirements for agriculture accounts for over 70% of total water requirements; the same is generally true for other MRC member countries as well. As population increases and more land is put under agriculture, more water will be required, creating competition for water among sectors that are equally important for the socialeconomic development of the country. 2

4 In Thailand, inter-sectoral competition for water has become quite serious, as evident from the over-abstraction of ground water which causes associated problems such as land subsidence and salt water intrusion, among others. On the other hand, the occurrence of droughts and water shortages are becoming more frequent. The question now is how to appropriate limited water resource to competing sectors without harming the agriculture sector. On the one hand we can not possibly reduce the current quantity of water allocated for agriculture, but on the other hand we can no longer continue to increase the share of water for agriculture. What should be done then? 3.2 Source of Chemical Pollution In the last two decades, there has been a trend to use more and more fertilizers and pesticides to increase crop production. In many cases the lack of proper understanding and regulatory mechanisms have led farmers to apply chemical inputs indiscriminately, without regard for the eventual discharge of these chemicals into rivers and waterways, causing incidences of large scale pollution of streams and rivers. In Thailand, many rivers and streams have become so polluted and the quality of water in these water bodies has become so low that they are no longer suitable for human consumption. While it is true that agriculture is not the single source of pollution, it DOES contribute to the problem. Recently, pollution of one river in central of Thailand caused massive fish kills and leaded to unsafe water supply, thereby causing health risks and heavy economic losses not only for the local population but for the national government as well. Addressing water quality degradation is not a simple matter. It takes a large amount of effort and investment to clean and rehabilitate natural water systems, and it takes time for the water quality to return to normal. Even then, it will probably not be possible to return the water system back to its original condition. Furthermore, it requires a large amount of good quality water to clean a stream or river which in turn adds more pressure to the water resource. How then do we solve this problem? 3.3 Low Economic Returns All member countries of MRC are so called Rice Country which means the main crop is paddy. While there are also other crops in between cropping seasons, the main crop during the rainy season is predominantly paddy. The water requirement to produce a kilogram of rice is about 3,000 liters according to IWMI. One kilogram of rice can fetch a price of about $0.15 which in turn gives a return on water of $ per liter. It is thus quite obvious that the economic return on water for paddy cultivation is very low. Other crops are also cultivated in the MRC region, but the total area devoted to them is relatively small compared to paddy, and consequently the water requirement is also very low. On the other hand, marketing for other crops will require further development and promotion. What are then our alternatives? 3

5 4. Common Issues with Respect to the Environment The natural resources of the Mekong region are constantly being exploited to fuel the Socioeconomic development demands and trends in the region. Thailand and Vietnam having the highest population in Mekong also have highly intensive industrial demands, thereby directly affecting the environment in particular with respect to water. In Cambodia and Laos where the population density is less and industrial development is still budding, the impact on environment is understandably much less. In general the main issues are: 4.1 Encroachment of Natural Wetlands and Forests Population growth and agricultural as well as township expansions continues; many natural wetlands and forests in the region have been encroached upon. The total area of wetlands and forests is decreasing, continuously converted for human activities such as industries, recreation, and settlements, among others. This not only affects the water resource but also the natural wild life in the area. The degradation of the environment has caused flooding and drought which are occurring more frequently with more serious negative consequences. How do we stop or at least slow down this trend? 4.2 Neglect in Maintaining Natural Water Courses Traditionally, people in the region have lived by the water courses and depended on natural water bodies for their daily activities. It has been said that civilizations always start along the riverbank. Moreover, water is deeply rooted in the culture and tradition of the local people. With economic developments and modern transportation systems, many traditional means of utilizing water courses had been either transformed or phased out altogether. In particular, inland waterways as a means of transportation are fast giving way to road systems. This reduces the incentive to maintain waterways, and coupled with sedimentation, caused many streams and rivers to become shallow and die due to siltation and riverbank erosion. Compounding this problem is infrastructure development that does not take into consideration the future utilization of the water courses simply for convenience and to save on costs. This severely reduces the utility and integrity of water courses, in some extreme cases transforming them into open sewage channels, affecting not only the flow regime but also the aquatic biology. How can we revive the old traditional values and concern for waterways? 4.3 Lack of awareness in the importance of ecosystem Many old cultures and traditions in the region pay respect or homage to water as a source of life. Sadly, these traditions are now either forgotten or interpreted as old fashioned or fictitious, whereas they do contain cultural values and philosophies that are useful for natural resources management. In the old days, local communities appreciated water and nature, now modern lifestyles and economic pressures have influenced younger generations to give less attention to these valuable ecosystems and encouraged them to adopt wasteful practices. Awareness campaigns are certainly effective tools to educate the public and increase local awareness, particularly among the young. But how and who should take the lead? 4

6 5. The Prevailing Policy As all the countries of MRC embark on economic development but still based largely on agricultural-development, some common policy trends can be glimpsed: 5.1 Irrigation development Irrigation development is certainly a common policy or goal of all four countries whether for self sufficiency or to earn precious foreign exchange. This is because a large portion of the population is still engaged in agriculture; hence large investments are allocated for irrigation projects. However, it should be noted that traditional agricultural products do not fetch high prices in the current markets; the problem of accessibility to market due to the subsidy policy of developed countries further reduce the economic viability of traditional agriculture. Decisions and planning for irrigation must therefore carefully and consciously consider socioeconomic returns. On the other hand, it is also critical to have a sound policy of providing enough food for the poor at an affordable price is also vital. What then are the optimum options? 5.2 Emphasis on Infrastructure rather than Capacity Building As a means to accelerate development, more emphasis and investments are given to infrastructure development rather than skills development. As a result most large-scale projects especially irrigation schemes are either inadequately maintained or badly managed. Furthermore, the decision making process and implementation are usually under the control of central or regional governments, hence the participation of other stakeholders is minimal. The overall outcome is that the potential of these projects could not be realized. Capacity building and decentralization must receive more focus and should be put into practice. Who should make these decisions? 5.3 The Free Water Concept As most of the population among MRC countries is still poor especially the farmers, it is understandable that governments are reluctant to charge and collect any fees for water use, be it for service fees or water charges. This scenario in general reflects the government s concern for the poor, but the long-term implications in some instances may be negative or counter productive. Take the case of safe drinking water, the most obvious example. As governments have decreed that the poor will not have to pay for drinking water, this has created a dependency of the poor on government services. But as government budgets are usually limited, the rate of providing this basic service is so slow, causing the poor to actually obtain water from other sources and even pay more for safe drinking water. The testament to this irony is the policy for electrical services. In all MRC countries electric services are priced and paid for much higher than the water prices, despite the fact that water is essential to life. Should the user-pays principle be applied? How should it be implemented? 5

7 6. The Challenges The problems and issues presented herein are not new, and in fact have been discussed over and over at the national, regional and global levels. What we need is ACTION rather than more talks and discussions. We have to initiate and create changes both at the top/decision-making levels and at the grassroots. Changes are needed with respect to policies, thinking, concepts, approaches, and understanding. With respect to Water for Agriculture and Food we could perhaps start with the following: 6.1 Policy Options for Water Allocation With water becoming a scarce and limiting resource, appropriate mechanisms or rationale for water allocation among various sectors become of vital importance. In the coming years, we can see increasing competition for water, increasing conflicts that may be avoided if we could act now. Let us answer the question of addressing the interests of the various sectors on equitable basics, and how to balance between providing for the basic requirements of the poor versus economic growth. This does not necessarily be mutually exclusive. 6.2 Toward Improved Management and Capacity Building Under globalization trends, one can not afford to be left behind in terms of management approaches and skills. Investments for strengthening management capability at all levels are essential to improve competitiveness, and this can be done through capacity building programmes. This should be incorporated in the Workplan of water agencies, and should also be a strong focus of international donors. 6.3 Water as an Economic Good It will indeed be difficult, almost impossible, to ask the poor to pay for all costs of water due to their economic hardship, but nonetheless it is important for decision makers and planners to always keep in mind the value of water. There are various options in deciding which sector would receive which amount of water, or which crop would be promoted for production. Selfsufficiency for food production at the national level may not be the best policy option with respect to effective utilization of the water resource, but may be a good approach at the family level towards increasing food security. Service fees are essential for the sustained development of services and conservation of water and other natural resources but may not be politically favorable. Let me conclude by saying that it is the time to create changes, to start actions. We can no longer continue to simply discuss and identify problems and be happy with it. At the same time we may have to look back and go back to basics, or identify new approaches, not necessarily blindly adopting models from developed countries which may not always be suitable for developing countries. Globalization is putting the developing countries in a more disadvantaged position. While we can not fight globalization, we can be better educated, be more innovative, and set the trend 6