Socio-economy, Private Sector Participation
M odu le 5 – ( L1 9 – L2 1 ) : “Socio- e con om ic Aspe ct s of W a t e r sh e d M a n a ge m e n t W a t e r sh e d M a n a ge m e n t ” Socia l Aspe ct s of W a t e r sh e d M a n a ge m e n t : Com m u n it y pa r t icipa t ion , Pr iva t e se ct or pa r t icipa t ion , I n st it u t ion a l issu e s, Socio- e con om y, I n t e gr a t e d de ve lopm e n t , W a t e r le gisla t ion a n d Socio- e con om y I n t e gr a t e d de ve lopm e n t W a t e r le gisla t ion a n d im ple m e n t a t ion s, Ca se st u die s Socio- e con om y, Pr iva t e Se ct or Pa r t icipa t ion & p 2 0 2 0 Ge n de r I ssu e s
1 1 L20– L20 Socio-economy, Private Sector Participation & Gender Issues P ti i ti & G d
I
Topics Cove r e d Topics Cove r e d
Socio--economy, Economic Socio economy, Economic
assessment of watershed project, assessment of watershed project,
Private sector participation Role of Private sector participation Role of Private sector participation, Role of Private sector participation, Role of NGOs, Gender issues. NGOs, Gender issues.Socio--economy, economic Socio economy, economic
Keywords: Keywords:
assessment NGO, Gender issues. assessment NGO, Gender issues. assess assess e t e t GO, Ge de GO, Ge de ssues ssues 2 2
Socio- e con om ic Aspe ct s
is not just about the physical
W a t e r sh e d m a n a ge m e n t
environment but also the human environment.
Socio cu lt u r a l a n d e con om ic a spe ct s S i lt l d i t influences the type i fl th t finally adopted by the land users as well as the rate of adoption & success of adopted technologies.
M a j or socio- cu lt u r a l & e con om ic fa ct or s M j i lt l & i f t include: i l d Land tenure; Capital; Labour; Perception & beliefs; Gender.
Land tenure & watershed management : Land tenure is the terms and conditions on which land & other natural resources (e.g. trees and water) are held & used.
Resources Management: manner in which they are owned, accessed, controlled, and used.
Fou r Re sou r ce M a n a ge m e n t Re gim e s: Private regime ; State property regime; Open access (non property regime); Common property regime.
Ecology & environment upliftment Economic
Society Socio- e con om ic Aspe ct s
Ca pit a l & w a t e r sh e d m a n a ge m e n t
Watershed management is a capital demanding exercise. Unless land users have sufficient resources, i U l l d h ffi i t they cannot engage in successful watershed management. For example labour is required for the construction of water harvesting structures
Labour is costly and beyond the reach of majority of
land user; Therefore resource disadvantaged land land user; Therefore resource-disadvantaged land users will most likely not engage in meaningful watershed management.
i ll is usually defined as ones inability to meet d fi d i bilit t t
P Pove r t y t
their basic economic needs for clean air, water, food, shelter, and health care.
Socio- e con om ic Aspe ct s
M a j or W a t e r sh e d pr oble m : Low Productivity; Low
Income; Low Savings; Low Investment
Poverty stricken Poverty stricken
Th e En vir on m e n t - Pove r t y N e x u s: Th e En vir on m e n t - Pove r t y N e x u s:
people are critically environment-dependent. They often depend on environment for their livelihoods (fish timber fruits charcoal food medicine) (fish, timber, fruits, charcoal, food, medicine).
La bou r a n d w a t e r sh e d m a n a ge m e n t
Labour is another vital component in watershed
management. It is actually the most limiting constraint of smallholder land users in the adoption and sustenance of watershed management techniques. Labour is required for: Establishing tree nurseries and planting the trees; Constructing terraces; Manuring farms; Constructing dams Economic & Social Issues - Review
Methodologies for effective watershed management , with
special reference to economic and social considerations. W a t e r sh e d m a n a ge m e n t policy a n d le ga l e n vir on m e n t W t h d t li d l l i t
- - “What are the fundamental policy and legislative
weaknesses associated with the contemporary watershed management programmes, with special focus on economic and social considerations?”
Policy Policy lacks focus in terms of classifying projects with regard lacks focus in terms of classifying projects with regard
to site-specificities and that it pays insufficient attention to monitoring and evaluation mechanisms.
Legislation Legislation is often absent or inadequate with respect to is often absent or inadequate with respect to
interdepartmental collaboration, funding allocation, sharing of resources and decentralization of authority. Economic & Social Issues?...
- new legislation to
Re vie w e x ist in g le gisla t ion & for m u la t e address policy issues such as interagency collaboration, decentralization of authority and sustainability of resources.
- W a t e r sh e d m a n a ge m e n t pla n n in g
• What are the major issues associated with contemporary watershed What are the major issues associated with contemporary watershed
planning methods, with special focus on economic and social consideration at the national, watershed and local levels?”,
I n ve st m e n t • • I n ve st m e n t should be made in information collection, national should be made in information collection national database infrastructure and easy data access
Cost - e ffe ct ive t e ch n ologie s should be emphasized, and proper • attention paid to indigenous knowledge. tt ti id t i di k l d 7
7 Economical Assessment of watershed Project Aim s
Are economic benefits greater than cost? •
- Budget impact
- Will project increase economic stability? • Will project increase economic stability? • Project attractive to private entities?.
- Long term work of inter-generation benefits
- Multiple use and multi products
- Externalities- indirect
- Spatial distribution of costs and benefits Spatial distribution of costs and benefits
- Difficulties in qualification and valuation 8
- – What is the project trying to achieve towards what objectives is it aimed? i it i d?
- – What problems is it trying to overcome?
- – Main alternatives for achieving the objectives
- – Definition and quantification of the physical inputs and outputs involved outputs involved
– Developments of tables which show inputs & outputs over
time- – Determination of unit values (both market and economic) for Determination of unit values (both market and economic) for inputs and outputs over time
– Development of value flow tables, showing total values of
benefits & costs estimated to occur over life of the project benefits & costs estimated to occur over life of the project- Project feasibility and attractions • Project feasibility and attractions
- Risk factors
- Project design and various alternat>Lim it a t ion s>All benefits cannot be quantified
- Depends on data>M a j or Te ch n iqu e s
- With and without project approach • With and without project approach
- Discount – future value
- Cost and benefit analysis
11 11Econ om ic Asse ssm e n t
Net present value or net present to determine present to determine present n worth (NPW) worth (NPW)
- – B C
value of net benefits of a project
t t
NPW t
NPW = Present value of all benefits - r t 1
present value of costs present value of costs
1
Project acceptable if NPW is zero or positive (B – C)
≥ 0
where, Bt – Benefit; Ct – cost in where Bt – Benefit; Ct – cost in year t; r – discount rate; n – No. of years.
To compare several alternatives, analysis results be ranked.
Econ om ic Asse ssm e n t Econ om ic Asse ssm e n t
- Be n e fit Cost Ra t io: Ratio of present
- – discount rate; n – No. of years.
1 1
Cost Point of effectiveness Cost Benefits 13 13
C B 1 /
1 1 /
t r 1
1 /
1
n t t t t r C r C B
value of benefits to present value of costs. where, Bt – Benefit; Ct – cost in year t; r discount rate; n No of years
1
n t t t r B 1
value of benefits to present value of
- Economically feasible if
C B
Econ om ic Asse ssm e n t …
Econ om ic r a t e of r e t u r n ( ERR)
Discount rate that sets present Discount rate that sets present value of all benefits equal to the present value of total costs.
n B B C C
Otherwise ERR is discount rate r Otherwise, ERR is discount rate r
t t t
such that
1 r t
1
Computed ERR is compared with some reference discount rate, to know whether project is economically feasible economically feasible
If computed ERR
≥ project fund cost, project economically attractive.
Econ om ic Asse ssm e n t …
Sensitivity analysis Financial analysis Financial analysis Economic Assessment Procedure
Developing technical relationships and quantifying physical inputs and outputs physical inputs and outputs
Find monetary values and developing value flow
tables eg. Labour, equipment & materials
M Measuring project worth i j h
Sensitivity test - for discount rate, benefit value estimates, cost assumptions etc.
Assistance for economic assessment : i) for establishing technical relationships; ii) identifying costs; iii) identifying benefits.
Pr iva t e se ct or Pa r t icipa t ion
Pe ople ’s pa r t icipa t ion
- – Pre-project stage Pre project stage
- – Planning stage
- – Implementation stage
- – Maintenance M i t
- – Evaluation
Private sectors or NGOs
- – Motivate people to participate in all the stages
- – Make them understand the knowledge inputs required by people required by people
- – Organize education programs prior to program initiation
Pr iva t e se ct or Pa r t icipa t ion .
To use various types of organizations such as
- – small informal groups,
- – traditional community associations,
- – cooperatives and trade unions and to reach all sectors of the rural population concerned. sectors of the rural population concerned.
To encourage governments to adopt methods to help
the organizations to become self-sufficient. To change administrative & budgetary h d b d procedures to facilitate d f l hand-over to the local level of powers & tasks involved in decision-making, tax collecting & expenditure
To set up local planning consultation bodies , which will comprise representatives of the people’s organizations, NGOs & authorities to help in decentralizing decision-making.
Role of NGOs in Watershed Development Role of NGOs in Watershed Development
Su cce ss of w a t e r sh e d de ve lopm e n t de pe n ds on
- – Working out collective protocols of equitable and – Working out collective protocols of equitable and sustainable use of surface water and groundwater
- – Bringing together scientists and farmers
- – Involvement of community and private sectors
Role of N GOs in w a t e r sh e d de ve lopm e n t Role of N GOs in w a t e r sh e d de ve lopm e n t
Creation of awareness
Creation of awareness
Social mobilization
Capacity building and training Capacity building and training Role of NGOs in WM Role of NGOs in WM o e o o e o GOs GOs To improve the effectiveness of project delivery.
To empower village communities to take control of the To empower village communities to take control of the project (processes and outcomes).
To improve the levels of transparency and participation of communities. communities
To facilitate the learning process of different partners at
different levels based on objective assessment of field
experience. experience Joining of national governments and international agencies with NGO’s
Major agencies providing funds for activities in watershed M jo gen ie p o iding f nd fo ti itie in te hed management are: UNEP, FAO, IFAD, World Bank, USAID, CARE, OXFAM, SIDA, ICRISAT etc.
Role of NGOs in WM Role of NGOs in WM
From 1980s, the role of NGOs became increasingly important in the development sector in India
- – NGOs have ability to bridge gap between people’s needs y g g p p p and available resources and services
- – Several projects implemented by NGOs have
demonstrated their ability for new approaches and demonstrated their ability for new approaches and
techniques for mobilizing local economies - – As a partner in the commonly shared vision, NGOs have adopted a new role in operationalizing the adopted a new role in operationalizing the
implementation of regional watershed management
policies at the local level. - – Essential local coordination and education are areas Essential local coordination and education are areas where the services of NGOs have been effective
- – This makes NGOs the ‘nuclei’ for a successful watershed .
management management
Ge n de r issu e s Ge n de r issu e s Ge n de r - se n sit ive a ppr oa ch t o w a t e r sh e d
m a n a ge m e n t :
Watershed management initiatives that exclude women W t h d t i iti ti th t l d as stakeholders ignore half the population, decreasing the efficiency and effectiveness of the actions promoted. Use of a gender approach in dealing with the socio- environmental dynamics of watersheds can open avenues & opportunities for achieving equity between women & & opportunities for achieving equity between women & men by considering their unique interests, demands & expectations. A gender-sensitive approach to watershed management - A gender sensitive approach to watershed management emphasizes affirmative actions to address women’s disadvantageous position and condition in many societies.
Ge n de r I ssu e s-- W om e n ’s Role Ge n de r I ssu e s W om e n ’s Role
Women constitute more than 50% of the world population.
Women play a pivotal role in agriculture development Women play a pivotal role in agriculture development and the management of natural resources
Their involvement is indispensable for the effective implementation and equitable distribution of the l d bl d b f h benefits of watershed management.
Managers of community natural resources, and have Managers of community natural resources, and have learned to protect these resources in order to preserve them for future generations (managers of sustainability). sustainability)
They have extensive knowledge, experience and common sense on use & management of natural resources. esou ces Community Participation-- Women’s Role Community Participation Women’s Role
Women often oversee water, food, fuel and fodder requirements of family and cattle. requirements of family and cattle.
Women also use natural resources for economic activities, building and repair work, crops and food processing. processing
It is clear that It is clear that poverty alleviation poverty alleviation can be ensured can be ensured through a watershed development programme only through a watershed development programme only when women have a stake in decision--making, so that when women have a stake in decision making, so that their basic needs are met. their basic needs are met.
Most of the Most of the Most of the Most of the watersheds project successful watersheds project successful watersheds project successful watersheds project successful – when when when when – women have participated women have participated considerably – considerably various roles various roles ..
- –
Equ it y in Com m u n it y-
Case Study:
Ba se d Su st a in a ble D e ve lopm e n t : A Ca se Ba se d Su st a in a ble D e ve lopm e n t : A Ca se St u dy in W e st e r n I n dia
Hivre Bazar - Hivre Bazar - in Nagar Taluka in Ahmednagar Dist. In in Nagar Taluka in Ahmednagar Dist In Maharashtra– 9.77 sq.km area; Main occupation - Agriculture
795.23 hectares is cultivable. The average annual rainfall in the district is 579 mm, though this is both erratic and uneven
The principal form of irrigation in the village is well irrigation (open wells).
The population of Hivre Bazar in 2001 was 1,150. The population of Hivre Bazar in 2001 was 1 150
27 per cent are marginal landholders, 39% medium/ small land holdings, 34% landless. g
Ref: Sangameswaran, Priya (2005): Equity in Community-Based Sustainable 24 24
Ca se st u dy: Pr oble m s
- Water Problem: In the 1970s. Hivre Bazar was a typical semi arid village. typical semi-arid vill
- Water for irrigation was scarce, and women had to walk long-distances to fetch drinking water.
- This resulted in low agricultural productivity and mostly • This resulted in low agricultural productivity and mostly one kharif crop (typically bajra) could be managed and sometimes jowar in the rabi season.
- Out-migration became common due to limited • Out migration became common due to limited employment opportunities.
- The villagers were under the influence of alcohol addiction and gambling, which resulted in frequent fights, ddi i d bli hi h l d i f fi h and the village became notorious in the region. 25
- –
Hivre Bazar experience stands out, not only in
terms of its equity outcome, but also in terms of improvement in livelihoods and the impact on l l h d d h sustainability. - – The measures to attenuate the negative impact – The measures to attenuate the negative impact of the ban on grazing, the rules about use of water and the careful targeting of watershed- plus measures have been particularly critical.
- – Some of the inequities considered ‘inherent’ to watershed development projects can be partially watershed development projects can be partially remedied by local-level initiative – as demonstrated in this area. 29 29
25
Ca se st u dy: I n t e r ve n t ion s
In 1980s – Group of youngsters under leadership Popatrao Pawar
NGO called Yashwant Agricultural, Rural
and Watershed Development Agency was set up by Popatrao Pawar in 1993 and the scheme began to be Popatrao Pawar in 1993 and the scheme began to be implemented from 1994.
Watershed development was derived from the community
initiative in watershed development, Ralegan Siddhi. initiative in watershed development Ralegan Siddhi Five principles: restrictions on free grazing, ban on tree felling, ban on alcohol, adoption of family planning and voluntary labour voluntary labour
Village was divided into three micro-watersheds, the first with an area of 612.14 ha, second with an area of 123.4 has & third with an area of 241.3 ha. & third with an area of 241 3 ha Case study: Interventions & Impacts
The principal watershed works constructed include continuous contour trenching and tree plantation (on forest, private and panchayat land), contour bunding, nala bunding -5, two h t l
d) t b di l b di 5 t percolation tanks and five storage bandharas.
In a span of four years, most of the work was completed.
I m pa ct s : most immediate impact of watershed development has been an increase in groundwater & biomass.
This in turn has led to socio-economic changes in the village, g g , especially in agriculture and animal husbandry.
Increased water and fodder potential has meant that more animals, especially milch animals, can be reared. Hence milk animals, especially milch animals, can be reared. Hence milk production has increased more than tenfold, and the village now has its own dairy cooperative. 27
27
Ca se st u dy:
Increase in the level of water in wells has led to more land becoming irrigated, with the result that both intensity and g g , y pattern of cropping have improved resulting in higher incomes.
Increased demand for labour, & wage labourers no longer Increased demand for labour & wage - labourers no longer have to go out in search of work – reverse migration.
Both the quality of the technical watershed works and the B th th lit f th t h i l t h d k d th resulting positive socio-economic changes have now been widely acknowledged 28
28
Ca se st u dy: Le sson s Le a r n t
Re fe r e n ce s Re fe r e n ce s
J.V.S Murthy (1991), Watershed Management, New Age international • Publications
Economic and Political Weekly September 16, 2000, 3435- 3444, y p , , , Sustainable Watershed Management Institutional Approach. V Ratna Reddy.
Joshi PK, Vasudha Pangare, Shiferaw B, Wani SP, Bouma J and Scott C.
2004 2004. Socioeconomic and policy research on watershed management in S i i d li h t h d t i India: Synthesis of past experiences and needs for future research. Global Theme on Agroecosystems Report no. 7. Patancheru 502 324, Andhra Pradesh, India: International Crops Research Institute for the Andhra Pradesh, India: International Crops Research Institute for the Semi-Arid Tropics. 88 pp.
Shah, A. 2001. Who benefit s from part icipat ory wat ershed developm ent ? Lessons from Guj arat . IIED Gatekeeper Series No. 97.
London, International Institute for Environment and Development
Sangameswaran, Priya (2005): Equity in Community-Based Sustainable
Development: A Case Study in Western India, Economic & Political Weekly, May 27, 2006. Weekly May 27 2006 30 30Tu t or ia ls - Qu e st ion !.?
Why we need economic assessment of watershed projects? watershed projects?
Explain major techniques of economic assessment ?.
How we can effectively assess the
economical impacts of watershed projects?..
From the literature, critically study the From the literature, critically study the From the literature critically study the From the literature critically study the economical impacts of watershed economical impacts of watershed development projects. development projects. development projects. development projects.
Prof. T I Eldho, Department of Civil Engineering, IIT Bombay 31 31
Se lf Eva lu a t ion - Qu e st ion s!. Q
What is the importance of socio-economic What is the importance of socio economic analysis of watershed management p ojects projects?.
How to do socio economic assessment for
watershed projects?. Discuss the role of private sector in watershed development projects.
Why ‘gender issues’ important in watershed Wh ‘ d i ’ i t t i t h d management projects?
Prof. T I Eldho, Department of Civil Engineering, IIT Bombay P f T I Eldh D t t f Ci il E i i
IIT B b 32 32
Assign m e n t - Qu e st ion s?. g Q
What are the important socio economic components of watershed development components of watershed development projects?.
What are the important techniques used for What are the important techniques used for economic assessment of watershed p projects?. j
Describe the role of NGOs in watershed management projects.
Discuss woman role in watershed development projects
Prof. T I Eldho, Department of Civil Engineering, IIT Bombay
33 33Un solve d Pr oble m !. Un solve d Pr oble m !
For your watershed area, critically study the various For your watershed area, critically study the various implemented and proposed watershed development implemented and proposed watershed development management plans. management plans. management plans. management plans.
Using benefit cost ratio method, carry out an Using benefit cost ratio method, carry out an economical assessment of the implemented and economical assessment of the implemented and proposed watershed management plans. proposed watershed management plans. proposed watershed management plans proposed watershed management plans
Critically evaluate various watershed management Critically evaluate various watershed management plans (eg. Water harvesting measures/ irrigation plans (eg. Water harvesting measures/ irrigation projects/ Well irrigation/ canal irrigation etc.) and projects/ Well irrigation/ canal irrigation etc.) and economically compare each schemes in terms B/C economically compare each schemes in terms B/C ratio. ratio. ratio. ratio.
Prof. T I Eldho, Department of Civil Engineering, IIT Bombay 34 34
Dr. T. I. Eldho Dr. T. I. Eldho Professor, Professor, Department of Civil Engineering, Department of Civil Engineering, p p g g g g
Indian Institute of Technology Bombay, Indian Institute of Technology Bombay,
Mumbai, India, 400 076. Mumbai, India, 400 076.Email: Email: Email: Email: eldho@iitb.ac.in eldho@iitb.ac.in eldho@iitb.ac.in eldho@iitb.ac.in
Phone: (022) – Phone: (022) – 25767339; Fax: 25767302 25767339; Fax: 25767302
8 Necessity of Economical Assessment
Economic analysis focuses on net benefit to the
society society
Its purpose is to determine whether investment is justified on economic efficiency basis
Economic analysis l is needed to verify that the project d d f h h
yields net benefit to the society as a whole
Economic appraisal Economic appraisal considers market traded goods considers market traded goods
and services but also attempts to value them in terms of society’s true willingness to pay
Economic analysis Economic analysis also adds in benefits costs of goods also adds in benefits costs of goods and services that are not traded in the market place.
Econ om ic Appr a isa l
Economic appraisal should include following basic steps
Alternatives for achieving the objectives
Fa ct or s a n d lim it s of Econ om ic Asse ssm e n t Asse ssm e n t
Project worth •