A Framework for Financing Water Resources Management
A lack of finance for water resources management is a primary concern for most OECD
countries. This is exacerbated in the current fiscal environment of tight budgets
and strong fiscal consolidation, as public funding provides the lion’s share of financial
resources for water management.
The report provides a framework for policy discussions around financing water resources
management that are taking place at local, basin, national, or transboundary levels.
The report goes beyond the traditional focus on financing water supply and sanitation
to examine the full range of water management tasks that governments have to fulfill;
when appropriate, a distinction is made on distinctive water issues.
The report identifies four principles (Polluter Pays, Beneficiary Pays, Equity, Policy
Coherence), which have to be combined. In addition, it identifies five empirical issues,
which have to be addressed on a case-by-case basis. Finally, it sketches a staged
approach that governments might wish to consider, to assess the financial status of
their water policies and to design robust financial strategies for water management.
Case studies provide illustrations of selected instruments and how they can be used
to finance water resources management.
Published on August 21, 2012
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