Environmental Management

Session 1

Local, regional & trans-boundary water issues

Overdependence on groundwater
Over-dependence on groundwater 70% of Indias irrigation need 80% of domestic water supplies Sheer lack in piped delivery in everyday supply
On supply side, two source of financing budgetary & user charges have been declining and falling Market failure??

Low water storage capacity

India can barely store about 30 days of rainfall compared to as much as 900 days in the major river basins abroad

Around 21 million private tube-wells in India Paani bazars in rural areas Tanker business in urban areas
Equity??

Depleting water levels

Ground-water levels have sunk by more than half in many parts of India
From 30 m to 150180 m in Gujarat One foot a year in Punjab, Rajasthan, Haryana & Delhi Loss of 109 cubic km of groundwater during 20022008 Bangalore: Over 2 lakh bore-wells pumping between 100400 million liters per day Institutions to monitor?? Environmental degradation Increased consumption of energy??

Policy distortions in artificially under-pricing of agri-inputs like power

Shift in irrigation pattern Private use (tube-wells ground-water) over collective use (tanks, ponds, etc. surface-water) Erosion of traditional water management systems Encroachment in urban India Incentivised cultivation of water-intensive crops like paddy in traditionally wheat growing areas Policy failures??

Rural vs. Urban

Water diverted from rural to urban areas
e.g., Renuka Dam on Giri River in Himachal Pradesh A solution for Delhis water scarcity e.g. Conflicts in Western Gujarat, Maharashtra Focus of administration diverted

Industry vs. Locals

Case of Coca-cola vs Plachimada Panchayat in Palghat, Kerala, 2003
Excessive mining of ground water through deep bores by Coca-cola (around 3.5 million liters/day) Now Coco-cola investing/promoting water harvesting
Lack of well defined property rights & absence of market??

See: Water as a scarce resource: An interview with Nestles chairman. McKinsey Quarterly 2010, No. 1, 7577.

Politicization
River water sharing Cauvery River: KarnatakaTamilnadu Bhakra-Nangal Dam: Punjab, Haryana, Rajasthan Tri-state water war in USA (two decades)
Lake Lanier River basin; Florida, Alabama & Georgia

Demand for Telangana state

Lack of proactive water policy going back over a century Costal Andhra Pradesh
Godavari barrage built in 1850 (dam across Krishna followed next) Veritably transferred famine-prone districts Sir Arthur Cotton Also suggested connecting major rivers of India Green Revolution 1960s & 1970s: Coastal A.P. benefited the most along with Punjab, Haryana & Western Punjab

Telangana
Nizam lacked the foresight to build canals & waterways Godavari & Krishna flow through Telangana region More reliance on tank & well irrigation General neglect of policy focus for tank irrigation pan-India Affected agrarian economy

Lack of clear policy on basic rights to natural resources

Badly targeted funds for water management
Canals vs local solutions (e.g., check-dams, ponds) Corruption in Irrigation Departments
Robert Wade Professor in London School of Economics, Author of Village Republics

Case of Privatization of Water

Nira Deogarh Dam on Nira River in Ahmednagar in Maharashtra
Known for traditional water harvesting structures built by Nizam Shahi kings Promoted by state owned company Irrigation of around 70,000 hectares Invited expression of interest from private companies (2007) Build Operate & Transfer - Developer would set the tariff To be shouldered by farmers Countrys first privatized irrigation project & largest one involving privatization of water! Project on hold Challenged by Water Resources Regulatory Authority

National Level Scenario

Remedial interventions through National Rural Employment Guarantee Program
Creating assets in rural India
Anti-drought measures on a war footing
200 drought prone districts in India

A Pond in Every Farm Movement

Marginal & Small Farmers (< 2 ha landholding) 5% of landholding to be reserved for construction of ponds to store rainwater Ensure good rabi crop this year

Successful intervention
Chak-de Chak-de vs Check-dam Check-dam in Gujarat
Gujarat Assembly Elections 2007

Construction of 10,700 check-dams up to 2000 Construction of > 1 lakh check-dams during 200107
Farmers contribute 5% initially; state-owned company provides 50% as subsidy & arranges a a bank loan for the balance of 45%

Raising depleting groundwater level

Boosted agricultural growth in Saurashtra & Kutch region (70% of area in Gujarat is semi-arid & arid) Recharging dry rivers

Collective & Individual Initiatives in Water Harvesting & Conservation

e.g., Check-dams across seasonal streams in Kasargod district, Kerala

Innovator: Bhanjibhai Junagadh Saurashtra

Rs.39,100 Crores for NREGP 2009-10 budget vs. Rs.130,000 crores (in direct taxes) doled out in concessions during last two budgets to a small group of industrialists

Recent Supreme Court Ruling

Recognizing the plight of citizens in getting potable water, the Supreme Court held that right to water was part of the right to life guaranteed under Article 21 (January 1, 2010; The Hindu)
Rural vs. Urban??

Water Sharing Bilateral Level

Indus Waters Treaty 1960 India & Pakistan
Under supervision of World Bank
Rights of Lower Riparian States

Ravi, Beas, Sutlej: India

Eastern flowing rivers

Indus, Jhelum, Chenab: Pakistan

Western flowing rivers
Limited general storage, power Storage & flood storagecapacity given to India India provides hydrological data

Water Sharing Bilateral Level

Indus Waters Treaty - One of the most effective treaty
Permanent Indus Commission (> 100 meetings) An illustration of cooperation between two hostile nations

Construction of dams upstream by India

Baglihar Dam on Chenab in J&K The Onset of Water War

China begins building dam on its side of the Brahmaputra

Zangmu hydroelectrical project

Mekong River Commission ADB

China, Burma, Thailand, Cambodia, Lao PDR & Vietnam Regional stability & economic development

Water Sharing Bilateral Level

India & Bangladesh
Farrakah Barrage across Ganga river to divert water to Hooghly river to save Kolkata Port Subject of constant dispute Economic loss to Bangladesh: Annually around one billion $

Middle East Water Related Conflicts 5,000 years

Israel & Palestine, Israel & Syria
2/3rd of Israels water comes from occupied territories West Bank aquifers in occupied Palestine territory
Forces Palestine to depend on Israel for water

Golan Heights (1329 miles wide) occupied Syrian territory

6 Days Arab-Israel War 1967, 1974, 1981 (annexed) Vantage point for monitoring Syrian movements Catchment area for Jordan River provides a third of Israels water

Environmental Issues & Concerns Crossing the Boundaries

Water Sharing Continental Level
The Nile Politics
Tributaries in ten countries Riparian states
300 million dependent Egypt, Sudan, Ethiopia, Eritrea, Burundi, Rwanda, Congo, Tanzania, Kenya, Uganda Great Lake States Severe water scarcity as per World Water Development Report

The Nile Politics

Use of Niles water for development a bone of contention
Egyptian Civilization and Nile 1959 treaty: Egypt (87%) & Sudan (13%) Rights over rivers use, i.e., full water utilization 97% of Egypts water requirement 95% of Niles runoff originates outside Egypt Blue Nile in Ethiopia provides 85% of Niles flow
Ethiopia and Eritrea

The Nile Politics

Globalization redefining politics
Nile Basin Initiative 1993 with support of International Institutions Egypt changing its position
Redistribution plans: equitable sharing of water & power development Two Plans: Six great lake states, and other states

Egypt gambling with its future by cooperating? Water: Increasing population, agricultural development Toshka Project: $88.5 billions: Diversion of Niles water to deserts for expanding agriculture

The Nile Politics

Globalization redefining politics
Egyptian hegemony in African continent challenged by rise of South Africa (FDI) & Nigeria (oil & gas) Egypt changing foreign policies to boost local trade Drop in World Bank loans to Egypt

Objectives of the Course

To synthesize the new field of environment and economics and to acquaint the students with various environmental issues using an interdisciplinary approach To enable the students, as decision-makers, to develop a framework to analyze the environmental issues in order to find out appropriate policy measures in a developing country context

Course Outline

Module A (Sessions 1 & 2)

Introduction to Environmental Management
Local, regional and trans-boundary water issues Sustainable Development (vs. Equity) Economics & Environment

Module B (Sessions 3 to 8)

Markets, Property Rights, Market Failures & Environmental Degradation

Scope of market mechanism in environmental management
Peculiar features of markets dealing in natural resources Complete property rights Institutions and transaction costs

Property rights & regimes

Various types of property regimes Private, State, Common & Open Social capital Elinor Ostroms work on commons Case : Biodiversity (A Public Good) Conservation

Module B (Sessions 3 to 8)

Markets, Property Rights, Market Failures & Environmental Degradation

Market failures and environmental problems, and internalization of environmental externalities
Types of Market Failures
Externalities Policy failures

Correcting market failures

Command and control Market-based instruments Role of judiciary

Case Study on Local Environmental Governance

Institutions, Property Rights, Policy failures, Sustainable Development vs. Equity, Challenges in implementing grass roots interventions

Module C (Sessions 9 to 16)

Environmental issues

Climate change: Kyoto Protocol to Copenhagen Climate Change Summit International trade and the environment Presentation and discussion of term papers and book reviews

Evaluation
Class Participation 10% Mid-term 20% Final Examination 35%
Answer No more than the suggested page limit in the question paper

Term Paper 35%

Term Paper Presentation

A group of five students Analyze local / regional / national / international environmental problems and issues & the remedial policies/interventions; New business opportunities Application of theoretical concepts Book review Adiga, Aravind (2008). The White Tiger. New Delhi: HarperCollins Publishers India. 1 Group LEAD India (2007). Local environmental governance in

India Case Studies. LEAD India: New Delhi. Two Groups

Evaluation of Term Paper

Presentation and discussion 35 minutes for each group 15 to 20 minutes for presentation 15 minutes for discussion Presentation by all students in a group (February 22 to March 12, 2010)

Evaluation of Term Paper

Presentation 15 marks
Individual 10 marks Overall Group Presentation 5 marks

Report 20 marks
ORIGINAL PIECE OF WORK Write the source of literature referred to as footnotes/endnotes Report size Maximum 2,500 words Preferably structure the report into sections!!!!!

Readings
Course file on Environmental Management Collection of articles Adiga, Aravind (2008). The White Tiger. New Delhi: HarperCollins Publishers India. Recommended Readings
See the Course file
All books are available in the Reference Section of the IIMK Library