3D Vision: Seeking a truce in the water wars

      In the first of a two-part series on dwindling resources in
      rural areas, James Fahn writes that everyone will have to pay        
more for water to prevent annual shortages, but water security       
should be offered in exchange
.

      Last year around this time, lowland farmers in Chiang
      Mai's Chom Thong district demonstrated for days on end,
      closing off roads to protest the activities of hilltribes on
      nearby Doi Inthanon. The leaders of the protests were
      widely criticised for obstructing traffic and stirring up ethnic
      hatred.

      The daily throng of blue-shirted farmers, however, looked
      strangely familiar. The scene was reminiscent of the
      so-called ''public hearings'' held in Phrae province to
      support construction of the Kaeng Sua Ten Dam. There
      the speakers railed against several ethnic Thai villages,
      who stubbornly oppose the dam because it would flood
      their homes.

      While there is prejudice in the countryside, these conflicts
      are not due to ethnic animosity. In Chom Thong, there was
      very little evidence of ill feelings toward hilltribes as such.
      Indeed, the lowlanders grew visibly angry at critics who
      accused them of being chauvinists. Concern over ethnicity
      seems much more prevalent in academic, NGO and
      media circles.

      No, these are battles over water. The farmers in Chom
      Thong accuse the hilltribes of clearing more land for crops,
      and irrigating more intensively despite the fact they live in
      a national park. The lowlanders in turn are accused of
      heedlessly expanding their water-hungry longan orchards.
      In Phrae, farmers downstream of Kaeng Sua Ten thirst for
      a secure water supply in the dry season, while provincial
      leaders dream of building industrial estates.

      Land, water, forests and people. They are all intertwined in
      a complex relationship that is showing increasing strain as
      populations grow, consumption increases and resources
      get scarcer.

      The problem of people living in protected forest areas is a
      complicated issue. But the water crisis, despite the vast
      number of agencies and laws involved, really isn't.

      The problem with water in Thailand is that its consumption
      is heavily subsidised. As a result, Thailand faces chronic
      water shortages. Then, when the inevitable drought comes
      along, we hear calls for some grandiose project to build
      another big dam or divert water from the Salween and
      Mekong basins, leading to all kinds of internal and
      international conflicts.

      Rather than look for more supplies, it is time that Thailand
      tackled the demand side of its water crisis. A
      demand-side management programme for the power
      sector has helped reduce electricity consumption, but it
      works because electricity tariffs at least approach market
      levels.

      Water is a different story. There is an annual irrigation
      budget of around Bt40 billion, but farmers pay nothing for
      irrigated water. Town dwellers, meanwhile, are supplied
      with cheap tap water, and many factories simply pump it
      up from underground illegally.

      To solve the crisis, simply reducing waste would be a
      good start. In the cities and towns, an estimated 25-30 per
      cent of the water supply is lost due to leaky delivery
      systems, but the low fees for water consumption mean
      there is no money to fix them. There is even more waste in
      the rural sector, which uses the vast majority of Thailand's
      water supplies. Only 30 per cent of the water from
      irrigation projects is estimated to reach the farms they're
      supposed to serve.

      So far, Thailand's attempts to manage water demand are
      reminiscent of the late, unlamented Soviet Union. Farmers
      are urged to grow crops that use less water, or to avoid
      planting a second rice crop. City dwellers are asked to
      stop washing their cars. Meanwhile, officials try to manage
      the flow of water from dams and through irrigation projects
      to meet the priorities they deem highest. But no matter
      how brilliant these managers are, this kind of command
      and control system simply won't work anymore. This year,
      thousands of farmers have simply ignored the
      government's orders, planted a second rice crop, and
      pumped up water whenever they can.

      It is time to make people pay more for water. Thailand's
      current water management system is so skewed that
      determining the resource's true value is difficult, but
      whatever the market rate is, that's what tap water users,
      factories and other commercial users should pay.
      Farmers, meanwhile, should contribute at least a nominal
      fee for irrigated water. That will give them an incentive to
      use it more efficiently, while providing funds to reduce
      waste in the distribution system.

      Of course, there is a reason this policy hasn't been
      invoked yet: it is considered political suicide. An
      agricultural sector loan currently being negotiated with the
      Asian Development Bank (ADB) has run into controversy
      following reports it will ask the Thai government to make
      farmers pay water user fees. But while the ADB would no
      doubt applaud such a move, officials there say they are
      more concerned with the broader issue of ''cost recovery''
      for irrigated water, which could be achieved in many ways.

      The real controversy over water fees is within the Thai
      government, where administrations have been rejecting
      water reform proposals for decades. Officials in the
      Ministry of Agriculture are reportedly split over whether to
      charge farmers for water, and are bickering with the
      Ministry of Finance over who would take responsibility for
      the unpopular policy. The ADB is being used to leverage
      the reforms past the Cabinet, and could become a
      convenient scapegoat for politicians come the next
      election.

      Farmers are naturally suspicious that they will be made to
      pay for Thailand's past financial sins, but perhaps they can
      be persuaded to accept water fees in exchange for
      receiving water property rights. Analogous to land title
      deeds, they would guarantee a certain amount of water
      every year. In effect, a water subsidy would be exchanged
      for water security. Surveys suggest farmers would go for
      such a trade.

      It would be a difficult policy to implement -- consider, for
      example, all the controversies surrounding land rights
      initiatives -- but in theory it could work, especially if it is
      organised at the local level. Water rights in some areas,
      such as the North, might be given to communities; in the
      central region, individual guarantees might be more
      appropriate. Furthermore, if handled correctly, it could set
      the stage for a proper water market, through which poor
      farmers could gain income by leasing some of their water
      rights to factories and cities.

      Many NGOs oppose any policy that would put a further
      burden on farmers, especially under current
      circumstances, and argue against the further
      commercialisation of agriculture. But they should consider
      whether farmers are actually well served by the current
      lack of water fees. Farmers living in marginal areas face
      severe drought conditions every year, and if this year is
      any guide, even those living in irrigated zones may face
      shortages in the future.

      Sympathy runs deep for farmers in Thailand, a traditionally
      agrarian society. There are many social, historical,
      environmental and security reasons why we may want to
      help farmers and conserve their traditional way of life.
      Most countries around the world do give farmers some
      kind of aid.

      But there are much better ways to help farmers than by
      allowing them to take water freely. That is a policy that in
      the end will leave everyone thirsty.

     

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