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After two decades of implementation, Indonesia’s program to reform its irrigation sector can be assessed yielding lessons on water policy reform. This reform coincided with state-wide decentralization, and shifted decision-making from a central ministry to a distributed arrangement in which local governments and Water User Associations assume part of irrigation authority and budget. The policy was formulated with different stakeholders in 1999–2004 based on field pilots and was implemented using an adaptive, sequential approach while developing institutional capacity of local governments and farmers. Relatively coherent longitudinal monitoring data sets are available on field-level practices, economic returns on projects (with and without, and before and after reform), and rice production. Institutional development was monitored by performance indicators. The overall reform effectiveness is assessed by analyzing the appropriateness of the new arrangement, and the processes of the policy design and of its implementation. After two decades well over three quarters of the country is applying the policy albeit with varying quality. At field level water supply and allocation turned more reliable, and conflicts better managed. Rice production increased year over year after 2005 correlating with policy roll-out. Irrigation Departments proved less adequate in partnering with farmers, however. Institutional capacity generated one quarter to two thirds of the economic benefit from investments that combined scheme rehabilitation and institutional capacity development. As institutional capacity develops slowly full roll-out may require up to three decades. The analysis shows that in the context of ‘wicked’ policy implementation, not only normative policy design matters, but equally importantly, the sequencing of the process of implementation allowing adaptation to physical, institutional and political realities; still, to be successful a process must build on a credible realistic ‘model’. This is especially true in developing and emerging economies with weaker institutional capacities and more fragmented governance structures.
G.J. Alaerts. Adaptive policy implementation: Process and impact of Indonesia’s national irrigation reform 1999–2018. World Development 2020, 129, 104880 .
AMA StyleG.J. Alaerts. Adaptive policy implementation: Process and impact of Indonesia’s national irrigation reform 1999–2018. World Development. 2020; 129 ():104880.
Chicago/Turabian StyleG.J. Alaerts. 2020. "Adaptive policy implementation: Process and impact of Indonesia’s national irrigation reform 1999–2018." World Development 129, no. : 104880.
The relationship between the water and financial sectors is explored through a review of past and current policies and practices, and new needs driven by growing water insecurity (i.e., drought and floods) and climate change. This paper focuses on emerging markets and developing economies. The “conventional” agenda of providing safe drinking water supply and sanitation has met with growing success. The newer water resources agenda covering flood, drought and irrigation, in contrast, has to address rapid alterations in the landscape due to destruction of catchments, and rapid water use growth. By approximately 2045 the world will transition from a predominantly water-abundant place to a predominantly water-scarce one. Though this masks large regional differences, pressure will grow to improve water management and broaden adoption of technologies and policies for recycling, desalination and water efficiency. Climate change will exacerbate these trends. Finance for the water agenda has been dominated by public budgets. To meet the SDGs, the need for finance in emerging markets and developing economies is 2–4 times larger than current practice. National budgets have grown significantly while international development assistance has grown modestly. Commercial finance holds promise but is constrained by high-risk profiles of many water investments: deals are small or risky and creditworthiness of water utilities and municipalities is weak. Access to commercial finance can be enhanced through blended finance, intermediary institutions and, increasingly, local capital markets. However, though the capacity to access finance is constrained in many developing economies, the capacity to absorb finance and prepare “bankable” proposals proves even more constraining. Climate change is emerging as a systemic threat to corporate and financial assets. Water insecurity undercuts the financial viability of production assets, services and real estate. It is argued that the longer-term interests of the water and financial sectors will converge.
Guy J. Alaerts. Financing for Water—Water for Financing: A Global Review of Policy and Practice. Sustainability 2019, 11, 821 .
AMA StyleGuy J. Alaerts. Financing for Water—Water for Financing: A Global Review of Policy and Practice. Sustainability. 2019; 11 (3):821.
Chicago/Turabian StyleGuy J. Alaerts. 2019. "Financing for Water—Water for Financing: A Global Review of Policy and Practice." Sustainability 11, no. 3: 821.