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Water Resource Management, Group Theory and the Tragedy of the Commons in Tacna, Peru

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Water Resource Management, Group Theory and the Tragedy of the Commons in Tacna, Peru Yo como persona: 1 Yo como persona : Water resource management, group theory and the tragedy of the commons in Tacna, Peru B.Sc. thesis Conor Anderson (996069418) Submitted to: Ken MacDonald and Roberta Rice Date of submission: 2012-04-19 Yo como persona: Acknowledgements 2 Acknowledgements This paper would not have been possible without the contributions of many persons and organizations, I gratefully acknowledge the support and advice of: • My amazing thesis supervisor Dr. Roberta Rice and Dr. Ken MacDonald, for invaluable guidance. • EPS Tacna, and all it's staff, especially Dino Arredondo, Marleni Lea, and Pedro Bahamonde, as well as Cesar Haunacuni and Alberto Franco for the information they shared. • World University Service of Canada in both Canada and Peru, especially Michel Tapiero and Juan Escate and my fellow volunteers Mahdia Bennacer and Alexandra Benedict. • Jose de Pierola, for an informative interview and Sonia Leon, for a wonderful South-North mission. • My friends and loved ones in Peru, especially Oscar, Libertad, and Mahdia, Oscar and Viviana, Kathy with Sandrine and Gerome, and Kathy. • My friends and loved ones in Canada, for advice and for the constant reminders that this thesis couldn't write itself, especially Kris, Adam, Jamie, Les and Lucy. • My family, for supporting me through all my adventures and travels. • My IDS cohort, peers, and former peers at the University of Toronto Scarborough. It has been a wonderful five (or so) years together. • Lucy, for your proofreading mastery. Yo como persona: Resumen Ejecutivo 3 Resumen Ejecutivo La región de Tacna, en el sur del Perú, se caracteriza por un clima excepcionalmente seco. En la cabecera del desierto de Atacama, el pequeño abastecimiento de agua de la región disminuye por las extracciones de industria, minería, y una gran población metropolitana. Los glaciares andinos que alimentan las fuente de agua en Tacna están desapareciendo, dando lugar a una menor disponibilidad de agua cada año. Además, los problemas de infraestructura ocasionan que las pérdidas de agua a través de robos, la evaporación y las fugas sean significativas. Frente a estos importantes problemas en el suministro del agua, ha habido poca acción de las autoridades de Tacna para la conservación esta misma. Hasta la fecha, la principal intervención ha sido en la educación para la conservación del agua, sin embargo, no se ha podido llegar fuera de la ciudad de Tacna y se ha mostrado poco impacto en su demanda. Hay muchos interesados en la gestión del agua en Tacna. Los principales actores son las operaciones mineras multinacionales, la agricultura y la empresa de agua municipal (EPS Tacna). Esta tesis examina la conservación del agua como un bien público bajo el marco teórico de Mancur Olson (1971): La teoría de los bienes públicos y la acción colectiva. Según Olson, las personas de los grupos grandes no proporcionarán un bien común porque las contribuciones de un miembro determinado, o su falta de aporte, pasará desapercibido por los demás miembros del grupo. Este grupo, sin embargo, tiene el potencial para proporcionar el bien, y se llama un grupo latente. En Tacna, como grupos de individuos racionales y auto-interesados, los diferentes actores hacen muy poco para conservar el agua, pues la relación costo-beneficio de la conservación es muy alta. En cambio, existe una cultura de “culpa” en Tacna, con cada actor acusa a los otros de exacerbar los problemas de abastecimiento de agua. Para que la conservación del agua ocurra en Tacna, es necesario que todos los actores de la región colaboren. Sólo al compartir los costos de conservación se puede llevar a cabo cualquier acción colectiva. Sin embargo, es difícil garantizar la cooperación, ya que los diferentes actores esperan retornos asimétricos. La EPS, por ejemplo, como un servicio comercial de agua, podría perder ingresos mediante la promoción de la conservación, mientras que la industria minera podría reducir su costo de tratamiento de agua. Esta asimetría desalienta la colaboración en la conservación del agua. Según la teoría de Olson, hay dos métodos para la movilización de un grupo latente, y, en este caso, la facilitación de la colaboración. Los incentivos pueden ser desarrollados para ofrecer una recompensa positiva para la acción colectiva, sin embargo, si la concesión de incentivos no es posible, la coerción, sea político, psicológico o físico, puede forzar a los individuos a la acción. Esta coerción puede venir en forma de sanciones. Olson describe tres clases de sanciones: la auto-vigilancia, donde un individuo contribuye a la acción colectiva basada en la espera de la contribución reciproca de otros miembros; las sanciones sociales, basado en el deseo de un individuo de ser aceptado y apreciado por sus colegas; y las sanciones legales, impuesto por el estado para el control de grandes organizaciones y empresas. En el caso de Tacna, las sanciones sociales y legales podrían ser más eficaces en el fomento de la participación activa de la sociedad, la agricultura y la industria. La presente tesis hace recomendaciones para el futuro de la gestión del agua en Tacna, incluyendo la reestructuración de los programas de educación, la creación de programas de incentivos para la conservación del agua, y mejoras en la infraestructura. Se identifica al sector agrícola como un foco de inversión y promueve la creación de grupos de trabajo para la negociación representativa en la colaboración para la conservación del agua entre todos los actores principales de la región. Yo como persona: Executive Summary 4 Executive Summary The region of Tacna in the south of Peru is characterized by an exceptionally dry climate. At the head of the Atacama desert, the region's very small water supply is further stressed by extractions by industry, mining, and a large metropolitan population. The Andean glaciers that feed Tacna's water supply are disappearing, leading to less available water each year. In addition, infrastructure problems mean that water losses through robberies, evaporation, and leaks are significant. In the face of these significant supply issues, there has been little action by the authorities in Tacna for water conservation. To date, the primary intervention has been in water education, however this has failed to reach outside of the city of Tacna and has shown little impact on demand for water. There are many stakeholders in water management in Tacna. Major players include multinational mining operations, agriculture, and the municipal water utility (EPS Tacna). This paper examines water conservation as a public good under the theoretical framework of Mancur Olson's 1971 theory of public goods and collective action. According to Olson, individuals of groups that are very large will not provide a common good, as the contributions of a given member, or their lack of contribution, will go unnoticed by other members in the group. This group, however, does have the potential to provide the good, and is said to be latent. In Tacna, as groups of rational, self-interested individuals, the various players do very little to conserve water, hindered by the high cost-benefit ratio of conservation. Instead, there exists a culture of blame in Tacna, with each player accusing the others of exacerbating water supply issues. In order for conservation to occur in Tacna, it is necessary that all of the region's players collaborate. Only by sharing the costs of conservation can any action be undertaken. It is difficult, however, to ensure cooperation, as the various players expect asymmetric returns. The EPS, for instance, as a commercial water utility could lose revenues by promoting conservation, while the mining industry might lower its water treatment costs. This asymmetry discourages collaboration in water conservation. Under Olson's theory there are two methods for the mobilization of a latent group, and, in this case, the facilitation of collaboration. Incentives can be developed to provide a positive reward for collective action, however, if the provision of incentives is not possible, coercion, whether political, psychological, or physical, can force individuals to action. This coercion can come in the form of sanctions. Olson describes three classes of sanctions: self-policing, where an individual contributes to collective action based on the expected reciprocation of that contribution by other members; social sanctions, based on an individuals desire to be accepted and appreciated by his peers; and legal sanctions, enforced by the state for the control of large organizations and corporations. In the case of Tacna, social and legal sanctions could be most effective at encouraging the active participation of society, agriculture and industry. This paper makes recommendations for the future of water management in Tacna including the restructuring of education programs, creation of incentive programs for water conservation, and improvements to infrastructure. It identifies the agricultural sector as an investment focus and advocates for the creation of water working groups for the representative negotiation of collaborative action by the major players in the region. Yo como persona: Contents 5 Contents Acknowledgements .................................................................................................................................... 2 Resumen Ejecutivo .................................................................................................................................... 3 Executive Summary ..................................................................................................................................
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