Pro-poor Interventions Strategies in Irrigated Agriculture in Asia Poverty in Irrigated Agriculture: Realities, Issues, and Options with Guidelines INDIA, PAKISTAN, BANGLADESH, CHINA, INDONESIA, VIETNAM Intizar Hussain International Water Management Institute (IWMI) April 2004 ii Acknowledgements This is the final summary report for the ADB-financed research project on “Pro-poor intervention strategies in irrigated agriculture in Asia.” The project was implemented by the International Water Management Institute (IWMI) in collaboration with key national partners in six countries: India, Pakistan, Bangladesh, China, Indonesia and Vietnam. Much of the material summarized in this report is based the draft final country reports prepared by the country teams in collaboration with IWMI. Cooperation and dedication of the country study teams for successful implementation of the project are highly appreciated. Special thanks are due to Dr. Q.K. Ahmed and Mr. K. Rahman (BUP-Bangladesh), Drs. Jikun Huang and Jinxia Wang (CCAP-China); Drs. Chris Scott and M. V. K. Sivamohan (IWMI-India); Drs. Sigit Arif and Mochammad Maksum (CRRD- UGM, Indonesia); Drs. Waqar Jehangir and Mohammad Ashfaq (IWMI-Pakistan); and Drs. Eric Biltonen and Doan Doan Tuan (CIWSR, Vietnam). Thanks are also due to other study team members in each country. Financial support from the ADB for the project is gratefully acknowledged.Valuable comments and suggestions during the early phase of the project from the ADB, particularly from Messrs. Wouter Lincklean Arriens, Kenichi Yokoyama and Toru Shibuchi are highly appreciated. Thanks are due to many IWMI colleagues who provided support for the project both directly and indirectly. Research support from Deeptha Wijerathna and Sunil Thrikawala, editorial support from Kingsley Kurukulasuriya, publishing support from Kithsiri Jayakody, Sumith Fernando, Pavithra Amunugama and Nilmini Matthysz, and secretarial support from Himani Elangasinghe are greatly appreciated. Finally, thanks are due to our Director General, Professor Frank Rijsberman; Director, Finance and Administration, Mr. Gerard O’Donoghue; Director, Asia, Dr. Sarath Abewardena and Theme Leader for the WRIP theme, Dr. Madar Samad, for their continuous support and encouragement for the poverty-related work at IWMI. iii iv Contents Acknowledgements Page Contents iii Table v Figures vii Executive Summary ix xi Part 1 Study Background, Settings, Summary and Synthesis of Findings, Conclusions and Pro-poor Intervention Strategies 1 I. Study Background 3 II. Study Settings, Data and Methods 19 III. Summary and Synthesis of Findings and Conclusions 25 IV. Pro-poor Intervention Strategies and Guidelines 67 Part 2 Country Studies: Summaries, Conclusions and Recommendations: India, Pakistan, Bangladesh, China, Indonesia and Vietnam 95 I. Poverty in Irrigated Agriculture in India: Issues, Options and Pro-poor Intervention 97 Strategies II. Poverty in Irrigated Agriculture in Pakistan: Issues, Options and Pro-poor 129 Intervention Strategies III. Poverty in Irrigated Agriculture in Bangladesh: Issues, Options and Pro-poor 153 Intervention Strategies IV. Poverty in Irrigated Agriculture in China: Issues, Options and Pro-poor 171 Intervention Strategies V. Poverty in Irrigated Agriculture in Indonesia: Issues, Options and Pro-poor 201 Intervention Strategies VI. Poverty in Irrigated Agriculture in Vietnam: Issues, Options and Pro-poor 219 Intervention Strategies Part 3 Project Implementation, Participation, Partnerships, Capacity Development, Communication, 241 Outputs and Impacts 241 I. Summary of Project Implementation Arrangements II. Summary of Project Achievements, Outcomes, Outputs and Impacts 245 • Partnership, participation and awareness-raising 245 • Communication and output dissemination 246 • Outputs and publications 250 • Capacity development and support to NARES 256 • Project effect/impacts 256 • Follow-up on medium and long-term impacts and up-take of pro-poor 257 interventions Appendix 1. Other Perspectives, Beliefs and Voices on Poverty 267 v vi Tables Page Table 2.1 Net irrigated areas (’000 ha) in the study countries, 2001 19 Table 2.2 Salient features of the selected irrigation systems 21 Table 3.1 Land, water, productivity and poverty across selected irrigation systems 28 Table 3.2 Water charges in selected irrigation systems 42 Table 3.3 Comparison of water charging methods in selected systems 44 Table 3.4 Strengths and limitations of alternate water charging systems 48 Table 3.5 Implementation progress and effectiveness of institutional reforms in the irrigation 56 sector Table 3.6 Impact of Improved Service Delivery in Hakra-4 R, Punjab, Pakistan 58 Table 4.1 Examples of unique/good/pro-poor (or with good potential): Conditions, institutions, management practices and initiatives. 70 Table I–1 Income poverty indicators for the four systems 115 Table I–2 Crop productivity before and after PIM: Andhra Pradesh 120 Table I–3 Impacts of PIM in AP and MP systems 120 Table P–1 Salient features of the selected irrigation systems in Pakistan 134 Table P–2 Upstream-downstream inequity in water, crop productivity and intensity of 138 poverty Lalian distributary, Punjab, Pakistan Table P–3 Estimates of poverty across reaches of irrigation systems, Indus basin, Pakistan 139 Table P–4 Cropping intensity, water charges for canal water and groundwater, and GVP by landholding size and for poor and nonpoor farmers 143 Table P–5 Impacts of improved service delivery in Hakra-4R, Punjab, Pakistan 147 Table IS–1 Percentage change of harvested area, production and productivity of paddy wetland + dryland), 1970-2000 203 Table IS–2 Poverty in Indonesia,1976–1999 204 Table IS–3 Characteristics of selected irrigation systems 211 Table V–1 Poverty incidence by regions in Vietnam 1993–1998) 221 Table V–2 Poverty incidence at head, middle, and tail parts of the selected systems 230 Table P3.1 Project in-country monitoring, review and support by the project leader by 244 location and dates Table P3.2 Summary - Project participation, capacity development, communication and 247 outputs Table P3.3 Project outputs/publications/reports and other material 250 Table P3.4 Project-related presentations by date and location 259 Table P3.5 Project Workshops by Location and Date 262 Table P3.6 Media coverage: Selected national newspapers reporting 262 Table P3.7 List of lead country partners and contact persons 265 vii viii Figures Page Figure 1.1 Organization of the project research outputs 16 Figure 2.1 Study locations 20 Figure 3.1 Estimates of income poverty across systems 30 Figure 3.2 Poverty in irrigated and nonirrigated areas in selected Asian countries 32 Figure 3.3 Productivity /ha, poverty %) and irrigation charge US$/ha) 40 Figure 4.1 Partnerships, the way forward 89 Figure I–1 Rural poverty and area irrigated in India by state 101 Figure I–2 Map of India showing locations of Andhra Pradesh and Madhya Pradesh 107 Figure I–3 Schematic Map showing the selected major and minor distributaries in the 114 Krishna delta system Figure P–1 Location of Chaj Doab, Rechna Doab and Hakra area in Punjab, Pakistan 137 Figure B–1 Map of Bangladesh showing G-K and Pabna projects 159 Figure C–1 Trends in average income and poverty in China 173 Figure C–2 Relationship between irrigated area and poverty incidence in China 174 Figure C–3 Location of the selected irrigation districts-China 182 Figure IS–1 Poverty incidence (%) and area irrigated (%) in Indonesia 202 Figure IS–2 Location of selected irrigation systems in Java and Yogyakarta. 208 Figure V–1 Map showing regions and provinces in Vietnam 223 Figure V–2 Percent area irrigated and poverty incidence %) across provinces in Vietnam 224 ix x Executive Summary The “Pro-poor intervention strategies in irrigated agriculture in Asia” is the ADB- financed study under its ‘RETA No. 5945–Fifth Agriculture and Natural Resources Research at CGIAR Centers dated 8 February 2001’ implemented by the International Water Management Institute (IWMI) in collaboration with key national partners in six Developing Member Countries (DMCs) of the ADB: India, Pakistan, Bangladesh, China, Indonesia and Vietnam. The overall goal of the study is to promote and catalyze equitable economic growth in rural areas through pro-poor interventions in irrigated agriculture in the participating countries. The main objective is to determine realistic options for increasing returns to poor farmers in the low-productivity irrigated areas within the context of improving the overall performance and sustainability of the established irrigation schemes. The study participating countries are among the top few countries where substantial investments have been made in the development of large- and medium-scale canal irrigation systems, and where irrigated agriculture provides livelihoods to hundreds of millions of rural people. These countries together account for over 51 percent of global net irrigated area and over 73 percent of net irrigated areas in Asia, with most of this area located in China, India and Pakistan. However, agricultural development and poverty-alleviation performance has varied greatly in these countries over the past three decades. Among these countries, poverty is lowest in China and highest in Bangladesh and Pakistan. China has made remarkable progress in reducing poverty since the late 1970s. From 1978 to 2000, more than 200 million rural poor have been lifted out of poverty, with poverty incidence in 2000 estimated at 3.4 percent in rural areas and less than 2 percent