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234x156mm + 3mm spine 33.6mm Wa Institutions in Reforming ‘This is an authoritative volume on water institutions and institutional reforms in India. What makes this a unique piece of work is its attempt to effectively link the theory with the empirics of institutional analysis. It is certainly a very valuable addition to the literature on water institutional reforms.’ Management ter Resource Rathinasamy Maria Saleth, Director, Madras Institute of Development Studies, India Edited by Lin Crase and Vasant P. Gandhi ‘This book provides new approaches for design and analysis of institutions and their performance in the water sector. It is a must read for both those who believe in and those who are sceptical about the role of non-structural policies in the water sector.’ Ariel Dinar, Professor of Environmental Economics and Management, and Director of the Water Science and Policy Center, Department of Environmental Sciences, University of California, Riverside, US As water scarcities increase, nations throughout the world are in search of better institutions Reforming to manage water resources. India has been making substantial efforts to develop its water management systems since independence, and significant increases in irrigated agriculture have taken place through both public and private initiatives. However, scarcities are Institutions in increasing and major problems presently confront the management of water resources and irrigated agriculture. Resolving these problems is crucial for the future. The main purpose of this book is to provide a new approach for the analysis and design of Water Resource water institutions that govern the use and development of water resources, particularly for agriculture, which is the largest user. Drawing on the theory of New Institutional Economics and comparisons with Australia (as a developed country) and other less developed nations Management in Africa and Asia, the authors present original empirical data from three Indian states. Detailed analysis of these data is used to identify and recommend attributes and features of water management institutions that are conducive to effective resource management, its long-term success and its best contribution to development. Lin Crase is Executive Director of the Albury-Wodonga Campus at La Trobe University, Policy and Performance for Australia and has published widely on water policy. Vasant Gandhi is Professor at the Centre for Management in Agriculture, Indian Institute of Management, Ahmedabad, and Sustainable Development has published extensively on policies and institutions for food and agriculture. E V Lin Crase and dited b Water/Economics/Politics/Governance and Law asant P. Gandhi y ISBN 978-1-84407-755-7 www.earthscan.co.uk Earthscan strives to minimize its impact on the environment 9 781844 077557 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page i Reforming Institutions in Water Resource Management 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page ii 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page iii Reforming Institutions in Water Resource Management Policy and Performance for Sustainable Development Edited by Lin Crase and Vasant P. Gandhi London • Sterling, VA 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page iv First published by Earthscan in the UK and USA in 2009 Copyright © Dr Lin Crase and Dr Vasant P. Gandhi, 2009 All rights reserved ISBN: 978-1-84407-755-7 Typeset by FiSH Books, Enfield Cover design by Yvonne Booth For a full list of publications please contact: Earthscan Dunstan House 14a St Cross St London, EC1N 8XA, UK Tel: +44 (0)20 7841 1930 Fax: +44 (0)20 7242 1474 Email: [email protected] Web: www.earthscan.co.uk 22883 Quicksilver Drive, Sterling, VA 20166-2012, USA Earthscan publishes in association with the International Institute for Environment and Development A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Reforming institution in water resource management: policy performance for sustainable development/edited by Lin Crase and Vasant P. Gandhi. p. cm. Includes bibliographical references and index. ISBN 978–1–84407–755–7 (hardback) 1. Water-supply–Government policy–Developing countries. 2. Water- supply–Government policy–India. 3. Water resources development– Government policy–Developing countries. 4. Sustainable development– Developing countries. 5. Rural poor–Services for–Developing countries. 6. Public institutions–Developing countries–Administration. I. Crase, Lin. II. Gandhi, Vasant P. TD327.R45 2009 363.6’1–dc22 2009001380 This book was printed in the UK by Cromwell Press, Trowbridge. The paper used is FSC certified and the inks are vegetable based. 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page v This manuscript is dedicated to Phillip Pagan in recognition of his wise insights into institutional analysis, his enthusiasm for research and thorough profes- sionalism. His friendship and good humour are sadly missed by his colleagues. 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page vi 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page vii Contents List of Figures, Tables and Boxes ix List of Contributors xv List of Acronyms and Abbreviations xix Part 1 Theoretical Dimensions of Institutional Analysis 1 The Effectiveness of Water Institutions 3 Lin Crase and Vasant Gandhi 2 Laws, Customs and Rules: Identifying the Characteristics of Successful Water Institutions 20 Phillip Pagan 3 Dynamic Community Preferences: Lessons for Institutional Design and Measuring Transaction and Transformation Costs 45 Lin Crase 4 Institutional Constraints and Organizational Dynamics: The Case of Water Trade between the Australian Capital Territory and New South Wales 62 Phillip Pagan, Lin Crase and Vasant Gandhi Part 2 Water Resource Development and Management in India 5 Institutions for Water Management in Developing Countries: Their Role, Nature and Analysis 83 Gamini Herath 6 Water Institutions in India: An Institutional Design Perspective 100 Jayanath Ananda 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page viii viii REFORMING INSTITUTIONS IN WATER RESOURCE MANAGEMENT 7 Legal Dimensions of Water Resource Management in India: A Review of Legal Instruments Controlling Extractions to Sustainable Limits 123 Videh Upadhyay 8 Water Resource Development and Institutions in India: Overview and Profile 146 Vasant Gandhi and N. V. Namboodiri Part 3 Water Institutions and their Performance in Three States in India 9 Institutional Analysis of the Performance of Water Institutions in Three Major States of India 169 Vasant Gandhi, Lin Crase and Ashutosh Roy 10 Institutional Analysis of the Performance of Surface Water Institutions in India 208 N. V. Namboodiri and Vasant Gandhi 11 Institutional Analysis of Ground-Water Institutions in India 237 Vasant Gandhi and Ashutosh Roy 12 Institutional Analysis of the Performance of Rain-Water Harvesting Institutions in India 260 Vasant Gandhi and Suresh Sharma Part 4 Policy Implications of Institutional Analysis 13 Rights Devolution Under Irrigation Management Transfer in Developing Asia: Theoretical Considerations and Empirical Results 281 Gamini Herath 14 The Role of Information and Decision-Making Capacity in a Hierarchical Process 300 Jayanath Ananda, Lin Crase and William Keeton 15 Water Institutions and their Relationship to Poverty Alleviation 320 Vasant Gandhi and Vaibhav Bhamoriya 16 Institutions and Irrigation in India: Concluding Lessons and the Way Forward 341 Lin Crase and Vasant Gandhi Index 356 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page ix List of Figures, Tables and Boxes Figures 2.1 Conceptual model of the process of institutional change 29 6.1 Basic structure of participatory irrigation management in Andhra Pradesh 105 8.1 Water wealth and irrigation in India 150 8.2 Average annual financial expenditure by central and state government 153 8.3 Average annual financial expenditure by central and state government (at 1993–94 prices) 153 8.4 Number of irrigation pumpsets in millions 154 8.5 Private investments in irrigation (based on institutional finance) 154 8.6 Irrigation potential created, utilized and the actual irrigated area 155 8.7 Net and gross irrigated area 156 8.8 Net area irrigated by type of irrigation 158 8.9 Irrigated area under major crops 158 8.10 Gross irrigated area in Andhra Pradesh, Gujarat and Maharashtra 160 9.1 Sampling plan 174 10.1 Sources of irrigation (net area irrigated) 213 10.2 Share of canal in net irrigated area 215 11.1 Sources of irrigation in India 240 14.1 Institutional analysis and development framework 310 14.2 Institutional arrangements (simplified) for canal-water planning and decision making in India 313 15.1 Trend of poverty incidence in India 323 15.2 Trend of head count of poverty in India 324 15.3 Influence of irrigation on crop yields 327 15.4 Lorenz curves for total/irrigated/unirrigated area 332 15.5 Lorenz curves for irrigated land by source of irrigation 332 Tables 2.1 Typology of transaction and transformation costs 25 3439 EARTH Reform Institutions 3/6/09 3:38 PM Page x x REFORMING INSTITUTIONS IN WATER RESOURCE MANAGEMENT 4.1 Organizations from which respondents to the institutional analysis were drawn 70 4.2 Alternative goals for water policy 71 4.3 Frequency of ranking goals by institutional actors 71 4.4 Ranked mean usefulness of market-based approach for achieving policy goal 73 4.5 Significant difference in mean response to expected effectiveness of market-based approaches to achieving different water policy goals 73 4.6
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