Corruption in water sector threatens development

 
Corruption in the water sector is a root cause and catalyst for the global water crisis that threatens billions of lives and exacerbates environmental degradation, according to Global Corruption Report 2008: Corruption in the Water Sector, a recent report by Transparency International.

“Water is a resource without substitute. It is paramount to our health, our food security, our energy future and our ecosystem. But corruption plagues water management and use in all these areas,” said Huguette Labelle, Chair of Transparency International.

The report, the first of its kind to explore the impact and scope of corruption in different segments of the water sector, identifies a range of problems, from petty bribery in water delivery to procurement-related looting of irrigation and hydropower funds; from covering up industrial pollution to manipulation of water management and allocation policies.

Transparency International, along with the International Water and Sanitation Centre, the Stockholm International Water Institute, the Swedish Water House and the Water and Sanitation Program-Africa founded the Water Integrity Network (WIN) in 2006.

Today WIN is a growing network of organisations and individuals that fights corruption in all parts of the water sector. This report benefited from expert and financial support from WIN.

“Corruption’s impact on water is a fundamental governance problem, yet it is not sufficiently addressed in the many global policy initiatives for environmental sustainability, development, and food and energy security. This must change,” added Labelle.

Climate change and food shortage

The report demonstrates corruption’s potential to obstruct effective enforcement of water-sharing pacts and resettlement arrangements, both key to confronting the fallout from climate change.

Irrigated land helps produce 40 per cent of the world’s food, but corruption in irrigation is rampant. Addressing this risk is fundamental to increasing food production and tackling the global food crisis.

“Massive new investments in irrigation have been announced worldwide to help counter the food crisis, yet water shortage means food shortage and if corruption in irrigation is not also addressed, these efforts will fall short,” stated Labelle.

In India, a country at the centre of the crisis, corruption is estimated to add at least 25 per cent to irrigation contracts and the proceeds help maintain a corrupt system of political handouts and compromised oversight.

In the end, investment costs rise, systems are rendered inefficient and small farmers are left especially vulnerable to water shortage.

Due to corruption, the cost of connecting a household to a water network increases by up to 30 per cent, raising the price tag for achieving the Millennium Development Goals for water and sanitation by a staggering US$48 billion, according to expert estimates in the report.

Risk for environment

Corruption in water resources management undermines the sustainability of water supplies, fuels highly unequal water sharing which can incite political conflict and fosters the degradation of vital ecosystems.

For instance, in case of hydropower it inflates the cost of dams and related projects. It also makes re-settlement more challenging by preying on compensation funds and initiatives meant to aid displaced people.

The stakes are high: hydropower accounts for one-sixth of the world’s electricity production and investment volumes are projected to reach US$60 billion annually over the next 20 years.

Corrupt conditions in water persist because their greatest impact is exacted on those with the least chance of redress, disproportionately affecting women, the poor and those with no voice at all: future generations and the environment.

Some of the key recommendations of the report include: establishing transparency and participation as guiding principles for all aspects of water governance and strengthening regulatory oversight.