PRESENTATIONS BY:
 
Message from  H.M.
QUEEN NOOR 
OF JORDAN
Mona 
MAKRAM -EBEID
Ashok SWAIN
 

1.
 Message from H.M. Queen Noor of Jordan
    I very much regret not being able to join you today, but as Chair of the Advisory Board of the Center for the Global South at American University, I would like to welcome you and to thank Dr. Clovis Maksoud and his colleagues for their vision and effort in organizing this event. The multi-sectoral, truly global nature of this conference again highlights the valuable role of the Center for the Global SOuth as a meeting place for people and ideas from the whole world.

    We are all well aware of the troubling nature, scope and consequences of the global water threat -- especially in the South. Time only makes the threat more complex, and the required actions and solutions more urgent. Water problems increasingly lead to serious consequences at several levels. Domestic, regional and global aspects of the water challenge include economic distortions, environmental degradation, political resentment, hyper-urbanization, and corruption, along with  cross-border claims and armed conflicts, sanitation-related disease epidemics, and wasteful military spending.
This meeting, therefore, appropriately includes speakers from numerous geographical and sectoral perspectives. Their presentation at this meeting will include facts and figures that will paint a worrying picture of one of the world's most valuable resources. The situation in the Middle East and North Africa region is even worse than other parts of the world, for we have 5% of the world's population, but less than 1% of  the Earth's renewable fresh water. Our per capita water supply, already  one third of its 1960 level, will be halved again by the year 2025 ( to reach 650 cubic meters per person), due to high population growth rates. Shortages are compounded by problems of pollution, mismanagement, waste and outright political or civil theft.  Perhaps as much as the rightful restitution of lands occupied by war, the issue of equitable water sharing rights is at the core of the Arab Israeli conflict, and threatens to spill over to other states in the region. We in Jordan have experienced not only political resentment at the perceived lack of water benefits from the peace treaty with Israel, but more recently this past summer, the serious political, social and economic implications of a severe water crisis.

    Water disputes may also promote international conflicts, for 40% of the world's population lives in international river basins, and more than 200 water basins are shared by two or more countries. Widespread transboundary water degradation already generates tensions between states that threaten to increase in the future.

    As inhabitants of a spatially limited ecosystem dependent on fresh water resources, we must promote intensive coordination among many concerned parties. Domestic, regional and global actors must work together in the fields as diverse as demography, industry, the law, agriculture, health and transport. The public and private sectors academia, non governmental organizations, and multinational bodies must forge new partnerships to achieve comprehensive water planning and management policies that are equitable, effective and sustainable.

    We must focus not only on generating new sources of water, but also on deciding together how we can best prioritize and protect those water supplies that are available and renewable. We must learn how riparian states can work together to protect common wetlands, coastal zones, marine fisheries, and other valuable water resources that are in danger of over exploitation or irreversible degradation.

    If water problems that cause distress in many parts of the South are left unresolved, they and their consequences will surely migrate to the North in due time. We are therefore challenged  to identify the possibilities for international legal and diplomatic action to prevent conflicts and mass suffering before they occur; to set water use priorities based on equity and technical efficacy and guarantee every human being access to sufficient food, clean water, and adequate sanitation facilities; and to advocate among the political power centers of state and society for a more enlightened and rigorous approach to water sector management.

     We must collectively make urgent progress in public awareness, sustainable and ecosystem-based policies, institutional capacities, transnational cooperation, and the use of preventive hydro-diplomacy. The world's numerous water problems and threats are still manageable, all still amenable to technical and political solutions. the world's physical resources of water are sufficient for good quality of life -- but only if we manage this resource fairly and diligently.

    You are particularly well suited to emphasize the common faith of North and South alike on this matter -- and also to help prompt coordinated global awareness and political will for common action. I wish you well in your deliberations, and shall look forward with utmost interest to learning about the results of your deliberations.

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2.
INTERVENTION

Presented by Mona Makram-Ebeid
Former member of Parliament (Egypt)
Public Scholar, Woodrow Wilson Center

    I have been asked as a chair of this panel to offer some introductory remarks on water issues and why it is necessary for Academia and Research to get involved in it. However, before starting, I would like to pay tribute to the tremendous efforts that the Center for the Global South and its dynamic and legendary director Dr. Clovis Maksoud are exerting in this matter. It is not the first time that this esteemed institution, under the able leadership and encouragement of its distinguished President, Benjamin Ladner, has taken the initiative to consider an issue of special importance to the world community in general and to the South in particular. Reflecting together on a resource as vital as water reveals great deal of farsightedness on your part, regarding this old complex problem. We thank you for providing us with this unique opportunity.
 
    It is fitting that the exciting project of the Global Classroom trough the conduct of case studies be sponsored by the Center for the Global South, and of particular interest is the importance attached  to solving water disputes. The scarcity and the feuds over water resources can be expected to intensify unless preventative actions are taken. For one thing, population will continue to grow for a long time before it reaches a plateau while the supply is fast approaching its limit. Moreover, as we heard yesterday, in the outstanding presentation of Dr. Ismail Serageldin, the global South as a whole suffers from an endemic problem of water scarcity and pollution both of which are likely to worsen in the future.

    I come from a country where the first line in the history book reads -- Egypt is the gift of the Nile. Yet today a potential water war could erupt between it and Sudan and Ethiopia on quantity issues if action is not taken today to prevent violent conflicts tomorrow.

    The Nile is the world's longest river and almost 123 million people depend on the Nile waters for survival and consequently present and potential conflict stems from the increased food and agricultural needs generated by a rapidly growing population in the riparian states. One of the primary reasons for the expansion of irrigated agriculture into the desert of Egypt is to quell social unrest caused by unemployment and overcrowding of cities, That is why it should be recognized that between states factors of geopolitics and hydro-politics cannot be separated from the technical, legal, economic and environmental issues, Particularly in the Nile Basin, hydro-politics are inextricably linked to interstate politics. Indeed, the general relations between Sudan and Egypt have determined the level of water conflict at times and not vice versa.

    For instance, the friendly cooperation of the two on water issues came to an abrupt halt not because of the ascension of an unfriendly regime in Khartoum. THe complexity of the issue thus demands a much more comprehensive approach than the usual negotiations at the level of foreign ministries .The financial support of the UNFAO and USAID are hopeful signs that third parties are beginning to act preventively on water issues. In the Nile Basin, cooperation has been facilitated, even spurred, by efforts to collect basin-wide data like Hydromet project.

    In other words, hydro-diplomacy needs to be adopted instead of the usual diplomatic channel in order to pave the way for riparian cooperation, particularly that with macroeconomics stabilization in most emerging markets in the South is prodding decentralization to be on the move, this translates into a shift of political and financial decision making from the center to the periphery which itself is a reflection of deep and hopefully lasting transformations in these societies.

    And here I would like to underline the importance of popular support. Without popular support it is difficult to implement any interstate river sharing arrangements, even if it can be achieved between the regimes. In order to promote an effective and equitable implementation of any agreement, there is a need to accentuate the use of public involvement and participation as an important means of increasing awareness of water resources planning as a way of minimizing scope of the conflict.

    True development is one in which economic progress and environmental enhancement go hand in hand and are mutually reinforcing. That is why people have to be not only the object but also the subject of development. It is the people themselves --all the people-- who have to decide what services they want; it is the people to whom the service institutions have to be responsive and accountable; it is the affected people who have to make the decisions ( based on information from technicians on environmental policies and standards).

    It is needles to stress how important the role of women in water management is. They are the ones who are most affected by lack of adequate water and sanitation services, and they are the ones that form the bulk of these living in degraded environments throughout the developing world. They should be the first targets at the popular level of efforts to increase their awareness, for educating them, for changing their attitudes and involving them in neighborhood associations. This will involve a much greater role for the private sector in the provision of such services via both non-formal and formal institutions.

    The overriding challenge to the developing world today is to improve the well being of the poor in a way that is both environmentally and financially sustainable. Awesome as this challenge is, a timely conference as the one we are engaged in today, is an indication that there is an emerging consensus on what needs to be done and how to do it. This will require effort from us all.

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3.
COOPETITION OVER WATER
Constructing Institutions to Combat Scarcity
by Ashok Swain, Associate Professor,
Department of Peace and Conflict Research,
Uppsala University, Sweden
and Patrik Stalgren
Department of Political Science,
Gothenburg University
 
    1. Water Coopetition: Competition leading to Cooperation
    Seventy five percent of earth's surface is covered by water. The total water available in our planet is 1.41 billion cubic kilometers. This much of water is sufficient to cover a depth of nearly three kilometers over the earth's surface. However, most of it is saltwater and some of the remaining is stored in ice caps, glaciers, underground, in the soil, in the atmosphere, and in living beings. Excluding lakes, only about 2,000 cubic kilometers of fresh water found mainly in rivers, is available for human consumption.
    Between 1940 and 1980, world's water use has been doubled. By the end of this millennium, it will double again. It is predicted that between 44 and 65 per cent of the world's population will face some consequences of water scarcity or water stress by the middle of the next century (Falkenmark 1990, Lonergran 1996). There is a serious uneven regional distribution of the water resource. Annual run-off in North America is 17,000 cubic kilometers while Africa has only 6000. The poor countries are in those regions of the world where water is scarce and availability is erratic due o climatic reasons. Not only they have less water in the South, but there is a growing demand for it, which has led to serious concerns particularly among the users in the developing regions.
    This situation is due to several reasons. One is the massive population growth especially in the developing world. However, not only the surging human numbers, countries in the South are also subjected to rapid industrialization, massive urbanization, and intensifying agricultural activities. All these increase the demand for water resources as well as pollute the supply. Many developing countries are already facing serious problems in meeting the rapidly increasing water demands. In order to meet the demands, they are exploiting the available water resource further. The over-exploitation of water resources can result in an acute shortage. In this scarcity situation, water increasingly has become a source of social tension as social actors are bound to be worried about the present or future availability of the water resource. They may work purposefully and consciously to maximize the availability of water resource. Water will bring further competition and create conflict and that can destroy the on-going arrangements of water distribution. Even though such tensions are omnipresent they tend to become more complex and difficult when they concern international rivers. According to a recently published World Bank Technical Paper (414: 1998), more than 245 river basins are shared by two or more countries. Nearly 40 percent of the world population and fifty percent of total land are dependent on the waters of these shared river basins.
    Competition over the international river water can be observed at all levels of society: not only between the riparian countries, but also among the competing users within the basin countries. When several actors are jointly dependent on the same river system, one's withdrawal and pollution can potentially lead to conflicts. A number of researchers are of the opinion that the dependence of many developing countries on external supply of water may force them to orient their national security concern in order to protect or preserve the water availability (Gleick 1993, Homer-Dixon 1994). In the mid-1980s, The Central Intelligence Agency of USA estimated that there were at least ten places in the world where war could break out due to scarcity of fresh water. Most of these hotshots are in the Middle East and the rest in Asia and Africa (Starr 1991). This conflict scenario has brought the issue of water to the 'high politics'. Politicians as well as media are of the opinion that the scarcity of water is replacing oil as the source of conflict. UN officials and World Bank analysts are regularly proclaiming that "the previous war was about oil, the next war will be about water." In short, it has now become fashionable to see the greatest threats to the world's security in the coming century as coming from "water wars" (Seabright 1997).
    Fortunately these 'water wars' are yet to be translated into reality. As Toset and Gleditsch (1998) accept the possibility of armed conflict over water scarcity they nonetheless deny its inevitability. In several cases, the competing riparian countries are moving towards cooperation rather than armed conflicts. The growing competition over the waters of the Mekong, Ganges and Zambezi have resulted in cooperative arrangements in the 1990s. Thus competition may result in cooperation to maximize the benefits of the water use in order to meet the growing demand. Adding to the historical pattern, water in general and rivers in particular have been seen as the source for nation building. However, given the increased scarcity of water, the pattern of cooperation and construction of societies around water is now infused with much competition increasing the need for institutions to regulate the human encounter around water and facilitate coopetition and hence bring people together.
    For the appropriate and competent management of an international river basin, there is a need for building on institutions that are in place at international, and as well as in basin level. International institutions and legal principles can provide guidelines for the basin based arrangements to emerge. That will facilitate coopetition: by bringing the competing riparians together and working on finding a common agreement for cooperation. Evidence suggests, however, that cooperative arrangements among the riparian states can not last if they are not interacting with and supported by the institutions for proper water management at the basin level.
2. International Institutions and Legal Principles for International River Management
    There have been numerous endeavors to establish and strengthen international institutions and create an international legal framework to manage the international rivers.
    The World Water Council (WWC) and the Global Water Partnership (GWP) are two major international 'water' institutions that have been established in the 1990s. The International Conference on Water and Environment at Dublin in 1992 created the WWC. It aims to promote awareness of critical water issues and works for efficient, sustainable conservation and management of fresh water. This non-governmental organization works to provide an independent forum for exchanging views and information, for sharing experience and concerns, and for recommending actions on water management. The WWC was formally established with its secretariat located in Marseille, France in June 1996. While the WWC is essentially a forum for discussion, the GWP comprises of organizations with financial powers to carry out programs. In August 1995, the World Bank and UNDP proposed the creation of this organization and it was open to all parties involved in water resource management. The GWP, with its secretariat in Stockholm, Sweden, brings together a large number of organizations that includes aid agencies in an informal partnership to tackle the many challenges in the water supply. The GWP promotes integrated programs at regional and national levels. It helps capacity building and sustainable investment across national boundaries.
    The Global Environmental Facility (GEF) is also an important funding organization to help developing countries to protect their environment. The GEF, which has been created as an agreement between UNDP, UNEP and the World Bank is being used as a basis to promote dialogue among the riparian countries on the watershed degradation of the shared river systems.
    These on-going global initiatives to address the issue of fresh water have brought the international river sharing problem to the limelight. There have been also numerous individual attempts made, for instance, by the World Bank, United Nations Environment Program (UNEP), and FAO in finding ways of successfully sharing the international watercourses among the states. In recent years, World Bank is refusing to finance the projects on disputed international watercourses and insisting upon agreement between riparian nations. This has increased the incentives for regional actors to institutionalize their cooperation. UNEP and FAO are currently involved in various ways to facilitate cooperation among the international river basin countries, particularly in Africa. Besides these institutional support for the management of shared rivers, there is an on-going move towards establishing a common legal framework to address the sharing of international watercourses at the global level.
    The International Law Association (ILA) made several attempts since 1956 to establish 'principle of equitability' in sharing the international river water. The 'principle of equitability' advocates the maximum benefit accruing to all the riparians, keeping in mind their economic and social needs. When ILA's Helsinki Rules was placed before the UN General Assembly, it could not be agreed as a model for sharing international rivers by the member-states, particularly due to opposition from the upstream nations.
    Then UNGA recommended that the International Law Commission (ILC) should take up the study of the law of the non-navigational uses of international watercourses with a view to its progressive development and codification. After two and half decades of deliberations, the ILC submitted its draft in 1996 for the consideration of the UN General Assembly. Finally, the Convention on the Law of the Non-Navigational Uses of International Watercourses was adopted by the United General Assembly on 21 May 1997. This Convention has been submitted to the member-states for their ratification.
    By keeping both the principles, the equitable utilization and not to cause significant harm in its text, the UN Convention has been able to get the majority support in the UNGA (103 for, 3 against and 27 abstentions). As Stephen McCaffrey (1998) describes the Convention as "a basket of Halloween Candy: there is something in it for everyone." By doing this, the Convention has been successful to get the majority support in UNGA, but whether it will be able to address the issues over sharing specific international rivers remains a question. The major problem may arise while defining the equitable use and also, its conflict with the no-harm principle.
    Even if this Conventions gets ratified by member-states and becomes a legal framework, it will not be self-sufficient in itself to address the problem of water sharing in different parts of the world. The sharing of the international rivers among the riparians in different geographical regions is a problem of huge magnitude. Complex water disputes will only be solved by cooperation and compromise, not by strict insistence of rules of law. International Court of Justice's verdict on the Gabcikovo/Nagymaros case confirms it. Thus, a lasting solution to the international river basin sharing demands a much more comprehensive endeavor than a single piece of legal proposition (Swain 1997). The absence of any international guidelines on the sharing of joint rivers has not deterred some river basins to work for a cooperative management of their shared waters. With some help from the international institutions, the riparian countries of these international rivers are coming together to get the maximum benefit of the common water. However these coopetive approach of the riparian states needs to be translated into a comprehensive and systematic effort in order to distance the management of the river resource from the fragmented control of the individual riparian states to a single management unit.
3. Managing International Rivers
    An international river does not, per definition, confine itself into national boundaries. Non the less the shared rivers should be treated as single units for the maximum utilization of their resources. The development of river water occurs most optimally on the basin-wide level. The whole river basin is needed to be regarded as an economic, ecological and political unit irrespective of state boundaries and the waters are vested in the community. Under an integrated program of development of a river, water projects are to be located at the best available locations. Further, notwithstanding geographic divisions along political lines, a management solution involving a wide range of basin based riparians can bring mutual benefits, such as right to submerge upstream land in return for availing hydro-power or supply of water to one state and electricity to another. The benefits of these projects should be allocated taking into account the need of riparians as well as who has made what scarifies to realize these projects. This approach includes joint planning, joint construction, joint management and joint cost sharing. The regulation and management of an international river basin should be entrusted in the hands river basin commissions, who are outside the political control of any one basin riparian.
`    Experiences from Indus (1960 Treaty between India and Pakistan) River suggests that where riparian countries have been able to establish cooperative arrangements, successful and sustainable development programs have followed (Kirmani & Rangeley 1994). Establishment of a river basin commission on shared rivers certainly brings further international collaboration and external assistance. Due to resource constraints, riparian countries particularly in Asia and Africa are increasingly being aware of the opportunity cost for not cooperating with each other. Water scarcity and lack of financial resources is gradually encouraging the riparians to cooperate with each other in order to achieve optimal benefit. But in many cases, riparian countries in the South are unable to establish institutional cooperative arrangements because of their concern regarding existing and future water rights. Mutual suspicion and uncertainties of reciprocal action are affecting the constructive engagement. To overcome it, they need credible and impartial international assistance.
    The change of attitude by the international financial institutions and bilateral aid programs may provide incentives for these basin based cooperation. These organizations are required to be proactive in their approach also. The international lending institutions and donor agencies can assume a facilitator role in encouraging early collaborative and participatory efforts among the basin states. They have financial resources which can be used as incentives for riparian states to come together even in the face of individual self interest (Priscoli 1994). The basin-based institutional arrangement on shared rivers can bring all riparian countries greater benefits than what they could have achieved through their purely state-centric development.
    Most of the South is exposed to water stress or even water scarcity. The adoption of the supply management strategy only to address the water shortage in the region is not sufficient enough. To meet the growing demand, there is a need to minimize water use, particularly in the agricultural sector which uses water most. This can be achieved in two ways: stop exporting "virtual water" and start importing "virtual water" if you are a water deficient region. "Virtual water" means the agricultural products that have been produced with large amounts of water (Focus 1995/96). Following these two principles - by stopping the production of water intensive agricultural products for export purposes and importing water intensive agricultural products from water abundant regions - would decrease water demands in the river basin. River basin may opt for a planned allocation of agricultural activities in their various regions in order to meet the future demand for the food. This is not possible without the establishment of river basin commissions. These river basin commissions may be the right institutions for innovating technical developments to facilitate a more efficient usage of the water in the basin. Affirmative actions can be taken to find such new solutions. For example how to make efficient usage of the dew and how to irrigate without exposing the water to evaporation. Special interest can be paid to endogenous knowledge investigating how water allocation has been dealt within societies that have experienced long periods of water shortage.
    To facilitate the participation of all the riparian countries in a meaningful joint endeavor and treating the basin as a single unit outside the control of individual states, the nation-states are required to be flexible in their approach. The flexibility is the central to successful negotiation of agreement among the riparian states in building basin-based institutions on international rivers. Generally, the sharing issues of international river are commonly handled by foreign ministry officials rather than being given to bureaucrats and technocrats in water resource ministry (LeMarquand 1977). Foreign Ministry officials are usually unable to understand the water issues, which brings lack of interest and lead to relatively long negotiations and unsuccessful resolutions. Understanding of the problem is necessary for the negotiators to find the ways and means for the conflict management and mutual cooperation. As Mandel (1991) has pointed out, the source of the international river sharing is a highly complex issue as it encompasses such diverse discipline as ecology, economics, social psychology, religion, cultural anthropology, engineering, hydrology, and geopolitics. For a regular foreign ministry bureaucrat, it is not easy to grasp the complexity of the issue involved. Water resource management in general and sharing of international rivers in particular is also a continuously changing process. There is the need for the national negotiators for coping with, and adjusting to such changes as well as understanding conceptual, methodological and institutional shifts.
    Political interest by the leaders of river basin countries may help to overcome the bureaucratic red tapes in order to reach a common understanding. There is a growing public awareness in South about the importance of water resources. Common incentives and reciprocal disadvantages should be projected effectively by the state and leadership in order to calm down the emotional aspects in the water sharing issue. Without popular support, it is difficult to implement any river basin arrangement even if it can be achieved between the regimes. Popular support is not sufficient in itself. In order to establish an effective river basin commission, there is a need to strengthen the national and local water institutions and accentuate the community participation in them.
4. Predicaments in Building Basin Based Institutions
    The problems associated with establishing cooperative management around a common water resource are interestingly framed within the analysis of so called social dilemmas. (Ostrom 1990, 1997). At the core of the problem of establishing and maintaining sustainable water management is hence the question of how to overcome this dilemma. The nature of a social dilemma situation is that interdependent actors all have free access to freshwater resource and all faces choices where the maximization of short-term self-interest yields outcomes leaving all participants worse off than if coopetition could be established.
    The conventional wisdom of how to establish and maintain social coopetition is that there are basically two solutions. The first builds from the use of the executive power of an external political authority such as the apparatus of a nation state or a political actor in the international community. The second conventional solution draws on the mechanism of self-interest, profit maximization and property rights incorporated in a market economy.
    The two strategies mirror much of the philosophical debate drawing from thinkers like Thomas Hobbes and John Locke respectively. Reviewing some of the most advocated policies to initiate development in the developing regions one can also see how the logic of state-centric organizations and the market has been dominating in different phases of the post-colonial era (Harbeson 1989, Randell and Theobald 1985, Smekal 1991). However, much empirical as well as theoretical research has identified a number of problems with these strategies in relation to the ambition to transcend the problems of coopetition and solve the social dilemma.
    The basic idea of the solution based on an authoritative political body such as the state is that it should determine the level of exploration of the resources at hand. The general problems associated to the actual determination of such a level are multifolded in a situation were the quantity and the quality of the resources is under constant change - as is the case with the international rivers. The nature of a river system also implies that the implementation of the  policy will have to relate to a large number of varying empirical settings in the riparian areas. In principle these problems of policy implementation are universal (Ostrom 1990). However, they are certainly accentuated by the ambiguous role of the state and state based institutions in the South's institutional landscape.
    The general idea of the market-based solution to a social dilemma is to alter the structure of utility incentives, i.e. the costs and payoffs, of the situation by the definition and separation of private property rights. Once again the nature of a river system proposes difficulties as it comes to the definition of property rights. The questionable capacity of the state in many Southern societies also poses problems as it comes to the juridical institutions necessary to sustain a system of property rights (Gibbon 1995, Anangwe 1995).
    Complementing the two commonly proposed strategies eminent theoretical as well as empirical assessments underpin the call for a more comprehensive approach to international river water management. Considering the complexity of the task this argument states the need to base the solution of the social dilemma on the principals i. e. on those actors, state or non-state, which are in some way physically linked to the common resource constituted by the international rivers. Well aware of the fact that this physical linkage may imply different degrees of actual dependence on the river, special emphasis should be on those principals which are local 'core' actors in water policy and water management networks not considering, ex ante, whether or not they are state or non state actors .
    The physical interdependence of individual actors in the river basin catchment areas is seen here as a problem of provision and appropriation of a common pool resource, CPR , i.e. "a resource system that is sufficiently large as to make it costly (but not impossible) to exclude potential beneficiaries from obtaining benefits from its use" (Ostrom 1990:30). It is the combined stock and flow aspects of CPR's that pose intricate problems. As a stock, the international river water is a collective good, subject to common usage. Individual appropriators can not be effectively cut out from using the resource. Nor can they be easily blocked from reaping the benefits of improvements and changes in the provision of the river water, made by others. On the other hand, individual users can subtract resource units from the river stock. The units are, in effect, equal to private goods for the appropriators. Cooperation among river water appropriators involves costs and benefits that are much more difficult to estimate and more insecure to the users than their present, short-term individual utility-maximizing behavior. This implies to individual users that they may or must sacrifice short-term private gain (Lundqvist 1996).
    Still, what is really needed to achieve a sustainable regime seen as legitimate and binding by those concerned is a supply of institutions, i.e., of principles, norms and regulations which cumulatively affect the actions taken and the outcomes obtained in using the river water. These guiding principles can be grouped as follows; First, for the daily activities towards the water resource, operational rules directly affect appropriator decisions as to when, where, and how to withdraw water, how monitoring and supervision should be carried out and by whom, what information resource users should provide or get, and which sanctions or rewards should be meted out in relation to which types of behavior. Second, collective choice rules determine policies, and thus which operational rules should be in force. Third, constitutions affect operational activities and results in that they determine which actors are eligible to participate in river water-related collective decision-making. They also specify the procedures and aggregation rules to be used when making such collective decisions (Ostrom 1991).
    No matter if one sets out to construct sustainable basin-based water management institutions to manage the international rivers contextual considerations are of eminent importance. However, the complexity associated with sustainable management institution does not only derive from technical and geographic condition. Of utmost importance is the consideration of the social and cultural institutions at hand. Appreciating the importance of a policy sensitive to the prevailing formal structures calls for a more a more comprehensive understanding of contextual institutions in international river basins. Recognizing the salience of contextual sensitivity constructing a water management institution, one must not only consider incumbent formal institutions but also include a focus on the informal institutions carrying socially transmitted information preventing, permitting and prescribing social and political behavior (March & Olsen 1989, North 1990, Elster 1989). Policies recognizing this comprehensive understanding of contextual institutions in the region will be able to match enduring patterns of behavior that has developed from the way people have organized as individuals, groups or classes to utilize and exploit scarce material and social resources.
5. Dealing with the Dilemmas
    The "social dilemma" occurs because the actions and the alternatives available to the appropriators all speak in favor of non-cooperation - (as in the Prisoners' Dilemma game situation) - or in favor of free-riding (as argued in various theories of the impossibility of collective action (Olson 1965, Hardin 1968). There is indeed a genuine dilemma here. Whether or not the individual appropriator of international rivers will join in institutions or regime building depends on his views on the credibility of other appropriators' commitment to these institutions. For the commitment to become credible, appropriators must succumb to supervision and monitoring. This is difficult if there is no initial trust to start with. Trust facilitates coopetition.
    Does authoritative intervention based on external interference, either through the imposition of power from a political actor or through the initiative of a private entrepreneur provide the answer at the community level? Theory, as well as much of South's political history, suggests that neither state nor market based solutions guarantee durable and sustainable solutions to water management. The research on existing intrinsic solutions, i.e., institutional supply through concerted action by common property resource appropriators, identifies a number of factors determinant for the occurrence and sustainability of self-governed regimes. These factors will be decisive for the sustainable management of the international rivers.
    The major causes of problems in the sharing of the river water resource stem directly from a number of institutional deficiencies. The nature of reform of water sharing institutions demands a will to attack the situation in a coherent and comprehensive manner. This comprehensive approach takes into account social, environmental and economic objectives combined with decentralized management and distribution structures and fuller participation of stakeholders.

    1. Defining Boundaries: Both the actual common resource constituted by the international river system as such and those seen as "rightful" appropriators of water from the system should be clearly identified. The definition of the river system should include the tributaries and distributaries and be considered as a joint unit. Various groups, state or non-state, are using the water from the river system for their economic and social activities. In the absence of proper identification of these groups and the nature of their demand, it will impossible to find a formula of sharing.
    2. Harmony Between Appropriation and Local Conditions: Appropriation rules must restrict when, how, where and how much appropriator can withdraw from the river. As Lundqvist and Gleick (1997) argues that the "demand for water includes a combination of basic 'needs' and larger set of 'wants." Basic needs for water needs to be identified and given the priority. These allocation rules must include considerations of variations due to weather conditions and other local physical characteristics. having a firm understanding of the supply and demand of the water resource, the rules of appropriation must be stated determining the rate of exchange between, on the one hand, appropriation from the resource and, on the other hand, provision to the CPR in terms of maintenance, resources and/or money.

    3. Participatory Management: All the riparian actors should participate in the formation of the river basin organization. Not only the states but also the non-state stakeholders affected by operational rules must be eligible to participate as decision-makers in modifying the organization.
The river is decisive for the physical survival of many of its users. The recognition as eligible decision-makers provides an essential democratic channel mitigating the construction and maintenance of the river management through the establishment of legitimacy and mutual trust. Local institution can not function effectively without popular participation in its management. The sustainable use of river water requires stakeholder participation in all aspects of water policy and management in the basin.
Identifying the relevant actors for participating in the management of the water resource one need to move beyond pinpointing actors at various institutional levels. Social groups, such as women and other less empowered groups, should be given special attention as they might have rightful claims on a specific treatment in relation to the CPR. In particular, women rights and roles should be considered as they often manage water related activities such as irrigation and food production.
    4. Judicial Framework: The maintaining of an internal and regional management regime requires a functional judicial framework. The judicial framework should be characterized by:
a. Mutual Monitoring: Those who supervise and monitor appropriators' behavior, and the condition of the river water, are responsible to the appropriators, or are themselves appropriators. This construction recognizing the complexity of a central authority collecting accurate information of the consequences of the numerous riparians. It also facilitates opportunities to construct reciprocal trust and obedience through increasing the risk of social stigmatization if an actor defects from the regime rules.
b. Adjusted sanctions: The system of sanctions must include a variety of retributive and preventive instruments. Determining the sanctions,  adherence must be paid to the seriousness of the violations and the context of the offense rather then inflexibly fixed sanctions. To establish legitimacy,  sanctions should be meted out by the appropriators or by someone accountable to them.
c. Networking judicial institutions:.
An international river basin counts among its principal core actors two or more nation states and potentially numerous non-state actors. Given the potential multiplicity of organizational levels in an appropriate management regime the judicial framework must allow for appropriator to establish local arenas to solve problems and resolve conflicts. Local arenas constitute low-cost conflict resolutions and allow for adherence to local judicial traditions and hence mitigates legitimacy. However, the local arenas must be linked in a hierarchical network assuring congruence in sanctions.
    5. Recognized Rights to Organize: The need for networking judicial institutions requires a general political climate recognizing the right to organize in general and the jurisdiction of these judicial bodies in particular. Hence external political authorities must not challenge the appropriators' rights to set up their own institutions. Political authorities are also needed to act positively to build the human capacity which is necessary for the effective community participation in water management and institution. With the help of free flow of relevant information, providing training and education, and allowing for a vibrant civil society, the state can help in the capacity building of the water appropriators. Real long-term success in river basin management depends on the ability of the community to identify problems and formulate and implement policies and strategies.

                          
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