TED Analysis Cases

The Economic Uses and Abuses of Water

RESEARCH PAPER NUMBER: X25

RESEARCH PAPER MNEMONIC: XH2O25.HTM

RESEARCH PAPER NAME: Water Use Around the World

DRAFT AUTHOR: Kevin Neal

I. Abstract

World wide, water is fast becoming one of the scarcest, and as a result, one of the most sought after commodities. The reasons for this are many and varied, from the self-evident human need for drinking water, to its many economic applications, such as agriculture, hydroelectric power, and a means to dispose of pollutants. In addition to water being in ever increasing demand, the amount of clean water is diminishing as humans pollute it in every conceivable manner. Ironically the same activities water is exploited for tend to pollute the future source. What this highlights is a recurring issue with trade and environment , in that there is a precarious balance (even competition) between the economic needs of a rapidly growing world and an equally (if not more) important need for a healthy environment

II. Issue Background

These cases reflect the economic versus environmental protection dynamic in the use of water resources. All of these cases involve the exploitation of water for economic gain, such as agriculture, or for hydroelectric power. Often this issue relates to developing nations desire to reach a higher level of economic development while sacrificing their environment. In the case of hydroelectric power it raises the question as to the best means of energy production. For example, proponents of hydroelectric power argue that it is more environmentally sound than the burning of heavily polluting fossil fuels. This relates to the larger environmental question of how to extract the resources that humans needs versus limiting the impact on the environment.

These cases highlight the increased use of environmental impact studies on the use of water resources, and concerning questions of the environment in general. The fact that these studies are being conducted on a large scale illustrates the increased environmental awareness in the world, but there are important questions to raise concerning their use. Are the assessments correct? Often times disagreements arise as to the legitimacy of studies that are conducted. Often both sides conduct a study that supports their claim. This then raises the second question. Are these studies co-opted in anyway? Many times these studies are conducted with the sole purpose of supporting one's claim. This suggests that many of the studies are in fact of little value in protecting the environment. This raises the notion that the international community can play a larger role in dealing with trade and environment issues.

In examining how and by whom these conflicts are resolved there are a number of trends that are similar across cases. For example, water issues that occur in dry climates tend to be either relatively amicable resolved (i.e. there is a distinct structure for the use of the region's limited water resources) or they are potentially dangerous because of the scarcity of water and the lack of consensus(for example, in the Ataturk dam case). Related to conflicts is the issue of how the use of water affects different cultures and ethnic groups, and even has the capability of causing violent confrontation. Many of these resolutions reflect the transition of water from a natural resource to a commodity to be bought and sold. An example of this is the following case study in which the Republic of South Africa is paying $60 million to the Kingdom of Lesotho for rights to Lesotho's water.

III. Relevant TED Cases

A. Case listings and Brief Descriptions

The following are the relevant Trade and Environment case studies that illustrate the many uses and environmental effects of water for economic purposes.

1. CASE NUMBER: 34

CASE MNEMONIC: HUNGARY

CASE NAME: Hungarian Dam Controversy

The diversion of the Danube River onto Slovak territory will change the international boundary between the two countries. It will affect Hungarian trade flows because duties may be charged by Slovakia to cross their territory on the New Danube River and the environmental impact of diverting the river is immense. The dam will result in the lowering of the water table, the destruction of woodlands and wetlands, and the contamination of water supplies. Not only would it harm all ecosystems that feed off the old river- bed, Hungarian critics charge water supplies to some ethnic Hungarian Danube villages will be cut off, while others would be flooded. Slovakian officials dismiss the environmental reports as alarmist and tout the energy creating benefits of the dam. Scientists studying the project say even when the dam is fully operational, it will only provide Slovakia with five percent of its energy needs.

2. CASE NUMBER: 60

CASE MNEMONIC: SANDIEGO

CASE NAME: San Diego-Tijuana Water Problems

Untreated Mexican sewage of mostly residential origin, flowing at a rate of 13-15 million gallons per day, contaminates the Tijuana River Valley and drains on the U.S. side of the border near San Diego. While this has been a problem for nearly 60 years, it has been recently growing much worse. A health quarantine was in effect at Imperial Beach, California, for over 140 days during 1993 due to the sewage, which adversely impacted that city's tourism industry. Average annual losses have cost the city an estimated $100 million. An agreement was reached in 1990 between the United States and Mexico to build a $200 million border facility by 1995 to handle sewage flowing from Tijuana into San Diego. The city of San Diego originally planned to build its own treatment facility alongside the international one, but later canceled these plans. The federal commission in charge of construction of the international plant then announced that completion of the plant would be delayed until at least 1998, partly due to the city of San Diego's change in construction plans and winter floods. The need for funding could threaten or delay completion of the project.

3. CASE NUMBER: 186

CASE MNEMONIC: ATUTURK

CASE NAME: Ataturk Dam and Environment

In the beginning of 1990, Turkey began to fill the reservoir behind the giant Ataturk dam in the southeastern part of the country. The dam sits on the Euphrates river that also supplies Syria and Iraq with a large part of its water supply. There has been dispute between Turkey and its neighbors regarding water supply and such disputes can be expected to become more common as water becomes a more valuable asset in the Middle East. When Iraq objected to the Turkish dams, the Turkish government stated that water was a natural resource. Turkey doesn't tell Iraq what do to with its oil and Iraq should not tell Turkey what to do with its water.

4. CASE NUMBER: 17

CASE MNEMONIC: COLORADO

CASE NAME: Colorado River Dispute

The 1944 United States-Mexico Treaty for Utilization of Waters of the Colorado and Tijuana Rivers and of the Rio Grande allots to Mexico a guaranteed annual quantity of water from these sources. The treaty does not provide specifically for water quality, but this did not constitute a problem until the late 1950's. Rapid economic development and increased agricultural water use in the United States spurred degradation of water quality received by Mexico. Much of the increased water is intended for producing agricultural products for export. With a view to resolving the problem, Mexico protested and entered into bilateral negotiations with the United States. In 1974, these negotiations resulted in an international agreement, interpreting the 1944 Treaty, which guaranteed Mexico water of the same quality as that being used in the United States.

5. CASE NUMBER: 36

CASE MNEMONIC: ISRAELH2O

CASE NAME: Israel-Jordan Water Dispute

Shortage of water is perhaps the most crucial environmental and development problem in Israel. The water deficit is exacerbated by the deteriorating quality of water resources due to demographic, industrial, and agricultural pressures. This case focuses on the agricultural pressures, particularly with respect to exports, contributing to the depletion and degradation of Israel's water resources. Since there is no current regional agreement, the potential for future claims by environmental groups or bordering countries definitely exists. Conflicting claims, given the already existing political problems in the area, could lead to violence.

6. CASE NUMBER: 196

CASE MNEMONIC:LESOTHO

CASE NAME: Lesotho Water Exports

Water is the only natural resource in relative abundance in Lesotho. The Republic of South Africa (RSA) showed long standing interest in utilizing water from the Lesotho Highlands to meet a growing demand of water by industry. A $5 billion joint venture between Lesotho and RSA will build a network of dams and channels in the remote mountains of Lesotho to funnel rainwater to the industrial heart land's of South Africa. The dams will trap water which normally runs into the Orange river and out west into the Atlantic Ocean, and instead turn it north towards Johannesburg. The prime objective is to turn Lesotho's only abundant natural resource -water- into export revenues. In addition, on the way down, it will generate enough hydro-electricity to supply all Lesotho's power needs and reduce its dependency. However, the project is likely to cause environmental damage in terms of population dislocation, grazing land flooding, and degradation of the site by workers and tourists.

7. CASE NUMBER: 258

CASE MNEMONIC: MEKONG

CASE NAME: Mekong River Dam

How can Thailand, a country faced with at least four major environmental concerns -- deforestation, wildlife destruction, water scarcity, and urban environmental quality -- afford to build another dam? Dam construction is supposedly driven by the imperative "to produce more electric power in order to raise the national standard of living to a level comparable to that of nations, like the United States, that already have their dams in place." However, the utility of building hydroelectric dams has been challenged on a number of grounds. First, they are extremely expensive. A dam proposed on the Mekong River bordering Thailand and Laos will cost $2.7 billion. This no small amount considering that Thailand's GNP stood at almost $70 billion and ranked 30th in the world. Second, coupled with deforestation, previous dams have adversely affected local climate conditions, soil fertility, and water and fishery resources. Third, in many countries the construction of hydroelectric dams has displaced people and altered local community life.

8. CASE NUMBER: 232

CASE MNEMONIC: BAIKAL

CASE NAME: Baikal Wood Pulp Pollution

Lake Baikal is the world's oldest and deepest lake. It lies in southern Siberia, its watershed extending over the Mongolian border. The lake is revered by the Russian people as a source of beauty and power. Preservation of the lake, however, has recently come to international attention. The Paper-and-Pulp Mill at Baikalsk has polluted the surrounding region and threatens the pristine conditions that have existed for centuries. The paper mill produces bleached cellulose that is used in clothing manufacture. The process, however, produces chemicals and effluent that threaten the more than 1,500 species unique to the lake. In addition, the economic and political difficulties currently facing Russia pose their own threat - that efforts to preserve the lake may not be instituted due to lack of funding or inability to form a consensus. The success of Lake Baikal has been viewed as critical to other environmental efforts throughout the world.

9. CASE NUMBER: 91

CASE MNEMONIC: JAMES

CASE NAME: James Bay Project

Since its inception in 1973, the James Bay Project, which involves damming several rivers and flooding territory, has increasingly come under the scrutiny of the international community. The region of this project is also home to the Cree and Inuit Indian tribes. Originally conceived as an avenue for Quebecois independence and self-sufficiency, it has now become the center of controversy in the Canadian political scene. The media criticize the series of large development plans for their environmental and social implications, environmentalists and, as of recently, importers of electric power in the U.S. Moreover, the James Bay Project embodies the ongoing friction between the Province of Quebec and the government of Canada.

10. CASE NUMBER: 185

CASE MNEMONIC: ARAL

CASE NAME: Aral Sea Loss and Cotton

The destruction of the Aral Sea ecosystem has been sudden and severe. Beginning in the 1960s, agricultural demands have deprived this large Central Asian salt lake of enough water to sustain itself, and it has shrunk rapidly. Uzbekistan, Kazakhstan, and other Central Asian states use this water to grow cotton and other export crops, in the face of widespread environmental consequences, including fisheries loss, water and soil contamination, and dangerous levels of polluted airborne sediments. It is generally agreed that the current situation is unsustainable, but the poverty and export dependency of the Central Asian states have prevented real action, and the sea continues to shrink.

11. CASE NUMBER: 379

CASE MNEMONIC: MONO

CASE NAME: The Los Angeles Aqueduct and the Owens and Mono Lakes

Los Angeles is a city located in a semi-arid plain and as a result water has been an integral part of its growth. At the turn of the century the Los Angeles Department of Water Supply formulated plans for the Los Angeles Aqueduct to supply the city with water from the waterways of central California's Owens Valley. By 1924 Owens Lake, deprived of its only water source the Owens River, dried up, which in turn decimated a unique ecosystem. The aqueduct was extended to the Mono Basin in 1941 and diverted the water sources for Mono Lake, a salt lake similar to Owens Lake, into the Los Angeles water system. In 1978 concerned citizens began to realize that the same fate was befalling Mono Lake as had befallen the Owens 50 years earlier, and the Mono Lake Committee was formed. Through a series of lawsuits filed by the committee and the National Audobon Society, Mono Lake has been saved. Both of these cases illustrate the environmental consequences of water policy in California, and how this policy has changed (is changing) over the 60 year period Los Angeles has diverted vast quantities of water from these mountain streams and rivers. This case study of the environmental effects of LA's water diversions highlights the larger issue that no longer is water a resource that can be exploited cheaply, but is fast becoming a commodity to be sold to the highest bidder.(1)

IV. Comparison and Contrast

The following table reflects the common characteristics between the case studies that involve the exploitation of water for economic gain. Denial/ReservoirWaterTable/Hydrolo gicIntPol/CulureIntComPollutHuman HealthN/ATransBorN/AN/AIntPol/CultureN/AN/ASalinN/ATransBorN/ASalin/HydrologicIntPolN/AReservoirN/AN/ATransBorReservoirSalinPopRelocIntCom/Tra nsBor/LocalPollutHuman HealthN/AIntCom/LocalReservoirHuman Health/HydrologicPopReloc/CultureTransBor/LocalPollut/DenialWater Table/Human HealthIntPol/CultureTransBorDenial/PollutHuman HealthCultureLocal
Comparison of Water Usage Cases
CASES WATER USE HABITAT LOSS POLLUTION HUMAN EFFECTS SCOPE
HUNGARY HydroElec/Transit
SANDIEGO Waste
ATATURK AGR/HydroElec
COLORADO AGR
ISRAELH2O AGR
LESOTHO HydroElec
MEKONG HydroElec
BAIKAL Waste
JAMES HydroElec
ARAL AGR
MONO AGR

1. General Uses of Water for Economic Exploitation

Water is used in a number of ways for economic exploitation either directly or indirectly.

a. Agriculture

Many of the cases reflect either problems from the direct use of water for crops, or the use of dams to control the flow of water for use in agriculture.

1. ATATURK:
Turkey has an ambitious plan to build 22 dams on the Tigris and Euphrates rivers as part of its Southeastern Anatolia Project or GAP. One of the goals of the Ataturk dam project is to provide irrigation for 30,000 square miles of arid lands in southeastern Turkey. By irrigating 1.7 million hectares of land it is estimated the area can produce $6 billion in food surplus with crops such as cotton, sugar beets, tobacco, soy beans and other cash crops instead of the grain that is now farmed. It is speculated that this region could supply the majority of the food for the Middle East.

2. COLORADO:
The Colorado river flows through the U.S. and ultimately supplies the Mexicali Valley in Mexico with its water. In both regions the river is used to irrigate fields. In the US the Wellton-Mohawk Irrigation and Drainage district of Arizona began to draw off river water, and pumped highly saline water back into the river. This violated a previous treaty between the two countries. The salinity in the water adversely effected the agriculture production in Mexico, and necessitated a re- negotiation of the treaty.

3. ISRAELH2O:
Israel has an extremely limited water supply, the country's water potential per capita is among the lowest in the world at 350 cubic meters a year. In comparison for the United States this figure is 100 times larger. The shortage of water in the country is due to demographic, industrial, and agricultural pressures. Agriculture accounts for 70 percent of all water consumed in the country. Agriculture is an extremely important export for Israel. In the period from 1950 to 1991 agriculture's absolute value has increased from $20 million to $666 million. However, in the same period its significance has decreased from 11 to 5 percent of total GNP, and decreased from 60 to 4 percent of total exports. However, irrigated farmland has increased from 74,000 acres in 1948 to 630,000 acres today. To supply the agriculture sector the National Water Carrier transfers water from the north to the semi-arid south through a series of pumping stations, reservoirs, canals and pipelines.

4. ARAL:
Soviet planners, driven by the need for hard currency through export crops (most notably cotton), set up a large agricultural area around the Aral Sea. By 1960 the lake level began to recede due to intensive use of the sea's tributaries. This increased the salinity of the lake and over irrigation created a salt build up in the fields. Rice has begun to replace water intensive cotton as the crop of choice, but the problem still remains. The issue is exacerbated by the lack of cooperation among the former central Asian Russian republics. In 1991 Uzbekistan's cotton crop accounted for 33.6 percent of total exports. For Turkmenistan agriculture represented 46.4 percent of net material product, and for Kazakhstan it constituted 33.9 percent.

b. Hydroelectric:

The generation of electricity is one of the most popular and controversial applications of the use of water. There are many permutations to each individual hydroelectric project, but they all essentially entail creating a larger reservoir behind a dam or series of dams and then using the water flow to turn turbines which produce electricity. Hydroelectricity is seen in many case to be environmentally sound because it does not lead to pollution from the burning of fossil fuels and avoids the controversial use of nuclear energy plants.

1. HUNGARY:
In 1976 the Joint Agreed Plan between Hungary and Czechoslovakia created the Gabcikovo-Nagymoros Barrage System which entailed diverting the Danube River into a "new" channel. With the generation of electricity as one of its major goals.

2. ATATURK:
In addition to the agricultural uses for the Ataturk dam water, it will have a hydroelectric element as well. There is the possibility in the future that Turkey will attempt to broker a deal that will bring oil to the country in return for water from the GAP project.

3. LESOTHO:
In 1986 Lesotho and the Republic of South Africa (RSA) agreed to implement the Lesotho Highlands Water Project (LHWP) which laid down the rights for delivery of water to RSA and made RSA liable for all costs of the project to deliver water. The RSA will pay Lesotho $60 million a year in water royalties. In addition to the water exporting aspect of the project, Lesotho wanted to develop the country's hydroelectric potential. At the time of the agreement Lesotho was dependent on the RSA for 90 percent of its electricity. The project will also incorporate exporting electricity to the RSA. The fist deliveries of electricity to the RSA are expected to be in 1997, and by 2020 the infrastructure will be in place to deliver water to the RSA. Ironically there are concerns among some citizens of the kingdom that the project will jeopardize its food sources because the project will destroy agriculture lands.

4. MEKONG:
The Mekong river basin has been developed extensively for hydroelectric power by a number of countries, such as China, Vietnam, Burma, and Thailand. All of these projects have the added economic benefits of producing a "multiplier effect" from the construction of roads, ports, and telecommunications facilities. Both Burma and Laos developed hydroelectric capability in order to export electricity to energy starved Thailand. Thailand has developed its own hydroelectric potential with projects like the Sri Nakarin dam in 1973. In 1989 Thailand's dams produced 4.5 kw hours of electricity and in 1982 his figure was 3.5 kw hours.

5. JAMES:
In 1973 the James Bay Project was conceived as a two part hydroelectric project to produce electricity for export to the United States. This electricity would replace coal and nuclear power as the method of electricity production. The first phase, the La Grande Project, is near completion, but the second stage to dam the Great Whale River has created the controversy. Cree Indian and environmental groups have taken the issue to the courts and the project has been delayed to allow for the completion of environmental impact studies.

c. Waste Disposal System:

Often times water sources become by design, or inadvertently the carries of a large amount of pollutants. In either case this is often due to the consequences of unmanaged growth (such as in the developing world), or deliberate use of water as a dump.

1. SANDIEGO:
In the area between San Diego and Tijuana, Mexico there is a inordinate amount of pollution from raw sewage that crosses over the border through the Tijuana river system and flows into the ocean. Most of the problem is from Tijuana, but San Diego also dumps raw sewage into the ocean.

2. BAIKAL:
In the Soviet Union in the 1950's the Baikalsk paper pulp plant was completed to provide the country with industrial strength cellulose. Over the yeas the factory has released chlorinated organics into the Selenga River which flows into Lake Baikal. These organics take centuries to decompose and the result has been the pollution of 200 square miles of the lake.

d. Transit:

The world's waterways have long been used as a means for transport, but their use can have detrimental side effects due to accidents and the purposeful rerouting of waterways for trnasit pruposes.

1. HUNGARY:
One of the major goals of the Gabcikovo- Nagymoros dams was to create a channel that would be deep enough to allow barge traffic that would increase trade for Slovakia.

2. Environmental Effects of Uses of Water

a. Destruction of Habitat:

By a number of ways the exploitation of water sources leads to the destruction of habitat and often unique ecosystems.

1. By Pollution

a. SANDIEGO:
In the case of San Diego, pollution there is a short term problem of "organic loading" which blocks sunlight and retards the normal photosynthetic rates of small organisms. In addition, sediment deposits on the sea-floor can kill urchins and starfish.

b. BAIKAL:
The effects of pollution in Lake Baikal are exacerbated because there is only one outlet, thus making it a virtually self contained, and thus highly sensitive ecosystem. In Lake Baikal there are 1,500 endemic species placed at risk, among these are the Baikal Seal and a type of fish the Omul.

c. ARAL:
As the water table around the Aral Sea and the sea itself were destroyed surrounding wetlands were desiccated. Some species have adapted to the drought conditions and the increased salinity, but a number have been driven away.

2. By Denial:

In many cases river and stream habitats are completely destroyed when water is diverted from their courses for use elsewhere.

a. HUNGARY:
In the Hungary case parts of the old Danube were destroyed when the water level decreased significantly due to the diversion of water into the new channel.

b. ARAL:
The diversion of Aral Sea's tributaries increased the salinity of the lake and a once hug fish catch was reduced to 75 percent by 1977.

3. Reservoirs:

In many of these cases the large dams create huge bodies of standing water that "drown" entire habitats and in some instances entire ecosystems.

a. HUNGARY:
The Hungarian dam project flooded thousands of hectares of forest, agricultural land and countryside. The dam placed at risk 130 species of bird, 30 mammal species, 8 reptile, 6 amphibian, and 28 species of fish.

b. LESOTHO:
With the Lesotho Highlands Water Project there is a concern that the extensive reservoir capacity needed will endanger a number of species.

c. MEKONG:
In the Mekong river basin the American Rivers group has identified 10 endangered rivers and 25 threatened rivers in the region.

d. JAMES:
The James Bay project would flood 5,000 square km of habitat for native animals, such as caribou, elk, beaver, and Polar bears. Some argue that the wildlife adapts to the abrupt changes, but there is no proof of this assertion.

e. Pollution

Many forms of pollution, from salinization to upsetting the hydrology of a region lead to habitat loss.

1. Salinization

a. COLORADO:
In the Colorado case by treaty Mexico is ensured the same amount and quality of water as is received by the U.S. In 1961 the amount of water was sufficient, but the quality was insufficient due to the high salinity. This adversely affected the agricultural interests in the Mexicali Valley. The salinity of the water in the Mexicali Valley increased from 800 parts of salt per million to 1,500 parts per million.

b. ISRAELH2O:
In the case of Israel the nation's water supply has become increasingly saline as salt water from the Sea of Galilee has leached into the southern agricultural zone's water supply and through the continued use of effluent to irrigate fields. In 1992 it was estimated that 20 percent of the wells in the coastal aquifer would be too saline to support agriculture.

c. MEKONG:
On the Mae Klong River the dam there led to increases in downstream salinity which wiped out export crops such as coconuts.

2. Water Table Effects:
A "hidden" effect, in that it occurs underground, is the drastic effects the large damming projects have on the water table as a whole. Which in turn places a regions entire ground water supply at risk, either from pollution, or the drying up of ground water which increases the desertification of fertile lands.

a. HUNGARY:
In the areas surrounding the "old" Danube the ground water table fell by 12 feet, and other "side-arms" of the river dried up completely.

b. ARAL:
The water table around Aral Sea was virtually destroyed as it was impossible for it to be recharged.

3. human health hazards

a. SANDIEGO
In the San Diego case the standing raw sewage creates breeding grounds for disease carrying mosquitoes, and the sewage dumped into the ocean creates health hazards, such as dysentery and hepatitis, for swimmers. Imperial Beach, located near San Diego, has been subject to frequent closures which has cost the city an estimated $100 million in tourism. Furthermore, the waste contains harmful chemicals such as lead and cyanide that are dumped at a rate of 20 million tons a year into the Tijuana river system.

b. BAIKAL
In the Lake Baikal region there is a large amount of air pollution that spreads DDT around the region and directly places human health at risk, but it threatens the food chain as well.

c. JAMES
The vast amounts of decomposing flooded vegetation from the James Bay Project could release green house gases and can concentrate naturally occurring methyl-mercury in fishing areas.

d. ARAL
The lack of water in the Aral Sea exposed 28,000 square km of lake bed which created a health hazard to humans as the winds picked up 43 million tons of sediment.

4. Hydrological Effects,

These effects are broadly defined to represent threats to the supply of potable water in a particular area due to the use of water.

a. HUNGARY
In the Hungary case in 1993 the Samorin well's drinking supplies (which provides for 40 percent of Bratisslava's supply) were two-thirds their normal level. In addition, as the flow of the river decreases larger deposits of polluted silt and bacteria will contaminate the area's drinking water.

b. ISRAELH20
The overall water quality in Israel has decreased due to the rapid development of the nation and the heavy agricultural uses of the water.

c. JAMES
The James Bay Project would upset the complex hydrological cycle which is not quite understood, but it is know to affect weather patterns. Thus, possibly effecting the precipitation levels in the area.

3. Human Effects

a. International Political Consequences

A number of these cases involve more than one nation. These cross-border issues can lead to involvement of the international community, and can possibly lead to a wider conflict.

1. HUNGARY
The Gabcikovo-Nagymoros project reached an impasse in 1989 with the changes in government in these former communist countries. Both of the countries disagreed as to the environmental effects of the project. The Hungarians immediately stopped the building of the Nagymoros dam while Czechoslovakia continued their dam by moving it into their sovereign territory. This issue is particularly problematic for Hungary because of the trade implications. Hungary's trade accounts could be devestated as 50 percent of its trade travels along the Danube, and it could be subject to tariffs as it passes through Slovakia. The Hungarians deem this a violation of international law because it is changing the natural border between the two countries.

Another dispute is the severity of the environmental impact the project has in the region. The Slovaks argue-with the help of a New Scientist article- that upstream from the Gabcikovo dam plant and animal life had returned to formerly dry meadows and that it helped to recharge the groundwater supplies. The World Wildlife Fund (WWF) and the Hungarians contend that the dam will upset the hydrology of the Danube flood plain and inflict serious damage on the region's bio- diversity. In essence they argue the Slovak's argument only deals with the short term groundwater impacts and not the long term ecological impacts.

2. ATATURK
The largest controversy surrounding the Ataturk dam concerns the issue of international water rights. The GAP project calls for the disruption of both the Tigris and Euphrates rivers which continue on to supply water for other countries. In the case of the Ataturk dam it stifles the flow of the Euphrates river into Iraq. In fact Turkey initially reduced the flow of the river to a trickle to fill the dam's reservoir. Iraq has even threatened war if its water needs are not meet, and this highlights a larger problem of the increasing scarcity of water in the Middle East region. Turkey equates the water with a natural resource and tells Iraq that they do not tell them what to do with their natural resource, oil.

3. ISRAELH2O
In the case of Israel and the Middle East in general, water has become increasingly important and discussions concerning its use are part of the Middle East peace process. For example, Jordan contends that the excessive water use by Israel has direct effects on their water supply.

4. ARAL
The Aral Sea problem is made more difficult by the fact that there is suspicion and enmity between the Central Asian Republics that are the transgressors in this case.

b. Population Relocation

Often due to the damming of rivers and the subsequent flooding of huge tracts of land it forces the populations of those lands to relocate. Often this is a traumatic experience, and entails peoples leaving lands their families have inhabited for centuries. Furthermore, in some countries population relocation may entail moving to to already overcrowded cities. Thus, exacerbating the attendant problems in the cities.

1. MEKONG
In Thailand the building of dams has resulted in the relocation of 4,000 families that farmed the land. This is a factor in leading to the increased urbanization problems of the country.

2. JAMES
If the James Bay Project moves forward the Cree and Inuits will be displaced and their entire lifestyle will be forever altered. In fact, the Cree have even threatened to secede from Quebec if the day ever comes when Quebec achieves its independence.

c. Cultural and Ethnic Issues

1. HUNGARY
The tension surrounding the Gabcikovo dam project could have serious effects in the region regarding the increasingly divisive ethnic problems. There is the potential that this issue could become tangled up in the brewing conflict between the Slovaks and Magyars.

2. ATATURK
In the Ataturk dam case there is an archeological issue in that with the completion of the dam hundreds of unexplored sites will be forever lost.

3. JAMES
The company that is building the project is a Quebec based one that is a primary contributor to the province's economic growth. Due to the secessionist feelings in the region the dam controversy has taken on an extra dimension.

4. ARAL
The possibility exists that in the Aral Sea region these states do not tolerate dissent and if endemic environmental groups were to voice their concerns there could be human rights violations.

4. Methods of Dealing With the Problem

a. Scope of Problem Solvers

The issues that are addressed in all these cases are dealt with by three means. First, there is the possible involvement of the international community. Second, the more common mechanism of nation to nation discussions. Third, there is the issue of local indigenous (most of the time) grassroots movements that try to bring about change.

1. International Community

a. HUNGARY
In the case of the Slovakian-Hungarian row over their project the European Community was called in to mediate the dispute. A primary motivation for this mediation was the desire of both countries to enter into the European Union and thus handle the dispute in a "European" manner. This achieved little as the Slovak dam was completed in 1992, and the Hungarian dam is still on hold. In 1995 the parties signed a temporary agreement to replace water for the old Danube channel.

b. MEKONG
With respect to the Mekong river basin the United Nations formed the Mekong Committee to oversee the numerous projects in the region. In addition, parties have lobbied the World Bank to deny funding for the regions projects.

c. BAIKAL
UNESCO has considered classifying Lake Baikal as a natural treasure of the world which could lead to increased protection of the area's environment. Ultimately the international community will probably pay for the majority of any clean up effort.

2. Trans-National

a. SANDIEGO
The problem of San Diego-Tijuana trans- border pollution falls under the aegis of the NAFTA agreement in a number of ways. One is that it falls under the environmental, although limited, provisions of the treaty. Furthermore, there is the concern that NAFTA may only increase the pollution problem.

b. COLORADO
The use of the Colorado river water had been mandated by a 1944 treaty between the U.S. and Mexico that guaranteed Mexico the same amount (1,500,000 acre feet) and quality of water that the U.S. received. In 1974 this was re-negotiated to reflect the issue of increasing salinity of the water, which guaranteed Mexico the same quality of water as well the same amount.

c. LESOTHO
There is a concern that the project is largely for the economic benefit of the RSA at the expense of Lesotho's environment. In the case of the Lesotho Highlands Water project there have been extensive environmental studies conducted regarding many issues, such as monitoring the effects of compensation flows on river ecology, public health, cultural heritage, watershed management, environmental education, and tourism effects.

d. MEKONG
Many countries exploit the water resources of the Mekong river basin, but despite this there is no agreement between the countries as to the use of these resources.

e. JAMES
The James Bay Project has raised serious issues concerning NAFTA. In 1990 the Cree, Sierra Club, and PROTECT took legal action against the state of New York that exported electricity had to comply with New York's environmental standards, but they lost. This reflects a component of NAFTA that the U.S. can not discriminate against Canadian electricity due to the process versus product clause. However, the North American Agreement on Environmental Cooperation does obligate countries to strive for environmental improvement.

f. ARAL
In 1992 a document called for ensured deliveries of water to the Aral Sea.

3. Local

a. MEKONG
In Thailand grassroots groups mounted a public campaign to thwart the Sri Nakarin dam. They demanded environmental impact studies, but the government was highly supportive of the dam and disagreed with the contents and validity of the studies and went ahead with the project.

b. BAIKAL
In 1987 the Soviet Government decreed to protect lake Baikal by converting the industrial plants to less polluting production techniques. This has been extremely difficult due to the lack of funds of the cash starved Russian government.

c. JAMES
In 1990 the Canadian National Energy Board allowed export licenses for electricity to New York, as long as they did not interfere with environmental standards.

V. Policy Implications

The following are a number of the options that attempt to solve the issues in the various cases. It is important to note that the wide array of options reflects the scope and breadth of the use of water and the wide array of environmental effects that it has throughout the world.

A. Options to Solve the Various Problems

1. HUNGARY
In the Hungary case the EC became involved and suggested limiting the flows to the Slovakian dam to ensure minimal environmental damage, but the Slovaks insisted they needed two-thirds of the flow to run their hydroelectric turbines. The WWF argued for the old Danube riverbed to receive two-thirds of the water to allow for the migration of fish and allow for natural sedimentation which would decrease the flow, thus allowing the level to rise and re-hydrate destroyed side streams.

2. SANDIEGO
To solve the problem of raw sewage being dumped in the water surrounding the U.S.-Mexican border a joint agreement was reached in 1990 between the two countries. The agreement called for the building of a $200 million sewage treatment facility in Tijuana which would process the sewage to comply with strict U.S. environmental standards. A serious short coming of this plan is that it does nothing to address controlling the problem. The majority of the funds would come from the U.S. government with the Mexican government, the state of California, and the city of San Diego providing additional funds. The original plan called for the completion of the facility in 1995, but due to logistical delays it will not be completed until 1998. Also, funding has been a major problem as the project is now projected to cost $235 million dollars. In the interim two ideas have been suggested to deal with the problem. One is to construct an "equalization basin" in which Tijuana sewage would be stored during the day and returned to the system at night when it was not as over burdened. The second idea, which was ultimately adopted by the International Boundary and Water Commission (IBWC), entailed construction of 10 acres of "oxidation" ponds capable of processing 30 million gallons a day of raw sewage, which would be chlorinated and piped into Mexican waters. Ultimately, a longer term solution will be needed and in 1993 the Clinton administration announced a border bond plan which would create a joint U.S.-Mexican agency to issue $8 billion in bonds to pay for border cleanup.

3. COLORADO
To abide by the 1974 agreement the U.S. agreed to build a desalination plant, and to build a drain to carry the plants effluent to the Gulf of California. In addition the U.S. agreed to help Mexico obtain financing to improve and rehabilitate the Mexicali Valley. All of these programs have cost the U.S. $280,000,000 million. Desalinization had an advantage over eliminating the source of the problem because it minimized the loss of water and contributed to the advancement of desalination technology.

4. ISRAELH2O
In Israel they have developed a means to use the limited water supplies more efficiently such as drip irrigation, higher yield plants and arid-zone cultivation. The Israeli's have developed advanced means for reuse and 70 percent of the agricultural effluent is treated and reused. Now the economic profitability of each crop is assessed according to its efficient use of water which entailed the elimination of such crops as cotton.

5. BAIKAL
Initially the Soviet government proposed to carry the waste from the Selenga to the Irkut river, but Russian environmental groups objected to this "pollution elsewhere" idea. These groups hope to let the lake sit idle and concentrate on tourism which will have a lower pollution effect. Ultimately, the issue will be resolved through conversion methods, such as using bio-degradable materials.

6. JAMES
An alternate source of electricity than the James Bay Project is wind power. Ultimately, energy efficiency is the only way to conserve energy resources.

7. ARAL
The original solution to the Aral Sea problem was to divert the Ob river south to flow into the Aral. Full scale restoration would require a shift away from agriculture in the entire region. This seems unlikely due to the importance of agriculture in the cash starved Asian Republics.

One of the most obvious developments that is needed regarding the use of water resources are consensual agreements on its use since it is often a trans-border issue. This may include international conventions sponsored by the United Nations, nation- to-nation accords (i.e. what is occurring in the HUNGARY case), or regional agreements. For example, something akin to what will eventually, hopefully anyway, come out of the Middle East peace talks. It is not useful for Turkey to make statements such as, "We will do with our water we like, after all we do not tell you (Iraq) what to do with your oil." Attitudes like this fail to recognize the movement towards water as an internationally shared commodity.

Furthermore, a central component to this issue is the need to move towards conservation, in the most general sense. This means not only conservation of water resources through treatment processes, but the move towards agriculture techniques that use less water, and the conservation of all types of energy sources. In particular, this is directly relevant to issues of development in the third world and convincing these countries to continue their development while using resources efficiently. This is obviously difficult because of the economic situations in these countries, so it may be necessary to provide these counties with international development aid (however, this is a loaded issue in and of itself).

VI. Further Information

A. Bibliography

Berrisch, George. "Costruction and Operation of Variant C of the Gabcikovo-Nagymaros Project Under International Law:Legal Study for the World Wide Fund for Nature." Prepared by Schon, Nolte, Finkelnburg & Clemm for WWF. October 1992. Brussels.

Dister, Emil et al. "A New Solution for the Danube." WWF Statement on the EC Mission Reports of the Working Group Monitoring and Management Experts and on the Overall Situation of the Gabcikovo Hydrodam Project. December 13, 1993. Vienna.

"Gabcikovo Compromise Accord Approved by Slovak Government," April 18, 1995.

"Industrialization of South Slovakia an Anti-Hungarian Plot?" April 1, 1995.

Secretaria de Desarrollo Urbano Y Ecologia (SEDUE), "Integrated Environmental Plan for the Mexico-U.S. Border Area", 1991.

Rooderson, Tod. "Mexicans Say Cleanup of Border Imperiled: Session Today to Take Up NAFTA Obligations," The Washington Post, (May 16, 1995).

Ellis, William S. "A Soviet Sea Lies Dying." National Geographic 177 (February 1990): 72-93.

Nature, 20 January 1994. "Asian Republics Agree on Joint Rescue Plan to Save the Aral Sea," 206.

Allen, Tony. "Middle East: MEED Special Report on Water Policy-Management Must Supply and Demand." Reuter Textline Middle East Economic Digest, January 24, 1994.

Vesilind, Pritt J. "The Middle East's Water: Critical Resource." National Geographic, May 1993, 38-70,

Brownell, H. and Eaton S. "The Colorado River Salinity Problem with Mexico." American Journal of International Law 69/255 (1975).

United States-Mexico Treaty for Utilization of Waters of the Colorado and Tijuana Riversand of the Rio Grande, (February 3, 1994, 59 Stat. 1219, T.S. 994 3 U.N.T.S. 313).

"Problems of Water in the Middle East." London: Background Brief, Foreign and Commonwealth Office (January 1992).

"Water in the Middle East: Managing a Strategic Resource." Middle East Research Institute. Washington, DC: October 25, 1992.

Marius Bosch, "Lesotho, S. Africa Dams Tackle Nature Head-On." Reuters World Service, February 8, 1995, BC Cycle.

Peter Reina, "Huge Project is Launched in a Tiny Mountain Kingdom." ENR, January 25, 1993, p. 26-7.

Economist, "Damned if You Don't," 337/7941. November 18, 1995, 38-9.

Lohmann, Larry. "Who Defends Biological Diversity? Conservation Strategies and the Case of Thailand" Ecologist. 21, 1. (1991), p. 44.

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