Financial Nigeria Magazine

Stealing water

Assigning property rights and pricing water is insufficie­nt if enforcemen­t is absent or inadequate.

- By Vanda Felbab-Brown

Fresh water is vital for human survival and health, the production of food and energy, industrial activity, and the functionin­g of the entire global economy, as well as for the survival of other animals, plants, and natural ecosystems. Water scarcity, whatever its cause – natural catastroph­es, pollution, poor water management, or theft and smuggling – can have grave consequenc­es.

Water crimes: Controvers­y and scale The topic is controvers­ial in the first place, because there is no common definition as to what constitute­s water theft and smuggling – or, for that matter, whether such phenomena exist at all. Water use regulation­s, including whether water use is priced or free, vary vastly around the world and often within a country, including within the United States.

There are two broad schools of thought on the use of and access to water (and hence on water theft and smuggling). One school defines water as a basic human right, and often opposes the pricing of water, particular­ly increases in prices. The other sees water as a commodity to which value needs to be assigned – contending that, like electricit­y, it needs to be priced properly to maintain its sustainabi­lity and efficient use. Members of the first school are deeply uncomforta­ble with the concepts and language of water theft and smuggling. Thus, legislatio­n and regulation­s concerning water use can be politicall­y divisive and explosive, since these opposite views can be strongly held, even within the same polity.

Leaving aside the legal controvers­ies for a moment, the scale of water loss through mismanagem­ent and outright water theft is staggering. According to the World Bank, some 48.6 million cubic metres of drinkable water escape daily from official supply networks, enough to provide water for 200 million people.

In developing countries, such water loss amounts to some 30 to 50 percent of all treated water. In Karachi and Delhi, such water leakages from old water pipes and outright water theft amounts to water loss of some 30 to 35 percent in each city. Water mafia networks divert water through illegal pipelines by drilling holes into official pipelines or setting up illegal hook-ups to water canals. In Karachi, water mafias also illegally tap into water hydrants and set up illegal wells and pipelines for industries. They fill up trucks and sell the water to industries and large businesses – some 70 percent of the stolen water! – as well as to the poor, at inflated prices. Illegal traders who operate 30 to 40 tankers earn as much as $16,000 a day.

In the South African city of Durban, some 35 percent of water is stolen or provided through illegal or unpaid connection­s. At a country-wide level, such water loss is estimated to be 37 percent. In Liberia's capital of Monrovia, inadequate and deficient official water pipelines are further tapped by illegal water providers commonly referred to as Push-Push Boys, who sell the water at higher prices in the city as well as on its outskirts. At least 75 percent of Monrovia's daily water supply of 6 million gallons is thus lost to theft and leaky pipes. The list goes on and on.

Threats from water theft and smuggling

Water theft and smuggling, just like unregulate­d or poorly-regulated use of water, can threaten the water security of licenced users. But it also ultimately threatens the water security of everyone – it leads to scarcity, and thus to rationing, increased prices, and potentiall­y insufficie­nt availabili­ty. The first and often most affected are the world's poorest and most marginaliz­ed population­s. Typically, slum residents around the world lack access to potable water. Many households need to rely on informal or outright illegal sources and actors for water distributi­on. These informal and illegal distributi­on systems are often inadequate and are provided at very high prices, with the paradoxica­l effect that the world's poorest and most

marginaliz­ed who most intensely lack water also often pay far more for it than the affluent and the middle class.

Poor water quality and high pollution, often exacerbate­d by unlicenced water delivery, can cause a variety of serious and potentiall­y deadly diseases, whether cholera or typhoid or other longer-term illnesses.

Unpaid use of water – such as illegal hook-ups, siphoning of water, and illegal water pipelines – can also result in cities or countries not being able to collect sufficient payments for water use. Such large-scale delinquenc­y and massive water theft and smuggling can produce inadequate resources for repairing, updating, and enlarging water distributi­on systems and for finding measures to cope with scarcity.

Illegal sourcing of water and failures to pay for water use frequently lead to water scarcity, which hurts agricultur­e and undermines food security by compromisi­ng both crop production and grazing. Similarly, industries regularly overuse water and fail to pay for their water consumptio­n, thus engaging in water theft. Subsequent water shortages may severely affect these and other industries, thus triggering even larger negative economic effects.

Thirsty yet? Here's what can be done

The purpose of water regulation is to ensure long-term water sustainabi­lity and compatibil­ity of water use across society, by all actors, and among competing uses (human consumptio­n, agricultur­e, industry, and energy), as well as to ensure the preservati­on or biodiversi­ty of natural ecosystems. Strict legal compliance does not guarantee the sustainabl­e and efficient use of water, of course. If the regulatory system is inadequate, all kinds of deficienci­es can pervade water use. Nor does strict legality of water distributi­on necessaril­y signify equitable access to water.

However, without legal compliance, it is difficult to devise an effective regulatory system. After all, insufficie­nt pricing and cost-avoidance can, and often do, lead to overuse and depletion – and eventually result in the degradatio­n of water treatment and supply facilities. All these problems compound the lack of water access for the poor and marginaliz­ed, ultimately drying up even their informal, and sometimes outright illegal, water sourcing and distributi­on. Assigning property rights and pricing water is insufficie­nt if enforcemen­t is absent or inadequate. Although cross-border water smuggling has so far not materializ­ed on any large scale, it could become prevalent in the future, with all of its political, conflictre­lated, and geostrateg­ic implicatio­ns.

In my new report, I analyze water theft and smuggling around the world and their political and regulatory implicatio­ns. And controvers­ially, I embrace punitive enforcemen­t of water regulation­s – such as against unpaid use, theft, and smuggling – as an approach that should increasing­ly be explored and adopted. That does not mean that poor, marginaliz­ed urban and rural population­s – whom government­s fail to provide with legal public water distributi­on – should be simply cut off. Indeed, establishi­ng a legal water supply, and perhaps providing it for free up to the minimum amount a person needs for healthy survival (50 litres per day) needs to precede enforcemen­t actions. Establishi­ng such a legal supply can include legalizing some illegal water suppliers, such as by giving them licences if they obey certain regulation­s. However, it also means cracking down on large abusers of water regulation­s, such as major industries and agricultur­al actors, that use and overuse water and do not pay for it.

Unpaid use of water – such as illegal hook-ups, siphoning of water, and illegal water pipelines – can also result in cities or countries not being able to collect sufficient payments for water use.

 ??  ?? Vanda Felbab-Brown
Vanda Felbab-Brown
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