THE COMMITTEE ON NATURAL RESOURCES AND SOME ISSUES ON THE INTERNATIONAL AGENDA

The Committee on Natural Resources, which meets every two years, is the primary intergovernmental body of the United Nations dealing with natural resources matters. In the following article, the author summarizes briefly some of the issues before the Committee at its most recent session, which convened in Geneva in May 1977, and the recommendations adopted by participating governments.     

A RECOMMENDED BASIC FORMAT FOR THE CLASSIFICATION OF INTERNATIONAL DATA ON CRUDE OIL AND NATURAL GAS RESERVES AND RESOURCES

Effective assessment of nonrenewable resources depends on both the availability and the interpretation of basic data. The quality of these data directly affects resource policy decisions based on them. It is vital to bring information on reserves and resources into sharper focus, by clearer definition of what has been measured, by orderly classification and by identification of the results of assessment in a way that stimulates their proper understanding and application. As part of the overall programme of the United Nations Centre for Natural Resources, Energy and Transport in the field of natural resources, an Expert Group was convened in New York from 28 March to 4 April to discuss a series of such basic questions concerning the international classification and measurement of crude oil and natural gas resources. Key conceptual principles and definitions were agreed as a basic framework within which governments could work towards an internally consistent and comprehensive international exchange of information. The Group also examined problems of measurement and the manner in which existing national data would be incorporated into an international classification. The report of the Group is reproduced in full below.     

INTERSTATE AND INTERNATIONAL COMPETITION FOR WATER RESOURCES1

ABSTRACT: Federal-state relations over the management and regulation of ground water resources have undergone a number of changes in recent years. There are a variety of reasons that the role of the federal government in ground water management may increase in the future. One important reason federal policymakers may become involved concerns the extent of competition for ground water resources that cross state and national borders. This article summarizes reasons that interstate and international competition for ground water resources may provide the impetus for federal intervention in ground water management and presents the results of a survey conducted to determine the extent of that competition.     

NATURAL RESOURCES AND THE CENTRE ON TRANSNATIONAL CORPORATIONS

The international community has a stake in reducing certain avoidable risks of mineral development in developing countries and in promoting more advantageous relations between these countries and transnational mining companies. In the following article, the author examines various programmes of the United Nations Centre on Transnational Corporations which contribute to the achievement of these objectives.     

CONFLICT AND COOPERATION OVER INTERNATIONAL FRESHWATER RESOURCES: INDICATORS OF BASINS AT RISR1

ABSTRACT: In this paper we seek to identify historical indicators of international freshwater conflict and cooperation and to create a framework to identify and evaluate international river basins at potential risk for future conflict. We derived biophysical, socioeco‐nomic, and geopolitical variables at multiple spatial and temporal scales from GIS datasets of international basins and associated countries, and we tested these variables against a database of historical incidents of international water related cooperation and conflict from 1948 to 1999. International relations over freshwater resources were overwhelmingly cooperative and covered a wide range of issues, including water quantity, water quality, joint management, and hydropower. Conflictive relations tended to center on quantity and infrastructure. No single indicator—including climate, water stress, government type, and dependence on water for agriculture or energy—explained conflict/cooperation over water. Even indicators showing a significant correlation with water conflict, such as high population density, low per capita GDP, and overall unfriendly international relations, explained only a small percentage of data variability. The most promising sets of indicators for water conflict were those associated with rapid or extreme physical or institutional change within a basin (e.g., large dams or internationalization of a basin) and the key role of institutional mechanisms, such as freshwater treaties, in mitigating such conflict.     

FINANCING ARRANGEMENTS FOR INTERNATIONAL CO-OPERATION IN THE DEVELOPMENT OF WATER RESOURCES

One of the subject areas of the Mar del Plata Action Plan adopted by the United Nations Water Conference held in Mar del Plata, Argentina in 1977, was that of financing arrangements for international co-operation in the development of water resources. This problem was the subject of considerable attention at the Conference, and there was a general consensus that lack of adequate financial resources is one of the main constraints on water development in developing countries. However, there was a divergence of opinion as to the need for a special fund for water resources development that had been proposed by the African Regional meeting prior to the Conference. As a compromise the Conference requested the United Nations Secretary-General to prepare a study on “the most effective and flexible mechanisms to increase the flow of financial resources specifically for water development and management.” This paper, prepared in response to the request of the Conference, treats the question by first estimating the financial resources necessary to implement existing water development plans. These sums on the order of $20 billion (thousand million) per year at present will increase to $40 billion per annum by the year 2000. The paper next examines the policy implications of these requirements. This is followed by an examination of the existing system of international assistance for water resources development and its adequacy to implement the required programmes. The report concludes that existing mechanisms are adequate to undertake the required development work, but that substantial growth in funding will be necessary. Un des points du Plan d'action adopté à la Conférence des Nations Unies sur l'eau qui s'est tenue à Mar del Plata en Argentine en 1977 prévoit des arrangements financiers afin de favoriser une coopération internationale dans le domaine de l'aménagement des ressources en eau. Après l'examen attentif de cette question à la Conférence, il a été généralement conclu que le manque de ressources financières adéquates était un des obstacles à la mise en valeur des ressources en eau dans les pays en développement. Pourtant, les opinions ont différé sur la nécessité d‘établir un fonds spécial pour l'aménagement de ces ressources, proposition qui avait été faite à la Réunion régionale africaine avant la tenue de la Conférence. En tant que mesure conciliatoire, le Secrétaire général des Nations Unies fut prié de préparer une étude sur “le mécanisme le plus efficace et le plus souple permettant d'accroître le courant des ressources financières, en particulier pour l'aménagement et la gestion des ressources en eau.” Ce rapport, préparé à la demande de la Conférence, traite la question en faisant d'abord l'estimation des ressources financières nécessaires aux plans d'aménagement des ressources en eau. Ces valeurs, de l'ordre de 20 milliards de dollars des E.U. par an à cette date, atteindront la somme annuelle de 40 milliards d'ici l'an 2000. Ensuite, le rapport considère les incidences politiques de ces dépenses. II se poursuit en examinant les dispositifs en vigueur en matière d'assitance internationale dans le domaine de l'aménagement des ressources en eau et leur efficacité en ce qui concerne l'exécution des programmes prévus. Le rapport conclut que les mécanismes actuels permettent d'entreprendre les travaux d'aménagement nécessaires mais qu'une augmentation financière substantielle s'avère nécessaire. Una de las áreas del Plan de Acción del Mar de la Plata adoptado por la Conferencia del Agua de las Naciones Unidas realizado en el Mar de la Plata, Argentina en 1977, fue la de los arreglos financieros para la cooperación internacional en el desarrollo de recursos de agua. Este problema fué el objeto de considerable atención en la conferencia y hubo un concenso general en que la carencia de recursos financieros adecuados era una de las limitaciones principales en el desarrollo de recursos de agua en los paises en desarrollo. Sin embargo, hubo divergencia de opinion con respecto a la necesidad de un fondo especial para el desarrollo de recursos de agua que había sido propuesto en una reunión Regional Africana previa a la Conferencia. Como solución de compromiso la Conferencia pidió al Secretario General de las Naciones Unidas preparer un estudio sobre “el mecanismo más efectivo y flexible para aumentar el flujo de recursos financieros específicos al desarrollo y administración de recursos de agua.” Este informe, preparado en respuesta al pedido de la Conferencia, enfoca el problema estimando primero los recursos financieros necesarios para implementar los planes existentes de desarrollo de recursos de agua. El monto anual correspondiente alcanza por ahora el orden de los US $20,000 millones y aumentará a US $40,000 millones para al año 2000. El informe examina luego las implicancias políticas de este requerimiento. Sigue luego un examen de los sistemas existentes de asistencia internacional para desarrollo de recursos de agua y de su capacidad para hacer frente a la implementación de los programas requeridos. El informe concluye que los mecanismos existentes son apropiados para atender el desarrollo requerído, pero que es necesario un crecimiento sustancial en la disponibilidad de fondos.     

A NEW APPROACH FOR ESTIMATING IRRIGATION CONVEYANCE LOSSES AND THEIR ECONOMIC EVALUATION1

ABSTRACT: In this paper a new methodology for estimating conveyance efficiency within irrigation systems is presented. Based on statistical analysis of daily water releases from the source of supply and deliveries to the farmers in an irrigation district in Mexico, a linear model is obtained for estimating conveyance efficiency and two component factors. One of these factors points out the relative importance of the operational losses (i.e., losses due to water management), and the second shows the importance of the fixed losses which can be attributed to the average flow through the canal network without variations. In the last part of this paper, an analysis of the expected benefits and costs accruing from system improvement permits derivation of a decision rule which may be used for analyzing the economic feasibility of lining in-place canals.     

THE WATER RESOURCES COUNCIL'S PROPOSED PRINCIPLES AND STANDARDS - AN ECONOMIC COMMENT1

The way the Water Resources Council proposes to measure the beneficial effects of national economic development and recreation is questioned and alternatives suggested. In measuring the former, the assumptions specified by the Council are questioned because they do not hold true in the market place. In addition, the Council's method of simulating a price per recreation day implies that an arbitrary price be selected from a range and multiplied times the number of days at no charge for use of the facilities. It is contended that these procedures would over state the economic benefits which in the real market would be measured by the selected price times the quantity demanded at that price.     

THE CONTINUING DEBATE OVER THE EXHAUSTION OF NONFUEL MINERAL RESOURCES

The author examines the various views of mineral scarcity, distinguishing between the physical view and the economic view of exhaustion, with the aim of clarifying where the debate stands now and why.     

WATER RESOURCES MANAGEMENT: INTERNATIONAL CHALLENGE AND OPPORTUNITIES1

The entire water resources field is not contemplated, although reference thereto will be registered. Water supply for potable and hygienic purposes will be presented as symbolic of the global issues confronting 4.8 billion people. Some two billion of these live in the so-called developing or less favored countries. They are either underserved or not served at all by utility systems of whatever grade. Targets for meeting their needs were exemplified by the international agencies in the International Water and Sanitation Decade of 1980-1990. Some successes are apparent, but, in general, hopes are not fulfilled. The pace of accomplishment is very slow. Constraints will be reviewed in some detail. Challenges for reducing these and increasing pace of installations are presented. The potential for a global public works program unprecedented in history is reviewed. Several issues will not be discussed in this paper. Their omission rests primarily upon the fact that their resolution is improbable for decades ahead, if ever. Economists have categorized water as any other economic commodity - and should always be subject to benefit-cost scrutiny. I do not share that view. People could well live without the telephone or the automobile, a destroyer. Without water, their survival is a matter of days. Cost-benefit seems unreal and singularly inappropriate under such circumstances. Secondly, the search for quantifying the health impact of safe water goes on forever. My view is that the results speak for themselves - while sturdy souls continue to seek out the exact correlation figure. Thirdly, the population explosion, although softened a bit, proceeds apace while I write. Lastly, the exposition herein is restricted to potable water and its associated sanitation aspects. Other major uses of water, obviously highly important, are not addressed.     

ECONOMIC COSTS AND BENEFITS OF INSTREAM FLOW PROTECTION FOR ENDANGERED SPECIES IN AN INTERNATIONAL BASIN1

ABSTRACT: The U.S. Endangered Species Act (ESA) restricts federal agencies from carrying out actions that jeopardize the continued existence of any endangered species. The U.S. Supreme Court has emphasized that the language of the ESA and its amendments permits few exceptions to the requirement to give endangered species the highest priority. This paper estimates economic costs associated with one measure for increasing instream flows to meet critical habitat requirements of the endangered Rio Grande silvery minnow. Impacts are derived from an integrated regional model of the hydrology, economics, and institutions of the upper Rio Grande Basin in Colorado, New Mexico, Texas, and Mexico. One proposal for providing minimum streamflows to protect the silvery minnow from extinction would provide guaranteed year round streamflows of at least 50 cubic feet per second in the San Acacia reach of the upper Rio Grande. These added flows can be accomplished through reduced surface diversions by New Mexico water users in dry years when flows would otherwise be reduced below the critical level required by the minnow. Based on a 44‐year simulation of future inflows to the basin, we find that some agricultural users suffer damages, but New Mexico water users as a whole do not incur damages from a policy that reduces stream depletions sufficiently to provide habitat for the minnow. The same policy actually benefits downstream users, producing average annual benefits of over $200,000 per year for west Texas agriculture, and over $1 million for El Paso municipal and industrial water users, respectively. Economic impacts of instream flow deliveries for the minnow are highest in drought years.     

WATER MARKETS AND DECENTRALIZED WATER RESOURCES MANAGEMENT: INTERNATIONAL PROBLEMS AND OPPORTUNITIES1

ABSTRACT: Because of its importance and the perceived inability of private sector sources to meet water demands, many countries have depended on the public sector to provide water services for their populations. Yet this has resulted in many inefficient public water projects and in inadequate supplies of good quality and reliable water. Decentralization of water management, including the use of water markets, cannot solve all of these water problems, but it can improve the efficiency of water allocation. When given adequate responsibility and authority, water user associations have effectively taken over water management activities at a savings to tax payers. Moreover, water markets add the potential benefit of improving water efficiency within a sector as well as providing a mechanism for reallocating water among sectors. The key question involves developing innovative mechanisms for reducing the transaction costs of organizing water users and of making water trades. Water rights need to be established which are recorded, tradable, enforceable, and separate from land if markets are to operate effectively. Also, institutions are needed that effectively resolve conflicts over water rights, including third party impacts and water quality concerns.     

INTERNATIONAL PROJECT FINANCE AND SECURITY FOR LENDERS

This article first traces the history of the legal and financial developments which led to the technique of project financing. It then discusses the present day crisis of confidence affecting international lending involving developing countries and the growing role of project finance in development.
The author analyses the structure of the main forms of project finance according to the types of recourse available, and examines commonly used risk assessment criteria. Production payments and project security are also described.
Cet article retrace d'abord l'évolution juridique et financière qui a conduit à la technique de financement de projets. ***Il discute ensuite de la crise de confiance actuelle qui affecte le système international de crédit aux pays en développement et le rôle croissant du financement de projets.
L'auteur analyse la structure des formes principals de financement de projets d'après les types de recours disponibles et examine les critères d'évaluation de risques couramment utilisés. Il discute également des paiements sur la production et de la stabilité des projets.
Este artículo traza primero la historia del desarrollo legal y financiero que cindujo a la técnica del financiamiento de proyectos. Luego analiza la crisis de confianza que afecta hoy día a los préstamos internacionales a los países en desarrollo y el rol creciente del financiamiento de proyectos en el desarrollo económico.
El autor analiza la estructura de las principales formas de financiamiento de acuerdo a los tipos de recursos disponibles y examina los criterios de evaluación del riesgo comunmente usados. Se describen también el pago de producción y la seguridad de proyecto.