Using the state agencies that regulate wastewater discharges to surface waters, this quantitative study examined the validity of three theories about the effects of decentralization on organizational outcomes. It also used qualitative analysis to probe the internal adjustments to optimize outcomes. Theoretical advantages to decentralized organizations can be summarized as greater effectiveness or greater efficiency. Effectiveness here is the rate of compliance with legal and permit requirements for dischargers adjusted for enforcement actions. The model used consists of decentralization independent variables, exogenous independent variables (e.g., population, funding), efficiency dependent variables, and compliance (or effectiveness) dependent variables. Model calibration applied principal component analysis and multiple regression analysis to questionnaire and other data for FY93 from 39 states. Key intervening variables -- information costs, innovation, and strategic planning -- characteristic of the theoretical effects of decentralization received special attention. Case studies based on interviews and document studies in five states illustrate key points. The large survey sample (78%) of the 50 states reduced threats to external validity. A significant relationship to decentralization was found for major permit processing time and percentage of expired permits. When controlled for exogenous variables, no compliance common factor related to decentralization, but medium-term compliance unit-cost did. Time is essential to all compliance common factors. Innovation, information cost, and strategic planning were not found to be intervening variables. Highly decentralized states were found to be trending towards increased centralization, and vice versa. All states make internal adjustments to optimize their programs, and some adjustments are powerful enough to make highly dissimilar organizations converge; strong basin planning is one such adjustment. Neither decentralization nor centralization is automatically the best way to organize a complex system. Devolution, where transfer of functions goes with significant delegation of authority to autonomous local units, would probably give superior environmental, economic, and administrative outcomes over a uniform approach.
Private sector involvement and user participation in water resource management are not new, say the authors. They give examples that demonstrate how willing users and the private sector are able to improve water use and play a larger role in water resources management. User participation and private sector involvement, if properly structured, can provide the incentives needed to stabilize and improve the efficiency of irrigation and water supply systems. They can add flexibility, transparency, and accountability and can reduce the state's administrative and financial burden. A 1989 World Bank review of 21 impact evaluations of irrigation projects, for example, found cost recovery to be excellent in those projects in which water management and operations and maintenance had been entrusted to water users. Greater private sector and user participation can effectively increase user responsibility for managing and financing water projects while freeing governments to focus on broader water resource management concerns. The authors provide examples of decentralized water management in developing country water supply and irrigation systems. Governments should: more actively regulate private sector exploitation of groundwater, especially for irrigation; take measures to encourage price competition among private suppliers of water for both domestic and agricultural uses; and play an active role in organizing water user associations, especially for irrigation and rural water supply systems, and in giving them technical assistance. As numerous examples highlight, such activities should be designed to reduce the transaction costs of organizing and to establish a sense of assurance and accountability within the water user community. Once this is done, the community can deal with problems associated with excludability and unwillingness to pay.
The significant progress made during the UN International Water Decade is reviewed, eight years after its inception in 1981. Major issues remain, especially in rural areas. The advantages of an integrated water resource planning framework (IWRP) are explained, including the use of this process to develop a flexible strategy for the water and sewerage sector to meet national policy objectives. Economic efficiency in supply implies optimal service quality and least cost planning, while efficient pricing policy requires the implementation of longârun marginal cost based tariffs. Better sector organization, management, accountability, options for decentralization and innovative financing methods are also discussed.
Given the increasing demand pressure on water resources coupled with supply holdups and institutional failures, fresh-water resources are increasingly susceptible to depletion and could potentially add to water stress in India. A vast demand-supply gap necessitates water conservation, including recycling measures. India has a great potential in wastewater treatment, and one of the ways to address it is decentralisation of wastewater treatment given its environmental benefits. Based on the Contingent Valuation Method (CVM), this study assesses Delhi urban householdsâ willingness to pay for the Operation & Maintenance (O&M) costs of a local Wastewater Treatment Plants (WWTP) that supplies residential complexes treated water for toilet-flushing. The study found that if freshwater prices rise sufficiently for consumers, they may be willing to subsidise a decentralized WWTP to cover at least their non-potable water uses. In addition, the co-provision of such public goods can become an important supplement to urban municipal finance.