{
  "title": "Is the Glass Half Empty Or Half Full?: Issues in Managing Water Challenges and Policy Instruments",
  "publication": "Staff Discussion Notes, June 2, 2015",
  "sourceUrl": "https://www.imf.org/en/publications/staff-discussion-notes/issues/2016/12/31/is-the-glass-half-empty-or-half-full-issues-in-managing-water-challenges-and-policy-42938",
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  "summary": "This paper examines water challenges, a growing global concern with adverse economic and social consequences, and discusses economic policy instruments. Water subsidies provided through public utilities are estimated at about $456 billion or 0.6 percent of global GDP in 2012.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Water challenges are a growing global concern with adverse economic and social consequences.\n- Water subsidies provided through public utilities are estimated at about $456 billion or 0.6 percent of global GDP in 2012.\n- Reforming water pricing and getting economic incentives right can encourage more efficient water use and support needed investment, while enabling policies that protect the poor.\n- Managing water effectively requires an integrated and holistic approach that goes beyond the water sector itself."
    },
    {
      "heading": "Analysis of economic policy instruments",
      "content": "- Pricing reform is emphasized as a central tool to correct incentives and promote efficiency in water use.\n- The paper discusses pricing reform options and mechanisms for protecting vulnerable populations while enhancing cost recovery.\n- Demand management and internalizing externalities are highlighted as important elements of an effective policy mix."
    },
    {
      "heading": "Role of macroeconomic and IMF engagement",
      "content": "- The IMF can play a helpful role in ensuring that macroeconomic policies are conducive to sound water management.\n- Macroeconomic frameworks should be aligned with water-sector objectives to facilitate investment and sustainable resource use."
    },
    {
      "heading": "Policy recommendations (summarized)",
      "content": "- Reform water pricing to better reflect scarcity, costs, and externalities while designing mitigating measures for the poor.\n- Adopt integrated, cross-sectoral approaches to water management rather than treating water policy in isolation.\n- Use a combination of demand management, pricing, and targeted support to achieve efficient allocation and protect vulnerable groups.\n\n---\n\n Content in this bundle\n\n- sdn1511 — Executive Summary\n  - sdn1511 — Executive Summary (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - sdn1511 — Executive Summary (PDF){rel=\"external\" type=\"application/pdf\"}\n- sdn1511tn\n  - sdn1511tn (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - sdn1511tn (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/staff-discussion-notes/issues/2016/12/31/is-the-glass-half-empty-or-half-full-issues-in-managing-water-challenges-and-policy-42938"
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    "Authors: Kalpana Kochhar, Catherine A Pattillo, Yan M Sun, Nujin Suphaphiphat, Andrew J Swiston, Robert Tchaidze, Benedict J. Clements, Stefania Fabrizio, Valentina Flamini, Laure Redifer, Harald Finger",
    "Published: June 2, 2015",
    "Series: Staff Discussion Notes",
    "DOI: https://doi.org/10.5089/9781484391198.006",
    "Water challenges are a growing global concern with adverse economic and social consequences.",
    "Water subsidies provided through public utilities are estimated at about $456 billion or 0.6 percent of global GDP in 2012.",
    "Reforming water pricing and getting economic incentives right can encourage more efficient water use and support needed investment, while enabling policies that protect the poor.",
    "Managing water effectively requires an integrated and holistic approach that goes beyond the water sector itself.",
    "Pricing reform is emphasized as a central tool to correct incentives and promote efficiency in water use.",
    "The paper discusses pricing reform options and mechanisms for protecting vulnerable populations while enhancing cost recovery.",
    "Demand management and internalizing externalities are highlighted as important elements of an effective policy mix.",
    "The IMF can play a helpful role in ensuring that macroeconomic policies are conducive to sound water management.",
    "Macroeconomic frameworks should be aligned with water-sector objectives to facilitate investment and sustainable resource use.",
    "Reform water pricing to better reflect scarcity, costs, and externalities while designing mitigating measures for the poor.",
    "Adopt integrated, cross-sectoral approaches to water management rather than treating water policy in isolation.",
    "Use a combination of demand management, pricing, and targeted support to achieve efficient allocation and protect vulnerable groups.",
    "**_sdn1511 — Executive Summary**",
    "**_sdn1511tn**"
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