Review of sectoral clusters, first phase: health, human settlements and freshwater : freshwater resources : report of the Secretary-General

This thematic report begins by assessing the main causes of freshwater scarcity including population growth in developing countries, pollution, rapid growth of urban centres, increased irrigation needs for food production, over-extraction of groundwater, and disasters such as floods and droughts. It stresses that water scarcity relative to demand is a global problem and that without a concerted effort to deal with economic growth, poverty and a more equitable distribution of income, developing countries will not be able to cope with issues related to the long-term sustainability of land and water development. The body of the report presents a review of progress achieved in the programme areas of Chapter 18 of Agenda 21 and international cooperation including national experiences in both industrialized and developing countries. The section on finance points out that financial allocations from Governments, the international community, and users are falling short of resources needed for the implementation of Chapter 18 of Agenda 21, thus affecting water resources assessment activities which are essential to development and management activities. In considering the rising costs of securing adequate water supplies it stresses that increasing attention should be given to user fees and to the issue of subsidies, particularly subsidies to large irrigation projects which then limit the generation of funds for operation and maintenance and for capital investments. It assesses the "polluter pays" principle and the concept of trading pollution allowances to reduce pollution levels and to finance technologies for this and notes that the private sector is increasing its role as a source of investment capital using the "build-operate-transfer" approach to water projects. The report concludes with a draft decision document summarizing the commission's conclusions and proposals for action.