1.2. The Systems Approach to Solving Water Resources
Problems
9
of the program or project to the probable later developments needed or to be
undertaken in the basin and the reasons for proposing to proceed with the proposed program or project independently. [U.S. Congress, Senate, 1962]
One of the primary reasons why governments at all levels, rather than
private companies, have accepted responsibility for water resources development is that water resources projects are capital-intensive and have
long gestation periods, making them unattractive for private investments.
Perhaps a more important reason is that water resources projects have
very large indirect or secondary benefits that cannot be captured by private
investors. Thus most governmental agencies as well as the public have
accepted the hypothesis that water resources development leads to a great
many supplementary benefits and opportunities.
It should be recognized that promotion of economic development through
water resources projects may have caused an overinvestment in these
fields in many countries [Tinbergen, 1964]. As explained by Hirshleifer
et at. [1960], the reasons for the prevalence of overinvestment in water
resources are complex, but certainly other factors besides economic development come into play. One possible explanation is that the policy
maker(s) have personal preferences for monumental projects, so that they
will be heroes not only in their own time but to later generations.
1.2. The Systems Approach to Solving Water Resources Problems
In recent years governmental agencies as well as private organizations
have sought to cope more successfully with large, complex problems in the
area of water resources by systems analysis. A system in general is an arbitrarily isolated combination of elements (abstract and arbitrary subdivisions) of the real world. Usually the elements correspond to physical
components of the real world, as illustrated in Fig. 1.3 for a river basin—
components such as rivers, dams, sources of water, and users of water.
The mathematical representation of the system is termed the (mathematical) model of the system. It would be misleading to offer a definition
of the systems approach with the pretense that it would be universally
accepted. Nevertheless, it is generally agreed that the systems approach
represents an attempt to find answers to questions that are posed regarding
complex assemblies of physical systems with interaction between the subsystems. Systems analysis is undertaken in order to make rational decisions
insofar as possible as to the optimal design, selection, or operation of a
physical system. As might be expected, systems analysis is primarily useful
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