169
© The Author(s) 2016
R.F. Hüttl et al. (eds.), Society - Water - Technology, Water Resources
Development and Management, DOI 10.1007/978-3-319-18971-0_12
Chapter 12
Theory, the Market and the State:
Agricultural Reforms in Post Socialist
Uzbekistan Between Economic Incentives
and Institutional Obstacles
Bernd Hansjürgens
Abstract Water pricing is seen as an important element in effi cient water resource
management. By providing information about water resource scarcity, water prices
can make explicit the value of water and can set adequate incentives for water users
to use water more sustainably. However, designing effi cient water resource pricing
schemes is dependent on many prerequisites that are hard to fulfi l. In this chapter,
we contrast the prerequisites of water pricing with real-world contexts in the Fergana
Valley. We show that many prerequisites for water pricing are not met in this area,
so that water pricing reforms are unable to perform the functions usually associated
with water prices. Nevertheless, it is possible to articulate a number of steps toward
a reform of the agricultural sector which may at least point the way towards a more
sustainable use of water resources.
Keywords Water scarcity • Fergana Valley • Water resources • Effi cient water pricing • Water services • Interdependence of orders • Design elements • Institutional
obstacles • Agricultural sector • Paths for reform • Water rights • Water users
associations
12.1 Introduction: The Need to Price Water Resources
in the Fergana Valley
Water scarcity refers to a situation in which water demand exceeds water supply.
While many people assume that water scarcity is a problem of absolute scarcity (i.e.
water not being available at all), the economic approach addresses water scarcity as
a relative problem, meaning that the needs of those who wish to use water for certain
B. Hansjürgens (*)
Department of Economics , Helmholtz Centre for Environmental
Research – UFZ , Permoserstraße 13 , 04318 Leipzig , Germany
e-mail: bernd.hansjuergens@ufz.de
© The Author(s) 2016
R.F. Hüttl et al. (eds.), Society - Water - Technology, Water Resources
Development and Management, DOI 10.1007/978-3-319-18971-0_12
Chapter 12
Theory, the Market and the State:
Agricultural Reforms in Post Socialist
Uzbekistan Between Economic Incentives
and Institutional Obstacles
Bernd Hansjürgens
Abstract Water pricing is seen as an important element in effi cient water resource
management. By providing information about water resource scarcity, water prices
can make explicit the value of water and can set adequate incentives for water users
to use water more sustainably. However, designing effi cient water resource pricing
schemes is dependent on many prerequisites that are hard to fulfi l. In this chapter,
we contrast the prerequisites of water pricing with real-world contexts in the Fergana
Valley. We show that many prerequisites for water pricing are not met in this area,
so that water pricing reforms are unable to perform the functions usually associated
with water prices. Nevertheless, it is possible to articulate a number of steps toward
a reform of the agricultural sector which may at least point the way towards a more
sustainable use of water resources.
Keywords Water scarcity • Fergana Valley • Water resources • Effi cient water pricing • Water services • Interdependence of orders • Design elements • Institutional
obstacles • Agricultural sector • Paths for reform • Water rights • Water users
associations
12.1 Introduction: The Need to Price Water Resources
in the Fergana Valley
Water scarcity refers to a situation in which water demand exceeds water supply.
While many people assume that water scarcity is a problem of absolute scarcity (i.e.
water not being available at all), the economic approach addresses water scarcity as
a relative problem, meaning that the needs of those who wish to use water for certain
B. Hansjürgens (*)
Department of Economics , Helmholtz Centre for Environmental
Research – UFZ , Permoserstraße 13 , 04318 Leipzig , Germany
e-mail: bernd.hansjuergens@ufz.de