272
be drawn from the Israeli case example. The fi rst seven lessons are general in nature,
while the last three refer to water pricing:
1. Innovative solutions to improve water supply and high technical standards are
an important prerequisite to reduce water stress and improve the water situation. In Israel, major innovative technical solutions include new and innovative
types of irrigation systems in the agricultural sector, highly innovative desalination systems, advanced wastewater treatment facilities for the reuse of water
and the building of the corresponding infrastructure systems (e.g. water grid
systems).
2. An important prerequisite for building up water-related infrastructures are suffi cient fi nancial resources. In Israel these resources have been made available
since the foundation of the State of Israel. One important reason is that the
agricultural sector received highest priority within the political discussions.
Even though the signifi cance of agriculture decreased in budgetary terms (in
terms of the share of agriculture in the Israeli GDP), the agricultural sector is
still seen as very important, and therefore, considerable public expenditure is
devoted to this sector. A second reason for successfully fi nancing the water sector lies in the raising of revenues from the users of water resources.
3. Nevertheless, it is not suffi cient to just focus on water supply and the development and improvement of water infrastructure systems (and on the fi nancing of
these infrastructures). The improvement of existing and development of new
water supply systems is a necessity, but not suffi cient enough to improve the
overall water situation. Technical supply measures have to be accompanied by
management structures that complement technical developments, such as
appropriate forms of governance and institutional reform. In Israel this has been
achieved through comprehensive organisational reforms (the centralisation of
powers) and the introduction of water prices intended to incentivise users to use
water resources more effectively.
4. Strong institutions and the rule of law are preconditions for the successful
implementation of water policy reforms, which are often neglected when policy
makers and decision makers simply focus on technical solutions alone. If
adequate institutional structures do not exist, policy reforms will fail. Even if
technical solutions deliver success in the short run, links with institutional
structures are decisive for long-term sustainability. Institution building and
strengthening (with respect to water authorities, division of responsibilities
between actors, regulation, etc.) are therefore necessary preconditions before
any other reforms (such as pricing) can be introduced. Weak state institutions
impact on other reforms in water policies.
5. Time is needed to successfully develop infrastructure systems, not only for technical reasons (long construction periods for large infrastructures) but mainly
because they have to go hand in hand with institutional reform. As economic and
societal rules are deeply embedded in society’s legal system and culture, economic and societal changes have to be made gradually and with care. Even within
highly centralised organised water management institutions as in Israel, the
reshaping of the institutions (founding water authorities, defi ning and allocating
C. Bismuth et al.
be drawn from the Israeli case example. The fi rst seven lessons are general in nature,
while the last three refer to water pricing:
1. Innovative solutions to improve water supply and high technical standards are
an important prerequisite to reduce water stress and improve the water situation. In Israel, major innovative technical solutions include new and innovative
types of irrigation systems in the agricultural sector, highly innovative desalination systems, advanced wastewater treatment facilities for the reuse of water
and the building of the corresponding infrastructure systems (e.g. water grid
systems).
2. An important prerequisite for building up water-related infrastructures are suffi cient fi nancial resources. In Israel these resources have been made available
since the foundation of the State of Israel. One important reason is that the
agricultural sector received highest priority within the political discussions.
Even though the signifi cance of agriculture decreased in budgetary terms (in
terms of the share of agriculture in the Israeli GDP), the agricultural sector is
still seen as very important, and therefore, considerable public expenditure is
devoted to this sector. A second reason for successfully fi nancing the water sector lies in the raising of revenues from the users of water resources.
3. Nevertheless, it is not suffi cient to just focus on water supply and the development and improvement of water infrastructure systems (and on the fi nancing of
these infrastructures). The improvement of existing and development of new
water supply systems is a necessity, but not suffi cient enough to improve the
overall water situation. Technical supply measures have to be accompanied by
management structures that complement technical developments, such as
appropriate forms of governance and institutional reform. In Israel this has been
achieved through comprehensive organisational reforms (the centralisation of
powers) and the introduction of water prices intended to incentivise users to use
water resources more effectively.
4. Strong institutions and the rule of law are preconditions for the successful
implementation of water policy reforms, which are often neglected when policy
makers and decision makers simply focus on technical solutions alone. If
adequate institutional structures do not exist, policy reforms will fail. Even if
technical solutions deliver success in the short run, links with institutional
structures are decisive for long-term sustainability. Institution building and
strengthening (with respect to water authorities, division of responsibilities
between actors, regulation, etc.) are therefore necessary preconditions before
any other reforms (such as pricing) can be introduced. Weak state institutions
impact on other reforms in water policies.
5. Time is needed to successfully develop infrastructure systems, not only for technical reasons (long construction periods for large infrastructures) but mainly
because they have to go hand in hand with institutional reform. As economic and
societal rules are deeply embedded in society’s legal system and culture, economic and societal changes have to be made gradually and with care. Even within
highly centralised organised water management institutions as in Israel, the
reshaping of the institutions (founding water authorities, defi ning and allocating
C. Bismuth et al.