Looking beyond Davos 2008

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: governments and institutions in Asia mean for these organisations? In the past, they have habitually sermonised others on prudential norms, risk management, capital adequacy and oversight expertise.

Two other engaging concerns were water and food security. I participated as a panelist in the session on “Who is managing your water?” It was generally agreed that the world’s supply of fresh water is coming under pressure. Rising water consumption, demand from a growing world population, increased industrial needs and effects of climate change are contributing to growing water crisis. More than 1.5 billion people lack access to clean water. The poor suffer most from water poverty, and two million deaths take place every year from diarroheal diseases alone. Broadly speaking, agriculture uses 70% of the world’s water supply. Therefore, the need for research and adaptation of cropping patterns which are more water economical is central to another Green Revolution. This is all the more so because the International Food Policy Research Institute predicts that humans would draw 50% more water by 2025 for non-agricultural uses.

Management of water has three significant components. First, we need far greater coordination among institutions. Too many people, ranging from the local to provincial, national and international authorities, are trying to manage water. Each lacks accountability.

Second, there are regulatory uncertainties. The absence of contemporary water laws for multiple uses, enforcement agencies and dispute resolution mechanisms, all lead to mismanagement.

Third, there are political ambiguities. We must reconcile egalitarian principles with sustainability. How to price water in a fair manner has multiple responses. For example, how much should we charge farmers, or what kind of differential water tariffs should be applied to the poor in urban conglomerates, especially given the conspicuous consumption of swimming pools at five-star hotels?

Food security was the other big topic. The year 2007 saw a dramatic increase in the prices of corn and wheat. This was both on account of rising demand and switching land use to biofuels with government incentives for renewable energy. Corn and wheat prices have doubled if not tripled. This has serious consequence for many developing countries that are food importers, particularly in Asia and Africa. Keeping food prices affordable as well as managing climate change is a challenge for the world’s scientists, and India must play a leading role.