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Implications: ADB Operations


How does this policy fit with ADB's overarching goal of poverty reduction?

One in three Asians lack access to safe drinking water within 200 meters of the home, and several millions die annually of water-related diseases. It is the poor who suffer most from water shortages, and their access to water should become a priority for service providers. The natural environment, including water, is of crucial importance to the poor -especially the rural poor - because so many are forced to live on fragile lands and waters that need sensitive resource management. The water policy recognizes the critical impacts - on the poor in particular - of water scarcity, water pollution, and degradation of watersheds, and highlights the importance of better management of this resource.

Our water policy fully supports ADB's strategy for poverty reduction. It defines a sector approach in each country to address water issues that impact on poverty reduction. The implementation of the policy will help the poor to protect and develop their assets. Improved irrigation efficiencies will mean better use of scarce land resources. Better-managed watersheds will allow land to be more productive. Flood protection will give relief to the poor. Opportunities will be gained through time saved in accessing clean water and being put to productive use. Health will improve; fewer sick days will translate into higher productivity. The cumulative impacts of these benefits on the poor will be significant and represent a crucial synergy with ADB's poverty reduction strategy.

ADB is now preparing the water and poverty theme for the Third World Water Forum in collaboration with several interested development partners.

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How does this new policy affect future ADB lending in this sector?

Our water operations will change. This change will be reflected in lending, policy dialogue, technical assistance, capacity building, and regional cooperation. The water crisis in the region is essentially a water governance crisis. Under the new water policy, our projects will focus more on how to manage the available water resources in a sustainable way. Investments in infrastructure will be combined with components that improve water management and ensure that the needs of poor people are met.

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How does this new policy affect ongoing ADB projects?

We will consult with the executing agencies of ongoing projects to see where the implementation can be fine-tuned in support of the water policy. Midterm review exercises are usually a good opportunity for such adjustments.

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How will ADB's internal organization change to implement this policy?

We need better coordination among divisions concerned, and we will achieve this through teamwork. We will ensure that new projects respond to the water action agenda of the country concerned, and that water service projects take into account water resource management and conservation concerns. A water focal point has been established to provide better coordination.



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