Allocation efficiency is not Low productive agriculture due to low-yield crops allocation. pursued (water transfers Farmers are not given incentives to be efficient (low end-use efficiency). prohibited). A welfare approach for state Subsidized water tariffs (irrigation and domestic). investment and expenditures. Private initiatives are discouraged; therefore a lack of private investment for water resources development and for responding the demand. No access to water supply for High incidence of infant mortality and water-related diseases among deprived families. 38% of rural families; no basic Increasing poverty in deprived people. sanitation services for 70% of rural families. Source: Adopted from Alegria (2007), Table 6, pp. 9-10. Table 2: Water-Authority-Related Problems in Peru Cause Effects Water authority is subordinated to Water authority decisions are biased to agricultural sector, which limits its leadership. the agricultural sector administration. Water authority lacks a comprehensive view of the problems; therefore it cannot accurately assess supply and demands, nor propose solutions. Concentration of power of the public Laws and norms are not appropriate for regions and provinces administration at the central level outside of Lima. Government decisions and actions are not supported by (capital city of Lima). people. with water Unjust and/or incorrect decisions are made Politicians’ interference against society’s interests. decisions and/or authorities’ Water tariffs do not cover O&M, water conservation nor noncompliance of the law. water treatment costs. Public budget is wasted or ineffectively allocated. Fragmentation, overlapping and/or Inefficient and/or ineffective use of scarce public budget. poor coordination between various Pollution and depletion of water resources. state water-related agencies. Corruption of some functionaries and Sense of mistrust and discontent among the people in relation to government actions. officials. Pollution and depletion of water resources Insufficient budget to fulfill functions and plans cannot be accomplished. Agencies’ and plans. agencies’ functions Illegal and informal users in water Financial deficit by water management organizations. supply systems (irrigation and Encouraging a norm-disobedient culture. domestic), with no sanctions. Source: Adopted from Alegria (2007), Table 7, p. 11. One can conclude from the above tables that water and sanitation problems stem from poor Peru’s policy and a partially ineffective water authority. The failures to implement good policy country’s
Allocation efficiency is not pursued (water transfers prohibited). Low productive agriculture due to low-yield crops allocation. Farmers are not given incentives to be efficient (low end-use efficiency). A welfare approach for state investment and expenditures. Subsidized water tariffs (irrigation and domestic). Private initiatives are discouraged; therefore a lack of private investment for water resources development and for responding the demand. No access to water supply for 38% of rural families; no basic sanitation services for 70% of rural families. High incidence of infant mortality and water-related diseases among deprived families. Increasing poverty in deprived people. Source: Adopted from Alegria (2007), Table 6, pp. 9-10. Table 2: Water-Authority-Related Problems in Peru Cause Effects Water authority is subordinated to the agricultural sector administration. Water authority decisions are biased to agricultural sector, which limits its leadership. Water authority lacks a comprehensive view of the problems; therefore it cannot accurately assess supply and demands, nor propose solutions. Concentration of power of the public administration at the central level (capital city of Lima). Laws and norms are not appropriate for regions and provinces outside of Lima. Government decisions and actions are not supported by people. Politicians’ interference with water authorities’ decisions and/or noncompliance of the law. Unjust and/or incorrect decisions are made against society’s interests. Water tariffs do not cover O&M, water conservation nor water treatment costs. Public budget is wasted or ineffectively allocated. Fragmentation, overlapping and/or poor coordination between various state water-related agencies. Inefficient and/or ineffective use of scarce public budget. Pollution and depletion of water resources. Corruption of some functionaries and officials. Sense of mistrust and discontent among the people in relation to government actions. Pollution and depletion of water resources Insufficient budget to fulfill agencies’ functions and plans. Agencies’ functions and plans cannot be accomplished. Illegal and informal users in water supply systems (irrigation and domestic), with no sanctions. Financial deficit by water management organizations. Encouraging a norm-disobedient culture. Source: Adopted from Alegria (2007), Table 7, p. 11. One can conclude from the above tables that Peru’s water and sanitation problems stem from poor policy and a partially ineffective water authority. The country’s failures to implement good policy