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Institutional Economics Approach to Irrigation Management with Special Reference to Developing Asian Countries

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Author Info
Gamini Herath () (Deakin University)
Mokhtharul Wadud () (Deakin University)

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Abstract

Many countries in Asia, Africa and Latin America have turned over irrigation systems to farmer groups. There is general consensus that neoclassical economics has failed to address many issues in irrigation water management. Institutional issues have been at the heart of some of these failures. The New Institutional Economics (NIE) has been used by policy makers to address issues with respect to irrigation water manageemnt. The NIE by focusing on transactions costs and collective action procedures were able to overcome some of the critical bottlenecks in improving productivity of irrigation. The NIE also highlights the need to pay attention to the informal institutions such as rotational irrigation in developing countries and initiate irrigation management transfers to water user associations. The WUAs have shown much promise yet many problems need to be resolved to further improve irrigation water use. Water pricing is still at its infancy despite some limited experiences. Until the institutional and technological problems are simplified pricing will remain less effective.

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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2007_07eco.pdf
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Publisher Info
Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2007_07.

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Length: 35 pages
Date of creation: 17 Oct 2007
Date of revision:
Handle: RePEc:dkn:econwp:eco_2007_07

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  1. Besley, Timothy & Coate, Stephen, 1995. "Group lending, repayment incentives and social collateral," Journal of Development Economics, Elsevier, vol. 46(1), pages 1-18, February. [Downloadable!] (restricted)
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  2. Daniel Bromley, 1992. "The commons, common property, and environmental policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(1), pages 1-17, January. [Downloadable!] (restricted)
  3. Vermillion, Douglas Lynn & Al-Shaybani, S., 2004. "Small dams and social capital in Yemen: How assistance strategies affect local investment and institutions," IWMI Research Reports H034855, International Water Management Institute. [Downloadable!]
  4. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2000. "Growth and poverty in rural China: the role of public investments," EPTD discussion papers 66, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Wade, Robert, 1987. "The Management of Common Property Resources: Finding a Cooperative Solution," World Bank Research Observer, Oxford University Press, vol. 2(2), pages 219-34, July.
  6. Rudd, Murray A., 2000. "Live long and prosper: collective action, social capital and social vision," Ecological Economics, Elsevier, vol. 34(1), pages 131-144, July. [Downloadable!] (restricted)
  7. Paul Vandenberg, 2002. "North's institutionalism and the prospect of combining theoretical approaches," Cambridge Journal of Economics, Oxford University Press, vol. 26(2), pages 217-235, March.
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