Water Resources Management by the Government and Multilateral Development Banks: China and the World Bank

Abstract

The opponents of the Multilateral Development Banks involvement in water resource management argue that the market-based neoliberal strategy ultimately harms the poor and creates far-reaching social and environmental problems. Likewise, the emphasis on ownership and strong government control has traditionally prevailed in socialist China. However, with the apparent limitations of the government-led water projects undergone in China, the role of the Multilateral Development Banks (MDBs) in yielding more satisfactory results is increasingly gaining significance. This paper aims to show how the World Bank is increasingly accepting its role in the broader development in the environment and how it can establish a workable relationship with the government in enhancing institutional planning, regulating and operational capacities and promoting an integrated approach to water resource management. In order to achieve efficient water resources management, it is vital that governments adopt integrative institutional framework to enhance cooperation among administrative units while MDBs need to consider the unique social and political context of the Borrower. The paper concludes that the current water crisis requires collaborative efforts and complementary strengths of government and MDBs based on a strong commitment to sustainable development principles.