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Chapter 5: Society and the Value of Water



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Chapter 5: Society and the Value of Water


In keeping with Agenda 21 and the Dublin Principles, the international community has accepted the notion of water as an economic good as opposed to a common resource. This supported the use of economic theory in developing water resources management strategies. Accordingly, by applying water in economic value to we are better able to “effect the environmentally, socially, and economically efficient use of water.”(Rogers, Bhatia, and Huber, 1998) As a result water policy has referred to economic theory and modeling to support policy decision-making. As water is generally not positioned in an efficient market setting multi-period, multi-location systems analysis models are often introduced.(Anandalingam, Bhatia, and Cestti 1991; and Harshadeep, 1995) However, it must be kept in mind, that as water has unique properties as it is a valuable, necessary resource with limited supply that supports life, community and prosperity at varying levels it supports unique and changing values. As a result, economic models have been enhanced by the introduction of externalities and transaction costs, namely pollution, aquifer depletion, social welfare, and equitable repartition. A study of Figuig and its history confirms the applicability of many economic principles. However, a value factor (not to be confused with economic value) overwhelmed water resources management in the Oasis.

While economic value is influenced by utility, positive and negative externalities, willingness to pay, opportunity costs, and external options, social value derived from history, often has a significant impact on market behavior beyond price. In the case of Figuig, a rich folkloric history of water conflicts, suggests that water was valued beyond its economic utility.

Understanding the value of water and economic and social incentives to support effective water management is essential. Without an appreciation of how a community, thus an individual, assigns value it is difficult to understand market behavior. The case of Figuig, as the following discussion illustrates, suggests that price has a limited role in demand management.

While the global consensus supports the notion that institutions are important, there is not enough attention focused on the importance of time and value, beyond economic value in supporting effective development. For instance, in Figuig, the Water Councils were effective institutions because they evolved from the value society assigned to its water. Hence, they gained authority and the trust of the community

Douglas North talks about the importance of institutions and time.(North, 1993) He posits, time allows for learning, thus individuals, groups and societies develop institutions relative to their needs within the context of social, political, legal, and environmental realities.(North, 1993) The valuable water source is, in fact, what history shows, led to the establishment of the society within the water-scarce desert. The value of water has driven all aspects of life in the community and has supported a sustainable lifestyle that incorporated an appreciation for its properties and limits.

Path Dependency


While the importance of history as a key element of IWRM among scholars is generally appreciated, many neo-classical economists failed to incorporate its effect on market behavior. They contend that economic behavior is exclusively driven by economic profit maximization. In many communities, such as in the case of Figuig, such an assertion does not hold true. To suggest that behavior is driven by the need to maximize profit over simplifies, or even ignores, the values of society that drive behavior. In the case of Figuig, community, independence, and sustainability support a tradition of conservation and effective water management.(Figuig interviews, 2005) According to sophist tradition, a guiding philosophy of society in Figuig, wealth accumulation is encouraged only to the extent it supports the goals of the community. Wealth should not be flaunted, and individuals should live humbly, according to these principles.(Figuig interviews, 2005) Path dependency theory suggests that economic behavior is developed over time and is influenced by many factors, including history and tradition that is established relative to a community’s experiences and moral values.(North, 1993)

For centuries, Figuig was a sustainable community, with a water source controlled by a balanced system of institutions that led to a robust governance structure (See Chap 4). The system developed relative to its environment, values, culture and history proved sustainable. Tradition allowed for trust and cooperation, and a commitment to the survival of the Oasis. The relative trust and respect for regional and national supports that encouraged local institutional development demanded social and environmental responsibility.

Until the post-independence era (post 1956) national policy supported the oasis’ relative independence, as it was not a threat to the political establishment. Further its geographical location along the Algerian border proved beneficial to establishing Morocco’s claim to that area. Figuig could rely on national institutions, but due to its tradition of independence, it seldom chose to seek outside support. As a result, a robust system of interdependencies between local, regional and national institutions developed in a mutually supportive and balanced governance system that sustained the community and its resource base for centuries.

Following independence from the French, a new national government system extended its reach and imposed administrative functionaries that usurped institutional responsibilities and undermined the balanced governance system by taking over controls and by neglecting the need for social, political, and legal supports. As policy changed, so did society. This dramatic change undermined the path of development that supported the system for generations. The dissolution of established institutions to assert a more powerful central government presence challenged tradition and supported social change that today has left communities such as Figuig in crisis.



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