Effectiveness of irrigation water management institutions in Zimbabwe: a new institutional economics theory approach

Abstract

Water policymakers around the world currently face a challenging task of managing water resources that have deteriorated due to overuse or mismanagement and Zimbabwe is not spared in this challenge. The neo-classical economics approach is limited in its approach to water management and is increasingly being questioned on its ability to provide answers to the many economic problems and issues in low- as well as high-income countries. As such, there is scope for alternative, multi-dimensional approaches. The New Institutional Economics (NIE) tradition offers one such alternative and provides an exciting and challenging new paradigm. The NIE can provide an alternative and more holistic approach to agricultural water resources management. Institutions do structure economic forces and play an important role in expanding human choice, a fundamental goal of economic development. However, when considering agricultural water management, formal institutions tend to overshadow the local informal ones, although the latter guide the day-to-day interactions on water use. A study was carried out to evaluate how the formal water management institutions and the informal institutional arrangements influence irrigation water management in Mashonaland East Province in Zimbabwe. The objective was to evaluate the effectiveness and institution-performance linkages of the irrigation water institutions, with more emphasis on the effectiveness of formal and informal institutions in dealing with efficient irrigation water management. The NIE emphasises the need to focus, alongside formal institutions, on social institutions such as cultural norms and behavioural attitudes towards agricultural water resources. Therefore, this thesis presents the application of the NIE analytical framework to the problems of agricultural water resources management. The descriptive results of the study revealed the importance of both the formal and informal institutions in managing water resources, in particular, water law provisions to promote private sector participation, influence of other policies on the water policy, capacity to administer water resources and impact of private sector participation on water administration burden. However, most of the variables were either non-existent or non-effective to assist in the management of water resources. With regards to the role and significance of irrigation water management institutions in the management of water resources, the research found significant relationship between the formal- and informal institutions and their components. Notably was the significance relationship between the informal institutions and water law, policy and administration, with t-statistic values of 0.173, 0.314 and 0.279 respectively, which were all significant and positive at the 10% significance level. This suggests a clear relationship between the informal institutions and the formal institution, implying policy-makers cannot afford to ignore the informal institution when they are dealing with water management institutions. The study concludes that the interplay mechanisms between the formal and informal water institutions such water law, policy administration as well as norms, ideas and incentives do promote effective institutional interplay and may serve to overcome coordination problems of irrigation water management. Moreover, it is expected that institutional interplay will improve over time resulting in sustainable irrigation water management. The study concludes that informal water management institutions work together with the formal water management arrangements and should not be simply overlooked. In addition, future water irrigation management objectives in Zimbabwe must prioritise irrigation water development and management institutions in communal, small-scale commercial, and resettlement areas, both new and old schemes. Although markets were not under the scope of the study, they play a crucial role in poverty alleviation and rural livelihood improvement as they provide an arena in which agricultural produce is traded, and different services to the water sector are provided, and interactions with the wider economy, takes place. As such, there is need to open markets to new water users among communal, small-scale commercial and resettlement farmers and there is need for the government, private sector and non-governmental organisations to actively intervene and promote the engagement of new water users with markets. The study therefore recommends that the formal and informal institutions should be amalgamated to bring forth a real integrated irrigation water resource management framework. Water management practitioners, governments and private sector should not uncritically embrace the formal state-based institutions as a panacea for irrigation water management. The government, private sector, local water users and other stakeholders dialogue and agree on the basis, modality, policy and procedures for managing irrigation water resources.