GLOBAL SUBSIDIES INITIATIVE

Download: Towards a Common Methodology for Measuring Irrigation Subsidies

This discussion paper on the quantification of water subsidization marks the first step in a major research effort launched by the Global Subsidies Initiative in the area of irrigation subsidies. Irrigation subsidies may comprise a significant portion of a country’s budgetary expenditure. Badly directed subsidies may also contribute to the depletion of limited water supplies, distort decisions over which crops are produced, and artificially drive the volume of agricultural output to unsustainable levels. Also, for many horticultural products, subsidized, irrigated production in wealthier countries may potentially be compete unfairly with products grown in developing countries lacking the financial resources to match the levels of investment provided by their competitors.

The GSI's initial research effort focuses on the development of a methodology, providing researchers with a concise set of defined parameters to follow when quantifying irrigation subsidies and developing nationally comparable estimates. As part of this process, a discussion paper was prepared by Dr. Ravinder Malik, an irrigation subsidy expert working with the University of New Delhi, India. Dr. Ravinder’s paper, “Towards a Common Methodology for Measuring Irrigation Subsidies”, provides a detailed overview and comparison of a number of methods available to researchers seeking to quantify irrigation subsidies at a project, regional or national levels. The paper was is not intended to favour a particular approach over another, but rather to serve as an aid in helping to define the final methodology to be adopted by the GSI and associated research partners.

The findings from Dr. Ravinder’s discussion paper were presented at a workshop held jointly with the International Water Management Institute (IWMI) on the 26-27 March 2008, in Addis Ababa, Ethiopia. The workshop was attended by national experts from the International Commission on Irrigation and Drainage (ICID), the International Water Management Institute (IWMI), the Malawi Polytechnic, New Mexico State University, U.S.A., Middle East Technical University, Turkey, and the World Bank. Discussion during the workshop was directed at agreeing on a single recommended methodology for measuring irrigation subsidies to be captured in a subsequent paper, available here.