USAID Blue Revolution Initiative

Water Security Challenges. Many countries in the ANE and AFR regions, particularly those in the Middle East, face a looming water crisis that is a potential source of conflict between countries. In addition, health conditions, especially diarrhea disease, resulting from inadequate water supply, sanitation, and hygiene, remain large burdens in the region. Government capacity to address these growing problems remains a significant challenge.

To avert conflict and meet the basic human need for water, ANE countries will need to pursue a different path to water resources development and management with bold, concerted action by governments, water users, donors, and the private sector working in partnership. In response to this crisis, USAID is launching the Blue Revolution Water Initiative and Water for the Poor Strategy that will introduce new approaches that emphasize integrated water conservation and management, collaborative problem solving of water disputes, more efficient and productive use of water, and development of alternative sources of water. In particular, the Blue Revolution and Water for the Poor Strategy will:

1. Develop and/or strengthen regional institutions and processes that promote the dissemination of best practices and support the cooperation and joint management of shared water resources
2. Enhance efficiency and productivity of water use in agriculture.
3. Identify and spread innovative infrastructure financing mechanisms (e.g., pooled finance, revolving funds) and disseminate good practices and successes in sustainable water development and management across the region. .
4. Provide a forum for raising and discussing sensitive issues (e.g., water pricing, reuse of wastewater, regulatory reform) and strengthen technical working relationships between countries around water development issues.
5. Promote innovative approaches for expanding effective sanitation and hygiene.
6. Provide a mechanism for channeling assistance to countries dealing with transboundary and river basin issues in the Middle East and Africa (e.g., Tigris-Euphrates and Nile Basin) and for promoting cross-border cooperation.
7. Establish a foundation for attracting other donor, private sector, or foundation support, and increase opportunities for U.S. private investment.

In the ANE region, agriculture consumes 85% of available water and employs more than 50% of the labor force. Broad-based agriculture development reduces poverty, contributes to food security, and supports overall economic growth. However, decreasing availability of water is threatening to constrain agricultural production. Moreover, as urban areas grow, the demand for water resources is likely to increase, requiring shifts of water away from agriculture – a socially and politically sensitive issue. Addressing water use in agriculture will be a crucial area for future water use management. Encouraging the shift toward higher value uses will require a number of actions including reduction of subsidies; increased technical efficiency of irrigation; development of strategies to regulate, monitor, and control groundwater extraction; and potential reallocation of water from low-value irrigation by trading water rights.

Financing water infrastructure is a major development need and challenge throughout the ANE region. According to World Bank, raising region-wide coverage to 90 % for water supply and 80 % for sewage and sanitation just in the Middle East may cost as much as $5 billion annually. Funds from public sector donors alone are expected to meet less than 5 % of the increased financing requirements. Access to clean drinking water and sanitation for much of the world will only become a reality through substantial municipal and private sector investment. The Blue Revolution will provide strategic support to establish enabling environments and pooled financing mechanisms to attract municipal and private sector investment for water infrastructure.