Is the Glass Half Empty Or Half Full?

Issues in Managing Water Challenges and Policy Instruments

Business & Finance, Economics, Money & Monetary Policy, Macroeconomics
Cover of the book Is the Glass Half Empty Or Half Full? by Kalpana Ms. Kochhar, Catherine  Ms. Pattillo, Yan Ms. Sun, Nujin Mrs. Suphaphiphat, Andrew Swiston, Robert Mr. Tchaidze, Benedict Mr. Clements, Stefania Ms. Fabrizio, Valentina Flamini, Laure Ms. Redifer, Harald Mr. Finger, INTERNATIONAL MONETARY FUND
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Author: Kalpana Ms. Kochhar, Catherine Ms. Pattillo, Yan Ms. Sun, Nujin Mrs. Suphaphiphat, Andrew Swiston, Robert Mr. Tchaidze, Benedict Mr. Clements, Stefania Ms. Fabrizio, Valentina Flamini, Laure Ms. Redifer, Harald Mr. Finger ISBN: 9781513545387
Publisher: INTERNATIONAL MONETARY FUND Publication: June 8, 2015
Imprint: INTERNATIONAL MONETARY FUND Language: English
Author: Kalpana Ms. Kochhar, Catherine Ms. Pattillo, Yan Ms. Sun, Nujin Mrs. Suphaphiphat, Andrew Swiston, Robert Mr. Tchaidze, Benedict Mr. Clements, Stefania Ms. Fabrizio, Valentina Flamini, Laure Ms. Redifer, Harald Mr. Finger
ISBN: 9781513545387
Publisher: INTERNATIONAL MONETARY FUND
Publication: June 8, 2015
Imprint: INTERNATIONAL MONETARY FUND
Language: English

This paper examines water challenges, a growing global concern with adverse economic and social consequences, and discusses economic policy instruments. Water subsidies provided through public utilities are estimated at about $456 billion or 0.6 percent of global GDP in 2012. The paper suggests that getting economic incentives right, notably by reforming water pricing, can go a long way towards encouraging more efficient water use and supporting needed investment, while enabling policies that protect the poor. It also discusses pricing reform options and emphasizes an integrated and holistic approach to manage water, going beyond the water sector itself. The IMF can play a helpful role in ensuring that macroeconomic policies are conducive to sound water management.

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This paper examines water challenges, a growing global concern with adverse economic and social consequences, and discusses economic policy instruments. Water subsidies provided through public utilities are estimated at about $456 billion or 0.6 percent of global GDP in 2012. The paper suggests that getting economic incentives right, notably by reforming water pricing, can go a long way towards encouraging more efficient water use and supporting needed investment, while enabling policies that protect the poor. It also discusses pricing reform options and emphasizes an integrated and holistic approach to manage water, going beyond the water sector itself. The IMF can play a helpful role in ensuring that macroeconomic policies are conducive to sound water management.

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