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Abstract
Latin America and the Caribbean are relatively well endowed with water resources.
However, population growth and rapid urbanization are putting considerable pressure on
water available for irrigation. Local and regional water scarcity problems are exacerbated by
severe water quality problems; and wastewater is frequently used for irrigation. Moreover,
prospects for new investments into irrigation development appear limited.
This paper examines the factors underlying irrigation development in Latin America
and the Caribbean, reviews the water supply situation, and describes trends in water demand
and irrigated agriculture. The overall water management in the region is assessed, and recent
trends in investments in the water sector, with a focus on large-scale irrigation systems, are
analyzed.
The paper concludes that in this context of accelerating demand and declining
irrigation investments, new water development is not the primary solution to water resource
challenges in the region. Much greater attention is needed on water policy and management
reform to improve the efficiency and equity of irrigation and water supply systems. In order
to pay for future investments, irrigated agriculture needs to produce high-value crops for both
local consumption and exports into competitive world markets. Policies to officially transfer
management responsibilities from agencies to farmers - and to privatize urban water supply
and sanitation - are increasingly important. The complex tradeoffs across sectors and across
water uses can best be managed through integrated water management at the river basin
level—but developing appropriate institutions for intersectoral water allocation remains an
important challenge under the fragmented management structure in most of Latin America
and the Caribbean. Thus, the challenges for water policymakers in the region are great, but a
strategy that focuses on river basin management, irrigation management transfer and
privatization, and market-based water allocation can effectively address these challenges.