at both the institution and human resource levels
cannot be excluded if IWRM is to be effective and
sustainable.
The IWRM approach seeks to address
complicated problems, namely sustainable
water resources development and cross-sectoral
planning (Jeffrey & Gearey, 2006). It will be more
challenging when dealing with the uncertainty
of water-related issues such as climate change.
Such uncertainty is an unwelcome factor, where
bad decisions can lead to more serious impact
(Jeffrey, 2006). Solving the uncertainty in
resources problems requires scientific research
to identify solutions. Policy makers must able to
direct the policy and management alternatives in
order to overcome the uncertainty of water issues
with support from research institutions. Greater
emphasis on adaptive management defined as
an integrated and multidisciplinary approach to
address the uncertainty of natural resources,
is currently being promoted (Walters, 1986;
Medema and Jeffrey 2005). Reliable decision
can only be made based on the solution derived
from series of scientific procedures (Holling,
1978; Walters, 1986; McDaniels and Gregory,
2004). Medema and Jeffrey (2005) stated that
an adaptive management approach could be
applied to create a continuous integrated water
resource management cycle and address a wider
set of options in line with different local context
and situations. For example, water policy must be
able to respond to the needs and demands of a
growing population and economy, in which new
uncertainties will be more apparent in the future.
Conventionally, economic development
is separated from water development and
management. Nevertheless, population growth
and economic pressures have increased the
demand on water resources. Policy makers
have started to integrate the sustainable water
management in national development as part of
the three pillars of environmental sustainability,
social equity, and economic efficiency. Likewise,
the overlapping of these pillars cannot be avoided
in an IWRM system. Thus, it is critical to understand
how each of these pillars may be integrated.
Water resources management does not just focus
on the sustainability of water resources but also
the provision of water resources for economic
development. Water resources can be used as a
tool to alleviate community poverty. The provision
of water is generally utilised in developing
countries to maximise the benefits of economic
and social welfare. Historically, economic growth
has transformed natural resources assets into
different forms of capital. The fourth Dublin IWRM
principle is as “…….recognise water as economic
good” (GWP, 2003). Maintaining ecosystems
services are recognised as crucial for sustainable
development that can support economic and
social development (Lafferty, 2002; OECD
2001:9). Water resources can be the essential
element in maintaining national economic
growth whether it is in supporting or provisioning
position. It should have an economic value that
individuals are able to pay for in order to obtain
services. If water is viewed as free resource,
whether it is an upstream or downstream source,
it is seldom in the short term interest of users
to voluntarily limit their consumption (Jeffery,
2006). Appropriate cost pricing system needs to
be considered in any IWRM system to gain the
benefit from water resources. In assessing the
value of water resources, decision makers have to
estimate how much individuals (or communities)
are willing to pay if water resources services were
better managed or quality improved. Likewise,
how human wellbeing would be affected if water
resources services were lost or changed. Thus,
policy makers need to identify and apply proper
economic valuation methods or tools to water
resource services so that the value of limited water
resources are properly set without compromising
social welfare.
Water is a dynamic resource. Water resources
development and management needs to adopt
a river basin or watershed focus. Planning and
development must not neglect the understanding
of the characteristics of the river basin both
from the natural and human system aspects
(Tan, 2007; Tan and Mokhtar, 2009). Water
resources planning and management involves
some activities that are related to other states.
Conventional water resources management
systems have taken political boundaries as
management guidelines. Past water management
systems that separated a river basin into different
administration bodies failed to manage the basin
in sustainable way. Examples are flood control,
stream flow modification by dams, barrages or
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