4. 4.1 WATER FOR DEVELOPMENT AND POVERTY REDUCTION Water for Socio-Economic Development 4.1.1 Policy: Water shall be considered as an economic good, which supports cross-sectoral regional economic integration and development, and shall be conserved, developed and managed to provide economic benefits. Water is a resource that is used as an input to regional economic production in a number of inter-related water using sectors. However, water is a limited resource and it has economic value. The management of water resources should recognise the value of water to economic development, emphasising beneficial use. The water should be used efficiently, with pricing and other mechanisms used to encourage water to be allocated to higher value uses (allocative efficiency) in order to maximise its net economic and social benefits and contribution towards poverty reduction. 4.1.2 Policy: Water shall be considered as a social good that is essential to human dignity, poverty reduction and social well-being. In addition to being an economic good, water supports life and a range of social services. Therefore, allocation and access to water must consider the social benefit to people and the environment. However, there should be explicit recognition that the poor should have access to water at a price they can afford, based on subsidies directly targeted to the poor. 4.1.3 Policy: Water allocation between Member States, sectors and users shall consider among other things the economic benefits balanced with social obligation and environmental requirements In allocating water within a shared watercourse, Member States should consider the economic development potential associated with water use, between sectors as well as between countries. Maximizing the total economic development opportunities through the allocation of water at a regional level supports SADC objectives. This also implies promotion of water efficient uses, with due regard to the social development and food security impacts of other uses such as irrigation. This implies the implementation of appropriate water pricing systems, to reflect its economic and social value. 4.1.4. Policy: Regional water resources management, taking into account the overarching imperatives for resources utilization, shall consider the concept of comparative advantage in water availability as a means of promoting intraregional trade, services, poverty reduction and balancing national water budgets in a sustainable manner. In this context water resources utilization referred to in this policy statement includes water supply, irrigation, hydropower, navigation, fisheries, environment, tourism, aquaculture, forestry and coastal interaction. Comparative and competitive advantage in the context of water resources - 22 -