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Institutional Changes of 
Watershed Development 
12/16/2014 
Programmes - India 
Archana Raghavan Sathyan 
PhD student
Outline 
• Introduction 
• Watershed concept 
• Methodology-Theories 
• Institutional arrangements 
• Conclusion 
12/16/2014 2
No Food!!!? 
1 billion 
No place to 
sleep! 
12/16/2014 3
Not even a single 
drop to drink!!!! 
3/4th 
12/16/2014 4
World population 
Increased three times 
Human water 
consumption 
Increased six times 
3 
6
Watershed 
• ‘Wasserscheide’(German) -‘Water divide’ 
‘A topographically delineated 
area that is drained to a particular 
point by a stream system’ (Dixon, 1994) 
• Natural boundary 
• A stream/channel/water body 
• Outlet 
12/16/2014 6
Main stream 
Outlet 
12/16/2014 Source: fergusonfoundation.org 7
Major drainage line in 
the watershed 
Common outlet 
point of the 
watershed 
Outline of a watershed 
Drainage area of the watershed 
12/16/2014 Source: Own compilation 8
Classification of watershed 
(size/scale) 
• Mini Watershed - 100 ha 
• Micro Watershed - 500 ha 
•Sub Micro Watershed - 2500 ha 
•Milli Watershed - 5000 ha 
•Major Watershed - 10000 ha 
•Drainage basin - >10000 ha Source: MoRD, GoI 9
Rain fed area 
• 68% of the Total Cropped Area 
• 55% of Agricultural Production 
(Planning Commission, 2012) 
Livelihood to 
480 million 
people 
•29 states 
•7 UTs 
•655 districts 
•256000 villages 
12/16/2014 10
3-Pong approach 
Watershed 
Management 
Natural Resource 
Management 
Production system 
Livelihood support 
•Soil 
•Water 
•Biomass •Area 
•Productivity 
•Income generation 
•Marketing 
Source: Own compilation 
12/16/2014 11
Bunds 
Check dams 
Dykes Geo-textiles 
12/16/2014 12
Farm pond 
1.Store water 
2.Reduce soil erosion 
3.Increase ground water 
recharge 
Retaining wall 
1. Protect river banks 
2.Reduce soil erosion 
3. Increase water 
recharge 
12/16/2014 13
Recharge well 
Roof water 
harvesting 
12/16/2014 14
Production system 
Livelihood Support System 
12/16/2014 15
Institutions 
• Institutions are the constraints that human 
beings impose on human interaction. They 
constitute formal rules and informal 
constraints (North, 1990) 
2 kinds 
• 1. Formal- State enacted e.g: Constitutions, 
common law etc 
• 2. Informal-Unwritten rules & norms (Schmid, 2004) 
12/16/2014 16
Table No 1: Chronology of various government WDP in India 
Sl. No Year Programme Institution Objective 
1 1973-74 DPAP MoRD Economic development of drought 
prone areas through soil and 
water conservation measures 
2 1977-78 DDP MoRD Minimise the adverse effect of 
drought and deforestation through 
reforestation 
3 1989-90 IWDP MoRD Regeneration of degraded forest 
land through soil and water 
conservation measures 
4 1990-91 NWDPRA MoA Sustainable NRM - Agricultural 
production, restore ecological 
balance, generate employment 
5 2008-till 
date 
IWMP MoRD ‘Watershed plus concept’ 
Source: 12/16/2014 Ministry of Rural Development, Govt. of India. 17
Theories of Institutional change 
• Institutions are not static, but dynamic! 
• Actors seek distributional advantage through 
bargaining- access and ownership of actors 
to resources (Knight,1992) 
• Either by themselves or lobbying government 
(Libecap, 1989) 
• Design new rules consciously to solve 
collective action dilemma (Ostrom, 1998) 
12/16/2014 18
Mechanism Design Theory 
(Hurwicz, Maskin, Myersen) 
The Mechanism Design Theory 
emphasize the problem faced by a 
principal/planner (Government) in designing 
a ‘mechanism’ by which a set of agents with 
productive capacities or consumption needs 
will interact with one another to yield resource 
allocation outcomes (Hurwicz, 1960) 
•Individual preferences are not visible (Ananda, 2013) 
12/16/2014 19
Contd… 
• ‘Mechanism’ - Institutions and rules of the game 
• ‘Design’ - New situation with flexibility 
• Asymmetric information flow – Technology, 
productive capacity and agent's preferences 
• Incentive compatibility problem - Lack of 
incentives for economic agents 
• Revelation principle (Myerson, 1979) - Calculating the 
most efficient rule for the game to extract private 
information. 
• Aim - Efficient allocation of resources within 
information gap 
(Hurwicz, 1960) 
12/16/2014 20
Figure 2: Institutional framework of watershed programmes before 2001 
Central Watershed Programme Implementation and Review 
Committee 
State level Watershed Programme 
Implementation and Review Committee 
State Dept of Rural Development 
District Rural Development Agency 
Multi Disciplinary Teams (MDTs) 
WDT 
Panchayath 
District 
Watershed Committee 
(WC) 
PIA 
WUG WUG WUG 
12/16/2014 
21 
State
12/16/2014 
Fragile 
ecosystem 
500million/yr 
(Ananda, 2013) 
Continued 
soil 
erosion
Figure 3: Institutional framework after ‘Common Guidelines’ (2008) 
Role Institution Structure 
NRAA 
Nodal Agency 
SLNA 
WCDC 
PIA 
WDT 
WC 
MoRD 
Multidisciplinary experts- 
Agriculture, water management 
Chairperson, CEO, NRAA 
members, GWB, Dept Experts 
Project Manager & subject matter 
specialists 
Govt .dept, NGOs, voluntary 
organisations, PRIs 
4 member team 
Strategic planning, National 
Data Centre 
Fund facilitation , allocation 
Evaluation 
Sanction of WSD 
Approve PIA, M&E 
Identify PIA 
Capacity building 
Technical support, 
M&E 
Guidance, Resource 
development plans & 
CPR management 
Carryout WSD activities 
Keep records 
SHGs UGs 
11 members 
12/16/2014 23
WD Institutions & MDT 
• Planner (Government)-Top-down/ Centralised 
 Public involvement in designing is weak 
 High technical capacity to process data (so data 
cells at the top) 
 Equipped to deal externalities, increasing returns… 
• Decentralised system- communication & information 
processing cost less (PRIs –Key actors) (Ananda, 2013) 
• PIAs - selected by DWCU (one superior line of 
command) 
12/16/2014 (Mookherjee, 2005) 24
Contd…. 
• Economic agents – ‘Landholders’ hide benefit & 
actual cost - never disclose true information!!!! 
(provided incentives) 
• Incentives incompatibility problem – 
 WD works - 50% 
 Livelihood activities - 10% 
 Microenterprises -13% 
• Revelation principle gives a weak preference to 
Centralised system (Myerson, 1979) 
• Design optimal contracts -better communication & 
governance multiple scales with less transaction cost 
12/16/2014 25
Conclusion 
• Failure - Equity & inclusion of marginalised 
population 
• Spill over effects & coordination across scale-magnitude 
(upstream and down streams must be 
ascertained) 
• Farmers show little enthusiasm - High initial 
investments and maintainance cost (incentives-not 
match with real cost) 
12/16/2014 
26 
(Gandhi & Crase, 2012) 
(Ananda, 2013)
Contd…. 
•Information needs - Present situation, 
expected damages & threatening processes 
of watershed (PRIs less time) 
•Less transparency in PIA & village selection 
•Self interest and political economy of the 
governments and organisations 
12/16/2014 27
Thank 
you 12/16/2014 28

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Watershed management

  • 1. Institutional Changes of Watershed Development 12/16/2014 Programmes - India Archana Raghavan Sathyan PhD student
  • 2. Outline • Introduction • Watershed concept • Methodology-Theories • Institutional arrangements • Conclusion 12/16/2014 2
  • 3. No Food!!!? 1 billion No place to sleep! 12/16/2014 3
  • 4. Not even a single drop to drink!!!! 3/4th 12/16/2014 4
  • 5. World population Increased three times Human water consumption Increased six times 3 6
  • 6. Watershed • ‘Wasserscheide’(German) -‘Water divide’ ‘A topographically delineated area that is drained to a particular point by a stream system’ (Dixon, 1994) • Natural boundary • A stream/channel/water body • Outlet 12/16/2014 6
  • 7. Main stream Outlet 12/16/2014 Source: fergusonfoundation.org 7
  • 8. Major drainage line in the watershed Common outlet point of the watershed Outline of a watershed Drainage area of the watershed 12/16/2014 Source: Own compilation 8
  • 9. Classification of watershed (size/scale) • Mini Watershed - 100 ha • Micro Watershed - 500 ha •Sub Micro Watershed - 2500 ha •Milli Watershed - 5000 ha •Major Watershed - 10000 ha •Drainage basin - >10000 ha Source: MoRD, GoI 9
  • 10. Rain fed area • 68% of the Total Cropped Area • 55% of Agricultural Production (Planning Commission, 2012) Livelihood to 480 million people •29 states •7 UTs •655 districts •256000 villages 12/16/2014 10
  • 11. 3-Pong approach Watershed Management Natural Resource Management Production system Livelihood support •Soil •Water •Biomass •Area •Productivity •Income generation •Marketing Source: Own compilation 12/16/2014 11
  • 12. Bunds Check dams Dykes Geo-textiles 12/16/2014 12
  • 13. Farm pond 1.Store water 2.Reduce soil erosion 3.Increase ground water recharge Retaining wall 1. Protect river banks 2.Reduce soil erosion 3. Increase water recharge 12/16/2014 13
  • 14. Recharge well Roof water harvesting 12/16/2014 14
  • 15. Production system Livelihood Support System 12/16/2014 15
  • 16. Institutions • Institutions are the constraints that human beings impose on human interaction. They constitute formal rules and informal constraints (North, 1990) 2 kinds • 1. Formal- State enacted e.g: Constitutions, common law etc • 2. Informal-Unwritten rules & norms (Schmid, 2004) 12/16/2014 16
  • 17. Table No 1: Chronology of various government WDP in India Sl. No Year Programme Institution Objective 1 1973-74 DPAP MoRD Economic development of drought prone areas through soil and water conservation measures 2 1977-78 DDP MoRD Minimise the adverse effect of drought and deforestation through reforestation 3 1989-90 IWDP MoRD Regeneration of degraded forest land through soil and water conservation measures 4 1990-91 NWDPRA MoA Sustainable NRM - Agricultural production, restore ecological balance, generate employment 5 2008-till date IWMP MoRD ‘Watershed plus concept’ Source: 12/16/2014 Ministry of Rural Development, Govt. of India. 17
  • 18. Theories of Institutional change • Institutions are not static, but dynamic! • Actors seek distributional advantage through bargaining- access and ownership of actors to resources (Knight,1992) • Either by themselves or lobbying government (Libecap, 1989) • Design new rules consciously to solve collective action dilemma (Ostrom, 1998) 12/16/2014 18
  • 19. Mechanism Design Theory (Hurwicz, Maskin, Myersen) The Mechanism Design Theory emphasize the problem faced by a principal/planner (Government) in designing a ‘mechanism’ by which a set of agents with productive capacities or consumption needs will interact with one another to yield resource allocation outcomes (Hurwicz, 1960) •Individual preferences are not visible (Ananda, 2013) 12/16/2014 19
  • 20. Contd… • ‘Mechanism’ - Institutions and rules of the game • ‘Design’ - New situation with flexibility • Asymmetric information flow – Technology, productive capacity and agent's preferences • Incentive compatibility problem - Lack of incentives for economic agents • Revelation principle (Myerson, 1979) - Calculating the most efficient rule for the game to extract private information. • Aim - Efficient allocation of resources within information gap (Hurwicz, 1960) 12/16/2014 20
  • 21. Figure 2: Institutional framework of watershed programmes before 2001 Central Watershed Programme Implementation and Review Committee State level Watershed Programme Implementation and Review Committee State Dept of Rural Development District Rural Development Agency Multi Disciplinary Teams (MDTs) WDT Panchayath District Watershed Committee (WC) PIA WUG WUG WUG 12/16/2014 21 State
  • 22. 12/16/2014 Fragile ecosystem 500million/yr (Ananda, 2013) Continued soil erosion
  • 23. Figure 3: Institutional framework after ‘Common Guidelines’ (2008) Role Institution Structure NRAA Nodal Agency SLNA WCDC PIA WDT WC MoRD Multidisciplinary experts- Agriculture, water management Chairperson, CEO, NRAA members, GWB, Dept Experts Project Manager & subject matter specialists Govt .dept, NGOs, voluntary organisations, PRIs 4 member team Strategic planning, National Data Centre Fund facilitation , allocation Evaluation Sanction of WSD Approve PIA, M&E Identify PIA Capacity building Technical support, M&E Guidance, Resource development plans & CPR management Carryout WSD activities Keep records SHGs UGs 11 members 12/16/2014 23
  • 24. WD Institutions & MDT • Planner (Government)-Top-down/ Centralised  Public involvement in designing is weak  High technical capacity to process data (so data cells at the top)  Equipped to deal externalities, increasing returns… • Decentralised system- communication & information processing cost less (PRIs –Key actors) (Ananda, 2013) • PIAs - selected by DWCU (one superior line of command) 12/16/2014 (Mookherjee, 2005) 24
  • 25. Contd…. • Economic agents – ‘Landholders’ hide benefit & actual cost - never disclose true information!!!! (provided incentives) • Incentives incompatibility problem –  WD works - 50%  Livelihood activities - 10%  Microenterprises -13% • Revelation principle gives a weak preference to Centralised system (Myerson, 1979) • Design optimal contracts -better communication & governance multiple scales with less transaction cost 12/16/2014 25
  • 26. Conclusion • Failure - Equity & inclusion of marginalised population • Spill over effects & coordination across scale-magnitude (upstream and down streams must be ascertained) • Farmers show little enthusiasm - High initial investments and maintainance cost (incentives-not match with real cost) 12/16/2014 26 (Gandhi & Crase, 2012) (Ananda, 2013)
  • 27. Contd…. •Information needs - Present situation, expected damages & threatening processes of watershed (PRIs less time) •Less transparency in PIA & village selection •Self interest and political economy of the governments and organisations 12/16/2014 27