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Privatizing Public Irrigation Tubewells in Pakistan: An Appraisal of Alternatives

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  • Muhammad Aslam Chaudhry

    (Department of Agricultural and Natural Resource Economics, Colorado State University, Fort Collins, Colorado, U.S.A.)

  • Robert A. Young

    (Department of Agricultural and Natural Resource Economics, Colorado State University, Fort Collins, Colorado, U.S.A.)

Abstract

As part of its broader groundwater privatization programme, the Government of Pakistan is seeking to transfer to the private sector the management, operation, and maintenance functions of the system of public tubewells (called "SCARPs") which were installed to control waterlogging and salinity. This paper presents a micro level analysis of alternative privatization strategies. linear programming models of representative farms in SCARP I area of Punjab Province were developed to explore the efficiency and equity implications of various transition options. Net benefits of supplemental water available from SCARP tubewells were estimated at about Rs 800 per acre, which are about three times higher than the existing level of O&M expenditure. Even without considering the long-term benefits of waterlogging control, this result implies that the SCARP programme has a high social rate of return. For particular SCARP tubewells which are uneconomical to repair and operate, replacing these tubewells with farmer-owned small tubewells appears likely to improve agricultural productivity and reduce government outlays. Operable SCARP tubewells should be kept in service unless they are replaced by equal or greater alternative pumping capacity in the private sector to prevent waterlogging. Rural institutions should be strengthened to ensure efficient local level groundwater management.

Suggested Citation

  • Muhammad Aslam Chaudhry & Robert A. Young, 1990. "Privatizing Public Irrigation Tubewells in Pakistan: An Appraisal of Alternatives," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 29(1), pages 33-58.
    • Handle: RePEc:pid:journl:v:29:y:1990:i:1:p:33-58
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    References listed on IDEAS

    as
    1. Johnson, Ronald N & Gisser, Micha, 1981. "The Definition of a Surface Water Right and Transferability," Journal of Law and Economics, University of Chicago Press, vol. 24(2), pages 273-288, October.
    2. Johnson, Sam H., III, 1982. "Large-Scale Irrigation and Drainage Schemes in Pakistan: A Study of Rigidities in Public Decision Making," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 18(2), pages 1-32.
    3. Muhammad A. Chaudhry & Mubarik Ali, 1989. "Measuring Benefits to Operation and Maintenance Expenditure in the Canal Irrigation System of Pakistan: A Simulation Analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 3(3), pages 199-212, October.
    4. Robert A. Young, 1986. "Why Are There So Few Transactions among Water Users?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(5), pages 1143-1151.
    5. Chaudhry, Muhammad A. & Ali, Mubarik, 1989. "Measuring benefits to operation and maintenance expenditure in the canal irrigation system of Pakistan: A simulation analysis," Agricultural Economics, Blackwell, vol. 3(3), pages 199-212, October.
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    Cited by:

    1. Wichelns, Dennis, 1999. "An economic model of waterlogging and salinization in arid regions," Ecological Economics, Elsevier, vol. 30(3), pages 475-491, September.

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