References pp. 294-309.

Cost recovery from irrigation in almost all the countries presents a dismal picture. Low cost recovery coupled with declining government finances has led to the deterioration of both the quality of the built infrastructure and institutions managing and governing such infrastructure. This has created a vicious circle of low cost recovery, poor maintenance of infrastructure, inadequate and unreliable water supply, inefficient and corrupt institutions, and unwillingness of the farmers to pay. Breaking this vicious circle primarily requires identifying ways to improve availability of financial resources. Improving cost recovery from all users, including irrigators of the water, offers one of the most important avenues for raising financial resources. The present study examines some of the important issues that impinge on improving the cost recovery in canal irrigation, and assesses the feasibility of some of the efforts being made to improve cost recovery in irrigation to revitalize canal irrigation.

India's irrigated agriculture sector has been basic to India's economic development and poverty alleviation. One of India's major achievements is its rapid expansion of irrigation and drainage infrastructure. However, the major emphasis on development has been achieved at a cost. The importance put on new construction has diverted attention away from the need to ensure the quality, productivity, and sustainability of the services. Further, a governmental subsidy based approach has been used and this has resulted in irrigation and drainage services which, while enabling significantly higher productivity than from non-irrigated lands, are well below their potential. 'The Irrigation Sector' discusses directions for future growth, the framework for reform, and the reform agenda.

The reforms that India has implemented over the past six years have fueled an unprecedented level of economic performance. For the third year in a row, GDP grew at around 7 percent in fiscal year 1996-97 (ending on March 31), placing India among the world's best-performing economies. This report evaluates the nation's rapid economic growth and suggests policy priorities and reforms at the sub-national level to sustain Indias economic performance. Chapters examine recent macroeconomic developments, the structural reforms of 1996-97, economic management issues, and development policies within India's states. Annexes provide economic development data and social indicators.

Much hope has been vested in pricing as a means of helping to regulate and rationalize water management, notably in the irrigation sector. The pricing of water has often been applied universally, using general and ideological policies, and not considering regional environmental and economic differences. Almost 15 years after the emphasis laid at the Dublin and Rio conferences on treating water as an economic good, a comprehensive review of how such policies have helped manage water resources an irrigation use is necessary. The case-studies presented here offer a reassessment of current policies by evaluating their objectives and constraints and often demonstrating their failure by not considering the regional context. They will therefore contribute to avoiding costly and misplaced reforms and help design water policies that are based on a deeper understanding of the factors which eventually dictate their effectiveness.