Virtual water: an effective mechanism for integrated water resources management

doi:10.4236/as.2011.23033

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Vol.2, No.3, 248-261 (2011)

doi:10.4236/as.2011.23033

Agricultural Scienc es

Virtual water: an effective mechanism for integrated

water resources management

Alaa El-Sadek

Associate Professor, College of Postgraduate Studies, Arabian Gulf University, Manama, Kingdom of Bahrain;

Corresponding Author: alaasa@agu.edu.bh, alaa_elsadek@yahoo.com

Received 4 January 2011; revised 21 March 2011; accepted 7 June 2011.

ABSTRACT

In regions, which suffer from water shortage or

potential water shortage like the Middle East,

water policies and different mitigation measures

are formulated. With the increasing population

and increasing demand for food and drinking

water with the f ixed suppl y of water, the demand

management policies have been introduced.

Vi rtual Water has been adop ted as a n alterna tive

or potential alternative water resource. In the

application of the Integrated Water Resources

Management (IWRM), virtual water has to be

considered as a resource of water. In this paper,

the practical value of the virtual water concept

as well as the possibility of the application of

the concept in the regional and national level

are discussed. The paper emphasizes on the

application of virtual water in agriculture prod-

ucts and virtual water trade of these products.

This research concluded that, there is a possi-

bility for the application of the virtual water

concept on the national level taking into ac-

count water endow ments, and other natural and

social economic conditions. The virtual water

strategy seeks ways to consciously and effi-

ciently utilize the internal and external water

resources to alleviate water scarcity. This,

however, by no means implies that importing

food is the only response the water scarce

countries and regions should and can take.

Other measures concerning the supply and

demand sides of water management are im-

perative. The argument here is that the virtual

water strategy should be an integral component

in the whole package of integrated water re-

sources management.

Keywords: Virtual Water; IWRM; Global; Regional;

Local; Strategy; Policy Option

1. INTRODUCTION

The uneven spatial distribution of water resources in

the global level has created regions where water is

scarce and regions where water is abundant. With regard

to water demand, there are regions of low demand and

others of high demand [1]. Unfortunately, there is no

positive relation between supply and demand. Virtual

water is economically invisible and politically silent [2].

This had made it possible in the past for water scarce

countries to cope with the water deficit by importing

food without cultivating a policy discourse of national

water scarcity. Since the term virtual water explicitly

came to the light in the mid 1990s, it has drawn a grow-

ing attention among policy makers, scientific communi-

ties, and the general public. In regions, which suffer

from water shortage or potential water shortage like the

Middle East, water policies and different mitigation

measures are formulated [3].

Hoekstra [4] stated that there are three levels for deci-

sions and improvements that can be taken. The first level

is the user level where increasing user’s awareness, ap-

plying water pricing and water saving technology would

lead to improve in local water use efficiency. The second

is the river basin level. In this level, evaluation of the

value of water for different alternative uses has to be

done in order to reallocate water in an economically ef-

ficient way and hence improve water allocation effi-

ciency. The third level is the global level. The applica-

tion of virtual water trade between water scarce and wa-

ter abundant regions can achieve improvements in the

global water use efficiency [5]. Many advances and im-

provements have been achieved in the first level, but in

the second level although the concept is highly adopted

but there is a great gap between the adoption of the con-

cept and its application. The situation is even worse in

the third level. The following paragraphs review and

discuss the concept and application of virtual water as an

instrument for improving global water use efficiency.

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249249

Virtual water is defined as water ‘embodied’in a pro-

duct, not in real sense, but in virtual sense. It refers to

the water needed for the production of the product [4].

The term virtual refers to the fact that at the end water

that was used to produce the product is not contained in

the final product. Virtual water has also been called

‘embedded water’ or ‘exogenous water’, the latter refer-

ring to the fact that import of virtual water into a country

means using water that is exogenous to the importing

country. Exogenous water is thus to be added to a coun-

try’s ‘indigenous water’ [6]. If it comes to a more precise

quantitative definition, principally two different ap-

proaches have been proposed and applied so far. In one

approach, the virtual water content is defined as the

volume of water that was in reality used to produce the

product. This will depend on the production conditions,

including place and time of production and water use

efficiency. Producing one kilogram of grain in an arid

country for instance can require two or three times more

water than producing the same amount in a humid coun-

try. In the second approach, one takes a user rather than

a producer perspective, and defines the virtual water

content of a product as the amount of water that would

have been required to produce the product at the place

where the product is needed. This definition is particu-

larly relevant if one poses the question: how much water

do we save if we import a product instead of producing

it ourselves? One main concept which is closely related

to ‘virtual water’ is the ‘water footprint’. ‘Water foot-

print’ of an individual, business or nation is defined as

the total volume of fresh water that is used to produce

the foods and services consumed by the individual,

business or nation. A water footprint is generally ex-

pressed in terms of the volume of water use per year [4].

The value of virtual water as an alternative water re-

source is very crucial basically for water scarce coun-

tries.

Nowadays the Arab region is facing serious chal-

lenges arising from the implications of economic devel-

opment. Perhaps one of the most critical challenges is

the drastically decreasing per capita water availability in

most of the Arab states. Policy development in the re-

gion failed to keep up with the accelerated changes in its

socioeconomic context. This paper concerned with in-

vestigating the feasibility of one “policy option” that has

often stirred conflicting opinions and sometimes accused

of leading to insecurity. The concept of ‘virtual water’

has been introduced by Tony Allan in the early nineties

[7,8]. It took nearly a decade to get global recognition of

the importance of the concept for achieving regional and

global water security. The first international meeting on

the subject was held in December 2002 in Delft, the

Netherlands. A special session was devoted to the issue

of virtual water trade at both the Third and Fourth World

Water Forums [4]. The concern is with the possibility of

using the concept as a planning tool and to present issues

that need to be tackled before considering virtual water

trade as a policy option. The “virtual water” content of a

product, as often defined, is the volume of water used to

produce the product, measured at the place where the

product was actually produced (production site specific

definition). The virtual water content of a product can

also be defined as the volume of water that would have

been required to produce the product in the place where

the product is consumed (consumption site specific defi-

nition) [9].

2. VIRTUAL WATER TRADE AS A

POLICY OPTION

It is often noted that net import of virtual water in a

water-scarce nation can relieve the pressure on a nation’s

own water resources, and that Virtual water can be seen

as an alternative source of water [4]. It is of no doubt

that using this additional source can be an instrument in

planning and managing water resources. Thus virtual

water trade is an existing fact and it won't be feasible to

argue whether or not countries should trade virtual water

in the form of food products. This is what referred to as

“conscious choice” in virtual water trade [10]. The ar-

gument is often entirely focused on optimizing the ongo-

ing trade for the benefit of the trading states. This is

where skepticism comes; which countries should benefit

from virtual water trade? Can water poor nations benefit

from the element of choice (i.e. can they choose what

and who to trade with)? As long as trade is at stake, how

can developing countries benefit from virtual water trade

when their trade infrastructure is not up to the required

standards?

Virtual water trade between or within nations can be

seen as an alternative to real, inter-basin water transfers.

Renault [11] notes that the issue of optimal production is

not only a matter of wisely choosing the locations of

production, but also a matter of proper timing of produc-

tion. One can try to overcome periods of water shortage

by creating artificial water reservoirs, but – as an alterna-

tive – one can also store water in its virtual form, e.g. by

food storage. This can be a more efficient and more en-

vironmentally friendly way of bridging dry periods than

building large dams for temporary water storage. The

strength of the virtual water concept is that it embraces

the whole water management in a country or basin and

allows for a deeper understanding of water use through

for example diet description or broader optimization of

water allocation between different water uses by incor-

A. El-Sadek / Agricultural Sciences 2 (2011) 248-261

250

porating access to external water resources through vir-

tual water trade [10]. This presents the concept as a prac-

tical policy tool that can be extended to detailed analysis

of water resources management; as well as; environ-

mental, agricultural, and trade policies. Until now many

of these policy issues have been solved empirically by

common sense food policies and strategies in many Arab

countries. Some of these countries like Jordan have

made policy choices to reduce or abandon exports or

local production of water intensive crops and replace

them by imports or higher return crops to allow optimi-

zation of water use.

Issues related to virtual water trade were clearly out-

lined in several reports [4,10]. These issues fall into the

following categories: food security, environment con-

servation, employment and poverty, geopolitics, pricing

and subsidies, investment in trade infrastructure, and diet

change. It is thus important to investigate these issues

before we jump to conclusions about the suitability of

virtual water trade as a policy option. This paper is pri-

marily concerned with investigating the prevailing wa-

ter/food situation in the Arab states and possibility of

using “Virtual Water Trade” as a remedy policy. The

investigation includes outlining water and food security

facts and figures, in addition to policy measures under-

taken to overcome any insecurities; followed by an as-

sessment of potential water savings in some Arab states

in the event of considering virtual water as a policy op-

tions.

3. THE PRACTICAL VALUE OF THE

VIRTUAL WATER CONCEPT

The virtual water concept has basically two major

types of practical use.

3.1. Virtual Water Trade as an Instrument to

Achieve Water Security and Efficient

Water Use

Net import of virtual water in a water-scarce nation

can relieve the pressure on the nation’s own water re-

sources. Virtual water can be seen as an alternative

source of water. Using this additional source can be an

instrument to achieve regional water security. More

firmly stated, and this is the political argument that has

been put forward by Tony Allan from the beginning of

the virtual water debate, virtual water trade can be an

instrument in solving geopolitical problems and even

prevent wars over water [12,13]. Next to the political

dimension, there is the economic dimension, equally

stressed by Allan [14-16]. The economic argument be-

hind virtual water trade is that, according to international

trade theory, nations should export products in which

they possess a relative or comparative advantage in pro-

duction, while they should import products in which

they possess a comparative disadvantage [17].

Hoekstra and Hung [18,19] argue that while pricing

and technology can be means to increase local water use

efficiency and reallocating water at basin scale to its

higher-value alternative uses a means to increase water

allocation efficiency—virtual water trade between na-

tions can be an instrument to increase ‘global water use

efficiency’. From an economic point of view it makes

sense to produce the water-intensive products demanded

in this world in those places where water is most abun-

dantly available. In those places water is cheaper, there

are smaller negative externalities to water use, and often

less water is needed per unit of product. Virtual water

trade from a nation where water productivity is relatively

high to a nation where water productivity is relatively

low implies that globally real water savings are made.

Virtual water trade between or within nations can be

seen as an alternative to real, inter-basin water transfers.

This is for instance very relevant for China, where major

real water transfer schemes (from the south to the north

of China) are being considered. Also in the Southern

African region, virtual water trade is a realistic, sustain-

able and more environmentally friendly alternative to

real water transfer schemes [20]. With two Asian exam-

ples, Nakayama [21] points out that application of the

idea of virtual water trade could seriously impact on the

management practice of international river basins. Ren-

ault [11] notes that the issue of optimal production is not

only a matter of wisely choosing the locations of pro-

duction, but also a matter of proper timing of production.

One can try to overcome periods of water shortage by

creating artificial water reservoirs, but as an alternative

one can also store water in its virtual form, e.g. by food

storage. This can be a more efficient and more environ-

mentally friendly way of bridging dry periods than

building large dams for temporary water storage [4].

3.2. Water Footprints: Making the Link

between Consumption Patterns and the

Impacts on Water

The second practical use of the virtual water concept

lies in the fact that the virtual water content of a product

tells something about the environmental impact of con-

suming this product. Knowing the virtual water content

of products creates awareness of the water volumes

needed to produce the various goods, thus providing an

idea of which goods impact most on the water system

and where water savings could be achieved. Hoekstra

and Hung [18] have introduced the concept of the water

footprint, being the cumulative virtual water content of

all goods and services consumed by one individual or by

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the individuals of one country. In analogy of the eco-

logical footprint [22,23], the water footprint can be a

strong tool to show people their impact on the natural

resources [4,24,25]

4. QUANTIFYING THE VIRTUAL WATER

CONTENT OF PRODUCTS

Hoekestra [4] argues that the assessment process of

the virtual water content of a product is not an easy task.

This is because of the many factors that influence the

amount of water used or consumed in a production

process. He also enumerated some factors that should at

least be considered and provided together with the esti-

mates:

 The place and period (e.g. which year, which sea-

son) of production.

 The point of measurement. In case of irrigated crop

production, the question is for instance whether one

measures water use at the point of water withdrawal or at

the field level.

 The production method and associated efficiency of

water use. A relevant question is whether water wasted is

included in the estimate.

 The method of attributing water inputs into inter-

mediate products to the virtual water content of the final

product.

Considering the various studies available, little con-

vergence exists with respect to the general approach

taken. Some studies take virtual water content of a

product at the production site, other studies consider the

hypothetical virtual water content if the product would

have been produced at the place where the product is

actually consumed. The studies also differ with respect

to the point of measurement: some measure at field level,

others account for the losses between water withdrawal

and application. Zimmer and Renault [26] divided the

products with respect to their virtual water content into

different categories. These categories are primary prod-

ucts (crops), processed products (such as sugar, vegeta-

ble oil and alcoholic beverages), transformed products

(including animal products), by-products (such as cotton

seeds), multiple products (e.g. coconut trees) and low or

non-water consumptive products (e.g. sea fish). Hoek-

estra and Hung [27] studied the quantification of virtual

water trade flows between nations in the period 1995-

1999. The approach they followed was to multiply crop

trade flows (ton/year) by their associated virtual water

content (m3/ton). Figure 1 illustrates the methodology

they used to calculate the global virtual water trade. The

following discussion illustrates the role of virtual water

as an instrument for water resources management on the

global, regional and local levels.

Figure 1. Steps in the calculation of global virtual water trade.·

5. VIRTUAL WATER IMPLEMENTATION

PROBLEMS

Theoretically, the virtual water strategy is a vital solu-

tion for water resources problems. Since the main ad-

vantage of the virtual water strategy is its redistributive

effect on the global level in the form of the international

trade of goods and services, this requires a fair and reli-

able system of international trade. Warner [28] catego-

rized the problems of virtual water strategy into two

perspectives: the security and vulnerability perspectives.

He argues that virtual water may promote the state of

carelessness. This means that because of the invisible

nature of the virtual water strategy, policy makers con-

sider it as a secret reserve. So they are not tempted to do

any long term oriented plans. Since virtual water bails

them out in the short run. Long term plans require in-

vestments in technology, social ingenuity and democracy

to facilitate a transition to a demand management strat-

egy or reallocation of the resource among users rather

than dependence on trade flow. Warner also argues that

the importation of cheap grains is like creating food

‘reservoir’ giving the state a monopoly on the food mar-

ket, allowing it to create a client base in the major cities

distributing food in exchange for political allegiance.

Thus the security of the recipient states was enhanced, as

well as the allegiance of those states to American foreign

goals. This allegiance brings a degree of political de-

pendency some would denounce as neo-colonial.

Vulnerability approach in disaster studies claimed that

economical and political power differentials lead to un-

equal distribution of vulnerability within global and do-

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252

mestic systems, in turn bringing about the social, politi-

cal and economic exclusion of the poor and powerless

[28]. This vulnerability comes form the increased inter-

dependency of the poor on the powerful states. Also the

global food trade is exposed to global market price fluc-

tuations and shocks. Meanwhile in USA and Europe (the

biggest producers), agriculture is heavily subsidized at

several stages of the production process, lands, inputs,

transport, marketing, export and transport. Those who

pay subsidies may stop paying and hence raising the

world price.

6. GLOBAL LEVEL

The concept of virtual water mainly views water as a

global commodity [29]. To consider virtual water as a

solution for water resources scarcity on the regional

level, an answer to the question “is there enough water

on this planet for a future global population double its

present side?” must be found. In his argument, Allan [13]

asserts that the answer is controversial and needs much

more research to determine water availability on the

global scale. In the demand side, which is completely

related to the population growth? The precision of the

estimates of the global population varies by over 50%. In

this uncertain domain there is space for numerous pes-

simists and optimists to spin counter interpretations. The

International Food Policy Research Institute identifies

low, medium and high scenarios for population. These

predict respectively 7.7 billion, 9.4 billion and 11.1 bil-

lion for the global population by 2200. Allan [13] men-

tioned that the global hydrological system is evidently in

surplus as it is able to meet the most demanding element

of global water demand, the global consumption for food.

Assuming a medium consumption scenario of 1500

cm/capita/year, global freshwater needs are about 8.25

bm3/year. So a consumption of this level is well within

the estimates of global freshwater availability. But he

argues about the future position and he asserts that there

is certainty neither about volumes of freshwater avail-

able nor about the capacity to use it effectively. In these

circumstances there is evidence to support arguments of

both optimists and pessimists. Allan [13] concluded that

the world's water and food futures are uncertain but not

seriously insecure. Many studies have been conducted to

estimate the global virtual water trade. Tables 1-3 are

adopted from Hoekstra [4]. The global virtual water

trade is given in Figure 2 while Tab le 4 shows the con-

tinental virtual water movement.

7. REGIONAL LEVEL: VIRTUAL WATER

IN THE ARAB REGION

In the regional level, the Arab’s hydrological system is

Table 1. Assessment of global virtual water trade between

nations (periods 1995-1999) according to the IHE study.

Global virtual water trade (from perspective

of exporting countries)

Vo l um e

(bm3/yr)

Percentage

(%)

―associated with crop trade 695 67

―associated with trade of livestock

and livestock products 245 23

―associated with trade of industrial

products 100 10

Total 1040

Table 2. Assessment of global virtual water trade between

nations (in 2000) according to the WWC-FAO study.

Global virtual water trade (from per-

spective of importing countries)

Vo l um e

(bm3/yr)

Percentage

(%)

―associated with trade of

vegetal products 795 60

―associated with trade of

animal products 180 13

―associated with trade of meat 173 13

―associated with trade of fish

and sea food 192 14

Total 1340

Table 3. Assessment of global virtual water trade between

nations (in 2000) according to the Japanese study.

Global virtual water trade (from

perspective of exporting countries)

Volume

(bm3/yr)

Percentage

(%)

―associated with trade of cereals

―associated with trade of soybean

―associated with trade of meat

472

127

Total 683

Global virtual water trade (from

perspective of importing countries) Volume (bm3/yr) Percentage

(%)

―associated with trade of cereals

―associated with trade of soybean

―associated with trade of meat

868

118

152

Total 1138

Table 4. Continental virtual water movement

Exporter virtual

water (km3) Importer virtual

water (km3)

North America

East Asia

Central America

North West Africa

Middle East

West Europe

Others

154

South America

West Europe

East Asia

Middle East

North West Africa

Others

Oceania

East Asia

South East Asia

Middle East

Others

definitely less and less able to meet the rising demands

being placed upon it. Allan argues that the insecurity of

the Middle East and North Africa (MENA) not just from

its poor water resources endowment. The water endow-

ent is a significant factor, but much more important is m

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253253

Figure 2. Global virtual water trade.

the capacity of its agriculture sectors, its governments

and international institutions to adapt to the resource

scarcity and to take measures to find and mobilize sub-

stitutes. Allan stated that, “the pattern of trade indicates

that the MENA virtual water imports vastly exceed ex-

ports. By the mid-1980s MENA grain and flour imports

had risen rapidly from about seven million tones per

year in the early 1970s to over 40 million tones by the

mid-1980s. This volume was equivalent to about 20 per

cent of the regions total freshwater use by the late twen-

tieth century. At the 1000 cubic meters of water per tone

of grain estimate of water content the regional imports of

virtual water by the mid-1980s were equivalent to the

annual flow of the Nile into the Egyptian agricultural

sector. The demographic trends of the region point to a

doubling of population by about 2030. Taking into ac-

count possible improvements in water productivity in

MENA agriculture the need to import water intensive

staple food commodities will remain. It is likely that the

imports of virtual water will increase four or five-fold by

2030.

Openly accessible at

7.1. Agriculture and Food Production in the

Arab States

Population growth in the Arab countries is the major

factor for the increase in food consumption; such growth

has almost doubled between 1970 and 1990; and the

projections for the future growth are even more alarm-

ing. The population growth rate is among the highest is

the world. In addition, the economic development and

the change in aspirations and standard of living due to

the oil revenues in the last few decades lead to a very

high percentage of immigration to the Arab oil rich

countries. The total population is expected to continue

increasing and to reach 450 million by 2030.

The high rate of population growth in the region

caused food security fears to loom large in public policy

discussions in Arab region [30,31]. Food security may be

analyzed for units at different conceptual levels: regions,

countries, households, and individuals. Much analysis of

the topic has focused on the macro level: food produc-

tion in the region as a whole (and most of its countries)

falls far short of food requirements, making it necessary

for most countries to turn to imports for a large share of

domestic food consumption. As a result, the ability of

most countries to maintain national food security de-

pends on import capacity.

Agriculture policies

In the past 20 years the Arab countries were aiming to

achieve greater food self-sufficiency and accordingly the

majority of Arab countries provided generous subsidies

to the agricultural sector. Given the arid climate of these

countries, production can only be increased by increas-

ing the area of land under irrigation, by improving irriga-

tion efficiency, or a combination of the two. Agricultural

subsidies are given in several forms, for wells, canals,

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254

fuel, and other inputs, price support programs, trade pro-

tection in some countries, and lack of controls on

groundwater extraction or charges. These subsidies in-

creased the irrigated areas drastically and are contribut-

ing to the depletion of aquifers. Besides, these subsidies

distort costs and revenues, and many of the agricultural

activities in the Arab countries are financially profitable

only because of Government subsidies and incentives.

Subsidization is often adopted to encourage agricultural

practices for environmental, economic and cultural rea-

sons; however, in countries with water shortage mostly

cultural reasons are the drivers for subsidization. Al-

though agriculture consumes about 80% - 90% of the

available water in most Arab countries, it contributes for

less than 10% of Gross Domestic Product (GDP) in most

of the countries.

The employment in the agricultural sector as a propor-

tion of total employment in 2003 ranged from 1 percent

in Kuwait, Bahrain, and Qatar to 58 percent in Sudan.

Nevertheless, subsidization has played a role in increas-

ing agriculture water use efficiency in many Arab states,

and is thus justified as a water demand management

tool; an example is Egypt’s Irrigation Improvement Pro-

ject.

7.2. Water Resources in the Arab Region

The Arab world draws its water resources from rain-

water; rivers and underground water sheets as well as

sources that are non-conventional (desalinated water and

treated waste water). The quantities that can be obtained

from these sources differ widely from one country to

another and from one location to another within a single

country; rainfall is inexistent in some countries and

heavy in others, for example (over one thousand billion

cubic meters per year in Sudan). Countries such as Su-

dan, Egypt, Syria, Iraq, Lebanon, Jordan and Morocco

have large and small rivers but other Arab countries have

neither rivers nor lakes. Where water resources are rare

and financial resources permit the abundant water found

underground is exploited (the East Al Jazira underground

sheet covering 1.6 million sq. km. and the Nubian un-

derground sheet covering 2 million sq. km.). Other non-

conventional sources are being promoted, with the result

that the Arab countries are in the forefront of the devel-

opment of water desalination techniques, producing over

5 million cubic meters a day, that is, over 70% of world

production.

7.3. Water Demand and the Need for

Sustainability Measures

The progressing developments and water policies in

the Arab countries resulted in the current difficult water

shortage situation. The huge amounts of water used for

irrigated agriculture are leading to abstracting large

amounts of the nonrenewable “fossil” groundwater. This

creates real threats for the sustainability in the whole

region. In order to restore and/or improve this imbalance,

focus should be given mainly to reductions of demands

from the agricultural sector, and also to create additional

sources of water to reduce groundwater abstractions.

Achieving these objectives needs considerable efforts to

reform both water and agricultural policies and also sig-

nificant cost to enhance the capacity of wastewater

treatment as a safe and reliable source of water for irri-

gation.

The need for water and agriculture policy re-

form

It is vital that a number of steps be taken to economize

on water consumption and protect water resources from

over-abstraction and pollution. Policy reforms will need

to focus on both supply and demand management as-

pects of water management. The water management

mission will have to consider guaranteeing consistent

supply (infrastructure: dams, reservoirs, water re-use,

and non-conventional methods: e.g. desalination); priori-

tizing water use (drinking water versus irrigation), as

well as, managing, allocating and monitoring water use

(e.g. legal/technical regulations and pricing).

Agricultural policies in the Arab countries also need to

be reformulated to serve the purpose of increasing effi-

ciency and conserve the already depleted water re-

sources. Often agricultural policy reform aims to: con-

serve water resources; preserve water quality; and im-

prove crop water productivity. The notion of “more crop

per drop” has been adopted by several Arab states as part

of a general recognition of the importance of rationaliz-

ing water use. It is however being called upon by re-

searchers and scholars to adopt the notion of “more live-

lihood per drop” which puts water resources in the con-

text of the greater goal of any national policy which is

“securing better livelihood”. Targeting this ultimate goal

one can argue that agriculture policy reforms should

consider limiting subsidies to technologies which pro-

mote water conservation; whether the focus is on devel-

oping salt-tolerant and drought-resistant crops or on us-

ing more efficient irrigation techniques. In addition,

other policy aspects that can have an even greater impact

in a short period are related to promoting a market-

oriented policy through the cultivation of crops with

high water productivity and low-water content; and thus

import crops with high water content (virtual water).

The choice here is whether to increase integration with

the global market or to focus on regional integration

opportunities.

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7.4. Virtual Water Trade in the Arab Region

Having established the need for policy reform in water

consuming activities, and by outlining some of the issues

related to virtual water trade, it is important to investi-

gate the options provided by the virtual water trade con-

cept and the suitability of such options to the Arab re-

gion. Local planning and regional collaboration incorpo-

rating the notion of virtual water trade could result in: 1)

exchange of goods, 2) diversification of crops, or 3) crop

replacement actions for any country.

Virtual water policy dimensions

More often than not, scholars in the Arab region con-

tradict the political argument that has been put forward

by Tony Allan from the beginning of the virtual water

debate, that virtual water trade can be an instrument in

solving geopolitical problems and even prevent wars

over water [12,13]. The contradiction is simply based on

the perception that food exporting countries are mostly

western countries, and the relationship between the Arab

states and western countries is dominated by skepticism

and fear of domination. Thus, looking at the bigger pic-

ture it is perceived by the Arab states that by depending

on food imports they are giving in to foreign domination.

Next to the political dimension, there is the economic

dimension, equally stressed by Allan [14-16]. The eco-

nomic argument behind virtual water trade is that, ac-

cording to international trade theory, nations should ex-

port products in which they possess a relative or com-

parative advantage in production, while they should im-

port products in which they possess a comparative dis-

advantage [17]. Hoekstra and Hung [18,19] argue that

virtual water trade between nations can be an instrument

to increase ‘global water use efficiency’. From an eco-

nomic point of view it makes sense to produce the water-

intensive products demanded in this world in those

places where water is most abundantly available. In

those places water is cheaper, there are smaller negative

externalities to water use, and often less water is needed

per unit of product. Virtual water trade from a nation

where water productivity is relatively high to a nation

where water productivity is relatively low implies that

globally real water savings are made.

However, a major source of skepticism is whether or

not a fair and secure trade with water-abundant nations

can be sustained in an ever changing trade environment.

An advantage for the Arab countries is that they export

enough to earn the foreign exchange required to pur-

chase the food imports they need. The second issue per-

tains to the level of the economic base i.e. whether the

economy of the country is well developed and diversi-

fied to take the decision of reallocating water from cere-

als, which provide subsistence living to large sections of

rural population, to a more economically rewarding wa-

ter use.

Regional cooperation on this subject is of paramount

importance as it would allow countries of the region to

assess and analyze the situation on a broader basis, tak-

ing into consideration common strategic issues. It would

further alleviate many of the political and economic con-

cerns. Eyes have been often directed to Sudan as the

potential food basket for the Arab states due to the abun-

dance of water resources and arable lands there. How-

ever, political instability is a barrier to taking advantage

of such a golden opportunity.

Aside from the economic and political aspects of vir-

tual water trade; growing one’s food (i.e. feeding one-

self) has other important aspects; the cultural and social

aspects are of major influence on the decision whether or

not to grow a certain crop, furthermore culture interferes

with the whole acceptance of the notion of virtual water

trade.

The need for cultural change

In general, as Mahmoud Abu-Zeid [32], former presi-

dent of the World Water Council notes: “The cultural and

socio-economic values of water are still a very elusive

subject. Several learned meetings stressed the economic

value of water, while others stressed its social and cul-

tural values. The importance of one or the other will

vary from one society to another and from time to time,

depending on the specific historical background, cultural

heritage, extent of fresh water availability and the socio-

economic conditions of the concerned region. Develop-

ing a unified approach is required, with clearly defined

associated conditions and limitations for its applicability,

which should accommodate the diversity of the world’s

regions [32]. Changing people’s habits and the way they

use and perceive water is a challenge that involves

changing deep-rooted attitudes held by individuals, insti-

tutions, water professionals and civil society organiza-

tions. Social change of this kind can be brought about by

the application of appropriate tools [33]. Hoekstra [34]

investigated four cultural perspectives of appreciating

water which represent the four ways of life described as

the hierarchist, egalitarian, individualist and fatalist.

These perspectives are presented herein from the aspect

of water trade.

In the context of virtual water trade the different cul-

tural perspectives have different attitudes that range from

perceiving water trade as only possible for the rich peo-

ple in power and do not benefit the poor (the fatalists); to

perceiving water as an economic good that should be

managed as such, and thus free trade is the ultimate solu-

tion to carry water and water-intensive products to the

demand areas (the individualists). On the Other hand, the

hierarchists regard scarcity as a supply problem; where

inter-basin or international trade of water is a possible

A. El-Sadek / Agricultural Sciences 2 (2011) 248-261

256

way of improving the allocation of water, but it is seen

as an issue to be regulated by governments rather than

by free enterprise, due to the public character of water.

Whereas, egalitarians consider water trade in any form

undesirable, because water is seen as public property.

Importing or exporting water-intensive products (trade in

virtual water) is undesirable as well. Instead countries

should strive for water and food self-sufficiency through

demand management.

In the previous, it has been demonstrated that many of

the current controversies among water researchers and

policy makers can be explained from the existence of

different cultural perspectives. These perspectives differ

in their underlying basic values, beliefs and assumptions.

Hoekstra [34] stressed that current scientific knowledge

does not provide sufficient argument in favor of one par-

ticular perspective. One reason is that uncertainties about

the various interactions between man and the environ-

ment are still very large, leaving room for different in-

terpretations of the available data. Another reason is that

most of the water problems of today are not merely

technical but strongly value-laden. Therefore it would be

advisable to create a culture mixture when studying the

feasibility of virtual water trade as a policy option in the

Arab region. Such a cultural mixture is needed when

considering other policies concerning water planning

and use. In addition, this mixture would create a balance

between the interests of the different groups of a society

and insure a lasting “sustainable” planning strategy.

Water savings by virtual water trade

The most straightforward effect of virtual water is

about water savings for the country or the region that

imports food products. The savings are directly the result

of the quantity of imports multiplied by the local virtual

water values according to the equation below [9]:

Water savings (m3) = Impo rt (ton) × VWVconsmp. site (1)

where VWVconsmp.site = Virtual water value per crop

(m3/ton) if produced at the point of consumption

In the case of Arab countries, and since all crops are

grown by irrigation, the water savings attained by crop

importing are always real. Whereas other countries that

have some rain fed agriculture might not benefit from

the calculated water savings as it might not be possible

to put the saved rainwater to other use. Thus in ex-

tremely dry countries like Arab countries, one can as-

sume that importing food will save water that otherwise

would be needed to irrigate crops. Therefore the value

VWVconsmp. site could be calculated as:

VWVconsmp. site = IWR/Y irrigated (2)

where:

―VWVconsmp. site = VW value of irrigated crop (m3/ton)

―IWR = Irrigation water requirements (m3/ha)

―Y = Crop yield under irrigated circumstances (ton/ha)

The irrigation requirements are calculated on a decade

basis by calculating potential crop evapotranspiration

minus effective rainfall.

For example, there is a trend of increase in water con-

sumption in producing primary crops in the Gulf Coop-

eration Council (GCC) countries (cereals, fruits, and

vegetables), during the period from 1980-2003 the GCC

countries have consumed substantial amounts of water.

Virtual water value of irrigated crops are taken on aver-

age basis for these countries from the footprints tables

(cereals: 2500 m3/ton, fruits: 3000 m3/ton, vegetables:

2900 m3/ton).

Figure 3 shows the virtual water import in the Arab

countries while the virtual water import embodied in the

food import (cereal, oil and sugar) to the Arab region is

shown in Figure 4.

8. NATIONAL LEVEL: ROLE OF

VIRTUAL WATER IN EGYPT

Egypt as one state of the Arab region shares as well as

water scarcity problem the political characteristics of the

region. In his analysis of the different water policies,

Allan [16] identifies three policies for managing water

resources with different ranking aspects. The ranking or

priority of the policies depends on the viewer, outsider

professionals or insiders governments (politicians). The

policies are as follows:

1) Achieving improved water use efficiency by im-

plementing measures of productive efficiency to im-

prove returns to water at farm level and irrigation level

and also by urban and drainage reuse.

2) Applying principles of demand management to im-

prove allocative efficiency and returns to water. This is

done at farm level by raising water efficient crops, inter-

sectoral re-allocation and international re-allocation.

3) Achieving strategic water security. By securing

supplies of “virtual water” by international regional co-

operation in the international food trade.

The above ranking is the one adopted by politicians

and governments. The reverse of that ranking with the

virtual water policy on the top is the one adopted by ex-

ternal professionals (outsiders) who are concerned

mainly by the economy and the environment in contrast

to politicians whose main interest is the political stabil-

ity.

Some criticisms on virtual water are also worth noting.

The most common ones are that the poor countries can-

not afford virtual water import and virtual water import

makes the receiving country dependent upon the interna-

tional market [2]. These criticisms have been often

voiced loudly at international meetings, workshops and

n other national and international occasions. The criti- o

A. El-Sadek / Agricultural Sciences 2 (2011) 248-261

257257

Figure 3. Virtual water import in the Arab countries.

Figure 4. Virtual water import embodied in the food import (cereal, oil and sugar) to the Arab region.

cisms may be understandable, but do not quite touch the

point. Virtual water by its origin describes the fact that

many water scarce countries are importing (although

often unconsciously) a large portion of their food which

has effectively and silently reduced the domestic water

demand for food production that otherwise would be

needed. The situation implies that when water is in ab-

solute scarcity, virtual water import is necessary.

Water, an indispensable commodity for life of all be-

ings and for the development and well being of human

societies, has a finite nature of availability at global,

regional and national territorial theaters. The need for it,

at individual and national levels is not as finite, but is

rather ever-increasing prompted by improved techno-

logical deliveries and uses; by improved incomes that

enhanced better living standards, and by the net growth

in the levels of population at national levels. Coupled

with management challenges at individual, national and

Openly accessible at

A. El-Sadek / Agricultural Sciences 2 (2011) 248-261

258

regional levels, the water challenges have become seri-

ous and at times insurmountable if faced in absence of

cooperation at national, regional and, indeed, interna-

tional levels [6].

One of the major indicators of the scale of the water

deficit of water scarce countries is the level of its food

imports. The reason food imports are such a strong indi-

cator of water deficit is that the water required to grow

food is what an economist would refer to as the domi-

nant consumptive use of water. The use is dominant

whether viewed from the point of view of the individual

citizen or the national economy. Water used in the agri-

cultural sector exceeds by ten times the water used by

the industrial and municipal sectors combined [14]. The

main challenge facing Egyptian national development is

limited water resources. Water is the main factor, which

determines the type, size and location of any economic

activity. Egypt is a very arid country, where the average

annual rainfall seldom exceeds 200 mm along the north-

ern coast. The rainfall declines very rapidly from the

coastline to the inland areas, and becomes almost nil

south of Cairo. This meager rainfall occurs in the winter

in the form of scattered showers, and cannot be de-

pended upon for extensive agricultural production. Thus,

reliable availability of irrigation water is a necessary

condition for agricultural development. In Egypt, about

85% of the water resources are consumed in the agricul-

ture sector. It is thus important to investigate these issues

before jumping to conclusions about the suitability of

virtual water trade as a policy option. This section is

primarily concerned with investigating the prevailing

water/food situation in Egypt. The investigation includes

outlining water and food security facts and figures, as

well as policy measures undertaken to meet the chal-

lenges.

8.1. Water Resources in Egypt

The main and almost exclusive source of surface wa-

ter in Egypt is the River Nile. The 1959 agreement be-

tween Egypt and Sudan was based on the average flow

of the Nile during the period 1900-1959. The average

annual flow at Aswan during that period was 84 billion

m3. The average annual evaporation and other losses in

Lake Nasser were estimated as 10 billion m3, leaving a

net usable annual flow of 74 billion m3. Under the 1959

treaty, 55.5 billion m3 were allocated to Egypt and 18.5

billion m3 to the Sudan. The High Aswan Dam was con-

structed in 1968 to assure the long-term availability of

water for both countries. Its lake has a live storage ca-

pacity of 130 billion m3. The annual discharges from the

High Dam Lake during the period 1968 to 2000 are 67.6

billion m3 [35].

8.2. Food Production in Egypt

There are three estimates of the virtual water balance

in Egypt quoted from Hoekstra [4]; gross virtual water

import; gross virtual water export; and net virtual water

import. Also a time series for the import of the main

cereal crops are illustrated in Figures 5(a)-(f). As with

the increase in population in the future, the projected

water demand based on some models is about 92 billion

m3/ year. If the estimated total water resource availabil-

ity of about 70 billion m3/year and taking into considera-

tion that the 70 billion m3/year is the overall water

availability after applying the different measures such as

extensive drainage reuse and groundwater full utilization,

we can obviously see that the virtual water policy option

is pivotal and vital.

9. CONCLUSIONS

Different water management policies and strategies have

been applied in Arab over time. During the past water

abundant periods, supply management (construction of

dams, water distribution networks etc.) has been applied.

A review of the Virtual Water comparative advantages

and related concepts such as water footprints was con-

ducted. Issues related to the assessment of virtual water

content of commodities and studies on virtual water

trade in the global level were reviewed. The practical

value of the virtual water concept as well as the possibil-

ity of the application of the concept in the regional and

national level was also discussed. The paper emphasizes

on the application of virtual water in agriculture products

and virtual water trade of these products.

Politicians must be approached to get clear and very

well studied approaches about the practical application

of virtual water without their approval; and blessing wa-

ter concepts can not be achieved. There is a possibility

for the application of the virtual water concept on the

national level taking into account water endowments,

and other natural and social economic conditions. The

virtual water strategy seeks ways to consciously and

efficiently utilize the internal and external water re-

sources to alleviate water scarcity in Arab Region. This,

however, by no means implies that importing food is the

only response the water scarce countries and regions

should and can take. Other measures concerning the

supply and demand sides of water management are im-

perative. The argument here is that the virtual water

strategy should be an integral component in the whole

package of integrated water resources management. The

introduction of virtual water concept as a policy option

in Arab Region is still in need for extensive investiga-

tions, research, and feasibility evaluation. Nowadays,

rab countries are counted among those water-poor A

A. El-Sadek / Agricultural Sciences 2 (2011) 248-261

259259

(a) (b)

(e) (f)

Figure 5. (a) Per Capita Food Supplies in Egypt, 1962-2000; (b) Production of Wheat and Maize in Egypt, 1962-2000;

(c)Wheat Imports to Egypt, 1962-2000; (d) Maize Imports to Egypt, 1962-2000; (e) Rice Exports from Egypt, 1962-2000;

(f) Cotton Exports from Egypt, 1962-2000.

countries. This situation is mainly due to its limited fresh

water resources and continuous increase in water re-

quirements. As a consequence, Arab Region relies more

and more on new technologies and appropriate policies

that support the implementation of the integrated water

resources management concept.

For Arab Region, it is not the problem of affordability

of applying the virtual water concept, but more the

problem of priority and independency related to food

security. For example, if limited resources of Arab Re-

gion were used as production input in high-value crops

such as horti-culture instead of low-value and water in-

tensive crops such as cotton or rice, it could increase the

value of the input water. Increasing the water used in

industry (textiles for example) would also increase the

output of water use since it produces manufactured

goods that are usually considered step forward on de-

velopment scale. In order to adopt the application of

virtual water concept in the national water resources

strategy of Arab countries, there is a need for a clear

Openly accessible at

A. El-Sadek / Agricultural Sciences 2 (2011) 248-261

260

vision and understanding of its advantages and disad-

vantages according to the Arab conditions. Eventually,

there are many other aspects in the balance equation of

virtual water concept that limit its applicability in Arab

Region. The virtual water aspects need to be subject to

extensive research investigation, and analysis. Although

import of virtual water trade will relive the pressure on

the national water resources, including this new concept

as a policy option in Arab requires further research and

understanding of the impacts on the local social, eco-

nomic, environmental, cultural, natural, and political

situation. From the previous analysis it is important to

point out several points:

1) Food imports are ongoing and imperative for com-

pensating water resource deficiency in the Arab Region,

thus there is no point in opposing the concept of using

food imports as a complementary factor in the food se-

curity formula;

2) In short, the concept of virtual water is well founded,

provided countries have more transparent picture of its

comparative advantage and accordingly they can trans-

late it into a competitive advantage.

3) It is imperative that planners tackle the sources of

skepticism related to political, economic, and socio-

cultural dimensions of the virtual water trade through the

potential of regional integration before introducing it as

a policy option; and

Cultural and behavioral changes are necessary for

adapting to the current water scarce situation. Neverthe-

less, a cultural mix would benefit the study of virtual

water as a policy option to provide a holistic rather a

directed assessment of the issue.

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