Co-financing irrigation water services: farmers’ perspectives in the Mekong Delta, Vietnam
From Firenze University Press Journal: Journal of Agriculture and Environment for International Development (JAEID)
Nguyen Duc Kien, Faculty of Economics and Development Studies, University of Economics, Hue University
Pham Xuan Hung, Faculty of Economics and Development Studies, University of Economics, Hue University
Nguyen Hoang Diem My, Faculty of Economics and Development Studies, University of Economics, Hue University
Takeshi Mizunoya, Faculty of Life and Environmental Sciences, University of Tsukuba
Nguyen Cong Dinh, Faculty of Economics and Development Studies, University of Economics
The escalating frequency of extreme weather events worldwide, as evidenced by global warming and climate change (WMO, 2021), is a matter of significant concern for humankind. These events have far-reaching impacts on ecosystems, weather patterns, and humansocieties, demanding urgent attention to mitigate their adverse effects (IPCC, 2021). In addition to addressing swift and destructive natural disasters like earthquakes, floods, and tsunamis, policymakers must also prioritize the development of clear and comprehensive strategies to mitigate the impacts of drought, which, despite its slow onset, can lead to severe and widespread consequences, particularly in agricultural production (UNDRR, 2021; World Bank, 2016).Vietnam, situated in Southeast Asia, faces significant climate change threats, particularly water scarcity and drought (Tan et al., 2023; Kien et al., 2023; Phuong et al., 2023; Ha et al., 2022). The country’s economy and national welfare have already suffered, experiencing an estimated GDP loss of 3.2% in 2020, with expectations of escalating impacts in the future (World Bank Group, 2022). Vietnam ranks among the top 20 countries with the most extreme weather events, with droughts posing a major risk (Eckstein et al., 2021). Given that agriculture accounts for 17% of the GDP and employs over 40% of the labor force, the changing climate significantly affects the country’s livelihoods and food security (UNDP, 2016; World Bank, 2021). Without proper adaptationand mitigation measures, the projected cost of climate change for Vietnam could reach 12–14.5% of the GDP annually by 2050, potentially pushing one million people into extreme poverty by 2030 (Vietnamese Government News, 2022; World Bank Group, 2020).The Mekong Delta, the cornerstone of Vietnam’s agriculture, faces a significant threat to its productivity by 2050 due to water scarcity (Ishikawa-Ishiwata & Furuya, 2022; Kontgis et al., 2019; Minh et al., 2022; Tran et al., 2022). Upstream dam constructions, climate change, and other factors have compromised the Mekong River, causing saltwater intrusion, water scarcity, and devastating agriculture. The worst drought in a century hit in 2019, resulting in over $1.3 billion in losses (Mekong River Commission, 2022; Thanh et al., 2023). The dry season droughts intensified, prompting a state of emergency and international assistance requests. In 2019–2020, 10 out of 13 provinces in the Mekong Delta suffered from water scarcity and rising salinity, damaging 58,000 hectares of rice and affecting 96,000 households (VDMA,2020). The Mekong River Commission (2021) reported its lowest water level in a century, exacerbating saltwater intrusion and agricultural impacts. Households in the Mekong Delta face vulnerabilitydue to water scarcity, impacting their agricultural livelihoods. Urgent implementation of adaptation measures is crucial to safeguard agricultural production, food security, and rural livelihoods (Nguyen et al., 2021).Despite Vietnam’s significant efforts in addressing water scarcity and drought in agriculture amid changing climates, financial constraints persist as a developing country. The government’s irrigation policy has shifted from partial fee exemption to near-total subsidy. Government funds support the operation and maintenance of focal works and main canals, while secondary and infield canals rely on a combination of provincial budget allocations and minimal farmer contributions. A previous JICA (2013) study found that these financial contributions are often inadequate. Moreover, after extended implementation, the policy reveals notable drawbacks. Firstly, farmers lack incentives to conserve water as they do not directly pay for irrigation services. Secondly, irrigation financing relies on the government’s constrained budget, contrasting with the escalating demand for investment. The complex disbursement procedures and decentralized management further impede efficiency. Proactive, sustainable, and long-term solutions are thus essential. Mobilizing co-financing from farmers is a potential remedy. A modest contribution from each household could create a substantial financial pool, alleviating government investment pressures and actively involving farmers in adoptingsustainable practices. Beyond addressing immediate water scarcity concerns, this strategy promotes lasting impacts by instilling a culture of water conservation. Consequently, it contributes to building resilience against future water scarcity challenges.Nonetheless, the government may face numerous challenges in enforcing this initiative in practice. These challenges could stem from economic hardships experienced by farmers, limited awareness and understanding of the importance of water resource restoration within specific farming segments, as well as various cultural and social factors impacting farmers’ willingness and ability to engage in such efforts. Therefore, conducting studies on farmers’ willingness to participate in this initiative becomes crucial. The findings from these studies can assist policymakers in recognizing both tangible and intangible barriers, enabling more informed steps in policy enactment and implementation.A number of studies have been conducted regarding co-financing initiatives involving individuals and households to promote environmental improvement, improve life quality, and mitigate the impacts of climate change. Most of the research in this area has focused on topics such as forest environmental services (Thuy et al., 2013), wastewater treatment (Le & Aramaki, 2019; Trang, Rañola, & Song, 2018), improving urban water supply systems (Bui et al., 2022; Hue, 2018), protecting groundwater (Vo & Huynh, 2017), restoring mangrove forests (Pham et al., 2018), ecosystem conservation (My, Kien, Hung, & Anh, 2023), and improving urban air quality (Nguyen, Nguyen, Le, & Kaneko, 2022). Our empirical review suggests a dearth of literature that delves into farmers’ attitudes towards participating in the co-financing of irrigation water services to facilitate agricultural irrigation, notwithstanding their critical significance and urgency. Existing research has primarily concentrated on assessing the willingness of urban residents or tourists, with inadequate attention given to farmers and their livelihoods amidst the escalating challenges of climate change. Thus, this leaves a gap in the literature on factors driving farmers’ willingness to pay for irrigation improvements for agricultural production. Bridging this gap holds significant implications for policymakers in Vietnam and analogous developing nations, allowing them to formulate and execute effective policies related to “irrigation water services.” This, in turn, would ease the financial burdens on the government, foster sustainable agricultural practices, and mitigate the adverse effects of climate change. The objective of this study is to address this research gap by (1) examining how farmers perceive water scarcity and its impact on rice cultivation, (2) identifying the factors that influence rice farmers’ willingness to co-finance irrigation water services, and (3) suggesting pertinent interventions for the successful implementation of this initiative.
DOI: https://doi.org/10.36253/jaeid-14932
Read Full Text: https://www.jaeid.it/index.php/jaeid/article/view/14932
