Strategic importance of water governance and Virtual Water Trade (Case Study of India and South Africa)

The ‘water crisis’ the world community faces today is largely a governance crisis. Securing water for all, especially for vulnerable populations, is often not only a question of hydrology (water quantity, quality, supply, demand) and financing, but equally a matter of good governance. Managing water scarcity and water-related risks (floods, natural disasters, etc) requires resilience institutions, collaborative efforts and sound capacity at all levels (WWF 2012: 5 in Goldin, Sneddon and Harris 2013). Virtual water is becoming a more important tool as it offers better water solutions for the future for the arid and semi arid areas like South Africa. This study considers the prevailing water governance phenomena in India and South Africa with a particular focus on virtual water trade policy measures. Virtual water trade is becoming an important component of water management globally, particularly in water scares countries. The study aims at analyzing the extent and pattern of virtual water trade in South Africa and India employing a systems analysis approach based on secondary data and drawing on desktop information from various published sources. Virtual water trade has been calculated by multiplying commodity trade flows by their associated virtual water contents. The study provides useful insights as to how to achieve more efficient allocation of water resources. In particular, this study provides a clear picture of the patterns and extent of virtual water trade in the regions and of the way in which the economic value of water in agricultural production system provides an efficient and low water intensive cropping system for import substitution. It also discusses the virtual water trade and policy implications for managing cereal production, trade and food security. The study can be instrumental in addressingwater and land management domestically, in fostering food management strategies and in improving transboundary resource management so as to ensure overall food security.