The overall goal of our paper is to better understand water management reform in China's communities, especially focusing on the effect that it will have on the nation's water resources and the rural population. To pursue this goal, the paper has three objectives. First, we track the evolution of water management reform and seek to identify the incentive mechanisms that encourage water managers to more efficiently use water. Second, we identify the impact of water management reform on crop water use, the primary motivation of the policy. Finally, the paper explores how changes in China's water management reform affect agricultural production, farmer income and poverty. Based on a random sample of 57 villages, 231 farmers and 462 plots in four large irrigation districts in Ningxia and Henan provinces, both provinces in China's Yellow River Basin, our results show that two of the main forms of water management reform, Water User Associations and contracting, individual water contractors, have begun to systematically replace traditional forms of collective management. The impacts analysis demonstrates that it is not the nominal implementation the reform that matters, but rather it is the creation of new management institutions that offer manager strong incentive to save water. Specifically, when managers in reformed organizations face strong incentive, they save water and, importantly, given China's concerns about national food production and poverty allevation, the reductions in water do not lead to reductions in either production, income or higher incidences of poverty.
In Bruns, B.; Bandaragoda, D. J. (Eds.), Governance for integrated water resources management in a river-basin context: Proceedings of a regional seminar, Bangkok, May, 2002. Colombo, Sri Lanka: IWMI
In Bruns, B.; Bandaragoda, D. J. (Eds.), Governance for integrated water resources management in a river-basin context: Proceedings of a regional seminar, Bangkok, May, 2002. Colombo, Sri Lanka: IWMI
The discussion on minimum wage is a long-standing debate in economics. The fundamental objective of a NMW is to assist individuals who are remunerated at a low wage that yields below average living standards. To mitigate poverty, the government enacts laws that compel companies to compensate their employees at a wage that surpasses the equilibrium free market price for labour. On the other hand, an increase in the national minimum wage may also lead to an increase in the social unemployment rate. This essay will examine and critically evaluate the merits and drawbacks of NMW policies, and conclude that governments should not abolish the minimum wage altogether.