Theory, the Market and the State: Agricultural Reforms in Post Socialist Uzbekistan Between Economic Incentives and Institutional Obstacles

Water pricing is seen as an important element in efficient water resource management. By providing information about water resource scarcity, water prices can make explicit the value of water and can set adequate incentives for water users to use water more sustainably. However, designing efficient water resource pricing schemes is dependent on many prerequisites that are hard to fulfil. In this chapter, we contrast the prerequisites of water pricing with real-world contexts in the Fergana Valley. We show that many prerequisites for water pricing are not met in this area, so that water pricing reforms are unable to perform the functions usually associated with water prices. Nevertheless, it is possible to articulate a number of steps toward a reform of the agricultural sector which may at least point the way towards a more sustainable use of water resources.

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