The 1960’s Indus Water Treaty was the first intervention of a global organization – the World Bank – that focused not only on keeping peace at the border between Pakistan and India but also pursued regional development(United Nations, 1962, p.140; Akhter, 2015, p.68). The World Bank’s proposal – the dam and its subsidiaries built along the basin – left some wariness on the outcome’s success. It split the use of water along the border and limited the type of economic activity of the neighbouring countries sharing the basin (Akhter, 2015, p.65). Nowadays, the Punjab and the North-Western regions are rich in energy – provided by the dam’s hydroelectric power – but is still an arid area where regular water consumption comes in considerably from groundwater pumped through solar panels. Strangely enough, the North-Eastern regions of India face the opposite case with the Ganga River Basin overflowing.
The valley of Ica, located on the desert coast of Peru, south of Lima, has been a significant agricultural and energy producer due to its year-round sunny weather and strong desert winds. The soil nutrients and weather conditions provide crop flexibility that can adjust according to the available water supply (Swedwatch, 2018). Recently however, as a result of climate change, it has been inevitable for farmers – both big and small – to suffer a significant reduction in the water supply of the region’s main rivers. Its neighbour in the Andes, Huancavelica, an impoverished mountainous region with little access and benefits from national development, enjoys enough water flow from the River Pampas (Gestion, 2019). This river runs across the Ica region and into the Pacific Ocean without benefitting the valleys since it does not connect to any main irrigating river where most agricultural activity concentrates. After years of dispute escalated to national authorities, the central government approved a project for constructing a dam and detour of the River Pampas (Gestion, 2019).Continue reading “The Big Swap: Energy and Water Bartering”