Evaluating Market-Oriented Water Policies in Jordan: A Comparative Study

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Abstract
It is argued that the establishment of tradable water rights will play an important role in increasing productivity and sustainability of water use in developing countries. Due to economic growth, scarcity is expected to be conducive to water market development. This article presents the potential for and feasibility of markets in water rights in Jordan through a comparative study of Chile, Mexico, and California. Many lessons were learned from the experiences of those countries concerning water markets. The transformation of these lessons to the Jordanian context is faced with some fundamental challenges in terms of water legislation, institutional structure, and data. Water legislation must deal with externalities, dispute, and third-party effect. Adopting a new water act and review of water laws is essential for better water resources management and assured public input and feedback. Market oriented policy should be introduced only on a pilot basis in terms of pricing. Policy makers believe that dealing with future water scarcity in Jordan will be achieved through better management and utilization of water using both conventional and nonconventional sources. Moreover; policy makers and farmers in Jordan expressed strong reservations on intersectoral water transfers because of the importance of water to the Jordanian economy.

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