Abstract

Institutional adaptability for counting water shortage has been slower than changes in process of water resources management .Consequently, governance structure of the water sector is inefficient in facing with new challenges. Therefore, institutional gap in water sector has lead to many problems known as ‘crisis of governance’. The aim of this study is to assess water institution using “Institutional Development Analysis” (IDA) framework in three levels including laws, policies and administrative of water sector. In addition, the performance of water sector has been evaluated in four dimensions: physical, financial, economical and equity performance. Communication layers of water institution and water sector performance offered in form of ‘institution–performance interactions’ model and the simultaneous equation was estimated by 3SLS method. The results show that “institution-performance interaction” assessment can provide the strategy of institutional reforms in water governance. The performance of water institution is more dependent on “effectiveness of water administration” compared to “water law and policy”, which implies that technocratic management plays a central role in water resources management. The water section performance is more focused in physical aspect.

Keywords: Institutional analysis, water governance structure, Water Institution, water sector performance.

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