Water Policy and Poverty Reduction in Rural Areas: A Comparative Economy-wide Analysis for Morocco and Tunisia

Water is the main constraining factor facing agricultural development in the Southern and Eastern Mediterranean, particularly in Tunisia and Morocco. In fact, Tunisia and Morocco are facing increasing competition for water due to population and economic growth. This has led the governments of both countries to seek to design and implement new water management policies. Public interventions have aimed at improving the efficiency of water utilization in agriculture and at redirecting any savings in water towards agricultural expansion as well as urban expansion, tourism and the manufacturing sectors. The objective of the study is to explore the impact of alternative domestic water policies in the context of trade liberalization and free trade agreements to which both countries are signatories.