in developing conservation and use strategies. Participatory plant breeding approaches as well as marker-assisted breeding may allow obtaining improved plant material.

Diversifying production at various scales, from mixing seeds to integrating crops and livestock, will also substantially reduce production risks, particularly where higher income through sale of high-value products allows for pertinent investments such as small-scale irrigation. Diverse systems are generally more robust and resilient to shock and stresses, and thus better able to cope with risk (Haykazyan and Pretty, 2006; Werners et al., 2007). Crop diversification can considerably reduce the risks associated with pests and diseases, and the risk of crop failures due to such environmental conditions as climatic extremes and changes may be spread over a greater number of commodities. Diversification may also help in financial as well as market risk reduction and can thus contribute to stability, economic sustainability and improved livelihoods. It also allows for more flexibility and opportunities to adapt to changing framework conditions. Risk management strategies at the farm level may also include the choice of low-risk activities; although specialty crops such as tomato may offer the possibility of high gross returns they commonly have greater year-to-year production variability than the more common crops (Patrick, 1992).

Because of the multiple sources of risk, comprehensive strategies that integrate several responses to variability are often necessary for effective risk management. In addition to diversification these strategies may include choosing low-risk activities, dispersing production geographically, selecting and diversifying production practices, maintaining0 flexibility at production level; obtaining market information, spreading sales, practicing forward contracting, participating in government or other programs at marketing level; and insuring against losses, maintaining reserves, placing investments, acquiring assets, and limiting credit and leverage at the level of farm finances. The particular combination of risk-management responses an individual farmer uses will depend on the individual’s circumstances, type of risks faced, and attitudes toward risk. Some risk responses act primarily to reduce the chance that an adverse event will occur, while others have the effect of providing protection against adverse consequences should the unfavorable event occur. Farmers find many different ways to implement these principal risk responses (Patrick, 1992). However, for farmers to choose certain framework conditions are prerequisite. These may include access to credit, insurance, markets and market information. 5.2.2 Rational management of natural resources

5.2.2.1 Water

Water management in and for agriculture has to be set in a broader perspective of integrated water resource management (IWRM) (GWP TAC, 2000; for links and resources regarding IWRM see InfoResources, 2003). IWRM aims at the coordinated development and management of water, land and related resources to maximize the resultant benefits in an equitable manner for all sectors and members of society without compromising the sustainability of ecosystems. Thus, IWRM pursues three major objectives: (1) efficiency by maximizing economic and social welfare derived

from water resources and investments in providing water services; (2) equity in allocating water resources and services across different economic and social groups; and (3) environmental sustainability by not putting at risk the water system that we depend on for our survival.

IWRM considers water for people—drinking water and sanitation; water for food, i.e., for the farming sector including livestock and fisheries; water for nature—for preserving ecosystems; and water for other uses—industry, recreation, tourism, energy and transportation (SDC, 2005). IWRM therefore necessitates a holistic approach to management, considering the interdependencies within natural systems, but also the way that economic and social systems affect the demands placed on the resource base. It also requires a participatory approach, emphasizing the need for stakeholders to be involved in water development and management (including women as decision makers and water users). And IWRM requires understanding that the demands for water will inevitably outstrip the capacity of the resource base to deliver unless users become aware of the provision costs involved (including environmental costs). IWRM therefore represents a break with tradition, from sectoral to integrated management, from top-down to stakeholder and demandresponsive approaches, from supply to demand management, from command and control to more cooperative or distributive forms of governance, from closed expert-driven management organizations to more open, transparent and communicative bodies (GWP, 2006).

Since most countries in the Middle East and North Africa can be classified as having absolute water scarcity, and water demand from all sectors is expected to increase (Studer et al., 2002), IWRM is of particular importance in the region. Governments are currently the most active institutions in managing regional water resources; IWRM approaches, however, require participation of the different water users in managing water resources. Therefore, the role of governments will change from managing water resources to regulating the institutions involved in managing them. Regulations and laws will have to be adapted accordingly.

Efficiency of water use in agricultural production. Improving water-use efficiency in agriculture will have to include technical, economical, institutional and social options. Technical options include improving the infrastructural and organizational aspects of water conveyance and distribution systems; on the farm, they include improving the scheduling and practices of applying water in irrigated cropping—and making better use of precipitation in rainfed production. Since many farmers in CWANA may not be in the position to finance more efficient irrigation technology, they may have to be encouraged and assisted in moving toward more water-efficient systems. Furthermore, education and training will be needed to implement more water-efficient practices. However, water-demand management options such as water pricing developed with the participation of water users will have to complement technological options. Organizing users in water-user associations has proven effective in improving water management.

Water harvesting. Collecting, storing and concentrating precipitation at different scales (water harvesting) is an ancient