This Interim Strategy Note for Nicaragua proposes to extend the program described in that Country Assistance Strategy (CAS) for two more years, taking account of the current government's increased emphasis on growth issues to address poverty and in order to bring the CAS cycle in-line with Nicaragua's election cycle. The need for an Interim Strategy is underscored by growing political weakness of the Executive which may preclude new budget support (in the form of Poverty Reduction Support Credits) until the government is able to secure a stronger political mandate.

In 2003-04, Niger continued to implement its reform agenda, which is guided by the four strategic pillars of its Poverty Reduction Strategy (PRS). Fiscal imbalances were slightly reduced, steps were taken to strengthen economic governance, important structural reforms were initiated, and, social indicators were moderately improved. Moreover, key sectoral strategies premised on the 2002 PRSP were prepared in collaboration with the Bank, and, steps were taken to harmonize programs supported by development partners with the PRS. Despite these achievements, there is a long way to go to fully implement the PRS, and achieve its objectives. The economy remains susceptible to external shocks, macroeconomic imbalances are still relatively large, and the implementation of key structural reforms has been slow. Also, notwithstanding progress in developing growth-enhancing strategies for key sectors, such as the rural and infrastructure sectors, related programs are yet to be costed, and other complementary strategies in export promotion and tourism development are yet to be fully defined. Moreover, other shortcomings, including lack of adequate understanding of the poverty profile, and the impact of growth on poverty, have yet to be fully addressed. Further, despite the open, transparent, and consultative manner in which the PRSP and its progress reports were prepared, the process continues to be weak in several respects, including lack of adequate coordination with key stakeholders such as nongovernmental organizations (NGOs) and regional authorities. Looking ahead, the above-noted concerns should be addressed to enhance the effectiveness of reforms, and move forward the full implementation of the PRS. This annual progress report broadly reflects Niger's achievements and shortcomings in the implementation of the PRS, and underscores the authorities' commitment to address identified weaknesses in its implementation. Recommendations include: updating of poverty analysis; expeditious implementation of the growth-enhancing strategies; continued reduction of the fiscal deficit in 2005 by expanding the tax base; improvement in the preparation of budget programs; adoption and implementation of the priority action plan for improving public finance management; adoption of a strong population and reproductive policy; and, continued integration of the President's Special Program into sectoral strategies.

This paper presents new experiences in the province of Andahuaylas, in the Andes of Peru, in a bid to help solve the problem of water supply in rural scattered areas. The central part of the document consists of a study that describes and analyzes the process by which 5 small areas in a scattered rural steeply sloping side of a mountain managed to acquire a sustainable water supply operated by gravity. The study includes 3 chapters. The first chapter examines the water issues in the communities, what solutions developed by the commoners to stock up on water, what are the drawbacks of the traditional system of their drinking water system. The second chapter describes technical aspects of the project, explaining how the technologies employed were the product of the physical and social environment. The third chapter describes the community participation during and after the project.

A transient numerical groundwater flow model using MODFLOW-NWT was set up and calibrated for Hanoi city, Vietnam, to understand the local groundwater flow system and to suggest solutions for sustainable water resource management. Urban development in Hanoi has caused a severe decline of groundwater levels. The present study evaluates the actual situation and investigates the suitability of managed aquifer recharge (MAR) to stop further depletion of groundwater resources. The results suggest that groundwater is being overexploited, as vast cones of depression exist in parts of the study area. Suitable locations to implement two MAR techniques—riverbank filtration and injection wells—were identified using multi-criteria decision analysis based on geographic information system (GIS). Three predictive scenarios were simulated. The relocation of pumping wells towards the Red River to induce riverbank filtration (first scenario) demonstrates that groundwater levels can be increased, especially in the depression cones. Groundwater levels can also be improved locally by the infiltration of surplus water into the upper aquifer (Holocene) via injection wells during the rainy season (second scenario), but this is not effective to raise the water table in the depression cones. Compared to the first scenario, the combination of riverbank filtration and injection wells (third scenario) shows a slightly raised overall water table. Groundwater flow modeling suggests that local overexploitation can be stopped by a smart relocation of wells from the main depression cones and the expansion of riverbank filtration. This could also avoid further land subsidence while the city’s water demand is met.

The geomorphological evolution of a sand-dune barrier in Buenos Aires, Argentina, is analyzed as a factor regulating the fresh groundwater reserves available. The impact of geomorphological evolution and the consequences for the social and economic development of two coastal areas are assessed. This is one of the most important tourist destinations in the country; for study purposes, it was divided into a northern sector and a southern sector. In the southern sector, the exploitable groundwater is associated with the Holocene and upper Pleistocene geomorphological evolution, which generated three interrelated aquifer units, constituting a system whose useful thickness reaches at least 45 m. In contrast, the northern sector is restricted to two Holocene aquifer units, whose total thickness is on the order of 12 m. The morphological characteristics and the occurrence of the largest fresh groundwater reserves in the southern sector are indicators of better conditions for economic growth, which is mainly reflected on the expansion of real estate ventures. The relationships of transmissivity vs area of real estate ventures (Arev), and total water consumption vs Arev, are indicators for the sustainable management of the water resources. The approach chosen may be used by decision makers in other regions to assess the feasibility of future tourism projects on the basis of the availability of water resources associated with geomorphological features.