Question

Discuss how the World Bank tried to settle this problem.

Answer 1

After Partition in 1947, India and Pakistan faced a serious dispute over sharing the waters of the Indus River system. The Indus and its tributaries were the lifeline of agriculture in Punjab and Sindh. The rivers originated mainly in India but flowed into Pakistan. While India controlled the headworks and sources, Pakistan depended on these waters for irrigation.

In April 1948, India stopped the flow of water from certain canals leading to Pakistan for a brief time. Though supply was restored after negotiations, the incident made Pakistan deeply anxious about its agricultural security. Direct negotiations between India and Pakistan failed, as both countries mistrusted each other and insisted on their own rights over the water.

Recognising the danger of this unresolved dispute leading to more conflict, the World Bank offered to mediate in 1951. The President of the World Bank, Eugene Black, took a special interest in resolving the problem.

1. Neutral mediator: The World Bank acted as a neutral and trusted third party. It brought both India and Pakistan to the negotiating table, offering to mediate fairly without taking sides.
2. Technical solution: Instead of discussing political claims alone, the World Bank suggested a technical solution, that the rivers should be divided between the two countries. It proposed allocating the three eastern rivers (Ravi, Beas, Sutlej) entirely to India and the three western rivers (Indus, Jhelum, Chenab) entirely to Pakistan. This practical approach was designed to reduce disputes about daily water allocations.
3. Funding support: One big challenge was that Pakistan relied on the eastern rivers for its irrigation system. Losing these rivers would have left millions of acres dry. The World Bank proposed creating the Indus Basin Development Fund to help Pakistan build new canals, dams, and link systems to replace the lost water. The World Bank coordinated international financial help. Several countries, including the USA, the UK, Canada, Australia, New Zealand, and West Germany, contributed, along with the World Bank itself.
4. Long negotiations: Negotiations were long and difficult, lasting nearly a decade. The World Bank worked patiently, providing expert studies, engineering advice, and legal guidance. It kept both sides talking even when they were on the verge of breaking off talks.
5. The Indus Waters Treaty (1960): Finally, under World Bank mediation, both countries agreed on the terms. The Indus Waters Treaty was signed in September 1960 in Karachi by Prime Minister Jawaharlal Nehru of India and President Ayub Khan of Pakistan. The World Bank acted as a guarantor to ensure both sides respected the agreement.
6. Significance of the World Bank’s role: The World Bank’s role was vital. Without its mediation, expert planning, and coordination of international financial support, India and Pakistan might not have reached an agreement. The World Bank’s involvement added credibility and trust to the process.
7. Lasting impact: The Indus Waters Treaty is still considered one of the most successful examples of conflict resolution over water resources in the world. Despite wars and tensions, the treaty has survived for decades.