Connecting Water Access with Multidimensional Poverty: The Case of Tupiza River Basin in Bolivia

In developing countries, where economic expansion depends on extractive activities such as agriculture and mining, water quantity and quality considerations need to be examined in tandem with GDP growth and poverty reduction efforts. Poorest households in the Tupiza watershed in Bolivia are located in rural areas where water access for irrigation and safe drinking water is becoming increasingly scarce. Small-scale unregulated mining offers an alternative for revenue making in rural households, although wastewater from industry threatens water quality and new technologies to reduce water pollution are not implemented in this region yet. This study analyses water access and poverty linkages using the Multidimensional Poverty Analysis (MDPA) framework from the Swedish International Development Cooperation Agency (Sida) to guide a survey and to develop indicators using the Shapley-Owen decomposition method and multivariate regressions. A set of household-level policies were included to predict the influence of these policies on poverty reduction estimates. Results have shown that remote communities in rural areas have the lowest value of multidimensional poverty and for some of these communities mining activities represent an alternative that could be considered if their water access conditions worsen over time. While mining can bring better monetary benefits, it can cause the degradation of ecological flows from the produced wastewater. Under the current technologies and processes, it can pose negative impacts on water quality and threatens the public health of these communities