Abstract

Many countries invest public funds in large-scale drainage projects to alleviate problems of waterlogging and salinization, and to enhance agricultural development. The estimated returns on those investments are substantial when crop yields are expected to increase significantly with drainage service. However, if the need for drainage is caused largely by inadequate water management, then the efficient strategy for enhancing agricultural productivity will include investments both in irrigation and drainage facilities and in policies that motivate improvements in water management. The policy implications that follow from this perspective are described using an empirical example from Egypt.

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