Valuation of Natural Resources and Performance Indicators, Fundamental Support for Creation of a Systemic Financial Model for Watersheds

Corresponding Author: Osvaldo Daniel Martínez Camacho Cardoso An overview of watershed management in the region of Central and South America indicate that they are very rich in natural resources, principally water as a primary resource. However, this wealth and others provided by nature are constantly threatened by overuse, misuse or use, degradation, land desertification among others that make sustainable management impossible.

The watersheds intervened in their home or recently established, currently still rely heavily on external funding, which means that they are not sustainable and even worse they do not have the incorporation of its inhabitants as a way of governing their habitat, consequently, the systemic financing in watersheds is the subject less developed in Latin America at the level of public policy and academically.
Conceptually, it is closely related to governance as a mean of management and watershed management through capacity building of individuals who live there, which are organized in communities and municipal institutions, responding to national policies on comprehensive Management of watersheds and the Integrated Management of Water Resources. The aim pursued by the valuation of natural resources in watersheds, is the creation of a financial systemic model of governance associated primarily responsible to their organized citizens with created capacities and long-term financing However it is important to create watershed performance indicators that allow us to be confident that the model, capabilities and interventions are optimal or reasonable.
It is therefore important to define indicators on governance and sustainability in watershed which are showing progress and trends on the expected horizon.

I. INTRODUCCIÓN
Watersheds demand large volumes of investment and operation, despite that, they lose their environmental, hydrological and ecological functions as a result of indiscriminate use and lack of regulation in the use of their natural resources Many of the plans of management-master plans attribute the lack of its application to the issue of the demand of millionaire sums, therefore must resort to external financing as an alternative, leaving aside the essence in its long term sustainability "its natural resources" fundament to generate value and better living conditions among its inhabitants. The Integral Management of Watersheds -IMW in Latin America has been financed with external funds from international cooperation, with low responsibility of the Estate and Society, which is causing the city's water quantity and quality to be lost in an accelerated manner, likewise, territorial disputes cause conflict and ungovernability in the areas surrounding watersheds Watershed management organizations cease to exist due to weak state institutions for water management, and to a high mortality rate or cease to exist institutionally (Dourojeanni 2004), this is due to the lack of financing and management in legalization of legal personality, consequently, these entities go through serious management problems to meet the objectives for which they were created.
One of the most important aspects in the Integral Management of Watersheds is the systemic financing related to the sustainability in watersheds product of the valuation of its own natural resources, nevertheless, some publications by The nature Conservancy in "Watershed Evaluation card" "Valuation of Natural Resources and Performance Indicators, Fundamental Support for Creation of a Systemic Financial Model for Watersheds" prepared by Imbach Alejandro, in his publication tangentially takes into account the subject, being also in this position the working group on finance of the initiative for water of the European Union -EUWI -FWG (Hurtado and EUWI-FWG 2012), focusing in financing through negotiated payments and considering the hydrological issue. However, the financial model can be even more robust and consistent considering all the benefits that a certain watershed provides in its biophysical elements and in the understanding that the land factor associated with the water resource provides innumerable benefits in production.
In this scenario, it is important that agreements between users and contributors are logical an accessible in order to achieve financial sustainability, less dependence on public funds (Rees, Winpenny, and Hall 2009) The objective of this article is to explain that the systemic financing of a watershed can be realized through the inventorying and valuation of its natural resources; with the purpose of seeking governability through processes of capacity building in its inhabitants organized in watersheds organizations or under another modality, with decentralized public policies granted by the governing entities and with sustainable financing for the execution of prioritized projects.
No less important is the incorporation of indicators of governability and sustainability in watersheds based on a baseline that incorporates protocols to measure progress, achievements and expected results; A general outline of what is mentioned is presented in figure 1:   As can be seen in figure 1, the model introduces biophysical aspects that come from master plans or watershed management that are incorporated in the diagnostic stage, as well as socio-economics aspects. The model works with inputs from the watershed itself through the valuation of natural resources, emphasizing the water resource in its different modalities of use, such as canons and negotiated payments, as well as funds from international organizations such as donations and loans. Expenses are mainly defined in two aspects: all the information related to investments exposed in Master Plans or Management plans and expenses for the operation and training of the watershed organization.

II. BODY TEXT
The value of ecosystems and their valuation has become an important mechanism in the public management of ecosystems (Villa et al., 2002), influencing through these in conservation policies (Alden, 1997). In this context, valuation techniques can be direct (focus with individual demand) or indirect (focus without demand) (Freeman, 1993; Pearce and Turner, 1995) On the other hand, valuations techniques can be based on preferences: market prices, travel cost method, contingent valuation, discrete elections, others (Sarmiento 2003) With the previously detailed data, systemic financing models are constructed in their different modalities according to the participation of the state and private, I have incorporated information in the horizon of financial flows such as: population growth, the variation of the price index to the consumer and others who can expose us to different scenarios. These models must be corroborated through financial and economic indicators such as the Internal Rate of Return -IRR to evaluate the project based on the performance of the period in the flows, whose updated benefits are equal to the disbursements expressed in (Sapag and Sapag 2008); Net Present Value -NPV which is acceptable as long as its value is equal to or greater than zero, whose calculation comes from the difference between income and expenses (Sapag and Sapag 2008) and, the benefit-cost ratio generally used in the evaluation of public project, whose obtaining is through the net surplus value in a public investment.
The establishment of public policies on water as a transversal axis in productive, industrial, and agricultural processes has been considered in the strategy with a horizon of 2020, incorporating concepts on the generation of knowledge of the global network, achieving governance, and management of the water, including water (Global Water Partnership 2009), and the Integral Management of Water Resources-IMWR in central and south America has contributed significantly to the sustainability and governability of natural resources associated with watershed management; case studies have been systematized in the table below, exposing the problem, the process or actions carried out to derive optimal results that contribute to the improvement of water management. "Valuation of Natural Resources and Performance Indicators, Fundamental Support for Creation of a Systemic Financial Model for Watersheds"

TableI-Systematization Of Experiences In Integral Management Of Water Resources In Central And South America
Source: Own elaboration basedon information from Global Water Partnership/Toolbook Water. The model contributes to the sustainability of the watershed in the long term and governability, carrying out the monitoring through protocols and indicators. We must emphasize that an indicator is the basis of a monitoring and evaluation system, in which the present actions are visualized, but also incorporates a future perspective to improve the interventions carried out. Some indicators of governance and sustainability for watershed management are described in Table 1, whose compilation has been taken from the Performance Evaluation Framework -PEF of the ministry of Environment and Water, the Master Plan for the Lake Poopo watershed and its own work experience in watersheds.

Municipal Governance and institutional capacity in conducting IWRM and MIC interventions
Promote the development and strengthening of inter-institutional capacities and individuals in public, private entities and social organizations, at the national, regional and local levels, for promotion, planning, facilitation and execution of IWRM-MIC processes and actions. In order to arrive at the definition of the indicators in sustainability and governability related to the integral management of watersheds, a scheme has been designed, which shows the inputs of figure 1, the processes through which they pass and the results to be obtained. The indicators of governance and sustainability associated with the systemic financing model must fulfill the function of providing periodic information to verify progress, correct risks, but above all make decisions regarding the optimal management in watershed management. Therefore, the actors within the water resources management processes will manage information, will be aware of the advances and will make decisions for the benefit of the watershed as their living habitat. We must also that indicate that watershed indicators provide information to feed the integral management of watersheds at sectorial level, in such a way that it allows to make modifications, changes, additions or suppressions within public policies, in the understanding of improving the living conditions of the beneficiaries.
The conceptual framework in the definition and management of indicators, implies the desired transformation from a baseline (starting point), with definition of protocols with a tendency toward a better horizon in the integral management of natural resources, therefore, the indicators will contribute to the valuation and advances regarding knowledge, attitudes, values, income, expenditures as important elements in the transformation of inputs in models worked with cash flows.
The data collected will be parameterized through excel sheets, to then process the information regarding the indicators, from which the interpretation can be extracted according to the determined standards. The indicators will reflect the accomplishment of goals or, failing that, the correction of the planning of the watershed to achieve the described results in the short, medium and long term.

III. RESULTS Y DISCUSSION
Having indicators of sustainability and governability in watersheds involves gathering information, classifying, systematizing and applying it coherently with the purpose of comparing with an initial state, analyzing its progress, difficulties, but mainly that it serves as an instrument for decision making and to correct possible deviations or errors. Therefore, its use will be useful for the following: a. Monitor the operation of the proposed model from the introduction of inputs, processed through cash flows to apply resources for the sustainability of actions in watersheds and governance in the bodies responsible for watershed management. b. Construction of a database to systematize and standardize the information associated with indicator measurement protocols. From the definition of the indicators, it is necessary to build an initial baseline. c. Determination of progress, obstacles, problems or risks that may arise from the determination of indicators. These products allow adjustment to be made to watershed management in terms of sustainability and governability. d. Apply better the economic resources generated through the valuation of the natural resources of the watershed, the main input for its long-term sustainability. e. Continuous and permanent monitoring of the indicators in order to project trends in terms of watershed growth and implementation of prioritized and determined actions in the master plans and management. f. The product of the analysis and interpretation of the indicators will achieve a positive impact on the management of water resources and the integral management of watersheds, in terms of sustainability and governance, improving monitoring processes, trends and relevant adjustments in the use and application of generated resources.

IV. CONCLUTION
The objective of this article is to incorporate elements that contribute to the management of watersheds through the information generated and provided by watershed management organizations, based on the valuation of natural resources, the processing of monetary flows, the determination of indicator of management mainly in sustainability and governance; Situation that for years has not allowed to know the reality of the watersheds, which have been seen for extractive purposes and generating economic resources, forgetting the reality of its inhabitants and the preservation of the ecosystem.
Consequently, the development of any policy related to this sector, must necessarily incorporate the knowledge, customs of its inhabitants, aware of reality; who from their optics will be able to contribute significantly in the accomplishment of the goals.
The indicators based on the generation of agile, timely and reliable information will allow to reach the proposed objectives or to make the adjustments in the planning and management of the watersheds; the participation in the elaboration of public policies of the sector must incorporate all the levels of the state in an inductive/deductive process for the determination of measurement protocols, interpretation and management of improvements in watersheds.
The conformation of watersheds organizations must necessarily apply quali-quantitative indicators, in order to monitor their progress, difficulties and trends for the achievement of common welfare, care of the environment, whose previous process involves the management of "Valuation of Natural Resources and Performance Indicators, Fundamental Support for Creation of a Systemic Financial Model for Watersheds" projects that make the master plans/management following dibbing processes, execution of works with integral management of watersheds, monitoring and evaluation of performance through process indicators, results and impact.
From the point of view of the quantification of the benefits of the watersheds and its valuation introduced in cash flows, it will be possible to evaluate the accomplishment of goals through the generation of indicators to make the pertinent adjustments in the planning and development of the projects.