The global water crisis threatens food production

water crisis

For the first time in human history, the hydrological cycle is disrupted, according to the latest report from the Global Commission on the Economics of Water (GCEW). By the middle of this century, 50% of global food production may be at risk as a result. The water crisis, experts say, will have a dramatic impact not only on human well-being and the natural environment but also on the global economy. Can the situation still be saved?

The scale of the problem

Decades of poor management and underpricing of water have led to the destruction of many freshwater ecosystems and the pollution of resources. Every day, more than 1,000 children under the age of five die from unsafe drinking water and lack of access to proper sanitation. Nearly 3 billion people live in areas where water is becoming increasingly scarce, warns the October report.

Local communities, countries, and regions are interdependent when it comes to water, not just in relation to surrounding oceans but also in terms of the 263 watersheds that cross national borders. Moisture in the atmosphere, which is increasing due to global warming, travels long distances, taking water from some areas and flooding others.

However, the water crisis is not only exacerbated by climate change but also by land use practices. The loss of biodiversity is both a cause and a consequence of hydrological disruptions, while the drying of soil and peatlands leads to the release of large amounts of carbon into the atmosphere. The long-term results, according to the report’s authors, will include worsening living conditions, disease outbreaks, deepening social inequalities, as well as the risk of conflicts and forced migrations. By 2050, the global GDP could decline by an average of 8% due to the water crisis, and in poorer countries, by as much as 10-15%.

Wodne Sprawy Kryzys wodny na swiecie zagraza produkcji zywnosci 1
photo: [email protected]/depositphotos

Water crisis as an opportunity?

The global water crisis is a tragedy but also an opportunity to transform the water economy, starting with recognizing its true value in the face of shortages, said Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO). This is also the conclusion of the report, which presents a number of ideas for changing the current situation. And action is needed, and urgently, as the costs of inaction are hitting densely populated areas in northwestern India, northeastern China, and southeastern Europe the hardest.

What can be done? According to Mariana Mazzucato, co-author of the report, today’s problems can be turned into significant investment opportunities. However, this requires a shift in thinking—from a narrow, sectoral approach to a broader, economic perspective on the water cycle. The GCEW outlines five missions that aim to help the world tackle the water crisis:

  • Revolutionizing the food system through innovations in crop irrigation and the development of regenerative agriculture to preserve soil health and moisture. A shift towards plant-based diets is also necessary.
  • Protecting and preserving natural habitats with green water.
  • Developing a circular water economy.
  • Promoting water-efficient solutions based on green energy and AI.
  • Ensuring that by 2030, no child suffers from unsafe water.

Recommendations of the Global Commission on the Economics of Water

The GCEW does not stop at lofty goals. The report also includes nine specific recommendations aimed at helping the world avert the water crisis. The first is to recognize the hydrological cycle, with all its interdependencies, as a global public good. It also recommends setting minimum water needs to ensure a dignified life and establishing a price for water that reflects its importance and encourages conservation.

An important task is to create incentives for innovation and investment throughout the hydrological cycle, build global partnerships for water, and improve the rules for financing hydrological projects across all sectors of the economy. The report’s authors also call for the collection of data that will enable comprehensive action. The most important task should be to create a Global Water Pact that sets clear and measurable goals to protect the world’s water resources.

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