With more than half the global food supply and up to 15% of lower-income countries' GDP at risk by 2050, the global water crisis demands urgent action, says a new report. Picture: Sindre Fs/Pexels
The world is on the brink of an economic and humanitarian catastrophe due to an escalating water crisis, according to a report by the Global Commission on the Economics of Water.
The report projects that by 2050, more than 50% of the world’s food production will be endangered, while global GDP could shrink by 8%, with lower-income nations facing up to a 15% loss.
The Commission highlights the interlinked effects of poor water management, destructive land use, and climate change. These factors have strained the global water cycle to unprecedented levels, putting both human well-being and the global economy at risk.
“Precipitation, the source of all freshwater, can no longer be relied upon,” said Johan Rockström, co-chair of the Commission. This makes food production and economic stability increasingly precarious, especially for countries already facing severe water shortages.
The report calls for a new approach to the global water economy, emphasising the need to properly value water as a scarce resource. Misaligned policies and underpricing encourage excessive use in industries and agriculture, exacerbating water stress in already vulnerable regions.
“We must reshape our economies to allocate and use water properly from the start,” said Mariana Mazzucato, co-chair of the Commission. Among the solutions proposed are improving irrigation practices, restoring ecosystems critical to the water cycle, and ensuring access to clean water for all.
As Tharman Shanmugaratnam, President of Singapore and co-chair of the Commission, put it, “We can only solve this crisis if we think in much broader terms about how we govern water.”
IOL