More than half of the world’s food production is at risk by 2050 due to theglobal water crisis, and GDP losses could reach 15% in lower-income countries,according to a new report. Picture: congerdesign/pixabay
A new report by the Global Commission on the Economics of Water warns that the ongoing global water crisis could result in an average global GDP loss of 8% by 2050, with even more significant impacts on lower-income countries, where losses could reach 15%.
The report, The Economics of Water: Valuing the Hydrological Cycle as a Global Common Good, highlights the severe consequences of continued mismanagement of water resources and the growing effects of climate change on the global water cycle.
According to the report, nearly three billion people live in regions facing water scarcity or fluctuating water availability. This instability poses a direct threat to food security, with more than half of global food production at risk.
“Today, half of the world's population faces water scarcity,” said Johan Rockström, director of the Potsdam Institute for Climate Impact Research and co-chair of the Commission. He warned that without urgent action, human well-being and the global economy are at serious risk.
The Commission criticises the current approach to water management, arguing that it overlooks the multiple values of water. Water is often under-priced, leading to wasteful use in areas such as agriculture and industrial processes.
Mariana Mazzucato, Professor at University College London, calls for a “new economic mindset” to address these issues, advocating for the transformation of economies to reflect the true value of water resources.
The report proposes five key missions to address the water crisis, including transforming food systems through better irrigation practices, conserving vital natural habitats, and ensuring clean water access for vulnerable communities.
As Ngozi Okonjo-Iweala, co-chair of the Commission and Director General of the World Trade Organisation, said, “The global water crisis is a tragedy but also an opportunity to transform the economics of water.”
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