2050: The Future of Water and Economy

$63 trillion in GDP will be jeopardized because of sustainable water supplies

Water shortages is a serious issue to our future growth, which can become a burden to the economy. Businesses are already at risk in water-scarce areas. Investors are considering the water supply when they make decisions. $63 trillion of GDP will be at risk due to water stress by 2050.

So far, we did everything we can in our power to water management. For reducing water risk and making sustainable growth, it is necessary to enhance efficiency and productivity in water management and usage. But, do we have enough time to improve? The key to sustainable growth is not only green solutions, but also blue ones.

The improvement depends on reviewing current demand and supply pressures and observing the change within each. The reasons of increased demand pressures are population growth, rising water intake of human, growing urban areas, domestic and industrial water usage. Climate change is another main reason of water demand growth for agriculture and replenishment of reservoirs. On the supply side, there are challenges in water transport, availability, and variability. It is worse that renewable water resource is declining. Besides, there is a movement towards opposite direction to maintain future growth, which causes “water stress”.

Many areas are already water stressed for the sake of population and economic growth. 36% of the world population live in these areas and more than 20% of the global GDP is already at risk. Thus, the business development in water-scarce areas and corporate reputations are affected when improvement of water usages is out-run by the rate deterioration.

Human development is accelerating but management of water resources are too complex to solve. The challenges are like hair on fire. It is needed to take a long time and even several decades to implement change to our governance models and infrastructure systems.

According to International Food Policy Research Institute study, not only 45% of total GDP (USD$63 trillion) and more than half the world’s population, but also half of global grain production will be at risk due to water stress by 2050.

We can achieve higher water level productivity level and reduce water stress if only more efficient uses of water are carried out, such as wasting less, polluting less, reusing more, and managing water consumption effectively. Sustainable evolution of technology and infrastructure improvements are necessary to strengthen water supply for cities and industries, which also can help deliver clean drinking water and sanitation services to rural populations and the urban poor. By doing so, more than 1 billion people and approximately $17 trillion in GDP will no longer be at risk of unsustainable water supplies by 2050.

Changing the current water management and water productivity can help ensure a better and wealthier world for the next generation.