A new World Bank report warns that some regions of the world, including parts of Africa, could see their growth rates decline by as much as 6% by 2050 as a result of water-related losses, with water scarcity also exacerbated by climate change.
Titled ‘High and Dry: Climate Change, Water and the Economy’ the report says the combined effects of growing populations, rising incomes, and expanding cities will see demand for water rising exponentially, while supply becomes more erratic and uncertain.
“Economic growth is a surprisingly thirsty business,” the authors warn, cautioning that diminishing water supplies can translate into slower growth.
A separate International Monetary Fund (IMF) report focusing on sub-Saharan Africa’s 2016 growth prospects indicates that the drought currently affecting southern and eastern Africa will potentially threaten food security for about 40- to 50-million people.
As a result, growth is projected to slow sharply in Ethiopia, Malawi, and Zambia, and food inflation is accelerating almost everywhere in the subregion, the IMF outlines.
In its longer-term assessment, the World Bank notes that, by 2050, the number of urban dwellers is projected to grow by 2.5-billion people, with nearly 90% of the increase in Asia and Africa.
“Water scarcity is a major threat to economic growth and stability around the world, and climate change is making the problem worse,” World Bank president Jim Yong Kim says.
Unless action is taken soon, water will become scarce in regions where it is currently abundant, such as Central Africa and East Asia. In addition, scarcity will worsen in regions where water is already in short supply, such as the Middle East and the Sahel in Africa.
However, Kim says countries can enact policies that will help them manage water sustainably. Three overarching policy priorities are outlined in the report, including: the optimisation of water use through better planning and incentives; expanding water supply and availability; and reducing the impact of extremes, variability and uncertainty.
“The future will be thirsty and uncertain, but with the right reforms, governments can help ensure that people and ecosystems are not left vulnerable.”
