The Economic Impact of Water Scarcity Around the Globe

The availability of water is decreasing, despite the fact that it is essential to life. It is anticipated that the gap between the worldwide demand for fresh water and available sources will reach forty percent by the year 2030. The climate catastrophe, continued population expansion, and the shift toward the use of renewable energy all have the potential to make that shortfall much worse.

Already, one-fourth of the world’s population does not have access to clean water for drinking, and over half of the population does not have access to adequate sanitation facilities. In most areas, a lack of available water also implies a lack of available food, and this comes at a time when both droughts and floods are becoming more frequent and severe.

The Economic Impact of Water Scarcity

Time spent by millions of people, especially women and girls, to access fresh, clean water from far-off places is a time that could have been invested in schools or at work. More than 771 million people worldwide do not have access to safe water. People, especially women, spend so many hours going to distant places and then waiting in queues, just for the sake of collecting water. They could have spent time learning some skill, working somewhere, earning income,

It is estimated that almost $260 billion is lost every year due to the insufficient supply of basic clean water and sanitation.

At a macro level, the economy of a country flourishes, while at a micro level, every household has access to fresh water and sanitation.

Let us give you an example. When families have access to clean water, the number of diseases reduces in those families, which in turn minimizes their health care expenses.

According to research, if everyone has access to basic water and sanitation, it will result in an $18.5 billion boost in the economy. In addition to this, when every $1 is invested in water and sanitation, it helps in an economic boost of $4 with a reduction in health costs, higher productivity, and fewer deaths.

On the flip side, amongst other industries, agriculture is one of the industries that is affected the most due to water scarcity. The industry of agriculture is highly dependent on the supply of water. Lack of water means that the crops will now grow. The crop production will reduce, which will, in turn, lead to an increase in food prices.

When there is a lack of food supply and an increase in food prices, it gives rise to regional conflicts. People start to migrate to places that have access to water which in turn intensifies the conflict between locals and migrants. An increase in food prices has a devastating impact on developing economies.

This is just one of the many economic impacts of water scarcity. Directly and indirectly, water scarcity negatively impacts all industries. Water scarcity, in short, is the downfall of the economy. So it is important that we work towards solutions and adopt methods that can be used to deal with the issue of water scarcity.

We need to opt for water recycling, improve agricultural practices, improve agricultural practices, improve sewage systems, and desalination plants to deal with the issue of water scarcity.

Besides, it is important that government make and implement policies to deal with this issue.

How We Can Help

Increasing access to clean water and sanitation in households has a positive effect on household finances and, in the long run, on the economy as a whole.

Increasing the capacity of storage infrastructure by reusing water, enhancing agricultural practices, modernizing sewage systems, and constructing desalination plants are some of the approaches that may be taken to mitigate the effects of water shortage. Long-term solutions to the problem of water shortage will need investment in infrastructure on the part of national governments.

Acts for Water is an organization that is working tirelessly to help people in Uganda who do not have access to clean drinking water. More than 8.4 million people in Uganda live without access to safe, clean drinking water. We have already seen how polluted water has devastating economic impacts as well. It is important for our girls to go to school, our women to earn and learn, and our men to focus on their personal and professional growth to have access to clean water.

Call or visit https://acts.ca/ to learn more.