Water scarcity threatening shared prosperity; worsened by population growth, urbanisation & climate change: World Bank

New report released at 10th World Water Forum underlines role of water in prosperity
Eight out of ten people who do not have access to at least basic drinking water and sanitation services live in rural areas. Photo: iStock
Eight out of ten people who do not have access to at least basic drinking water and sanitation services live in rural areas. Photo: iStock
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Water is a crucial source of prosperity. However, disparities in access to water resources and services are widespread. These challenges, further compounded by population growth, rapid urbanisation, and climate change, pose a significant threat to shared prosperity, according to a new World Bank report. 

Released at the 10th World Water Forum in Bali, Indonesia, the report emphasises the widening gap in access to water resources and services, with implications for human and economic development worldwide. Despite water being a fundamental source of prosperity, millions continue to face barriers to safe drinking water and sanitation, stated Water For Shared Prosperity released May 20, 2024.

The forum was organised by the Government of Indonesia and is taking place May 18-25, 2024.

The report points to alarming statistics: In 2022, 2.2 billion people lacked access to safely managed drinking water services, while 3.5 billion lacked access to safely managed sanitation. Furthermore, disparities persist across regions, with rural areas bearing the brunt of inadequate access.

Low-income countries, in particular, have seen regression in access to safe drinking water, with an additional 197 million people lacking access since 2000. 

Eight out of ten people who do not have access to at least basic drinking water and sanitation services live in rural areas, and little progress has been made in closing the rural-urban access gap in low-income countries over the last two decades.

The Democratic Republic of the Congo has more than half of Africa’s total water resources. Hotspots in the Sahel, Southeastern Africa, and South and Central Asia are the most water stressed.

The report examined water-related inequalities on two levels: The disparity between countries, particularly between high- and low-income countries, and the disparity between the wealthiest and poorest individuals within each country.

In addition to income disparities, the report identified evidence of unequal access to water services among marginalised groups based on gender, location, ethnicity, race, political beliefs, and other social identities.

Climate change is also increasing water-related risks. Climate shocks have the greatest impact on developing countries, which are the result of global emissions. Between 2000 and 2021, developing countries experienced more severe droughts and longer-lasting floods than advanced economies, which had long-term consequences for nutrition, school attendance, and economic welfare.

Globally, over 800 million people are at high risk of drought, with twice as many living in flood-prone areas.

This report identified four interconnected components of prosperity. These are health and education (human capital), jobs and income, peace and social cohesion (social capital), and the environment (natural capital). 

Children who grew up in homes with access to basic services such as running water and sanitation are not only more likely to obtain a better education for themselves, but also to have children who achieve higher levels of education.

Water is also an important input in production, and a consistent supply has a significant impact on economic growth, job creation, and wages. 

In developing countries, where farming and fishing are frequently the primary sources of income, employment is disproportionately dependent on water-intensive industries and is sensitive to water availability. 

Water-intensive sectors account for 56 per cent of jobs in low-income countries but only 20 per cent in high-income countries. In Sub-Saharan Africa, where water-dependent jobs account for 62 per cent of total employment, low rainfall availability frequently results in significant negative gross domestic product or GDP growth.

The management and distribution of shared water resources can have an impact on social cohesion and the likelihood of conflict at the local, national, and transnational levels.

Water resources that are managed effectively and equitably can foster community trust, inclusivity, and cooperation, ultimately leading to peace. However, if mismanaged, water can act as a threat multiplier, exacerbating existing conflicts or leading to new conflicts. 

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