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Importance of water for shared prosperity

From scarcity to sustainability: Tackling global water challenges

Author : World Bank

Access to safe drinking water and sanitation, reliable water-supply for agriculture and industry, and protection against droughts and floods are essential for human and economic development, says a World Bank report “Water for shared prosperity” released recently at the 10th World Water Forum in Bali, Indonesia by the World Bank Group and the Government of Indonesia. The report authored by Fan Zhang and Christian Borja-Vega provides a comprehensive overview of water security challenges and policy recommendations for achieving sustainable development goals.

Over the past 20 years, the number of people lacking safe drinking water and basic sanitation has increased by 197 million and 211 million, respectively. Today, over two billion people still lack access to safe drinking water, and 3.5 billion are deprived of safely managed sanitation facilities. Resulting infectious diseases contribute to at least 1.4 million annual deaths and 50% of global malnutrition.

The report quotes Orgill-Meyer and Pattanayak (2020) who add “evidence linking early childhood sanitation improvements to sustained cognitive development and future labour market outcomes. Their study finds significant cognitive benefits for children in villages in India with higher latrine coverage, particularly among girls, when assessed a decade after the intervention.”

Lack of access to safe water and sanitation is particularly harmful in childhood. Inadequate and unsafe water affects early childhood development, and time spent fetching water, inadequate sanitation and hygiene and droughts or floods disrupt learning and lead to school dropouts. In India, having access to a water source closer to home has been linked to improvements in female literacy (Andres et al. 2018).

Climate change is amplifying water-related risks

<p>Driven by global emissions, developing countries are most affected by climate shocks. Between 2000 and 2021, developing countries experienced more severe droughts and longer lasting floods than advanced economies, with long-term effects on nutrition, school attendance and economic welfare. Developing countries disproportionately rely on water-dependent sectors, particularly agriculture, for employment. Globally, over 800 million people are at high-risk of droughts and twice as many live in flood-risk hotspots.</p>

“To improve livelihoods, significant reforms and investments are needed to provide efficiently managed water and sanitation services to those without access, and to strengthen resilience against hydro-climatic risks,” said World Bank Vice President for East Asia and the Pacific Manuela V. Ferro, who is leading the World Bank team at the World Water Forum.

Conceptual framework of the report

Water security is crucial for achieving shared prosperity on a liveable planet. The conceptual framework presented in the report highlights the interconnectedness of water resources, service delivery, and various socio-economic sectors. It underscores that improving resilience to hydro-climatic risks, enhancing resource development and allocation, and ensuring equitable and inclusive service delivery are essential for sustainable development.

Water is a fundamental element for human survival, economic development, and environmental sustainability. The World Bank Group's Water Global Practice (WGP) addresses the multi-dimensional aspects of water resources management, emphasising equitable access and efficient allocation to foster shared prosperity and environmental sustainability.

Impact on health and education: 

Access to clean water and sanitation is directly linked to health and educational outcomes. Safe water reduces the incidence of water-borne diseases, which significantly impacts public health, particularly in developing countries. Improved health, in turn, leads to better educational outcomes, as children are more likely to attend school regularly and perform well academically.

<p><h3>Economic implications: </h3>Water is also an essential input in production, and its reliable supply has a significant impact on economic growth, jobs creation, and wages. In developing countries, where farming and fishery are often the main livelihoods, employment disproportionately relies on water-intensive sectors and is sensitive to water availability. Water-intensive sectors are responsible for 56 percent of jobs in low-income countries and only 20 percent in high-income countries. In Sub-Saharan Africa, where water-dependent jobs account for 62 percent of total employment, low rainfall availability often leads to large negative GDP growth</p>

Environmental and social benefits: 

Sustainable water management contributes to environmental conservation and social cohesion. Healthy ecosystems rely on adequate water flow, which supports biodiversity and provides ecosystem services. Additionally, equitable water distribution helps prevent conflicts over water resources, fostering peace and social stability.

<p><h3>Inequalities in water access: </h3>The report emphasises that inequalities in water access threaten broad-based development. Disparities in water availability and quality can exacerbate poverty and inequality, particularly in marginalised communities. Addressing these inequalities is crucial for achieving inclusive development and ensuring that the benefits of water security are shared by all segments of society.</p>

Climate change and water security: 

Climate change poses significant risks to water security, potentially exacerbating poverty and inequality. Changes in precipitation patterns, increased frequency of extreme weather events, and rising temperatures can disrupt water availability and quality. Vulnerable populations, particularly those in arid and semi-arid regions, are most at risk of experiencing the adverse effects of climate change on water resources.

Need for adaptive management: 

Adaptive management strategies are essential to mitigate the impacts of climate change on water security. These strategies include enhancing water storage infrastructure, improving water use efficiency, and implementing integrated water resource management practices. Building resilience to climate change is critical for safeguarding water resources and ensuring sustainable development.

Policy implications

<p>The insights from the report have significant policy implications. Governments, international organisations, and other stakeholders need to prioritise water security in their development agendas. Effective water governance requires robust institutions and clear regulatory frameworks. Strengthening institutional capacities at all levels—national, regional, and local—is essential for efficient water management. Transparent and participatory governance processes ensure that all stakeholders have a voice in water management decisions.</p>

Key policy actions include:

The report offers specific recommendations on how to improve water security in developing countries: Protecting depleting aquifers and unevenly distributed freshwater resources will require more international cooperation, implementing proven nature-based solutions such as reforestation, and investing in water storage infrastructure to prevent run-off and make water available in dry periods.

Investment in water infrastructure is crucial for improving water security. This includes the construction and maintenance of water supply and sanitation systems, irrigation facilities, and flood control structures. Ensuring that infrastructure is resilient to climate change and other risks is vital for long-term sustainability.

Policies to upgrade housing, and land use regulations to prevent construction in flood-prone areas can reduce exposure. Early warning systems and insurance can help households and farmers cope with extreme hydro-climatic shocks.

<p>Innovation and technology can play a significant role in addressing water security challenges. Advances in water treatment, conservation, and management technologies can enhance the efficiency and sustainability of water use. Encouraging research and development in the water sector can lead to innovative solutions that improve water security and support sustainable development.</p>

Reforming water tariffs and poorly-targeted subsidies, while ensuring affordability for low-income households, can help maintain and expand services and allocate scarce water resources fairly. Service providers will also need to enhance their operations, reducing water losses and lowering operating costs. Supported by policies that ensure transparency and accountability, the private sector can offer valuable expertise to enhance efficiency and manage complex infrastructure.

Reliable data and information are essential for informed decision-making in water management. Investing in monitoring and information systems can improve the understanding of water resources and support the development of effective management strategies. Access to accurate and timely data is crucial for responding to water-related challenges and opportunities.

By implementing these recommendations, we can move towards a future where water resources are managed sustainably, ensuring shared prosperity and a liveable planet for all. ​​

The full report can be accessed here

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