Page 46 - Occupational Health & Safety, April 2017

WATER
The Economic Implications of Water Shortages
Better water management is a key factor in reducing U.S. water consumption that can be replicated in other parts of the world. BY KLAUS REICHARDT
Typically, when we consider water shortage is- sues around the world, the focus is on water scarcity. We often look at certain regions of the world—and at times, in our own coun- try—when there is not enough water to meet the needs, or customary needs, of the community.
However, there is another element to water short- ages that is becoming almost as important and criti- cal. Water shortages can have very serious negative economic impacts that will exacerbate over time if they are not addressed in the coming years. This was made clear by a somewhat under-reported study re- leased in May 2016 by the World Bank.
The report, High and Dry: Climate Change, Water and the Economy, found that water shortages and er- ratic and uncertain water supplies, along with rising populations and elevated incomes, means expand- ing countries may see their gross domestic product (GDP) decline by as much as 6 percent in the next 30 years. This decline will be most significant in ar- eas of the world where water supplies may currently be meeting community needs, however, prospects for this to continue are either uncertain or likely to get much worse over time. This includes such areas as Central Africa, East Asia, and the Middle East.
Just for clarification, it is clear that growing popu-
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lations will put more stress on limited water supplies. However, what often is overlooked and something we have witnessed in the past 20 years, is that as emerg- ing economies expand and lifestyles improve, the de- mand for water grows considerably. In our own coun- try, some studies have found that a family earning $150,000 per year will often use twice as much water as one bringing in $75,000.
We should also note that current water crises may not be just the result of inadequate rainfall, poor wa- ter storage and delivery systems, and other factors that traditionally play key roles in water shortages. What we see happening in many parts of the world is a growing competition between people and industry when it comes to freshwater. As industry and agricul- ture expand in such areas of the world as India, the needs of people are often minimized when it comes to water consumption. Precedence in these areas is given to industry, agriculture, energy development, construction, etc.
Other key points of the study include the following:
■ Water insecurity could multiply the risk of conflict between countries.
■ Food prices will become less stable and unpre- dictable, often resulting in dramatic cost increases.
■ Droughts and water shortages have been tied www.eponline.com
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