The world faces a looming water crisis that threatens to cripple global food production and strain economies, according to a report released this week by the Global Commission on the Economics of Water. The report, which warns that half of the world's food production could be at risk by the middle of the century, highlights the growing severity of water scarcity and the urgent need for coordinated global action.
The Global Commission, funded by the Dutch government and facilitated by the Organization for Economic Cooperation and Development (OECD), warns that water scarcity, exacerbated by climate change and poor land management, could lead to an average reduction in global economic growth of 8% by 2050. The impact could be even more devastating for lower-income countries, with potential losses of up to 15%.
"The global water crisis is a tragedy but also an opportunity to transform the economics of water," said Ngozi Okonjo-Iweala, co-chair of the commission and Director General of the World Trade Organization. Okonjo-Iweala emphasized that governments need to properly value water, recognizing its scarcity and the vital role it plays in sustaining life and economies.
Water scarcity is already affecting nearly three billion people globally, and the report predicts that regions such as northwestern India, northeastern China, and southern Europe will experience severe consequences as groundwater levels continue to decline. Rapid urbanization and unsustainable agricultural practices have further stressed water supplies, while climate change has increased the frequency of droughts and floods.
Johan Rockström, co-chair of the Global Commission and one of the report's authors, underscored the unprecedented nature of the crisis. "For the first time in human history, we are pushing the global water cycle out of balance," Rockström said. "Precipitation, the source of all freshwater, can no longer be relied upon."
At the heart of the issue is the disruption of the Earth's water cycle, the complex system that moves water through the atmosphere and across land. Human activities-deforestation, industrial farming, and over-extraction of groundwater-have altered this cycle, leading to severe droughts in some regions and more intense flooding in others. The destruction of wetlands and forests, which serve as natural water reservoirs, has also contributed to the depletion of green water, the moisture stored in soils and plants that generates about half of all rainfall over land.
The report highlights that the mismanagement of water resources has already had devastating effects. Crops are failing, cities are sinking as groundwater dries up, and millions of people are left without reliable access to clean drinking water. Richard Allan, a climate scientist at Reading University, noted that the disruptions to the water cycle are closely tied to broader environmental issues. "Human activities are altering the fabric of our land and the air above, warming the climate, intensifying both wet and dry extremes," he said.
Water scarcity is not only a humanitarian crisis but also a major economic threat. The report warns that food production, which relies heavily on stable water supplies, could collapse in many regions if current trends continue. This, in turn, would lead to food shortages and higher prices, putting additional strain on economies, particularly in the developing world.
Agriculture, which consumes about 70% of global freshwater supplies, is a primary driver of the crisis. The report calls for urgent reforms in how water is used in farming, recommending a shift toward more sustainable practices such as improving irrigation efficiency and reducing reliance on water-intensive crops and animal-based diets. It also stresses the importance of treating and reusing wastewater, which could help alleviate some of the pressure on freshwater supplies.
Governments, however, have been slow to act. "The lack of political will and collective action is one of the biggest barriers to addressing the water crisis," said Mariana Mazzucato, a professor at University College London. Mazzucato pointed to the fact that 80% of wastewater globally is not recycled, a missed opportunity for resource conservation. "We can do it, we've just chosen not to because of inertia and the profit motives of industries that benefit from the status quo," she added.
While the challenges are immense, the report emphasizes that they can be turned into opportunities for investment in water infrastructure and technology. Transforming the way water is managed could yield significant economic benefits, create jobs, and help mitigate the impacts of climate change.
The global response to the water crisis has been slow to materialize. Last year, the United Nations held its first water conference in 50 years, and just last month, the organization appointed a special envoy on water. But more coordinated efforts are needed, according to Tim Wainwright, CEO of the NGO WaterAid. "The global water crisis is a ticking time bomb. If we do not tackle it now, the cost of inaction will be felt by us all," Wainwright said, calling for increased government leadership and private sector involvement.
The commission's report makes several key recommendations, including rethinking the global approach to water management. Among them is a call to recognize water as a "common good" and to prioritize its protection and conservation. Governments must work together, the report argues, as water does not respect borders and decisions made in one country can affect rainfall and water availability in another.
