Water stress will drive government cooperation
Coordinated regional water management will be necessary to relieve inadequate supply
Source: FAO Aquastat, Oxford Analytica
Outlook
Governments will need to manage water more efficiently and enhance data collection on water supply. Solutions to fixing the short-term data-collection challenge and alleviating long-term water stress will vary depending on the severity of water scarcity in each country.
The Middle East is the region most severely affected by water stress. In addition to passing politically sensitive reforms to improve water management -- particularly in the agricultural sector -- governments will have to contend with increased water demand and population growth. This could promote the strength of regional water management organisations and encourage cooperation over shared groundwater resources.
Impacts
- Water stress is likely to erode long-term economic prospects in agriculturally intensive European countries such as Romania and Kosovo.
- Industrialisation and plans for hydropower could devastate Russia's Lake Baikal where 20% of the world's fresh water is located.
- Capital investment to limit water waste could increase household costs and put political pressure on utilities in North America.
- Exacerbated by the effects of El Nino, water stress could lead to food shortages in Central America and may increase crime.