Global water experts are raising alarm on the mounting water crisis, warning that by 2050, over half of the world’s food production and economic stability could be at risk if current water management issues persist. According to a report by the Global Commission on the Economics of Water, lack of effective water policies could result in an 8% loss in global GDP, with lower-income countries potentially facing up to 15% losses. This urgent call to action follows staggering findings that more than 1,000 children die daily from unsafe water in rural communities due to insufficient investment in sanitation and decentralized water systems.
Experts at a recent international forum highlighted that deteriorating economies, poor resource management, and destructive land use are combining with climate change to place immense pressure on the global water cycle. Presently, around 3 billion people live in areas with inconsistent water availability, affecting both households and the agricultural sector. Additionally, sinking cities—caused by significant groundwater loss—are further complicating the water crisis, impacting local economies and displacing communities. The commission warns that these challenges will only worsen without strategic shifts in water management and economic policies.
Investing in water infrastructure is essential but faces serious financial gaps. Experts estimate that global water infrastructure needs will require $6.7 trillion by 2030 and a daunting $22.6 trillion by 2050. Yet, only 2% of public spending currently targets water infrastructure, and low- and middle-income countries see even less private investment. With the shortfall in funding, the commission argues that innovative, integrated financing approaches are needed to maximize the impact of existing funds and to develop sustainable solutions for the growing water crisis.
Some experts propose addressing these challenges by establishing water as a global common good, rethinking how economies value and manage water resources. World Trade Organization Director-General Ngozi Okonjo-Iweala emphasized the importance of recognizing the scarcity of water, proposing that better valuation and pricing mechanisms would lead to more responsible use and distribution across sectors. She also pointed out that “green water,” or soil moisture critical for rainfall and climate stability, is often overlooked but should be central to global water and climate policies.
From proactive market approaches to multilateral actions, global leaders are pushing for a new economics of water. Singapore’s President Tharman Shanmugaratnam urged for policies that reflect water’s interconnections with climate and biodiversity, stressing that coordinated global action could not only save lives but also build a sustainable future. Without a decisive shift in water policy and financing, experts warn that the world may face irreversible consequences, impacting food security, economic growth, and overall human well-being.
