World Trade Organization Report Warns of Water Crisis Impacting Global Economies
The Global Water Crisis and Its Economic Implications
A coalition of leaders and experts, including Tharman Shanmugaratnam and Mariana Mazzucato, has issued a stark warning regarding the impending water crisis. The Global Commission on the Economics of Water (GCEW) released a report titled The Economics of Water: Valuing the Hydrological Cycle as a Global Common Good that outlines the severe risks posed to the global economy, forecasting an 8% GDP loss by 2050, particularly in lower-income countries, with potential losses reaching up to 15%.
Food Production at Risk
More than half of the world's food production could be compromised, according to the report. Johan Rockström, a key figure of the GCEW, pointed out that nearly three billion people are already facing water scarcity, leading to dire consequences for both food security and human development.
Call for Urgent Action
The GCEW emphasizes that without prompt and significant actions, the destabilization of the water cycle will jeopardize economic stability worldwide. As climate change continues to exacerbate these challenges, managing water resources effectively must become a global priority.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.