Global Commission On The Economics Of Water

The recent report titled ‘The Economics Of Water: Valuing the Hydrological Cycle as a Global Common Good’ by the Global Commission on the Economics of Water, highlights the escalating global water crisis and its disproportionate economic impact on lower-income countries.

Key Findings of the Report

  • Economic Loss: The lower-income countries are projected to experience an average GDP loss of up to 15% by 2050, nearly double the global average loss of 8% in 2024.
  • Impact on India: The looming water crisis will cost 14.34% of India’s GDP by 2050.
  • Factors of the crisis: It attributes this crisis to poor economic practices, unsustainable land use, and water mismanagement, compounded by climate change.
  • Anthropogenic Influence: For the first time, human activity is disrupting the natural water cycle, undermining economic stability and human well-being.
  • Basic need Vs Dignified life need: The report highlighted that every person requires around 4,000 liters of water daily for a dignified life, including essential consumption and food security.
    • This need  far exceeds the typical figure of 50-100 liters for basic health needs.
    • As the availability of water diminishes, food security and human development are at risk.
  • Green and Blue water: The report also distinguishes between “green water” (soil moisture) and “blue water” (surface and groundwater).
    • It stressed on the critical importance of green water for rainfall, climate stability, and economic resilience.

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Economics Of Water

Suggested measures to overcome the Water Crisis

Economics Of Water

  • Water as public good: The Commission suggested rethinking water governance, advocating that water be treated as a global public good, not a personal commodity.
  • Need of collaborative effort: The report emphasizes collective action across nations to address this crisis.
  • Five-Point Agenda: The Commission proposed a five-point agenda, including:
    • Revolutionizing food systems to reduce water usage in agriculture.
    • Conserving natural habitats and restoring degraded ecosystems.
    • Establishing a circular water economy to reclaim freshwater from wastewater.
    • Encouraging sustainable innovations.
    • Ensuring equitable access to clean water.

Global Commission on the Economics of Water (GCEW)

  • Objective: To make a significant and ambitious contribution to the global effort to spur change in the way societies govern, use and value water
  • The Commission’s ultimate goal is a “Global Water Pact” to secure funding and enhance water governance globally, recognizing that the water crisis now threatens nearly all Sustainable Development Goals (SDGs)
  • It was launched in May 2022 with a two-year mandate. 
  • It presented the evidence and the pathways for changes in policy, business approaches and global collaboration to support climate and water justice, sustainability, and food-energy-water security.
  • The Commission is convened by the Government of the Netherlands and facilitated by the Organisation for Economic Co-operation and Development (OECD).
  • Working partners :The GCEW is executed by an independent and diverse group of eminent policy makers and researchers in fields such as:
    • OECD
    • Potsdam Institute for Climate Impact Research
    • Indian Institute for Human Settlements
    • University College London
    • Australian National University
    • University of Amsterdam

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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