Just a few months ago, the World Economic Forum’s 10th Global Risk Report ranked water crises as the top global risk in terms of impact, more than the spread of infectious diseases, weapons of mass destruction or interstate conflict. With such global implications, we face a considerable challenge to develop the appropriate response. But we have also long grappled with a simple truth: water management is a complex web of local situations and issues, dictated by hydro-climatic conditions, spatial and demographic patterns, complex political economy dynamics, and technical considerations.
One increasingly pressing issue is the widening gap between the supply of water resources and the demand for water services in rapidly growing urban areas. This is exacerbated by dwindling resources in the face of climate vulnerability, and a legacy of poor governance and wasteful uses. This gap is most extreme in arid areas, which have few contingency options, and are left with few, if any, fallback options in case of further strain on the system.
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China’s most arid regions are facing an increasingly serious water crisis, and local water policies often aggravate the problem. In such climates, growth in the agricultural sector has come with high environmental costs.
With the help of new technologies that measure real water consumption in agriculture, governments are designing innovative water rights systems that actually save water. Based on results from two successful pilots, the World Bank Group is partnering with China to tap into science to transform water management in agriculture at the national level.