In the World Bank Water Practice, we often talk about how issues like flooding and droughts threaten our mission to end poverty and boost shared prosperity. But how much do we actually know about how these floods and droughts - "water shocks" - impact farmers, firms, and communities? Perhaps adaptation in the economy has limited such impacts. Or maybe policies have led to economies being more vulnerable to such shocks.
To explore these questions, we recently gathered with leading researchers and policymakers in Oxford, UK, and concluded that while preliminary findings indicate water shocks definitely represent a major challenge to sustainable development in surprising and unexpected ways, there’s still much more we can do to strengthen the evidentiary basis for development policy.