Photo: Mariana Kaipper Ceratti/World Bank
Imagine waking up to discover that your city —one of the largest in the world— is only weeks away from running out of water. In 2024, millions of people in Mexico City lived that reality. Across Latin America and the Caribbean (LAC), drought is no longer a distant possibility; it is shaping how people live, work, govern, and plan for the future.
And this is not without precedent. Centuries ago, drought contributed to the decline of the Maya and Tiwanaku civilizations and forced Taíno and other Indigenous peoples in the Caribbean to relocate as rainfall patterns shifted. History makes one truth clear: when water disappears, societies must adapt. Today, with larger populations, interconnected economies, and accelerating climate pressures, the stakes are even higher.
A region under pressure
Drought is now one of LAC’s most urgent climate risks. Over the last 25 years, it has affected more than 58 million people and threatened nearly USD 80 billion in GDP at risk every year.
Its impacts are visible across different countries. In Argentina, drought halved wheat and soy harvests in 2023, slashing export revenues. In Ecuador, low hydropower reservoirs triggered blackouts in 2024, affecting 12 provinces. The Panama Canal—one of the world’s busiest trade routes—reduced ship transits between 2023 and 2024, leading to revenue losses of up to USD 700 million. And in Mexico City, water scarcity pushed the allocation system to the brink.
These events raise a difficult question: If droughts already cost billions, what does the future hold?
Climate science points in a clear direction: LAC is becoming warmer and drier, with droughts that are longer, harsher, and harder to predict. Their impacts cascade across every sector—food security, energy generation, trade, public health, and fiscal policy. When crops fail, households go hungry. When reservoirs shrink, governments divert scarce budgets toward emergency responses.
And not everyone bears these impacts equally. Poorer households spend a larger share of their income on food and water. Women and children walk further to collect water. Indigenous and Afro-descendant communities face heightened risks of displacement when crops fail or rivers dry up. During El Salvador’s 2015 drought, corn production fell 60%, hitting rural families hardest. In Bolivia’s 2016 drought, low-income neighborhoods waited days for water deliveries. Drought is not just a climate threat —it is a challenge of equity and opportunity.
Breaking the cycle of crisis response
Drought unfolds slowly and silently —yet most responses across the region remain reactive: water rationing, emergency tankers, and temporary relief measures. These are essential in moments of crisis but do not address the underlying vulnerabilities.
Proactive planning is critical. Early warning systems, financial protection, stronger institutions, and integrated water governance can dramatically reduce impacts. Every dollar invested in drought preparedness can save two to ten dollars in avoided losses. The question is not whether resilience pays off —but how quickly can countries put the right policies, institutions, and investments in place.
Yet many challenges persist: fragmented responsibilities, outdated allocation rules, insufficient monitoring systems, and limited financing for long-term action. As droughts become more complex and interconnected, regional collaboration becomes essential: countries can learn from each other’s drought responses, share real-time hydrological data in shared basins, and exchange practical lessons —demand-management strategies, reservoir operation rules, or financing approaches
ReADI-LAC: A regional effort toward resilience
To help countries shift from crisis response to strategic prevention, the World Bank launched the Resilience and Adaptation for Drought Initiative in LAC (ReADI-LAC). The initiative brings together governments, institutions, and partners to analyze drought risks, identify the most vulnerable populations, systems, and sectors, and prioritize policies and investments that can strengthen resilience.
At the heart of READI-LAC is the Drought Risk and Resilience Assessment (DRRA) —a guiding framework that countries can use to integrate diverse tools and approaches, better understand drought impacts, and convert that evidence into actionable, context-specific solutions.
A call to action
Droughts are intensifying. They are reshaping economies, straining institutions, and deepening social inequalities. But with smart policies, stronger governance, and coordinated regional action, countries can manage drought risk and build a more resilient future.
The question is not whether LAC can adapt, but whether we will move quickly enough.
Explore ongoing work, publications, drought bulletins, and tools on Drought Resilience Website
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