Access to safe drinking water sources is essential for people’s health and lives. According to the World Health Organization, more than 2 billion people live in countries with water scarcity, a situation that is expected to worsen in some regions as a result of climate change and population growth.
However, the impact on society of the lack of access to safe drinking water goes beyond this: it has multiple consequences, including economic ones. Although it is undeniable that the consequences for human life are the most serious, in this article we will focus on analyzing the economic ones, which also affect the quality of life and even the livelihood of people around the world.
1. There is a loss of agricultural productivity
Loss of agricultural productivity is one of the main consequences of water scarcity. The impact is particularly severe in countries that base a large part of their economy on this sector, and especially in rural communities where agriculture and livestock represent the main, if not the only, source of income.
Lack of access to clean water and adequate irrigation results in a decrease in agricultural production. Crops become more vulnerable to drought, which can result in failed harvests and a reduction in food supply. This not only affects food security, but can also increase food prices in local and international markets.
A recent example of this is the case of olive oil in the Spanish, Italian and North African markets, where the lack of rainfall has resulted in a shortage of the olive crop dedicated to oil production, and therefore in a rise in the price of this product for the end consumer.
This could lead, and in fact is already leading, many farmers to change their farming practices and opt to plant less water-dependent crops, which would reduce crop diversity and limit the food options available. In addition, there could be an increased reliance on genetically modified crops to resist drought, raising concerns about food security and long-term sustainability.
In primarily rural communities, as is the case in many parts of the African continent, loss of income and food insecurity resulting from lack of water can lead to or perpetuate the cycle of poverty, economic vulnerability and food insecurity.
2. Limits industrial growth
Many industries use water as an integral part of their processes, from manufacturing to cleaning. Water shortages can result in unplanned production stoppages, affecting productivity and the ability to meet deadlines.
Companies can choose to invest in more advanced technologies to recycle and reuse water, or purchase water from external sources, but both require investments that drive up operating costs.
If the industry uses water to cool machinery and equipment, the lack of water can lead to a decrease in energy efficiency, as they may be forced to reduce production or limit the operation of equipment to avoid overheating. This can result in inefficient energy use and, therefore, higher costs.
Ultimately, this affects the company’s competitiveness and ability to grow, and even the very economic health of the region’s industrial fabric.
3. Increases health and sanitation costs
As WHO data indicate, the lack of safe drinking water and adequate sanitation has serious implications for the health of the population. For example, according to these data, there are at least 2 billion people in the world who use a drinking water source contaminated with feces. Microbial contamination of drinking water as a result of fecal contamination poses the highest risk in terms of sanitation and transmission of diseases such as diarrhea, cholera, dysentery, typhoid fever and polio.
As a result, both the direct costs of medical care and the costs of lost work days due to these diseases are increased. In addition, chronic diarrhea and other water-related diseases negatively affect children’s nutrition and development, which, in addition to increasing medical costs, has a long-term impact on their educational and employment opportunities.
4. Reduces tourism and slows economic development
Tourism is highly dependent on the availability of natural resources, including water. If a region has a water shortage, it can be disincentive to tourism, which tends to seek destinations that offer pleasant and comfortable experiences. If the area does not have water for recreational activities, or limits tourist accommodation services due to lack of water, visitors will choose to reduce their stay or travel to destinations less affected by this limitation.
Considering that tourism is an important source of income for many economies, the lack of tourism affects local businesses, suppliers and workers in the tourism industry, and in general the area’s capacity to generate employment, and therefore its economic development.
In certain countries and regions, lack of access to drinking water can also lead to population displacement and conflicts arising from tensions between communities over access to natural resources.
In conclusion, the lack of drinking water has a significant impact on the economy at different levels, from agricultural production to industry and tourism. It is therefore essential that the government and public entities address this problem in an integrated and interconnected manner, in order to provide regions with sufficient water infrastructure to ensure sustainable development.
