Water Insecurity Risk

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Water Scarcity Causes Variation in Water Prices

The price of water varies across the world, as well as the proportion of the local’s income. This is dependent on a variety of factors including access to water but also the effectiveness of the infrastructure.

Development of water sources

Governments have often charged a service fee for access to water. This was particularly established in emerging and developing countries during colonisation.
As populations have expanded around the basic infrastructure the governments have passed on the responsibility to external businesses - referred to as Privatisation.
Privatisation often requires residents to pay more to make the investment of these businesses cost effective.

Water Privatisation: Bolivia

In 1999, the water company Agua del Tunari took over the Cochabamba city water system in Bolivia.
The company raised the prices until they were the equivalent to 20% of the average income.
Agua del Tunari said that 95% of people had access to the water. The poorest communities could not afford the fee to attach water to their homes so they attached themselves illegally and protested for four days until the Bolivian government cancelled the contract.

Water Poverty Index

The Water Poverty Index was developed in 2002 to help the UN reach the Millenium Development Goals (MDGs). It determines the quality, quantity and accessibility of water. It considers five principles:

Principle one

The quality, quantity and availability of the water resources.

Principle two

The accessibility in terms of distance from water safe to drink, cook and for industrial and agricultural use.

Principle three

Handling capacity considers how affordable the water is and how effective the water management techniques are.

Principle four

The different proportions of water use in terms of domestic, agriculture and industry.

Principle five

Environmental sustainability in terms of the wider ecosystem.

The Importance of Water Supply

The water supply is important for economic development, human well-being and environmental problems.

Economic: industry

Water supply needs to be of high quality and quantity for consistent industrial productivity. If this fails, it can lead to a reduction or temporary closure on production with large economic impacts.
Global demand for water to be used in industry is expected to increase by 400% between 2000 and 2050 because this sector is expanding in emerging and developing nations.
Pollution because of poor management of waste products is a threat that could lead to significantly reduced water supplies.

Economic: energy supply

The majority of energy generation - especially via the combustion of fossil fuels - needs water in the form of steam to turn turbines that generate electricity.
Energy demands are increasing globally as electricity access increases and standard of livings improve, demanding more energy.

Economic: agriculture

There is a need to produce 60% more food by 2050 to feed the evergrowing population.
It is estimated that by 2050, food production will need 140% more water than it does currently.
The volume of water being used in agriculture is not sustainable, so we need to develop water-efficient farming methods and crops that need less water.

Human wellbeing: sanitation and health

Limited access to clean water, (i.e. Nigeria), increases the risk of disease and illness. Drinking unsafe water can give people Cholera that often targets the vulnerable.
335,000 children die of water born diseases in Nigeria a year and girls often miss education during menstruation because they have insufficient water for sanitation.
Locals take out loans to cover the medical expenses - leading to debt.
A positive correlation between GDP per capita and access to clean safe water exists.