Securing Water, Sustaining Growth: Report of the GWP/OECD Task Force on Water Security and Sustainable Growth

The Global Dialogue for Water Security and Economic Growth is a joint initiative of the GWP and the OECD to promote and accelerate a transition to water security, by connecting policymakers and practitioners through global and country level consultations and through an expert task force analysis of the links between water security and sustainable economic growth. About GWP The mission of the Global Water Partnership (GWP) is to advance governance and management of water resources for sustainable and equitable development. GWP is an intergovernmental organisation and a global network of 13 Regional Water Partnerships, 85 Country Water Partnerships and more than 3,000 Partner organisations in 172 countries. The GWP network is committed to building a water secure world. About OECD The mission of the Organisation for Economic Cooperation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world. The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems. We work with governments to understand what drives economic, social and environmental change. OECD work on water focuses on water economics and governance. It aims at facilitating the reform of water policies, so that they are better attuned to current and future challenges. The views expressed in this report do not necessarily represent the official views of the GWP, nor of the OECD and the governments of its constituent countries. Acknowledgements 8 Executive Summary 12 Chapter 1: Introduction 32 Chapter 2: Water security, sustainable growth, and well-being 36 2.1 The water security challenge 38 Framing the water security challenge 39 The importance of water endowments 41 2.2 The complex economics of water 44 The economic dynamics of water-related investments 44 Appraising investments in water security 46 Finding the right water security investments 47 2.3 A theoretical model of the dynamics of water-related risk, investment, and growth 50 2.4 An empirical analysis of the impact of hydrological variability on growth 54 The impact of hydro-climatic variability on economic growth 54 Two characteristics that influence vulnerability to water-related risks 62 2.5 Summary 64 Chapter 3: The global status of water security 68 3.1 Four headline risks 71 3.2 Risk-based indicators of water security 72 3.3 Global analysis of water security: (1) water scarcity 74 Likelihood of water scarcity 74 Consequence of surface and groundwater water scarcity 79 Projecting future agricultural risks and opportunities 83 …