SINGAPORE: A recent report from the Global Commission on the Economics of Water reveals alarming projections about the global water crisis, predicting severe impacts on food production and the economy by 2050. The report states that more than half of the world’s food production will be at risk due to water scarcity, with the crisis expected to affect countries across the globe.
In addition to the agricultural threats, the report highlights a significant economic downturn, forecasting an average decrease of 8% in GDP across nations by mid-century. Low-income countries are likely to be hit even harder, with GDP losses projected to reach as high as 15%, exacerbating existing inequalities and further straining their economies.
President Tharman Shanmugaratnam, co-chair of the Commission, emphasized that the global water cycle is facing unprecedented challenges, driven by poor resource management and economic pressures. He warned that many regions, particularly rice-producing areas in Asia, will be increasingly vulnerable to droughts, making rice cultivation more difficult. This could have serious consequences for food security in countries that heavily rely on rice as a staple.
In response to these growing threats, President Tharman noted that research efforts are underway in Singapore, where universities are exploring solutions such as drought-resistant rice varieties and protein alternatives. However, while technological innovation is essential, he stressed that significant financial resources will be needed to implement these solutions on a global scale.
Traditional public finance tools, including taxes and water charges, are critical to funding water infrastructure, but the report indicates that these sources alone will not be enough. There is a growing need for investment in research and development aimed at improving water use efficiency in agriculture, manufacturing, and other industries.
President Tharman called for stronger collaboration between governments, multilateral development banks—such as the World Bank and the Asian Development Bank—and the private sector to address the water crisis. He urged the development of comprehensive solutions that integrate both public and private financing to support the necessary advancements in water management and agricultural innovation.