Water Scarcity: Liquidity Crisis

Publish date: November 14, 2016

Source: economist.com

An article on The Economist website titled Liquidity Crisis has done an amazing job describing the clean water emergency we are currently facing around the world. The lack of available clean water has a ripple effect that impacts communities and countries socially, economically and environmentally. This article highlights the issues surrounding power generation, food production, warmer temperatures due to climate change, and their direct connection to water scarcity.

Quote from Liquidity Crisis 

“NOTHING is more useful than water,” observed Adam Smith, but “scarcely anything can be had in exchange for it.” The father of free-market economics noted this paradox in 18th-century Scotland, as rain-sodden and damp then as it is today. Where water is in ample supply his words still hold true. But around the world billions of people already struggle during dry seasons. Drought and deluge are a costly threat in many countries. If water is not managed better, today’s crisis will become a catastrophe. By the middle of the century more than half of the planet will live in areas of “water stress”, where supplies cannot sustainably meet demand. Lush pastures will turn to barren desert and millions will be forced to flee in search of fresh water.

Where water is available, when and in what condition matters hugely. About 97% of the water on earth is salty; the rest is replenished through seasonal rainfall or is stored in underground wells known as aquifers. Humans, who once settled where water was plentiful, are now inclined to shift around to places that are less well endowed, pulled by other economic forces.

Read the full article on economist.com


More than 1 billion people lack access to clean water. By 2025, more than 2.8 billion people in 48 countries will be affected by water stress or scarcity. Learn how we are making water available to communities and businesses in need.