There are few issues as politically charged as water, not only because people’s survival depends on it, but also because it is a critical component of so many industries. Agriculture, food and beverage manufacturers, refineries, paper and pulp companies, electronics manufacturers, mining operations and power plants—are of these rely on a continuous and reliable water supply.
When companies move into markets with weak infrastructure or questionable rule of law, drawing on these resources can quickly bring them into conflict with local citizens and, sometimes, the host government. Because of its vital importance, however, water scarcity has become much more than a local issue for businesses.
Water shortages can lead to conflict as competition grows for diminishing resources, as any scarce resource on which people depend is likely to become political at some point in time. One scenario that repeatedly unfolds is as follows: A mining operation depletes local water resources or has a tailings dam accident that contaminates a local river, a protest ensues and the host government intervenes in the project.
Hydroelectric power projects can create a number of similar political risks and some different ones, including relocation of local villages.
In recent years, however, awareness has grown about how water scarcity risk affects political risk at the national and international levels, requiring a different type of analysis.
The depletion of rivers, lakes and streams has led to more dependence on below-ground water. More than two-thirds of groundwater used around the world is for irrigating crops, and the rest of below-ground water is used to supply cities’ drinking water.
For centuries, below-ground water supplies served as a backup to carry regions and countries through droughts and warm winters that lacked enough snowmelt to replenish rivers and streams. Now, the world’s largest underground water reserves in Africa, Eurasia and the Americas are under stress, with many of them being drawn down at unsustainable rates. Nearly two billion people rely on groundwater that is considered under threat.
What makes the problem particularly difficult to solve in the emerging markets is that small, often subsistence, farmers are doing the drilling for water. The U.S. military called climate change, including reduced access to water, a “threat multiplier,” potentially threatening the stability of governments, increasing inter-state conflict, and contributing to extremist ideologies and terrorism.
It is always difficult to establish causality with something as complex as politics, but there certainly is circumstantial evidence that water scarcity was a factor in the Syrian uprisings that led to the country’s civil war. In Yemen, some hydrologists warn the country may be the first to actually run out of usable water within a decade, and combatants are making a bad situation even worse by using water and food as weapons against opposing villages. In Sudan, desertification and water scarcity have been cited as having a strong link to the Darfur conflict.
Since water does not respect political borders, the conflicts can become international. One of the most high-profile disputes has been Ethiopia’s damming of the Nile River for hydroelectric power, potentially threatening Egypt’s ancient water source. In 2013, Egypt’s then-president said he did not want war but he would not allow Egypt’s water supply to be endangered by the dam. Fortunately, in 2015, Egypt, Ethiopia and Sudan signed an agreement allowing dam construction, provided that it did not cause “significant harm” to downstream countries. But the studies into how much harm it could do have not even been completed yet, and the dammed water could be diverted to uses other than power. Thus, the political risk surrounding the Nile River is far from over. Since 1975, Turkey’s construction of dams for irrigation and power have cut water flow into Syria by 40% and into Iraq by 80%, setting off disputes there.
Companies are accustomed to building water into their business plans in developing countries. Environmental impact assessments and proactive community relations programs can bring potential problems to the surface before they start, helping companies manage water in an environmentally and socially prudent manner. The geopolitical risks around water scarcity can be more difficult to manage, however. In this area, companies should consider building water scarcity into their political risk management and forecasting frameworks, factoring it in when making investment and supply chain decisions. If governments cannot find ways of sharing this limited resource, political violence risk may become even more of a factor for international businesses to consider.
This article previously appeared on Zurichna.com.
Natural resources should not be owned by anyone, however the areas were this natural resources are, have been occupied with legitimate governments. The right to exploit the spoils of the land belongs to the ruling government occupying the area were the resources exist or runneth over.
People rely heavily on these resources for their existence and since the beginning of time, have born out wars and tribulation to countries. The control of this resources give power to those chosen few who were fortunate to have landed this basic product of the earth.
Just like oil, the middle eastern companies have been in power due to the fact that the oil reserves are under their soil. Even other resource like, minerals, food supply and water are contolled by governments all over the world..
Among these natural resources nothing is more important than water. This article have posed questions of what ifs. It was discussed in this topic that there was cicumstantial evidence that the current Syrian uprising might be atributed to scarcity of water. This is alarming since the population of the world is exponentially increasing hence the effect of having a system to share these scarce resources is at an eminent risk
Our local and immediate local governments may be facing this risks whenever a new investment enters the locality. Elected leaders should therefore consider the lasting effects of welcoming too much improvement and addtitional infrastructure way beyond the capacity of its local resources. So much that it is not only a local political issue but it is also a global concern.
Local and international administrators should devise a system to allow progress without depleting this valuable resource. Proper zoning and stricter laws and systems on establishing businesses that would greatly diminish this reource should be thought of to prevent future irreversible catastrophe.
Water may not only be the only issue here for, our whole existence on earth is also threatened due to the rise of pollutants in the atmosphere that is damaging. Just like water, air is also a natural resource that is exploited.
Today, in many places on Earth, fresh water demands begin to exceed its availability, and this situation is unlikely to improve. Currently, many people around the globe suffer from water scarcity. According to the UN, by 2025 nearly half of the globe will either suffer from serious congestion, or the planet will face a complete water deficiency. By midcentury, three fourths of the population would have to deal with the problem of water shortage.
Scientists expect that water deficiency will increase because the population is growing, and many people are getting richer (which increases the water demand). Global climate change also leads to desertification and reduced water supply in many areas. Moreover, a lot of sources of water are threatened by pollution effluents and industrial wastes, flush fertilizer from agriculture and penetration of salt water through groundwater pumping.
Since the problem of water shortage can result in various diseases, starvation, and political conflicts, failure to take necessary measures can lead to severe aftermaths. Government officials should formulate plans to implement technological, economic and political actions that will ensure water security in present and future.
To understand the global problem of water supply, we should conserve how much fresh water is required per one person, and to explore factors that impede the water supply and increase demand for it in different parts of the world. Some researchers believe that an average person requires at least 1 thousand cubic meters of water per year, which he/she uses for drinking, hygiene and agricultural food production.