World Bank report sounds alarm on water scarcity

A recently published report from the World Bank suggests that climate change and its effect on water supplies could undermine some regions' economies by as much as 6% of GDP by 2050.

The report, High and Dry: Climate Change, Water and the Economy, states that "growing populations, rising incomes, and expanding cities will converge upon a world where the demand for water rises exponentially, while supply becomes more erratic and uncertain," resulting in water scarcity problems proliferating to regions where they do not currently exist.

Latin America is home to around 33% of the world's freshwater supplies, while warming due to climate change could dramatically affect the region's ecosystems, most notably in the Amazon rainforest, the report says.

"Water scarcity is a major threat to economic growth and stability around the world, and climate change is making the problem worse," said World Bank president Jim Yong Kim.

Policy decisions that mandate greater water stewardship offer a "silver lining," said World Bank economist and report author Richard Damania.

"When governments respond to water shortages by boosting efficiency and allocating even 25% of water to more highly-valued uses, losses decline dramatically and for some regions may even vanish."