FOOD, AGRICULTURE & WATER
BACK TO
BASICS: G20
WATER-NOMICS,
TRADE-OFFS &
TRADE
DEBRA TAN
Director, China Water Risk
In an increasingly interconnected
and resource-constrained world,
it is important to remember that
decisions made can have unintended
consequences, to not forget the basics.
It is Ramadan as I am writing this and
Britain has just voted to Brexit. These
events have made me ponder two things
on the water front: where we have come
from and where we are heading.
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Once a year, during the month of
Ramadan, all Muslims fast from sunrise to
sunset. A good friend recently reminded
me that Ramadan originates from the
Arabic root ramida or ar-ramad, which
means scorching heat or dryness. In a
world where for many, water is available
on demand from a tap, fasting through a
hot day reminds us of the value of water.
Scorching heat, droughts and floods
are becoming the norm and it is now well
recognised that water is the resource most
vulnerable to climate change. Aside from
causing a less predictable water cycle,
melting glaciers and rising sea levels,
climate change also can exacerbate
underlying water stress and scarcity.
Policy, business and even consumer
decisions today regarding climate change
therefore also impact the future of water.
Agreements achieved at COP21 are
encouraging but then along comes a
decision like Brexit, bringing with it the
harsh reality of how difficult it will be for
countries to work together. Water sustains
us and helps our food grow. We use it
to mine ore and generate electricity. It
is required in the manufacture of urban
essentials from electronics, packaged food
& beverages to fashion. It is the invisible
hand that sustains the global economy.
An essential ingredient for development
Water is necessary for development but,
water resources are not evenly distributed
across countries. As nations develop,
demand for water rises. Aside from
improving water efficiencies, economic
mix can be used to manage water use.
Shifting from an agricultural economy to
an industrial-led one helps alleviate water
stress as agriculture typically absorbs
around 70% of a nation’s water use.
We see many developing countries
making this transition into industrial
and then service-led economies.
China is no different. However, as we
highlighted in our recently published
joint brief with the Foreign Economic
Cooperation Office of China’s Ministry
of Environmental Protection, “Water-
nomics of the Yangtze River Economic
Belt: Strategies & recommendations for
green development along the river”, this
is easier said than done. The agriculture
sector in China alone employs 228
million people plus it is imperative for
China to maintain food security. With
an increasingly complex water-energy-
food-climate nexus exacerbated by water
pollution, China has embarked on a path
to rebalance economic development and
environmental protection.