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Rivers will generate a quarter of GDP by 2050, study shows

21.06.2012

The world’s 10 most populous river basins (Ganges, Yangtze, Indus, Nile, Huang He Huai He, Niger, Hai, Krishna and the Danube) will be vital for economic growth – but only if water shortage threats are tackled. Rivers are the very “stuff of life”, yet billions of people do not have access to a clean and reliable freshwater source. As a new report commissioned by HSBC highlights, change requires investment – public and private – hence, winning the economic argument about the value of such investment is very valuable. By mid-century, a full quarter of global GDP will be generated from within the world’s ten most populous river basins, researchers from Frontier Economics predict. If water is not better managed in seven of the 10 river basins, the people living on the banks of great rivers will be suffering from severe water scarcity by 2050. Frontier Economics found the global average return on each dollar invested in access to water and sanitation was just under USD 5. The researchers concluded that providing universal access to safe water and sanitation could deliver a potential economic gain of USD 220 billion a year. “The findings show that the future of river basins is critical for global economic growth,” said HSBC chairman Douglas Flint. “Rapid, collaborative action worldwide is needed. The report also highlights the powerful economic rationale for improving access to freshwater and sanitation, at a time when total aid for water access and sanitation has actually declined.”

Photo (c) Didi / Flickr