Water Management and Agricultural Trade

Abstract

Improved water management practices and trade in "virtual water" can help alleviate water scarcity, release water for more efficient uses, increase productivity, and ultimately reduce food prices for consumers. Investments in these areas can therefore drive growth and poverty reduction, both directly and indirectly- because they may reduce food costs and supply uncertainties, improve the diets of the rural and urban poor, raise and diversify incomes, provide employment and entrepreneurial opportunities both inside and outside cities, and induce smallholder farmers' productivity gains, which would increase their opportunities for wealth creation and better integrate them into local, national, and international markets.