Publication: The Hidden Wealth of Nations: The Economics of Groundwater in Times of Climate Change
Loading...
Date
2023-06-23
ISSN
Published
2023-06-23
Author(s)
Unknown author
Abstract
At the global level, groundwater can buffer a third of the losses in economic growth caused by droughts and can protect cities against day-zero-type events. It is especially important for agriculture, where groundwater can reduce up to half of the losses in agricultural productivity caused by rainfall variability. By insulating farms and incomes from climate shocks, the insurance of groundwater translates into protection against malnutrition. In contrast, the lack of access to shallow groundwater increases the chances of stunting among children under five by up to 20 percent. In Sub-Saharan Africa, untapped groundwater irrigation potential could be key to improving food security and poverty reduction. Little land is irrigated there, but local shallow aquifers represent more than 60 percent of the groundwater resource, and 255 million people in poverty live above them. But depletion, degradation, and competition for groundwater threaten its sustainability and availability for future generations. Greater understanding of groundwater’s benefits and costs informs the report’s policy framework and recommendations. The findings also reflect on the issues policymakers confront when attempting to align the private and social costs of groundwater use. A central message of this report is that action is needed: groundwater needs to be a political priority and should be carefully managed through integratd cross-sectoral action to benefit society, the economy, and the environment.
Its findings also reflect on the policy issues policymakers confront when attempting to align the private and social costs of groundwater use. A central message of this report is that groundwater needs to be politically prioritized and should be carefully managed through integrated cross-sectoral action to benefit society, the economy, and the environment.
Its findings also reflect on the policy issues policymakers confront when attempting to align the private and social costs of groundwater use. A central message of this report is that groundwater needs to be politically prioritized and should be carefully managed through integrated cross-sectoral action to benefit society, the economy, and the environment.
Link to Data Set
Citation
“Rodella, Aude-Sophie; Zaveri, Esha; Bertone, François, editors. 2023. The Hidden Wealth of Nations: The Economics of Groundwater in Times of Climate Change. © World Bank. http://hdl.handle.net/10986/39917 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Putting Tanzania's Hidden Economy to Work : Reform, Management, and Protection of its Natural Resource Sector(Washington, DC : World Bank, 2008)This paper tells a story about conditions in Tanzania's hidden economy, the parts of the natural resource sector often ignored in conventional economic analyses and studies, and makes recommendations for future policy actions. The paper draws primarily from extensive background studies undertaken of the forestry, fishery, wildlife, mining, and tourism sub sectors (COWI 2005) as well as a wide range of complementary studies undertaken by the World Bank and others. It de-emphasizes those sectors with factors of production that are not readily traded or exported (such as land and water), although some examples are given relating to soil quality and water management based on extensive studies undertaken within the agriculture and water sectors. The story is relatively simple: pricing distortions, coupled with institutional weakness and the lack of rule of law, have created an environment that undermines economic growth. This paper also acknowledges that Tanzania has already taken positive steps to making some of the needed corrections to protect its natural resources. In recent analyses of corruption indicators world-wide (World Bank Institute 2006), Tanzanian stands out among those nations as having made significant progress towards improving accountability and reducing economic leakages. Anti-corruption legislation was drafted for parliament attention in early 2007. Revisions to the Deep Sea Fishing Authority Act were passed into law in early 2007. Moreover, changes in institutional arrangements, taxation, and general management of the resource sector show promise and have contributed positively to general economic growth. Yet, the sector remains fragile and vulnerable in other respects: perceptions of unequal income distribution, impacts of climate change, and other external influences must also be addressed to build on past successes.Publication Water and Development : An Evaluation of World Bank Support, 1997-2007, Volume 1(Washington, DC: World Bank, 2010)The amount of available water has been constant for millennia, but over time the planet has added 6 billion people. Water is essential to human life and enterprise, and the increasing strains on available water resources threaten the mission of institutions dedicated to economic development. The ultimate goal is to achieve a sustainable balance between the resources available and the societal requirement for water. In this evaluation the Independent Evaluation Group (IEG) examines all the water-related projects financed by the World Bank between fiscal 1997 and the end of calendar 2007. Bank activities related to water are large, growing, and integrated. They include water resources management, water supply and sanitation, and activities related to agricultural water, industrial water, energy generation, and water in the environment. Through both lending and grants, the World Bank (the International Development Association and the International Bank for Reconstruction and Development, or IBRD) has supported countries in many water-related sectors. This evaluation examines the full scope of that support over the period from fiscal 1997 to the end of calendar 2007. More than 30 background studies prepared for the evaluation have analyzed Bank lending by thematic area and by activity type. The evaluation is by definition retrospective, but it identifies changes that will be necessary going forward, including those related to strengthening country-level institutions and increasing financial sustainability.Publication The Cost of Environmental Degradation : Case Studies from the Middle East and North Africa(World Bank, 2010-08-01)Environmental degradation is costly, to individuals, to societies, and to the environment. This book, edited by Lelia Croitoru and Maria Sarraf, makes these costs clear by examining a number of studies carried out over the past few years by the World Bank's Middle East and North Africa region. Even more important than estimating the monetary cost of environmental degradation (COED), however, are the clear guidance and policy implications derived from these findings. This volume presents a new approach to estimating the impacts of environmental degradation. In the past, when government officials asked researchers the simple question how large are the impacts of environmental degradation? The response was often an emphatic 'large!' a rather imprecise number. The strength of this work is that it actually quantifies in economic terms how large is 'large' and thereby gains the attention of decision makers and offers specific insights for improved policy making. Finally, this book demonstrates the benefits of doing a coordinated, regional COED analysis that builds on the country-level studies. This two-tiered approach produces important synergies, in terms of both the methodologies used and the lessons learned.Publication The World Bank's GEF Program in the Middle East and North Africa Region : Global Environmental Benefits Contributing to National Development Goals(World Bank, Washington, DC, 2014-01)The report focuses on the two decades of the World Bank - Global Environment Facility (GEF) partnership with the Middle East and North Africa (MENA) countries. This partnership has had a global environmental impact by working both at the local and national level and engaging all relevant partners and stakeholders. In addition, many GEF financed operations stand as examples of what a more holistic approach can achieve in terms of innovation and catalyzing greater investment. These operations have also delivered important social benefits such as job creation, enhanced economic and social inclusion, and strengthened governance capabilities. Presently the region s most pressing environmental challenges stem from rapid urbanization and its resulting infrastructure needs, industrial pollution, overexploitation of scarce water resources, the unsustainable management of fragile ecosystem resources and vulnerability to climate variability and climate change. Decision makers working to address these problems also face many tightly linked and urgent social issues. These issues include meeting the aspirations of a quickly growing urban youth population; giving voice to gender and women s issues; finding ways to spur job growth; and reversing the poor provision of basic services. This publication also points to opportunities for further World Bank - GEF cooperation in support of green growth.Publication Water and Climate Change(World Bank, Washington, DC, 2010-06)Adaptation to climate impacts on groundwater resources in developed and developing countries has not received adequate attention. This reflects the often poorly understood impacts of climate change, the hidden nature of groundwater and the general neglect of groundwater management. Many developing countries are highly reliant on groundwater. Given expectations of reduced supply in many regions and growing demand, pressure on groundwater resources is set to escalate. This is a crucial problem and demands urgent action. This report addresses the impacts of climate change on groundwater and adaptation options. The Earth's climate is projected to become warmer and more variable. Increased global temperatures are projected to affect the hydrologic cycle, leading to changes in precipitation patterns and increases in the intensity and frequency of extreme events; reduced snow cover and widespread melting of ice; rising sea levels; and changes in soil moisture, runoff and groundwater recharge. Increased evaporation and the risk of flooding and drought could adversely affect security of water supply, particularly surface water. Due to these pressures, as well as global population growth, demand for groundwater is likely to increase.
Users also downloaded
Showing related downloaded files
Publication Strategic Planning for Poverty Reduction in Vietnam : Progress and Challenges for Meeting the Localized Millennium Development Goals(World Bank, Washington, DC, 2003-01)This paper discusses the progress that Vietnam has made toward meeting a core set of development goals that the government recently adopted as part of its Comprehensive Poverty Reduction and Growth Strategy (CPRGS). These goals are strongly related to the Millennium Development Goals (MDGs), but are adapted and expanded to reflect Vietnam's national challenges and the government's ambitious development plans. For each Vietnam Development Goal, the authors describe recent trends in relation to the trajectories implied by the MDGs, outline the intermediate targets identified by the government, and discuss the challenges involved in meeting these. Relative to other countries of similar per capita expenditures, Vietnam has made rapid progress in a number of key areas. Poverty has halved over the 1990s, enrollment rates in primary education have risen to 91 percent (although there is a quality problem), indicators of gender equity have been strengthened, child mortality has been reduced, maternal health has improved, and real progress has been made in combating malaria and other communicable diseases. In contrast, Vietnam scores worse than other comparable countries in the areas of child malnutrition, access to clean water, and combating HIV/AIDS. A number of important crosscutting issues emerge from this analysis that need to be addressed. One such challenge is improving equity, both in terms of ensuring that the benefits of growth are distributed evenly across the population and in terms of access to public services. This will involve addressing the affordability of education and curative health care for poor households. Improvements in public expenditure planning are needed to align resources better to stated desired outcomes and to link nationally-defined targets to subnational planning and budgeting processes. There is also a need to address capacity and data gaps which will be crucial for effective monitoring.Publication Kingdom of Morocco : Poverty Update, Volume 1. Main Report(Washington, DC, 2001-03-30)According to the 1998-99 Living Standards Measurement Survey conducted in Moroocco, poverty showed a disturbing increase during the 1990s, regardless of how poverty is measured. This report updates the poverty profile for Morocco following the comprehensive approach suggested by the latest World Development Report (see report no. 20888 for an overview of this report). It presents a detailed analysis of 1) Poverty trends in the 1990s (Chapter 2), 2) which factors are key in explaining the observed increase in poverty (Chapter 3), and 3) the support given to the poor by Government intervention (Chapter 4). An overview of the main initiatives taken by the authorities as well as by nongovernmental organizations and private businesses in the late 1990s is presented in the first chapter; their effects, though not captured by the 1998/99 data, are likely to have a significant impact on poverty reduction in the coming years.Publication Improving Access to Medicines in Developing Countries : Application of New Institutional Economics to the Analysis of Manufacturing and Distribution Issues(World Bank, Washington, DC, 2005-03)This paper examines alternative frameworks for empirical analysis of supply side activities, namely, the manufacture and distribution of medicine, through the application of New Institutional Economics (NIE) concepts. Attention is focused particularly upon the potential utility of ideas from agency theory, transaction cost analysis and contemporary ideas from strategy theory. The major purpose of this paper is to use these theoretical frameworks to provide insight for policy makers, when faced with specific situations, whether in an international agency, or a private company, or in defining a national strategy. The analysis attempts to show the importance of distinctions between ideas of 'make' or 'buy', between 'national self sufficiency' and 'international purchasing' strategies, the limitations of contractual agreements under market governance and the crucial linkages between strategy formulation, strategy implementation and the necessary capabilities to achieve successful performance in practice. The current international situation on the investment, location and capacity of pharmaceutical manufacturing is reviewed and likely future scenarios suggested. Correspondingly current patterns of trade in medicines and their likely development within the context of the WTO and bilateral trade agreements are discussed. Against this background the promise and the pitfalls for new forms of public-private partnerships, which may offer attractive alternatives to conventional structures are evaluated. The implications of alternative future strategic options for national governments in setting the balance between health and industrial policies are examined and in particular the extent to which a national manufacturing capability should be developed or sustained. Similarly the scope for improving low cost distribution systems for medicines, based upon a mix of public and private sector channels, is assessed. We conclude with suggestions for further development of a transaction-based framework.Publication Case Study 2 - Andhra Pradesh, India : Participation in Macroeconomic Policy Making and Reform(Washington, DC, 2003-03)For the past six years, the State of Andhra Pradesh in India has been at the vanguard of efforts to modernize the economy and the state while pursuing policies to improve the lives of the poorest. The Chief Minister and head of the ruling Telugu Desam Party (TDP), Mr. Chandra Babu Naidu, is known by some as the "Laptop Minister" for his modernizing initiatives. He has reached out to international organizations and investors but has also maintained his base of support at home, in part through expanded programs in education, health, and rural development. "I have initiated so many things," Naidu said. "They are going on and will pay off after some time. But people need something today." The challenges facing the government are daunting. Andhra Pradesh (AP) is one of the largest and poorest states in India. Its population of almost 80 million approaches that of the Philippines, the 13th most populous country in the world. Even as its high-tech industries develop rapidly, AP's overall literacy rate remains a modest 44% and one-third of the population lives in poverty.Publication Indonesia : Oil and Gas Sector Study(Washington, DC, 2000-06)This study attempts to provide a broad, first cut review of the most pressing issues facing the sector, and to recommend ways to ameliorate or eliminate the problems. The main problems are: 1) petroleum product prices are heavily subsidized at the aggregate level and distorted at relative levels, and thus need to be rationalized within an economic framework; 2) the functions and role of the state oil and gas company (Pertamina) are problematic, and therefore Pertamina must be fundamentally restructured to eliminate the conflicts of interest and inefficiencies; 3) some of the provisions of the production sharing contracts are relatively regressive and need to be re-evaluated with a view to maximize the contribution of the sector to the economy, and to increase upstream investment by the private sector; 4) existing laws and regulations are inadequate and must be replaced; 5) petroleum products are of poor quality and must be improved, particularly by phasing out the lead from gasoline; and 6) energy sector institutions are weak and must be strengthened. Although the issues are complex and sweeping changes are needed, given the current political climate, this is an opportune time for Indonesia to begin the process. As a first step, preparing an official and comprehensive declaration of government policy for the hydrocarbon sector is critically important--needed are the vision for the sector, policy objectives, and policy actions required to solve the sector's problems.