There are several threats to regional and global freshwater supplies besides the usual industrial pollution methods that pump chemicals into lakes and rivers. Climate scientists note that As weather patterns shift and extremes worsen due to climate change, future weather will become increasingly difficult to predict. Future weather anomalies are less guesswork than they were in years past, but today’s best predictions are still just estimates of the most likely scenarios. Scientists can say with relative certainty that California will face a mega-drought within the next few years based off the state’s current methods of water usage and average expected rainfall patterns. They cannot reasonably say, “California will not receive any rainfall next year. A drought will occur.” As the United States and other countries are learning the hard way, balancing water consumption to achieve a surplus will mitigate losses during drier years and is becoming increasingly necessary. This is exactly why governments should step in and regulate the amount of water that is consumed through different uses. But as we will see, both national governments and corporations can be prone to making economic decisions without considering the devastating environmental consequences.
Modernized nations use much of their water supply on industry, but the largest fraction of water is used in the agricultural process. For example, the US Geological Survey notes that on average the United States uses around 62 percent, when excluding thermoelectric power, of its freshwater on agriculture though each state may use more or less than others. Developing nations use much more freshwater on agriculture than industry, as food security is more important for developing nations than are industrial activities. In India and in many areas of China as much as 90 percent of the freshwater used goes to agricultural endeavors (GWP). Properly managing freshwater consumption by agricultural methods can save a larger percentage of freshwater for future use.
In the United States a policy called the Homestead Act of 1862 was enacted to encourage settlement of the American southwest by citizens with European ancestry. This would force out Native Americans and would-be settlers from other countries. The now expired Homestead Act and other legislation allowed industrial farmers in normally arid regions to use water as freely as possible to maximize crop growth. Today this short-sighted policy has its lineage built into the constitutions of many of the western states. State constitutions such as Colorado’s, which states that the right to divert the unappropriated waters of any natural stream to beneficial uses shall never be denied, currently allow for water rights to be given to whoever can first put the water to good economic use. This is why water intensive crops such as alfalfa, rice, and nuts are being grown in the driest regions of the country.
In India, the government has decreed that farmers in the arid northwest region choosing to grow rice and wheat will be paid a flat rate for those crops regardless of market price fluctuations. This provides huge incentives to farmers to grow as much of these water intensive crops in the name of financial security, thereby hastening the depletion of groundwater in the region (GWP). The country of Jordan currently is the fourth most water-deprived country in the world and has the 9th highest population growth rate at 2.4 percent. The country requires 1.15 billion cubic meters annually, but only averages 850 million cubic meters replenished annually. The country is operating at a negative water balance of 20 percent. Shortfalls have been made by over-pumping non-renewable groundwater, and other water tables in the region are dropping rapidly. Of Jordan’s 12 major groundwater basins, 6 are over-extracted, 4 are at capacity, and only 2 are under-exploited. This is not an efficient strategy in an arid area plagued by water scarcity. To exacerbate the damage already done, many farmers choose to invest in high water crops such as bananas, watermelons, and citrus fruits then export much of these crops. Jordan is essentially exporting the water that is needed by its people for domestic consumption (Denny et al).
Clearly, poor government policies can to lead over consumption of resources in the name of personal gain. Some people point to this as evidence that water rights should be privatized and sold to companies, arguing that the supply will be managed more appropriately when it is monetized. But this overlooks the fact that water is necessary for life and money is not a guarantee to all people at all times. In modern nations public water is very safe for consumption. America has the most sanitary drinking water in the world and, as of now, it isn’t difficult to get from any kitchen sink. Companies have not had much success in persuading most government representatives that public water rights should be sold for profit, though that hasn’t stopped Nestle Chairman Peter Brabeck from trying. Instead, companies such as Coca-Cola and Pepsi have taken to selling us the same water that they use in their beverage recipes which has been marketed as a safe alternative to the tainted mystery water that comes from any American kitchen.
In developing nations, there is much danger for communities when companies can outright purchase water rights, especially when public interests are excluded from negotiations. This is exactly what happened during the “Water Wars” in Bolivia during 1999 and 2000. Increasing water prices gave rise to conflicts when basic water rights were denied to the poorer more vulnerable communities. In 1997, the World Bank refused to renew $600 million of debt relief to Bolivia unless the country agreed to privatize portions of its water supply. World Bank decision-makers reasoned that putting water in the private sector would help to broadly stimulate the Bolivian economy.
Out of economic necessity, officials in the city of Cochabamba sold the city’s municipal water company to the transnational consortium Aguas del Tunari, which is controlled by U.S. company Bechtel. The consortium hiked water rates to local water consumers by as much as 200 percent after winning a 40-year concession in closed-door negotiations. Poor households found themselves paying water bills that amounted to between 20 and 30 percent of their total income. Tensions rose even higher when another law extended Bechtel’s control of water resources for a larger portion of the city and surrounding rural communities. It wasn’t long before violent protests erupted. In all, 110 protestors and 51 policemen were injured, and 200 demonstrators were arrested. Nine violent deaths were attributed to the social unrest. The privatization of water incited these protests by making access to freshwater, and by extension to life, conditional on income in a region overwhelmingly known for its poverty (Bonnardeaux).
Governments don’t always get water policy right the first time around. They can be very reluctant to alter existing policies if it will upset communities or interrupt the flow of money, unless social pressure is applied, scientific data is available, or compelling economic evidence is presented. When water policies are correctly applied some industrial farmers may not be as profitable as others, but entire regions will not suffer life-threatening droughts. Good water policies also position governments to protect citizens from companies that would seek to sell access to life at the most profitable price.
Bonnardeaux, D. 2009. “The Cochabamba ‘Water War’: An Anti-Privatisation Poster Child?” https://fcpp.org/... (March 1, 2015)
Denny, E., Donnelly, K., McKay, R., et al. 2008, “Sustainable Water Strategies for Jordan” International Economic Development Program Gerald R. Ford School of Public Policy University of Michigan, Ann Arbor. http://www.umich.edu/... (March 1, 2015)
Global Water Partnership (GWP). 2013. “Water and food security –Experiences in India and China”. Technical Focus Paper. http://www.gwp.org/... (March 1, 2015)
United States Geological Survey (USGS). 2014. "Water Questions & Answers What is most of the freshwater in the U.S. used for?" The USGS Water Science School. http://water.usgs.gov/... (February 20, 2015)