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Economics of Water - Linking Water with Human Economy

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Junaid Noor

on 14 January 2015

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Transcript of Economics of Water - Linking Water with Human Economy

photo credit Nasa / Goddard Space Flight Center / Reto Stöckli
Linking Water to Human Economy
Economics of Water
Investment in Water
Sources of Investment in Water
Benefits of Investing in Water
An understanding of water issues and of the support needed for investments, institutions, incentives, information and capacity inside the water sector requires partnerships between those responsible for the economy wide benefits of water and those responsible for managing water.
Outside the water sector is an area of synergy, tradeoffs, coordination and integration, involving higher level, multisectoral decision making process.

There are three primary sources of investment in water:
User Tarrif
Public Expenditure
External Aid
Since water can be managed only locally, the investments must also be managed locally.

WHO estimates returns of $3-$34 depending on region and technology, for each $1 invested in water and sanitation services.
Inadequate sanitation costs Pakistan $5.7 billion.
Costs of Disaster as a Share of GDP
Benefits of Investing in W & S
the achievement of the MDGs for water and sanitation would generate benefits of USD 84 billion per year with a benefit to cost ratio of 7 to 1.
Three quarters of these benefits stem from time gains, i.e. time that is gained by not having to walk long distances to fetch water or to queue at the source.
Most other benefits are linked to a reduction of water-borne diseases such as reduced incidence of diarrhoea, malaria or dengue fever. Almost ten per cent of the global burden of disease could be prevented through water, sanitation and hygiene interventions.
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