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While it may surprise those focused on water-related issues, potable water and a country’s GDP can be very closely intertwined. To better comprehend this, let us first get a better understanding of GDP.
GDP has long been considered one of the best barometers of a country’s economy and economic growth. The Gross Domestic Product of a country measures a country’s production in a given amount of time, typically in annual increments. It includes all the goods and services produced in a country regardless of their purpose.
Traditionally overlooked in GDP is the impact water—or lack of it—can have on a country’s economy. However, a study published in March 2020 clarified that what the researchers called “water scarcity” can have significant, long-term negative impacts on a country’s economy and growth.
Let’s look at that study now.
Entitled “Evaluating the impacts of water resources technology progress on development and economic growth over the Northwest, China,” it was published in PLOS One, a peer-reviewed, open-access scientific journal, and conducted by scientists at China’s Shaanxi Normal University.
The scientists focused on a region of China as it existed in 1996 regarding population growth, industry and economic development, and overall living conditions. The collected metrics gave them the region’s GDP, which they followed through 2017.
We should note that a geographic area’s living conditions can be a crucial component of GDP. As living conditions improve in a region or country, GDP increases because people purchase more products and services. However, particularly pertinent to our discussion, water use also increases.
With the GDP stats in hand, the researchers then examined the impact water shortages and water scarcity had during these 21 years. They found that “water scarcity is increasingly becoming the biggest bottleneck for urban future development” in this and other semi-arid provinces in China.
Other Concerns
The researchers noted two additional issues that are impacting not only this area of China but also many other areas of the world, including here in North America.
1. Overload. Most areas of the world access underground water reservoirs—aquifers—in varying amounts to meet their water needs. Typically, with rainfall events, these aquifers become refilled and regenerated. However, the researchers found that demand for this underground water is greater in the analyzed areas than the speed at which the aquifers can be refilled. This they termed overload.
2. Water Efficiency. Water efficiency typically refers to long-term water-reducing strategies, often measured by the amount of water used and delivered. However, it also focuses on water waste. The researchers found that there is considerable water waste in this part of China, with a great deal of it originating from the water-providing utilities in this area.
The water waste most often happens when the water is treated and delivered, along with how manufacturers and industry use it in this region. Vast amounts of water, the researchers pointed out, are wasted by the industry sector.
Conclusions and Recommendations
The following are some of the researcher’s conclusions. We should note that while many of these recommendations pertain specifically to this area of China, they have universal applications to regions and countries and their economies around the world. With that said, the following were among their conclusions:
• Progress in water technologies that help reduce water consumption can increase GDP growth.
• Development of products that reduce waste and help use water more efficiently can result in more significant economic expansion.
• Water scarcity will hinder future economic development in China and other parts of the world, particularly in arid and semi-arid regions.
• Even in non-arid regions, water scarcity can constrain economic growth.
Fortunately, we are making considerable progress in introducing water-using technologies that can reduce water consumption, cut waste, and use water much more efficiently. Cities and municipalities are making significant advances. El Paso, Texas, for example, is building an advanced purification system to treat sewage water and turn it into drinking water. This direct-to-distribution approach helps reduce water waste.
In New York City, six colleges have banded together to reduce water consumption, primarily by finding ways to use water more efficiently. It is estimated this will save more than 1.3 million gallons of water per month.
Additionally, increasingly commercial facilities are installing low-flow restroom fixtures and waterless urinals here in North America and around the globe. Because more water is typically used in restrooms than in any other location in a commercial building, this step alone will save millions of gallons of water annually.
But this study tells us we must do more and continue to do more. Preventing water scarcity and improving water efficiency is a journey. There is no endpoint. And protecting this vital natural resource will also help protect and grow the economies of countries around the globe.
Klaus Reichardt is the founder and CEO of Waterless Co., Inc. He frequently reports on all types of water-related issues and can be reached at klaus@waterless.com
Source: “Evaluating the impacts of water resources technology progress on development and economic growth over the Northwest, China.” Na Qiao, Lan Fang, Lan Mu. PLoS One, March 12, 2020.
