Invest $1 in tackling water shortage, get $5 return

10 most populous river basins will contribute 25 per cent of world GDP by 2050

Few resources are more fundamental to health and development than water. Agriculture, energy and industry rely on it, and access to safe, clean water can have an instant and dramatic impact on individuals and communities, helping them to move out of poverty and secure their livelihoods.

Yet, nearly 800 million people are without access to safe water, 2.5 billion people are living without access to basic sanitation and a quarter of the world’s population live in ecosystems that are under threat from water scarcity.

Change requires rapid, collaborative action worldwide and a significant investment – both public and private – but making the case for such investment is a complex matter. Addressing these issues has clear humanitarian and development benefits, and a new report from Frontier Economics, commissioned by HSBC, presents clear evidence and strong rationale of the significant potential of water to help economies grow at a local and global level.

According to new findings from the report, Exploring the links between water and economic growth, securing universal access to clean, safe water and sanitation would call for significant investment, whether from governments or businesses, of some US$725bn – but these investments would yield real returns.

Achieving the Millennium Development Goals (MDG) on water supply and sanitation worldwide would amount to an equivalent of more than $56bn per annum in potential economic gains between now and 2015; and providing universal access to safe water and sanitation would imply potential economic gain of $220bn per annum. Providing universal access in Brazil, India, and China alone would amount to an equivalent of more than $113bn.

Frontier Economics also found that globally the average return on each dollar invested in universal access was just under $5, even after taking maintenance costs into account. In Latin America the figure is $16 while in some African countries, the capital investment would be paid back in only three years. Several countries in Africa and Latin America would stand to gain an average of more than 15 per cent of their annual GDP from achieving universal access.

Alongside water and sanitation, there is also a strong economic argument for an investment in water resource management which includes; efficiently sharing or allocating the available water supply; ensuring water consuming industries are using it as efficiently as possible; protecting water quality and sustaining eco-systems and; managing water infrastructure.

The report reveals the world’s 10 most populous river basins are forecast to contribute 25 per cent of global GDP by 2050 – a sharp rise from a current 10 per cent and a figure greater than the combined future economies of US, Germany and Japan. However, as they stand, seven in 10 of those river basins face significant or severe water scarcity by 2050, meaning the forecasted economic growth in these basins may not materialise without investment in sustainable water management.

These findings make it clear that the future of river basins is critical for global economic growth and the economic rationale for improving access to freshwater and sanitation is strong and clear.

The HSBC Water Programme, a new $100m, five-year partnership with WWF, WaterAid and Earthwatch will tackle water risks in river basins; bring safe water and improved sanitation to over a million people; and raise awareness about the global water challenge - taking one step towards achieving change, delivering benefits to communities in need, and enabling economies to prosper.

Over the next five years, we will continue to share the lessons we learn and the data we gather, in order to encourage others to join us in recognising the value of water, benefiting communities today, and unlocking growth for years to come.

Please follow our progress at www.thewaterhub.org where you can also access the full research findings.

Note: The world’s 10 most populous river basins are: Ganges, Yangtze (Chang Jiang), Indus, Nile, Huang He (Yellow river), Huai He, Niger, Hai, Krishna and the Danube.

A bather in the Ganges river. Photograph: Getty Images

Nick Robins is head of HSBC's Climate Change Centre of Excellence

Getty
Show Hide image

Hillary Clinton can take down the Donald Trump bogeyman - but she's up against the real thing

Donald Trump still has time to transform. 

Eight years later than hoped, Hillary Clinton finally ascended to the stage at the Democratic National Convention and accepted the nomination for President. 

Like her cheerleaders, the Obamas, she was strongest when addressing the invisible bogeyman - her rival for President, Donald Trump. 

Clinton looked the commander in chief when she dissed The Donald's claims to expertise on terrorism. 

Now Donald Trump says, and this is a quote, "I know more about ISIS than the generals do"

No, Donald, you don't.

He thinks that he knows more than our military because he claimed our armed forces are "a disaster."

Well, I've had the privilege to work closely with our troops and our veterans for many years.

Trump boasted that he alone could fix America. "Isn't he forgetting?" she asked:

Troops on the front lines. Police officers and fire fighters who run toward danger. Doctors and nurses who care for us. Teachers who change lives. Entrepreneurs who see possibilities in every problem.

Clinton's message was clear: I'm a team player. She praised supporters of her former rival for the nomination, Bernie Sanders, and concluded her takedown of Trump's ability as a fixer by declaring: "Americans don't say: 'I alone can fix it.' We say: 'We'll fix it together.'"

Being the opposite of Trump suits Clinton. As she acknowledged in her speech, she is not a natural public performer. But her cool, policy-packed speech served as a rebuke to Trump. She is most convincing when serious, and luckily that sets her apart from her rival. 

The Trump in the room with her at the convention was a boorish caricature, a man who describes women as pigs. "There is no other Donald Trump," she said. "This is it."

Clinton and her supporters are right to focus on personality. When it comes to the nuclear button, most fair-minded people on both left and right would prefer to give the decision to a rational, experienced character over one who enjoys a good explosion. 

But the fact is, outside of the convention arena, Trump still controls the narrative on Trump.

Trump has previously stated clearly his aim to "pivot" to the centre. He has declared that he can change "to anything I want to change to".  In his own speech, Trump forewent his usual diatribe for statistics about African-American children in poverty. He talked about embracing "crying mothers", "laid-off factory workers" and making sure "all of our kids are treated equally". His wife Melania opted for a speech so mainstream it was said to be borrowed from Michelle Obama. 

His personal attacks have also narrowed. Where once his Twitter feed was spattered with references to "lying Ted Cruz" and "little Marco Rubio", now the bile is focused on one person: "crooked Hillary Clinton". Just as Clinton defines herself against a caricature of him, so Trump is defining himself against one of her. 

Trump may not be able to maintain a more moderate image - at a press conference after his speech, he lashed out at his former rival, Ted Cruz. But if he can tone down his rhetoric until November, he will no longer be the bogeyman Clinton can shine so brilliantly against.