Call for improved sanitation in developing countries at IMF meeting
14-10-2008 | Other news
There has never been a better time for potential private players to invest in global water use efficiency, Rabobank argues in a report released on 12 October during the annual Duisenberg Lecture at the meetings of the International Monetary Fund (IMF) and the World Bank.
Staggering statistics
So staggering are the statistics that the need for change is inevitable says the report, that was presented by CEO Bert Heemskerk to the Dutch Crown Prince during the annual IMF/World Bank meeting in Washington. At present, about 700 million people worldwide are facing water shortages, while current estimates say one in three people will be facing the same problem by 2035. Water spillage is enormous with just 25 to 40 percent of the irrigation water reaching the intended crops.
“The world can do without money, introduced only 4000 years ago by the Phoenicians. The world can do without banks, founded only 2000 years ago by the Greeks and Romans. And the world can certainly live without stocks introduced by the Dutch only 400 years ago. The world however cannot live without water,” said Mr Heemskerk.
Water scarcity to worsen
Water scarcity is expected to worsen significantly due to a combination of factors including population increase, higher incomes, changing lifestyles, pollution, and climate change. The problem, declares the report is “water is simply not there” while a huge amount is needed to meet the ever-increasing future demands - an estimated increment of a canal of 10 meters deep, 100 meters wide running seven times to the moon and back.
More crop per drop
Furthermore, overall agricultural production should increase by as much as 90% by 2050 to meet the growing demand for food. This can only be met if water efficiency in agriculture rises substantially hence “more crop per drop”.
World’s largest water-using sector
The availability of modern technologies and incentive-providing policies should steer private investors keen on increasing the water-use efficiency in agriculture, which at 70% is the world’s largest water-using sector.
Favourable market signals
Better still, the irrigation sector may be able to break a history of low levels of investment, thanks to a combination of factors including better policies and favourable market signals. “Food and commodity prices reversed their long decline and farmers’ incomes have increased accordingly,” said Peter Vos, who co-authored the report with Rabobank colleague Susan Hansen. “Higher water, energy and fertiliser costs may encourage investments in efficient irrigation technologies and practices.”
Rabobank to stimulate private investments
Rabobank acknowledges there is an urgent need to increase private investments in technologies increasing water-use efficiency to raise crop-water productivity. “Rabobank would like to extend lending to or investing in the irrigation sector to companies that do not yet have access to these technologies,” said Peter. “Opportunities may rise in the field of irrigation techniques, water-saving technologies, reuse of wastewater, desalinisation technologies and other technologies aimed at increasing water-use efficiency or at augmenting available water resources.”
Rabobank organised a luncheon event during the annual meeting of the International Monetary Fund (IMF) and the World Bank in Washington D.C. It has been doing so since 2004 to discuss topics that are close to the bank’s heart as a leading Food and Agri bank, and are relevant to the international development agenda. From 2006, the event was renamed ‘The Rabobank Duisenberg Lecture’, as a tribute to the late Dr. Wim Duisenberg, former President of the European Central Bank and Vice-Chairman of the Executive Board of Rabobank Nederland (1979-1981).
