Water and Economic Development

Due to limited access to water in developing countries, it is estimated that over 40 billion working hours are lost each year. The burden of finding, collecting and carrying water each day directly impacts economic growth and perpetuates the cycle of poverty. Access to clean safe water in developing countries is instrumental in social and economic development and can help reduce poverty.

Wherever you find poverty you will generally find poor water and sanitation.

Many adult working hours are lost in developing countries due to water-related diseases. This directly impacts economic development because it effects production and growth.

The costs associated with health spending, productivity losses and labor diversions are greatest in some of the poorest countries. Sub-Saharan Africa loses about 5% of GDP, or some $28.4 billion annually, a figure that exceeds total aid flows and debt to the region.

A recent World Health Organization report "Safe Water, Better Health", states that for every
$1 invested in water and sanitation can yield economic benefits on average between $7
and $12. The report also highlighted additional benefits from investing in improving access
to water and sanitation which include:

-  Health-care savings of $7 billion a year for health agencies and $340 million for individuals.

-  320 million productive days gained each year in the 15 to 59 year age group, an extra 272 million school attendance days a year, and an added 1.5 billion healthy days for children under the age of 5, together representing productivity gains of $9.9 billion a year!

-  Time savings resulting from more convenient drinking-water and sanitation services, totaling 20 billion working days a year giving a productivity payback of some $63 billion a year.

-  Based on this WHO study, we see a significant payback of $83 billion a year from the $ 11.3 billion a year investment needed to meet the Millennium Development Goal for water and sanitation. This payback makes a very strong argument in favor of promoting safe water and sanitation in these difficult financial times. 

There is massive economic waste associated with the global water crisis.