Shrinking Water Supply May Influence Global Export Strategy

Water Supply pic

Water Supply
Image: un.org

An agricultural fund manager based in Sydney, Australia, Tim Hornibrook spent 10 years with an international fund operating in Australia, the United States, Bermuda, and Brazil. In recent years, Tim Hornibrook has paid close attention to the changing global supply and demand for fresh water, as well as its impact on national trade policy.

A report released by the United Nations, notes that some 40 percent of the world experiences water scarcity, with that number expected to rise in coming years. Particularly in arid areas such as the Aral Sea, China, and Saudi Arabia, demand for water has skyrocketed in recent years. However, because water is heavy and difficult to transport in large quantities, it has largely existed as a local resource until recently.

Once demand for water reaches a certain level, water-rich nations may be incentivized to ramp up water exports, either as physical water or contained within agricultural goods. In light of FAO estimates suggesting a 50 percent decrease in nations with an abundance of water by 2050, countries with a water surplus will be well positioned to take advantage of price increases in water.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s