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The 21st century will witness the collision of two powerful forces
- burgeoning population growth, together with a changing climate.
With population growth, water scarcity will proliferate to new
areas across the globe. And with climate change, rainfall will
become more fickle, with longer and deeper periods of droughts and
deluges. This report presents new evidence to advance understanding
on how rainfall shocks coupled with water scarcity, impacts farms,
firms, and families. On farms, the largest consumers of water in
the world, impacts are channeled from declining yields to changing
landscapes. In cities, water extremes especially when combined with
unreliable infrastructure can stall firm production, sales, and
revenue. At the center of this are families, who feel the impacts
of this uncertainty on their incomes, jobs, and long-term health
and welfare. Although a rainfall shock may be fleeting, its
consequences can become permanent and shape the destiny of those
who experience it. Pursuing business as usual will lead many
countries down a 'parched path' where droughts shape destinies.
Avoiding this misery in slow motion will call for fundamental
changes to water policy around the globe. Building resilience to
rainfall variability will require using different policy
instruments to address the multifaceted nature of water. A key
message of this report is that water has multiple economic
attributes, each of which entail distinct policy responses. If
water is not managed more prudently--from source, to tap, and back
to source--the crises observed today will become the catastrophes
of tomorrow.
Lyn Wilson is a young mother, head of a huge company, whose life
changes when the house next door is rente
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