Istanbul:
Investment in the water sector needs to be stepped up as it can help in stimulating the global economy, experts at the ongoing 5th World water Forum have said. Investments in vital water projects can also create an opportunity to generate jobs and yield high returns against relatively low risk, they added.
",If there is an item in the agenda that could qualify for inclusion in today's fiscal stimulus packages, clearly that is water,", said Organization for Economic Cooperation and Development (OECD) Secretary General Angel Gurria, adding, ",Water represents the best example of 'double dividend' spending that packages offer the opportunity to invest in",.
The call for channelling more spending in the water infrastructure comes against a backdrop of drying up of funds due to the ongoing global economic recession. The first global economic contraction since World War II threatening to overshadow the scarcity of clean water in many poor regions across the world, where inadequate sanitation is a major cause of deadly disease and is hurting economic development.
In a report released during the Forum, the OECD said the right mix of government assistance, private sector involvement and market mechanisms was the key to ensuring efficient use of water resources.
Since the greatest yields are public, the biggest investors in water have been, and will remain, centralised federal governments. Every $1 spent on the water and sanitation sector yields $8 in income, health, productivity and infrastructure related jobs.
But, the lack of investment is becoming apparent in several developing countries, including India.
The World Bank has said the global economic crisis threatens to shrink investment in water infrastructure, an already underfunded sector vital to growth and public health.
In India, the water sector is not being accorded the priority that it deserves and there seems to be no urgency in making investments in creation of infrastructure. Experts have warned that the country, which has been maintaining a high economic growth rate, could witness drop in GDP growth rate, if spending in water sector is not stepped up.
According to estimates, the amount of new spending on infrastructure development in developing countries will need to double to $18 billion in addition to the $54 billion already required annually to maintain existing infrastructure. The United Nations says the total cost of replacing aging water supply and sanitation infrastructure in industrial countries could be as high as $200 billion per year.
The requirement for huge spending in water is evident, but the situation is reality remains rather unfortunate. Water does not remain a hot topic for many governments as much of the public works system is in the backgrounds and presumably out of mind for the electorate.
However, in India, the main Opposition party, the Bharatiya Janata Party (BJP) has seen the merit of adequate provision of water to the people. The BJP has also mentioned provision of water in its election manifesto for the forthcoming general elections, an ominous sign of importance that it accords to the sector.
World Bank director of energy, transport and water, Jamal Saghir said there were not significant funds earmarked for water investment in the stimulus packages of the United States and other countries fighting the economic meltdown. He appealed for greater efficiency in water management, saying, ",We can do more with the same or even less",.
World water Council president Loic Fauchon called upon the international community to give even more to the poor, who can't support the investments needed for water. ",The most fragile African regions are those who need the most support. Let's make sure that we do not impose too strict financing conditions with the risk of leaving the poorest on the roadside",, he said.
Disclaimer: Girish Chadha is a freelance journalist and NDTV.com takes no responsibility for the views expressed in the article. The article published does not in anyway reflect the opinion of NDTV.com.)