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Jakarta Post

Water makes the world go round

As water supplies across the globe come under growing strain, water-related considerations will shape economic policy and political decision-making as well as firms' investment decisions, risk assessments and corporate strategies.

Esther Crauser-Delbourg and Bertrand Badré (The Jakarta Post)
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Project Syndicate/Paris
Thu, July 2, 2026 Published on Jul. 1, 2026 Published on 2026-07-01T10:14:05+07:00

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A solar water pump floods a newly prepared field on April 6, 2026, at a rice farm in Lumajang, East Java. A solar water pump floods a newly prepared field on April 6, 2026, at a rice farm in Lumajang, East Java. (Antara/Irfan Sumanjaya)

The past few months have offered a stark reminder of the importance, as well as precariousness, of water supplies.

The Gulf Cooperation Council countries, which together supply roughly 62 million people with drinking water drawn almost entirely from the sea, have had their desalination plants targeted by drones and missiles as part of a geopolitical conflict they did not create.

Meanwhile in Central America, insufficient rainfall has been lowering water levels in the Panama Canal for years, creating tension between the local need for fresh water and demand for transit through a vital shipping artery.

This is the same crisis seen from opposite ends: In Panama, a shortage of fresh water chokes maritime trade while in the Gulf, a maritime conflict reduces drinking water.

Water is, in the strictest sense, a security issue, but the world has yet to govern it as one.

The consequences of inadequate water management are far-reaching. Diseases related to unsafe water and sanitation represent a major public health risk and a leading cause of death among children under 5 globally.

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Moreover, water is a vital agricultural and industrial input: Around 90 percent of global freshwater withdrawals support economic activity, with the remaining 10 percent going to households.

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