Ramblings on Economics

Friday, November 10, 2006

UN urges rich nations to solve global water crisis

One of the main concerns for third world countries is the scarcity of water. According to the article, which quotes the United Nations, "poverty, power and inequality are the reasons for the global water crisis. " There are about 1.2 billion people in poor countries, mostly located in Africa, that do not have safe drinking water. Countries are in competition for water. Since there is power and inequality in the world, the pricing of water supply is outrageous. "The poorer you are, the more you pay." The article also suggests that water is not a physical scarcity, but rather "poverty, power and inequality" is where all the blame should be placed.

(Source)

Relationship to Ch. 1 -- Resources & Scarcity

How does any of this article relate to resources and scarcity? Water is a resource that every nation is in need of. Although there seems to be plenty of it, considering the world is mainly of ocean, it is still short in supply. Wealthier nations, such as the United States and Canada, often waste this valuable resource. On the other hand, poorer countries, mostly in Africa, are left with minute amounts that are mostly unsuitable for human consumption.

Is it really "poverty, power and inequality" that results in the scarcity of water? Yes, the three play a part as to why water is such an expensive commodity. Greed is an ugly human product. For example, America could probably either donate or supply water to third world countries, yet the chances are, they take hold of the opportunity to make more money. It is already established that water is a limited resource, but it is not viewed that way. Water conservation warnings are never listened to. During the heat wave in the summer, California had the desperate need for more water. If water was unlimited, that would not have been a problem.

Despite the fact that it seems water is abundant, not all of it is suitable for a person's daily needs. This would include drinking water (a recommended 8 glasses a day that only the privileged can have) and taking baths (a supposed rarity in Africa). Since there is such a large demand for water, it only goes to say that the price would be raised as well. That is part of how supply and demand comes into the picture.

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