Virtual water trade - a realistic concept for resolving the water crisis? (original) (raw)
Virtual water trade: a realistic policy option for the countries of the Volta Basin in West Africa
Water Policy, 2009
Trade in virtual water, the substitution of the use of scarce water resources for agricultural production by importing food from water-rich countries has been said to be a potential solution to water crises and water conflicts throughout water-stressed regions worldwide. While trade in foodstuffs may have helped to alleviate water stress in parts of the Middle East and Northern Africa and provides an efficient response to the periodic drought occurrences, it has to be doubted whether virtual water trade is a water governance option that can be applied in many countries of the South. As examples from the West African Volta River Basin suggest, cultural values focussing on agricultural and livestock production, socio-economic factors such as a low level of education and a strong dependency of livelihoods on subsistence agriculture, weak governments that are unable to trigger and finance large-scale reform processes, as well as dysfunctional and unfair market systems, largely limit the widespread application of virtual water trade.
Virtual water: an effective mechanism for integrated water resources management
Agricultural Sciences, 2011
In regions, which suffer from water shortage or potential water shortage like the Middle East, water policies and different mitigation measures are formulated. With the increasing population and increasing demand for food and drinking water with the fixed supply of water, the demand management policies have been introduced. Virtual Water has been adopted as an alternative or potential alternative water resource. In the application of the Integrated Water Resources Management (IWRM), virtual water has to be considered as a resource of water. In this paper, the practical value of the virtual water concept as well as the possibility of the application of the concept in the regional and national level are discussed. The paper emphasizes on the application of virtual water in agriculture products and virtual water trade of these products. This research concluded that, there is a possibility for the application of the virtual water concept on the national level taking into account water endowments, and other natural and social economic conditions. The virtual water strategy seeks ways to consciously and efficiently utilize the internal and external water resources to alleviate water scarcity. This, however, by no means implies that importing food is the only response the water scarce countries and regions should and can take. Other measures concerning the supply and demand sides of water management are imperative. The argument here is that the virtual water strategy should be an integral component in the whole package of integrated water resources management.
Virtual Water Trade as a Solution for Water Scarcity in Egypt
Water Resources Management, 2010
Understanding the virtual water trade concept and strategy is important for formulating informed policies for improving water use efficiency at different levels. However, the introduction of virtual water concept as a policy option in Egypt is still in need for extensive investigations, research, and feasibility evaluation. Currently, Egypt's net virtual water import as a percentage of water resources has mounted to be 23.55%. The main concern, here, is to apply the concept of virtual water as a strategy in a way that meets its interests and objectives defined in the Egyptian National Water Resources Plan. This paper is primarily concerned with investigating the prevailing water/food situation in Egypt. It outlines water and food security situation and figures, as well as policy measures undertaken to meet the challenges. The role of 'virtual water' within a broader policy framework is demonstrated using crop production and international trade data from Egypt, where substantial amounts of 'virtual water' is embodied in wheat and maize imports. It is argued that for a country like Egypt, affordability of applying the virtual water concept may not be a major problem, but more the priority and independency related to food security. In order to adopt the application of virtual water concept in the national water resources strategy of Egypt, there is a need for a clear vision and understanding of its advantages and disadvantages according to the Egyptian conditions. This new concept as a policy option in Egypt requires further research and thorough understanding of the impacts and interactions on the local social, economic, environmental, cultural, natural, and political situation.
Assessment and policy design for sustainability in primary resources like arable land and water need to adopt long-term perspective; even small but persistent effects like net export of water may influence sustainability through irreversible losses. With growing consumption, this virtual water trade has become an important element in the water sustainability of a nation. We estimate and contrast the virtual (embedded) water trades of two populous nations, India and China, to present certain quantitative measures and time scales. Estimates show that export of embedded water alone can lead to loss of water sustainability. With the current rate of net export of water (embedded) in the end products, India is poised to lose its entire available water in less than 1000 years; much shorter time scales are implied in terms of water for production. The two cases contrast and exemplify sustainable and non-sustainable virtual water trade in long term perspective. W ater availability, quality, management and distribution have emerged as critical issues at regional scales for populous countries like China and India 1. Several studies have highlighted the challenges faced by both China and India in meeting their water demands 2-5. In general, water sustainability has emerged as a major global concern 6-8 , with uncertainties and added vulnerability due to climate change 9,10. An emerging issue of growing importance and debate in the context of water and food sustainability is the virtual water trade 11,12. Virtual trade of water has become an important component of global fresh water demand and supply 13 and has resulted in globalization of water resource 14-17. It has also become a medium of the global fresh water sharing 15-18. It needs to be further emphasized that the demands of virtual trade of water also need to take into account the trade requirement of food, and hence the potential production 19-21. The role of virtual water in the overall resource management has been recognized early 21-23. Several studies have emphasized the role of virtual water trade in globalization of water resource and in the overall food requirement. Several studies have emphasized the emerging but critical roles of network of virtual water trade in water management 21-23 and regional water systems 22. While virtual water can provide a more integrated approach to water management 23 , it can also affect regional food sustainability 24 and other processes 25. Importance and impacts of virtual water trade on food and water sustainability have been discussed at the global 26,27 as well as regional scale 28-30. An index for water scarcity based on virtual water has been also proposed 25 , highlighting the importance of water use efficiency; however, such an index is focused on usage and influence of virtual water and not on implications for water sustainability due to trade of virtual (embedded) water. Analysis of virtual water profiles at global and regional scales using inputoutput model for 112 nation-level regions revealed India, USA, and China as the world's leading virtual water consumers 16,17. In terms of agriculture and food, virtual water can be defined both in terms of water required for the production, and as water content embedded in the end products 24,27. In production perspective, the volume of water used to produce an agricultural product is considered; this volume of water depends on the agricultural practices, water use efficiency, place and time of production 31,32. Water footprint of a crop also strongly depends on local climate conditions; for example, water required for producing 1 kg of a crop in an arid region is two or three times more than that in a humid region 31,32. Thus assessment of water sustainability in terms of agricultural production needs to adopt a regional perspective. The issue of virtual water is a particularly important concept for water scarce countries 19-28 with large demands. India and China are the two most populous countries with limited arable land 33 and fresh water resources. Similarly, fresh water resources of India and China are, respectively, 3.83 percent and 6 percent of the world's fresh water resources 34. A large fraction of the total annual rainfall is
Status of virtual water trade from India
2007
With a rapidly growing population and improving living standards in India, the water requirement of the country is increasing and the per capita availability of water resources is reducing day by day. There is a need for proper planning of water resource utilization for the country so that the gap between the water availability and requirement may be minimized. Virtual water trade is one of the alternatives to reduce water consumption.
“Virtual water”: An unfolding concept in integrated water resources management
Water Resources Research, 2007
In its broadest sense, virtual water refers to the water required for the production of food commodities. Issues relating to virtual water have drawn much attention in scientific communities and the political sphere since the mid 1990s. This paper provides a critical review of major research issues and results in the virtual water literature and pinpoints the remaining questions and the direction of research in future virtual water studies. We conclude that virtual water studies have helped to raise the awareness of water scarcity and its impact on food security and to improve the understanding of the role of food trade in compensating for water deficit. However, the studies so far have been overwhelmingly concerned with the international food trade, and many solely quantified virtual water flows associated with food trade. There is a general lack of direct policy relevance to the solutions to water scarcity and food insecurity, which are often local, regional, and river basin issues. The obscurity in the conceptual basis of virtual water also entails some confusion. The methodologies and databases of the studies are often crude, affecting the robustness and reliability of the results. Looking ahead, future virtual water studies need to enhance the policy relevance by strengthening their linkages with national and regional water resources management. Meanwhile, integrated approaches taking into consideration the spatial and temporal variations of blue and green water resources availability and the complexity of natural, socioeconomic, and political conditions are necessary in assessing the trade-offs of the virtual water strategy in dealing with water scarcity. To this end, interdisciplinary efforts and quantitative methods supported by improved data availability are greatly important.
Unfolding the Potential of the Virtual Water Concept. What is Still Under Debate?
SSRN Electronic Journal, 2000
The concept of virtual water refers to the volume of water used in the production of a commodity or a service. The concept was identified by the geographer Tony Allan in the early 1990s, to draw attention on the global economic processes that ameliorate local water deficits in the MENA region and elsewhere. Since its inception, the virtual water concept has inspired a flourishing literature on how to address global water resource scarcity vis-à-vis commodity production and consumption in a variety of disciplines, but also has been the object of a number of critiques. Against this backdrop, the aim of the study is, first, to conduct a thorough review of the conceptual definition of the concept, its critics and applications. Secondly, to analyse its theoretical underpinnings and, in particular, its relationship with economic theory. The study argues that, despite not being a policy tool itself, the virtual water concept can reveal aspects related to production, consumption and trade in goods which monetary indicators do not capture. Its potential as an indicator for informing decision-making in water management and policy, as well as commodity trade policy, still has to be fully unfolded.