Water is vital for life but can also be deadly, with floods, droughts and epidemics capable of destroying lives and communities. In least developed economies, extreme floods and droughts can cause large-scale losses of life and declines in annual GDP often exceeding 10 percent. Intermediate economies are also vulnerable to floods and droughts, but they have typically undertaken much investment in water infrastructure that helps to mitigate the effects. Investments in integrated flood management within basin plans improve the beneficial use of water and minimize losses from floods. Investment in drought management brings benefits by reducing the economic, social, and environmental costs associated with drought. Because the poor are especially vulnerable, flood and drought preparedness is a critical part of poverty reduction strategies. |
Key Challenges
The destructive quality of the water in its natural, unmanaged state is arguably unique for a natural resource. Many of the poorest countries face highly variable climates. Within developing countries it is the poorest of the poor who are most vulnerable to water-related risks.
Water security means not only access to reliable water supplies, but also acceptable risks from floods, droughts, and other unpredictable events. To achieve water security, a country needs an appropriate mix of institutions, infrastructure, and management skills. The mix will depend on each country’s hydrology and the vulnerability of its economy to water shocks. Many of the world’s poorest countries need much more investment in infrastructure to be more resilient to water-related shocks and damage. Such investments include both protecting ‘natural infrastructure’ such as aquifers, water catchment areas and wetlands, as well as man-made infrastructure such as pipelines, reservoirs, and dams. Infrastructure investments must always be balanced with appropriate investment in institutions and capacity building. Water investments must be designed to achieve the right balance between water security and social and environmental sustainability. They must also be designed with the future in mind and be capable of adapting to changing needs and values as developing countries grow. Stakeholder involvement and appropriate environmental policies are essential to successful investment outcomes.
Back to Top World Bank Response
The World Bank provides technical assistance for flood mapping and flood management plans, and finances investments in water retention, flood mitigation, and flood protection measures and rehabilitation and restoration works. Its investments in drought-mitigation planning, management, and appropriate policies provide individuals and governments with the tools needed to reduce societal vulnerability to future droughts. |
 
Overcoming Drought
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