The Hidden Wealth of Nations: The Economics of Groundwater in Times of Climate Change - Executive Summary (English)

Groundwater is our most important freshwater resource, but the lack of systematic analysis of its economic importance has evaded attention from policymakers and the general public-threatening the resource. The Hidden Wealth of Nations offers new data and evidence that advances understanding of the value of groundwater, the costs of mismanagement, and the opportunities to leverage its potential. At the global level, groundwater can buffer a third of the losses in economic growth caused by droughts and can protect cities against day-zero-type events. It is especially important to agriculture, where groundwater can reduce up to half of the losses in agricultural productivity caused by rainfall variability. By insulating farms and incomes from climatic shocks, the insurance of groundwater translates into protection against malnutrition. In contrast, lack of access to shallow groundwater increases the chances of stunting among children under five by up to 20 percent. But depletion, degradation, and competition for groundwater threaten its sustainability and availability for future generations. A greater understanding of groundwater's benefits and costs informs the report's policy framework and recommendations. The findings also reflect on the policy issues policymakers confront when attempting to align the private and social costs of groundwater use. A central message of this report is that groundwater needs to be politically prioritized and should be carefully managed through integrated cross-sectoral action to benefit society, the economy, and the environment.