Collecting water in Ethiopia. A new report, ‘Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post Crisis Era’ warns that many of the earth’s water resources have been pushed to a point of permanent failure. Credit: EU/ECHO/Anouk Delafortrie/IPS

By Umar Manzoor Shah
UNITED NATIONS & SRINAGAR, India, Jan 20 2026 (IPS)

The world has entered what United Nations researchers now describe as an era of Global Water Bankruptcy, a condition where humanity has irreversibly overspent the planet’s water resources, leaving ecosystems, economies, and communities unable to recover to previous levels.

The new report, released by the United Nations University Institute for Water, Environment and Health, titled Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post-Crisis Era. The report argues that decades of overextraction, pollution, land degradation, and climate stress have pushed large parts of the global water system into a permanent state of failure.

“The world has entered the era of Global Water Bankruptcy,” the report reads, adding that “in many regions, human water systems are already in a post-crisis state of failure.”

According to the report, the language of “water crisis” is no longer sufficient to explain what is happening. A crisis implies a shock followed by recovery. Water bankruptcy, by contrast, describes a condition where recovery is no longer realistically possible because natural water capital has been permanently damaged.

In an exclusive interview with Inter Press Service, former Deputy Head of Iran’s Department of Environment  Prof. Kaveh Madani, who currently is the Director at United Nations University, Institute for Water, Environment and Health, said that declaring that the planet has entered the era of water bankruptcy must not be interpreted as universal water bankruptcy, as not all basins, aquifers, and systems are water bankrupt.

Prof. Kaveh Madani, Director at the United Nations University, Institute for Water, Environment and Health, addresses the UN midday press briefing. Credit: IPS

“But we now have enough critical basins and aquifers in chronic decline and showing clear signs of irreversibility that the global risk landscape is already being reshaped. Scientifically, we know recovery is no longer realistic in many systems when we see persistent overshoot (using more than renewable supply) combined with clear markers of irreversibility—for example aquifer compaction and land subsidence that permanently reduce storage, wetland and lake loss, salinization and pollution that shrink usable water, and glacier retreat that removes a long-term seasonal buffer. When these signals persist over time, the old “bounce back” assumption stops being credible,” Madani said.

According to the report, over decades, societies have drawn down the renewable flow of rivers and rainfall besides long-term reserves stored in aquifers, glaciers, wetlands, and soils. At the same time, pollution and salinization have reduced the share of water that is safe or economically usable.

“Over decades, societies have withdrawn more water than climate and hydrology can reliably provide, drawing down not only the annual income of renewable flows but also the savings stored in aquifers, glaciers, soils, wetlands, and river ecosystems,” the report says.

The scale of the problem, as per the report, is global. Nearly three-quarters of the world’s population now lives in countries classified as water insecure or critically water insecure.

Around 2.2 billion people still lack safely managed drinking water, while 3.5 billion lack safely managed sanitation. About 4 billion people, as per the report findings, experience severe water scarcity for at least one month every year.

Madani said, adding that water bankruptcy is best assessed basin by basin and aquifer by aquifer, not by country.

“Please note that, based on the water security definition used by the UN system, water insecurity and water bankruptcy are not equivalent. Water bankruptcy can drive water insecurity, but water insecurity can also stem from limited financial and institutional capacity to build and operate infrastructure for safe water supply and sanitation, even where physical water is available,” he explained.

Madani added that the regions most consistently closest to irreversible decline cluster in the Middle East and North Africa, Central and South Asia, parts of northern China, the Mediterranean and southern Europe, the southwestern United States and northern Mexico (including the Colorado River system), parts of southern Africa, and parts of Australia.

The Aral Sea, which lies between Kazakhstan and Uzbekistan, shows dramatic water loss between 1989 and 2025. Credit: UNU-INWEH

Surface Water Systems Are Shrinking Rapidly

The report shows how more than half of the world’s large lakes have lost water since the early 1990s, affecting nearly one quarter of the global population that depends directly on them. Many major rivers now fail to reach the sea for parts of the year or fall below environmental flow needs.

Massive losses have occurred in wetlands, which serve as natural buffers against floods and droughts. Over the past five decades, the report claims that the world has lost roughly 410 million hectares of natural wetlands, almost the size of the European Union. The economic value of lost ecosystem services from these wetlands exceeds 5.1 trillion US dollars.

Groundwater depletion is one of the clearest signs of water bankruptcy. Groundwater, says the report, now supplies about 50 percent of global domestic water use and over 40 percent of irrigation water. Yet around 70 percent of the world’s major aquifers show long-term declining trends.

“Excessive groundwater extraction has already contributed to significant land subsidence over more than 6 million square kilometers,” the report says, warning that in some locations land is sinking by up to 25 centimeters per year, permanently reducing storage capacity and increasing flood risk.

In coastal areas, overpumping has allowed seawater to intrude into aquifers, rendering groundwater unusable for generations. In inland agricultural regions, falling water tables have triggered sinkholes, soil collapse, and the loss of fertile land.

These satellite images show a dramatic impact of the Aru glacier collapses in western Tibet. First image was taken in 2017 and the second in 2025. Credit: UNU-INWEH

The cryosphere, glaciers and snowpacks that act as natural water storage systems are also being rapidly liquidated. The world has already lost more than 30 percent of its glacier mass since 1970. Several low- and mid-latitude mountain ranges could lose functional glaciers within decades.

“The liquidation of this frozen savings account interacts with groundwater depletion and surface water over-allocation to lock many basins into a permanent worsening water deficit state,” says the report.

This loss, as per the report, threatens the long-term water security of hundreds of millions of people who depend on glacier- and snowmelt-fed rivers for drinking water, irrigation, and hydropower, particularly in Asia and the Andes.

Madani said the biggest failure was treating groundwater as an unlimited safety net instead of a strategic reserve.

He says that when surface water tightened, many systems defaulted to “drill deeper” without enforceable caps.

“Authorities often recognize the consequences when it is already late, and meaningful action then faces major political barriers. For example, reducing groundwater use in farming can trigger unemployment, food insecurity, and even instability unless farmers are supported through short-term compensation and a longer-term transition to alternative livelihoods,” he added.

According to Madani, that kind of transition cannot be implemented overnight.

“So, business as usual continues. The result is predictable: groundwater gets “liquidated” to postpone hard choices, and by the time the damage is obvious, recovery is no longer realistic,” he told IPS news.

Agriculture Lies at the Heart of the Crisis

According to the report, farming accounts for approximately 70 percent of global freshwater withdrawals. About 3 billion people and more than half of the world’s food production are located in regions where total water storage is already declining or unstable.

The report states that more than 170 million hectares of irrigated cropland are under high or very high water stress. Land and soil degradation are making matters worse by reducing the ability of soils to retain moisture. The degradation of more than half of the global agricultural land is now moderate or severe.

Drought, once considered a natural hazard, is increasingly driven by human activity. Overallocation, groundwater depletion, deforestation, land degradation, and climate change have turned drought into a chronic condition in many regions.

“Drought-related damages, intensified by land degradation, groundwater depletion and climate change rather than rainfall deficits alone, already amount to about 307 billion US dollars per year worldwide,” the report states.

Water quality degradation further shrinks the usable resource base. Pollution from untreated wastewater, agricultural runoff, industrial effluents, and salinization means that even where water volumes appear stable, much of that water is unsafe or too costly to treat.

The report adds that the planetary freshwater boundary has already been crossed. Both blue water, surface and groundwater, and green water, soil moisture, have been pushed beyond a safe operating space.

Current governance systems, the authors argue, are not fit for this reality. Many legal water rights and development promises far exceed degraded hydrological capacity. Existing global agendas, focused largely on drinking water access, sanitation, and incremental efficiency gains, are inadequate for managing irreversible loss.

“Water bankruptcy must be recognized as a distinct post-crisis state, where accumulated damage and overshoot have undermined the system’s capacity to recover,” the report says.

Water bankruptcy could result in a further increase in conflicts. Credit: UNU-INWEH

It warns that the implications of water bankruptcy are dire.

UN Under-Secretary-General Tshilidzi Marwala, Rector of UNU explains,  “Water bankruptcy is becoming a driver of fragility, displacement, and conflict. Managing it fairly—ensuring that vulnerable communities are protected and that unavoidable losses are shared equitably—is now central to maintaining peace, stability, and social cohesion.”

Policy Implications

Instead of crisis management aimed at restoring the past, the report actually pitches for bankruptcy management. That means acknowledging insolvency, accepting irreversibility, and restructuring water use, rights, and institutions to prevent further damage.

The authors lay stress on the fact that water bankruptcy is also a justice and security issue. The costs of overshoot fall disproportionately on small farmers, rural communities, women, Indigenous peoples, and downstream users, while benefits have often accrued to more powerful actors.

“How societies manage water bankruptcy will shape social cohesion, political stability, and peace,” the report warns.

Furthermore, it urges governments and international institutions to use upcoming UN Water Conferences in 2026 and 2028 as milestones to reset the global water agenda, calling for water to be treated as an upstream sector central to climate action, biodiversity protection, food security, and peace.

“This is about a crisis that might arrive in the future. The world is already living beyond its hydrological means,” reads the report.

When asked why the report frames water bankruptcy as a justice and security issue and how governments can implement painful demand reductions without triggering social unrest or conflict, Madani said the demand reduction becomes dangerous when it is treated as a technical exercise instead of a political economy reform. In many water-bankrupt regions, according to him, water is effectively a jobs policy: it keeps low-productivity farming and local economies afloat.

“If you cut water without an economic transition, you create unemployment, food insecurity, and unrest. So the practical pathway is to decouple livelihoods and growth from water consumption. In many economies, water and other natural resources are used to keep low-efficiency systems alive. In most places, it is possible to produce more strategic food with less water and less land, and with fewer farmers—provided that farmers are supported through a transition and offered alternative livelihoods.”

According to Madani, governments should protect basic needs but target the big reductions where most water is used, especially agriculture and besides that, pair caps with a just transition package for farmers—compensation, insurance, buy-down or retirement of water entitlements where relevant, and real income alternatives.

He further suggests that the governments should invest in diversification, including services, industry, value-added agri-processing, and urban jobs, so communities can earn a living without expanding water withdrawals.

“In short, you avoid conflict by making demand reduction part of a broader economic transition, not a standalone water policy.”

IPS UN Bureau Report

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Protesters march through Port-au-Prince in April 2008 to demand the government lower the price of basic commodities. Credit: Nick Whalen/IPS

By Zafar Adeel
HAMILTON, Canada, Oct 21 2014 (IPS)

Recent events in the Arab world and elsewhere have underscored the point that traditional notions of security being dependent solely on military and related apparatus are outmoded.

Security is a multi-faceted domain that operates at the nexus of human development and sustainable management of water, energy and food resources.The confluence of water scarcity with energy shortages, food-price hikes, ballooning numbers of jobless youth, and poor regional economic performance has created a dangerous recipe.

“Water, Energy and the Arab Awakening,” a new book from an association of former world leaders, the InterAction Council, co-edited and published by the UN University Institute for Water, Environment and Health, explores dimensions of security from a range of angles and offers some uncommon conclusions.

Much has been written in the recent years about water security as the crucial fulcrum on which human development and overall security balances. Access to modern energy services and adequate food, safe drinking water and sanitation are now deemed key determinants.

A clear indication of this increased awareness was provided by global business and political leaders in Davos last year, who recognised water insecurity as one of the five most important world risks.

Energy generation and consumption are driven by access to clean water and often generate polluting wastewater. Conversely, about eight percent of energy generated is used for treating, pumping, and transporting clean water and wastewater.

And food production is integrally linked to water availability – in most water-scarce countries, over 80 percent of water withdrawals support agricultural production.

It is also increasing clear that our use of resources, particularly freshwater, is not in line with availability. Nowhere is this more obvious than in the Arab region, where countries suffer water scarcity, worsening with rising population and changing (warming) climate patterns.

Some leading experts argue that Syria’s security crisis is rooted in ineffective water management and drought, problems amplifying long-standing political, religious and social disputes. The confluence of water scarcity with energy shortages, food-price hikes, ballooning numbers of jobless youth, and poor regional economic performance has created a dangerous recipe.

New window into security

The new book argues that reversing this situation requires consumption patterns realigned with available resources. And it downplays the significance of military might as part of the overall security equation.

Enhancements in the energy sector — utilising newer technologies and greener generation — can conserve water resources, improve access to energy and boost energy markets. In the book, Majid Al-Moneef of the Supreme Economic Council of Saudi Arabia argues that national energy companies must play an enhanced role in this re-alignment.

Meanwhile, the food prices spikes of 2006-2008, argues Rabi Mohtar of Texas A&M University, can be linked to steep energy prices and to steering agricultural land to biofuel crop production. While the precise drivers of the global food prices are debatable, it is clear that availability of water and productive land, and the cost of energy are key.

The nexus of water, energy and food security demands re-thinking governance of these sectors. We can no longer afford isolated, ‘siloed’ management. The magnitude of these sectors and the respective proportion each contributes to national GDP varies very significantly from country to country.

But the water sector almost always comes out as a junior ministry or bureaucracy in national governments, making its integration difficult.

The book presents the Red Sea – Dead Sea canal as an example of achieving multi-faceted energy, food and water security goals while promoting regional peace. This 180-km long canal will siphon water from Red Sea to replenish the disappearing Dead Sea.

Some of the water will be desalinised for consumption, while also facilitating energy generation and food production. Former Jordanian Prime Minister Dr Majali notes that Israel, Palestinian Authority, and Jordan are all potential beneficiaries.

Climate change as exacerbating factor

There is little argument left that the greatest impacts of climate change are on the water cycle. And these changes can already be observed in spades — for example, in the extreme floods in Australia, Pakistan, Western Europe, and Canada of the last five years. The same can be said of prolonged droughts in Middle East and Central Asia.

The InterAction Council (IAC) – an association of 40 member former heads of state including Bill Clinton (USA), Jean Chrétien (Canada), Vincente Fox Quesada (Mexico), Andrés Pastrana Arango (Colombia), and Gro Harlem Bruntland (Norway) – notes that the U.N. Security Council has recognised climate change as an agenda for its consideration.

The IAC, however, argues in the book that water security should be a major consideration for the UNSC as climate change impacts manifest themselves in the form of water insecurity.

Looking for solutions

How the international community delivers its response to these multi-faceted problems is key; piecemeal solutions are clearly inadequate. The international development community, often led by the U.N. system, has an obvious central role. Numerous caucuses, most notably the summit-level G20, also have an increasing role to play in ensuring that these responses are comprehensive, geographically appropriate, and adequately resourced.

The Arab region is truly the test-bed of whether these solutions will work or not. As all eyes are turned towards the recent developments in Syria and Iraq, there is a wider narrative that relates to stemming problems before they get out of control elsewhere in the region.

Edited by Kitty Stapp

Excerpt:

Drought has left some parts of Sri Lanka's dry zone scorched and crops devastated. Credit: Photostock

By Stephen Leahy
UXBRIDGE, Canada, Sep 9 2013 (IPS)

Drought and chronic water shortages played a significant role in sparking Syria’s civil war and in unrest throughout much of the Middle East, water experts now believe.

Around the world, water demand already exceeds supply in regions with more than 40 percent of the world’s population. That may climb to 60 percent in the coming decade, a new study has found."Disease outbreaks from using wastewater do happen but it is rarely cited as the cause." -- Manzoor Qadir of United Nations University

“Water-scarce regions can’t grow enough food to feed their own people,” said co-author Manzoor Qadir of United Nations University’s Canadian-based Institute for Water, Environment and Health (UNU-INWEH).

About 70 percent of the world’s freshwater – and up to 95 percent in some countries – is used for irrigation. There is intense competition for freshwater between municipal, industrial, and agricultural uses. Increasingly, agriculture has been losing out, particularly in water-stressed regions, Qadir told IPS.

Between 2006 and 2011, up to 60 percent of Syria’s land experienced its worst ever drought and a series of crop failures. In 2009, the U.N. reported that over 800,000 Syrians lost their livelihoods and fled to cities as result of the drought.

The entire Mediterranean region is undergoing a prolonged drought that has been linked to climate change, according to a recent U.S. study. If climate-altering carbon emissions continue at current rates, droughts in the region will worsen and lengthen.

As water supplies fall, many regions are using urban wastewater, a very valuable resource if it is treated properly, says the study “Global, regional, and country level need for data on wastewater generation, treatment, and use“, published Sep. 5 in the journal Agricultural Water Management.

This is the first study to look at how wastewater is used in 181 countries. One of the key findings is that only 55 countries have good data. Synthesising what data there are, researchers found that high-income countries treat 70 percent of their wastewater while middle-income countries treat 28 to 38 percent. Just eight percent of wastewater generated in low-income countries undergoes any kind of treatment.

“From the earliest of times, most wastewater has truly been wasted. However, it is a vast resource if we reclaim it properly, which includes the separation of municipal from industrial wastewater,” said UNU-INWEH Director Zafar Adeel.

The volume of wastewater potentially available worldwide each year is equivalent to 14 months of outflow from the Mississippi River into the Gulf of Mexico, Adeel told IPS.

In poor, water-scarce countries, wastewater is widely used to irrigate foodlands – some estimate as much as 300 million hectares producing 10 percent of the world’s food, the study says.

However, there is little data to confirm this. It is often a country’s ‘dirty little secret’ that much of the food consumed in urban areas is grown using untreated wastewater.

Wastewater is valuable because it has very high level of nutrients, including potash, nitrogen and phosphorus, eliminating the need and cost of fertilisers. However, untreated wastewater can transmit diseases such as cholera. Chile experienced cholera outbreaks and banned the use of untreated wastewater in 1992.

“Disease outbreaks from using wastewater do happen but it is rarely cited as the cause,” said Qadir.

One reason is that few studies have been done. A few years ago Qadir and colleagues discovered higher rates of waterborne diseases like gastroenteritis in children in the Mediterranean who were eating food grown using untreated wastewater.

In the 1990s, fruit and vegetable exports from Jordan were banned for similar reasons. Jordan has since implemented an aggressive campaign to rehabilitate and improve wastewater treatment plants and introduced enforceable standards.

“Israel uses nearly every drop of its wastewater with specific uses determined by the quality”, Qadir said.

Many homes in California have separate grey and black water collection systems. Grey water from showers and dishwashing is reused to water lawns and gardens, the report said.

People are generally reluctant to eat food grown using wastewater but it is perfectly safe if treated properly, Qadir stressed.

“Unfortunately, water treatment is not seen as a priority in many countries.”