Global Trends in Financing Water

Abstract

The water sector is broad and diverse, and the principle of Integrated Water Resource Management requires that all its components should be properly financed if they are to be mutually reinforcing. The scale of current water financing and its main sources are presented, prior to a discussion of basic financing principles. Moreover, trends in water financing are outlined, focusing specifically on the current interest in sub-sovereign entities. Future needs, opportunities and prospects are then discussed specifically in relation to four sectors: water resource management, hydropower, household water services, and agriculture. The chapter concludes by examining three potential impacts of globalization on water financing, namely: water footprints, virtual water and international trade; the globalization of water services; and international and local capital markets.